Study Shows “Significant” Underassessments of Chicago Commercial Properties in 2018
Sales data for commercial properties in all but two Chicago townships in 2018 show that many assessments fell far short of corresponding market values, according to a recently released analysis by the International Association of Assessing Officers (IAAO).
The findings follow a June 2019 study of residential sales and market values that found similar problems with underassessment and lack of uniformity for residential properties in the city of Chicago.
The reports cover assessments that occurred prior to the term of current Cook County Assessor Fritz Kaegi, who came into office on a platform built around ending such disparities with a fairer, data-driven approach. “I’ve promised to fix the inequities and unfairness of the past,” Kaegi said in a statement. “Reports like this are the only way to know whether an assessment system is fair or not.”
The IAAO study found that overall, the 2018 estimated market values of commercial properties in Chicago exhibited “significant underassessment and regressivity as well as a lack of uniformity, creating the potential for unfair tax disparities,” according to a summary posted on the Cook County Assessor’s Office website.
According to the report, on average, the estimated market value for Chicago commercial properties in 2018 was 52% of corresponding sales value.
Underassessments of Some Properties at the Expense of Others
Kaegi acknowledged that although the office has taken steps to improve the process, “there is still work to be done.”
Getting assessments right is a difficult process and underassessments of some properties can lead to other properties paying more than their fair share.
The only way to be sure you are not paying more than your fair share in property taxes is to appeal your assessment every year. An appeal ensures that your assessment is thoroughly vetted for fairness and uniformity against other similar properties.
At Kensington Research & Recovery we have decades of experience in analyzing the data underlying your property tax bill and a proprietary algorithm for identifying the comparable properties that make the strongest case for a reduction. If you think you are paying too much in property taxes, give us a call or click on the link below for a free, no-obligation estimate of how much you may be able to save with an appeal.