Cook County’s property tax system is a case study in persistent dysfunction, and reform is elusive because the system is a cash cow for local governments. The broken assessment and appeals processes are lucrative moneymakers for the politically connected.
A simple but critical first step to buy time for real comprehensive reform is to cap property tax growth for individual parcels experiencing dramatic increases in their bills.
Taxes have again surged, with Treasurer Maria Pappas’ analysis documenting historic hikes: Median residential tax bills in Chicago jumped 16.7% to $4,457, the largest percentage increase for city homeowners in at least 30 years. The pain is most acute in Black communities: West Garfield Park saw the median tax bill climb roughly $2,000 (133%), North Lawndale nearly $1,900 (99%) and Englewood $609 (82%).
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These increases are not anomalous. They are the continuation of a long trend: Over the last decade, property taxes have risen at a rate that dwarfs the growth in home values.
From 2021 to 2023, Cook County’s property tax appeals system enabled businesses to shave almost $3.3 billion off their bills, pushing $1.9 billion in tax burden onto homeowners, the treasurer’s office reports. While commercial property is nominally assessed at a higher rate, the successful appeals — granted disproportionately to well-resourced business owners — have shifted costs to everyday residents and contributed to growing inequality.
Although previous studies have documented how assessment appeals shift tax burdens, the county treasurer’s study is the first to determine the resulting changes to the amounts billed to property owners. That analysis revealed that the percentage increases in tax amounts billed to homeowners were far greater in areas with lower-income minority populations.
Schools have the largest share of property tax revenues and have seen that share grow as they are the primary driving force behind the increases. While Mayor Brandon Johnson claims restraint on city property taxes, he has not curbed Chicago Public Schools’ reliance on property tax revenues, which now make up around 50% of the city’s property tax take.
Illinois property tax caps are riddled with exceptions. They do not apply to home rule entities such as Chicago and Cook County, nor to properties that have been reassessed or improved; school districts can circumvent them to recoup lost revenue from successful appeals. Tax increment financing districts, conceived as development tools for blighted neighborhoods, now siphon over $1 billion from the tax base annually countywide, inflating effective rates for everyone while offering little targeted relief.
Instead of enacting structural reform, county officials opt for patchwork relief that barely scratches the surface. These are largely political gimmicks. For example, in 2025, Cook County will distribute just $15 million in late penalty revenue. These piecemeal efforts underscore a deeper disinterest in permanent solutions.
Cook County’s property tax administration has been hampered for decades by obsolete 1970s-era mainframes. The $75 million modernization project awarded to the politically connected Tyler Technologies has now ballooned to $265 million, with major delays forcing continued spending on legacy systems and maintenance. System failures have disrupted county operations while political finger-pointing abounds.
The inefficiency of Cook County’s system isn’t just administrative — it’s political. Cook County has had a history of insiders profiting from the broken system, including the now-incarcerated former Illinois House Speaker Michael Madigan and ex-Ald. Ed Burke. This entrenched overlap of politics and profit highlights why real reform is so elusive.
Year after year, Cook County’s property tax regime exacts a greater toll on families unable to lobby, appeal or navigate arcane rules. A simple but critical first step is to cap property tax growth for each individual residential and commercial parcel experiencing dramatic increases in their bills. This would shield homeowners and small businesses from unpredictable spikes and prevent rent shock, while helping neighborhoods benefit from rising property values without penalty. It also protects against gentrification pressures while supporting stable business growth and local investment.
Individual property tax caps would provide property owners immediate protection while buying time for real property tax reform. Fundamental reform — fairer assessments, political accountability, technological modernization and relief targeted to those most burdened —remains not only possible but also essential.
The choice belongs to Cook County voters. Will they demand accountability from Cook County Board President Toni Preckwinkle and leaders complicit in this ongoing dysfunction or tolerate a system where only the connected benefit?
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The next election may finally deliver the answer.
Paul Vallas is an adviser for the Illinois Policy Institute. He ran against Brandon Johnson for Chicago mayor in 2023 and was previously budget director for the city and CEO of Chicago Public Schools.
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