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Amanda Kass
Friendly reminder that property tax rates in Chicago are a function of amount of money government requests (the "levy") and property value. Levy/property wealth = rate. 1/x
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Amanda Kass Aug 8
Replying to @Amanda_Kass
An individual's property taxes could increase because of 1) the property's value has increased, 2) governments increase their levies, or 3) both. Lakeview is being re-assessed, is a hot market (as the article mentions), and the City has increased its levy 2/x
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Alex Mrugala Aug 8
Replying to @Amanda_Kass
This took me a while to learn. I think ever conversation on property taxes should begin with this line.
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Amanda Kass Aug 8
Replying to @Amanda_Kass
Property values in Lakeview are also likely going up significantly due to current assessor Berrios rolling out a new model (as mentioned in the article) after the previous model was exposed as being flawed and overvaluing some properties and undervaluing others 3/x
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Amanda Kass Aug 8
Replying to @Amanda_Kass
What has been the roll-out of the new assessment model? How much communication to the public about what to expect has there been? Can taxpayers tell how much of the increase is due to increased levy vs. new model vs. hot market (do they even care)? 4/x
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Amanda Kass Aug 8
Replying to @Amanda_Kass
I think it's important to understand what's driving the increases between increased levy vs. new model vs. hot market because the public education/policy responses is different for the three. 5/x
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Amanda Kass Aug 8
Replying to @Amanda_Kass
Last, the reaction in Lakeview and Tunney's responses in the article (like “I pay these property taxes, I am as angry as anyone”) highlight how politically difficult it may be to really correct the flawed assessment system that's existed for a long time. 6/6
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Amanda Kass Aug 8
Replying to @alexmrug
it's difficult! I didn't even touch on equalized assessed value or how different taxing jurisdiction boundaries could lead properties in the same neighborhood to have different rates or TIF
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Manuel Excel Aug 8
Replying to @Amanda_Kass
how does the City determine whether or not to increase the levy? do they just have a few rules and then plug and chug or does the City have more discretion than that?
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Amanda Kass Aug 8
Replying to @colintj
I mean the levy is a function of what's needed to support spending (including current services + debt service). The City can set the levy to whatever it wants. CPS, however, is constrained by the Property Tax Extension Limitation Law.
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Amanda Kass Aug 8
Replying to @colintj
In general, things can get complicated real quick because there's both PTELL and tax rate limitations for certain extensions. Just check out how many taxing districts there are in places:
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Dennis Griffith Aug 8
Replying to @Amanda_Kass
Is that a legal mandate or just an Econ 101 sort of ideal law?
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Amanda Kass Aug 8
Replying to @colintj
Also, governments don't necessarily have just one levy (see ).
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Amanda Kass Aug 8
Replying to @colintj
To sum (sort of), an individual property likely lies within the boundaries of multiple taxing districts, which each set their own levies. Each taxing district may have multiple levies, and those individual levies are subject to different restrictions/limitations
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Amanda Kass Aug 8
Replying to @ISANobody_
what do you mean? it's literally just how it works here
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Bobby Otter Aug 8
Replying to @colintj @Amanda_Kass
Easiest way to think about is the mayor sets the levy for City and CPS (with help from the budget office). CPS is a separate taxing body, but mayor controls the Board on down. As Amanda said, PTELL caps how high CPS can go, but they almost always raise the levy to the cap.
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Evan Jenkins 🚫🚗 Aug 8
Maybe they're mad that Tunney hasn't done enough to reduce their property values.
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Bobby Otter Aug 8
Replying to @colintj @Amanda_Kass
City Council then has to approve it, CPS Board also too (again appointed by the Mayor).
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Dennis Griffith Aug 8
Replying to @Amanda_Kass
That's what I was looking for. I think rates are set by the state here, but at some level they still have to equal expenses. I don't know how mismatches get fixed though.
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Alex Mrugala Aug 8
Replying to @Amanda_Kass
I don't think people appreciate how complicated property taxes are. Especially with all the exceptions. But for the longest time I just thought they were just assesed value * tax rate = your tax bill. I have a feeling that's a common misperception (at least among renters).
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