BOMA/Chicago Taxation Committee Invites Assessor Kaegi to Meet
Committee Advocates for Greater Transparency and Fairness
Given Tax Burden Shift onto Commercial Properties during Recession
BOMA/Chicago’s Taxation Committee hosted Cook County Assessor Fritz Kaegi at its meeting on Tuesday, March 30. Topics discussed included the Assessor’s data exposure legislation, Cook County’s unique classification system, transparency standards, cap rates, and the COVID readjustments issued to residential properties in 2020.
Taxation Committee Chair Harvey Camins reiterated BOMA/Chicago’s opposition to the Assessor’s data exposure legislation. Camins cited the following reasons BOMA/Chicago is opposed to the legislation:
- Data reporting for assessments should be voluntary, not mandatory under threat of fines
- Only a small number of jurisdictions currently require mandatory data reporting
- The IAAO, the international association of government assessment officials, does not recommend mandatory reporting when a voluntary system is viable
BOMA/Chicago Executive Director Farzin Parang noted the association’s interest in collaborating with the Assessor’s office and offered to work together on efforts related to voluntary data collection for commercial properties.
Committee members also noted that Cook County is the only county in Illinois and one of very few municipalities across the country that assesses commercial properties at a higher rate than residential properties. Cook County’s unique classification system – assessing commercial properties at 25 percent while residential properties are assessed at 10 percent – produces a higher assessment rate for commercial properties that is 2.5 times that of residential properties. Once the multiplier is applied, commercial properties are assessed at upwards of 62 percent. Conversely, Illinois commercial and residential properties outside of Cook County are all uniformly assessed at 33 and a third percent. Commercial properties heavily subsidize residential taxpayers in Cook County.
BOMA/Chicago will continue to keep open communication with the Assessor’s office while advocating for our members and for policies that promote growth.