News Updates

Cook County property tax classification effects on property tax burden

The use of property tax classification in Cook County makes it difficult to encourage and strengthen non-residential development in existing communities. In particular, commercial and industrial properties in Cook County may experience higher tax burdens as compared to similar properties in adjacent counties. This may reduce the potential for nonresidential development and redevelopment.

Commercial and industrial properties in Cook County account for 17.0 percent of the overall market value, but 35.1 percent of the overall tax base. While the magnitude of impact varies from place to place, commercial and industrial property owners shoulder a greater tax burden than residential taxpayers in Cook. This disproportionate burden does not exist in the collar counties, where business and residential properties are assessed at the same rate.

Reforming classification could reduce commercial and industrial property tax rates in many communities, making them more attractive for development. High tax burdens for commercial and industrial properties, as compared to similar properties in adjacent counties, can deter businesses from locating in certain communities. If this causes the tax base to grow slower than the cost of public services, residents and businesses alike could face even higher tax rates to cover public service costs.

As recommended by GO TO 2040 and reinforced by the Regional Tax Policy Task Force, CMAP continues to study how property tax assessment classification in the region may impede business development and economic activity. This policy update builds on prior CMAP analysis and describes the effects of classification on property tax rates in Cook County.