Fritz Kaegi vs. George Cardenas: The Chicago Property Tax Showdown!
In a fiery exchange that could reshape the landscape of property taxes in Chicago, Cook County Assessor Fritz Kaegi has found himself in a public showdown with Board of Review Commissioner George Cardenas. The stakes? The escalating property tax burden that threatens to suffocate both residents and local business owners.
As the city gears up for a staggering $345 million hike in the property tax levy to tackle an alarming $1 billion budget deficit, Cardenas vehemently criticized Kaegi’s office in a recent op-ed. He asserts that a lack of transparency has left taxpayers in the dark about the implications of the 2024 triennial reassessment.
For Cardenas, this conflict isn’t merely about numbers; it’s about accountability. He insists that the city’s heavy reliance on property taxes must come to an end. “This is not just a fiscal crisis — it’s a moral one,” he declared.
The proposed property tax levy increase would catapult collections from $1.774 billion to a staggering $2.119 billion, with further reassessments likely to inflate this burden. Small business owners, already walking a tightrope with their slim profit margins, fear they may have no choice but to hike prices for customers, lay off staff, or even close their doors permanently.
The Civic Federation has echoed these concerns, lambasting the city’s over-dependence on property taxes as a reckless approach that exacerbates long-term financial instability. Cardenas contends that Kaegi’s reassessment methodology, combined with Chicago’s steep tax pressures, deepens this unsustainable predicament.
As a commissioner who regularly adjudicates tax appeals from property owners seeking lower valuations, Cardenas has also spotlighted broader issues regarding Chicago’s fiscal strategy. Currently, only about 25% of the tax bill goes to the city, while a hefty 55% is funneled to Chicago Public Schools. This uneven distribution, coupled with rising assessments, imposes a disproportionate burden on taxpayers.
Cardenas calls for Chicago to adopt best practices from cities like New York and Los Angeles, which employ transparent tracking systems and annual audits to unveil inefficiencies. He has proposed the establishment of a dedicated Office of Risk Management to ensure the city’s spending is scrutinized and fiscal accountability is enforced.
Ending on a note of urgency, he implored both elected officials and residents to demand greater transparency and pursue sustainable solutions.
In response to Cardenas’ critiques, Kaegi acknowledged the need for transparency but stressed the importance of context. He explained that data demonstrating how tax burdens fluctuate across neighborhoods won’t be finalized until the appeals process concludes and assessments are certified. This data is expected to be accessible early next year, with historical data already online.
Kaegi pushed back against Cardenas’ claims regarding a lack of transparency, arguing that his office provides detailed methodology worksheets to assist property owners in understanding and contesting assessments. However, he noted that the Cook County Board of Review, where Cardenas serves, has not matched this level of transparency in its decision-making.
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Kaegi also raised concerns about a pattern within the Board of Review of significantly reducing commercial property values during appeals, which he argues unfairly shifts the tax burden onto homeowners. He pointed to a 20% tax hike that the median south suburban homeowner faced in 2023 as a direct consequence of these reductions.
In a clarion call for shared and clear standards in assessing commercial properties, Kaegi believes transparency from both offices is essential in building public confidence.
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