REPORTS: Tax Hikes Expected To Increase Apartment Rents in Chicago

Posted by Leo Clark. on Sunday, December 12th, 2021 at 2:25pm.

Tax Hikes Expected To Increase Apartment Rents in Chicago With large tax increases expected to impact landlords, renters in parts of Chicago should probably brace for some significant apartment rent hikes in 2022. The large tax increases are being blamed on a couple of things.

First, over the course of 2021 the entire city was reassessed. That assessment level is 10-percent of a residential property’s market value.

Landlords should expect to start seeing the assessment increases from 2021 on their property tax bill in summer of 2022. Recently, the Chicago City Council approved a budget for 2022 that includes an automatic property tax increase of more than $76 million for the first time.

Higher market-value increases on properties in Chicago means higher assessed values. Analysts are already predicting that could translate into significantly higher real estate taxes and in turn, some rent increases come late 2022.

Property tax bills are determined by the tax rate, the equalization factor, the assessment and exemptions. The equalization factor is determined by the Illinois Department of Revenue.

It’s established yearly so that Cook County can bring its property tax assessments more in line with other parts of the state. Property tax bills are mostly, however, driven up by how much money local government spends.

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