Who wins, who loses under 7 percent cap
November 28, 2006
Is it a good idea to extend "the cap" that aims to stop Cook County homeowners' taxes from going through the roof? It depends whether you're on the winning or losing side:
Homeowners
The Civic Federation of Chicago says homeowners with skyrocketing assessed values would benefit from the measure granting a much bigger homeowner exemption to qualifying homeowners. This cuts thousands of dollars off their tax bills.But one study found a significant number of homeowners, especially senior citizens who benefit from the "senior freeze," end up paying marginally more under the plan.
Business property owners
The money shaved off homeowners' tax bills has to come from somewhere, so commercial and industrial property owners would pay more -- or at least not see their bills reduced as much. Instead of dropping $488 a year, the average commercial property tax bill would drop just $216 a year under the cap, the Civic Federation says.
"The [Cook County] assessor and the Civic Federation don't think it's a significant shift, but they're not paying the bills," said Michael Cornicelli of the Building Owners and Managers Association.
Apartment owners
The Civic Federation says apartment building owners on average will see reductions in their tax bills with or without the cap. The reductions would be smaller with the cap.