In October of 2015, the City of Chicago, Illinois (City) passed a record-breaking $588 million property tax increase in the City's portion of the local property tax bill. This increase is composed of two portions: The first portion totals $543 million, and is expected to be phased in over the next four years beginning with the 2015 second installment tax bills. The second portion of the increase, which totals $45 million, is related to school constructions for the Chicago Public Schools. This increase is expected to occur in year one.

The first portion of these tax bills (payable in August 2016), are intended to raise additional funds to support the City's police and firemen retirement funds. At the time the increase passed, the four year phase in was estimated to be as follows:

— $318 million for the taxes paid in 2016 with an estimated City tax levy increase of 37.7%
— $109 million for taxes paid in 2017
— $53 million for taxes paid in 2018
— $63 million for taxes paid in 2019

The above increases are based on the assumption that the State legislature will increase the homeowner's exemption or create a rebate program for eligible homeowners. If the legislature fails to act, the increase may be even larger.

Chicago

Along with the estimated 37.7% increase in the City's tax levy, tax liability for City residents will increase as a result of the mandatory reassessment in Cook County which will be reflected on the 2015 second Installment tax bills. As part of the 2015 reassessment, Chicago properties experienced a significant increase to their assessments. In those areas where the most valuable commercial and industrial properties are located, the reassessment increases typically ranged from 33% to over 50% of the originally assessed values.

Although the true effects of the property tax increase are not fully known due to the State legislature's involvement, Chicago property taxpayers should expect a significant tax increase in their 2015 property taxes payable in 2016. For example, the estimated increase for a commercial building valued at $10,000,000 is approximately $250,000 for just the City taxes alone.

Below are the assessment publication dates for the Chicago townships with the first- level appeal deadlines, which are 30 days from the date of publication.

Cook County Suburbs

Similar to Chicago, many suburban cities and towns are facing a pension crisis of their own. An increase to their property tax rates may be unavoidable as the State is unwilling or unable to provide assistance. Faced with looming pension payments, these suburban cities and towns may have no other alternative except to increase property taxes. With the potential for suburban cities and towns to increase their property taxes, property owners throughout Cook County should be paying close attention to their assessments. In 2016, the north suburban townships of Cook County will be going through a mandatory reassessment. Below are the reassessment publication dates for the north suburban townships with first-level appeal deadlines being 30 days from the date of publication.

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