C
ook County Board President Toni Preckwinkle has identified significant flaws in the commercial property tax assessment system, which consistently undervalues properties. A report commissioned by the board found systemic issues, including a lack of data-sharing and inconsistent methodologies between the Cook County Assessor's Office and the Board of Review. This has led to an unfair tax burden on homeowners and complicated the appeals process for commercial property owners.

    The study analyzed commercial property valuations from 2020 to 2022 and compared them to actual sale prices, revealing that suburban properties were undervalued while high-value properties in Chicago were often overvalued initially but corrected through appeals. The report highlights poor collaboration between the assessor's office and the Board of Review as a root cause, citing differing approaches to valuation and a lack of shared data.

    Key recommendations include establishing a centralized database for property information, using consistent valuation methods, and enhancing transparency through detailed hearing packets. Preckwinkle emphasized the need for reform, describing the current system as inequitable and outdated. Assessor Fritz Kaegi welcomed the recommendations, stating they address the "biggest equity issue in our property tax system." The Board of Review also expressed its commitment to collaboration and improving public confidence in the system.

    To track progress and restore trust, Preckwinkle plans to conduct annual sales ratio studies. This effort aims to promote commercial investment and growth, ultimately providing sustainable relief for residential property taxpayers facing dramatically escalating property tax bills.