The Cook County Property Tax (PTAX) Reform Group, in collaboration with Josh Myers Valuation Solutions, has released a comprehensive study on commercial property valuation practices in Cook County.
The study focused on the processes, practices and outcomes of commercial valuation by both the Cook County Assessor’s Office (CCAO) and the Cook County Board of Review (BOR) and includes a Sales Ratio Study to measure the current system to industry standards.
The study highlights significant issues with current property tax assessment practices and offers actionable recommendations to improve equity, fairness and predictability in the Cook County property tax system.
“This study underscores the urgent need for reform in how we assess commercial properties in Cook County,” said Cook County Board President Toni Preckwinkle. “My administration will use these findings to further address the systemic, long-standing challenges in our property tax system – challenges that have persisted for decades. While reform will take time, this work is part of a broader, long-term strategy to create a more equitable and transparent property tax system that benefits everyone in Cook County.”
The study finds the commercial assessment process does not meet industry standards per the International Association of Assessing Officers (IAAO). The study identifies challenges that impact the fairness and uniformity of commercial property assessments. It finds that inconsistent valuation methods between the assessor’s office and Board of Review combined with a lack of data-sharing practices, contribute to substantial discrepancies in property values and assessments.
The study found that commercial properties are frequently underassessed in Cook County, particularly in the south and north suburbs, and that high value properties tend to benefit more so from this trend.
In addition, the study recommends several steps that can be taken at the county level to better ensure consistency and fairness in the assessment and appeal processes, including:
- Adopting standardized valuation methods across offices.
- Establishing improved data-sharing protocols to reduce discrepancies in assessments.
- The CCAO increasing their participation in the appeals process to enhance fairness and collaboration.
- Implementing a robust sale validation process to improve the accuracy of property values across the county.
This effort reflects the collaborative work of Cook County’s separately elected offices to address long-standing issues in the property tax system. Beginning in Spring 2022, the PTAX Reform Group worked with the Civic Consulting Alliance (CCA) to identify commercial valuation as a critical area of study and reform.
“This commercial valuation analysis addresses significant issues of equity in our property tax system,” said Cook County Assessor Fritz Kaegi. “I support all the recommendations included in the report and look forward to working with the Board of Review to implement these recommendations as quickly as possible.”
“We applaud the president and the PTAX Reform Group for commissioning this report,” said the Cook County Board of Review in a joint statement. “As members of the PTAX Reform Group, we have always been committed to transparency and collaboration among all government agencies involved in the property tax system and we will continue to assist each office with obtaining the data required to improve accuracy within the property tax system. We look forward to the continued investment by the County as it supports the implementation of the report’s recommendations.”
The Cook County PTAX Reform Group plans to engage a consultant to support the CCAO and BOR in developing a plan and timeline for implementing the study’s recommendations.
This study is the second in a series of in-depth analyses by the Cook County PTAX Reform Group aimed at transforming the property tax system in Cook County. The first study, released earlier this year in conjunction with the Chicago Metropolitan Agency for Planning (CMAP) and the Government Finance Research Center at the University of Illinois Chicago UIC), examined the impact of homestead exemptions on property tax rates.
That study uncovered how these exemptions, while providing relief to individual homeowners, can lead to higher overall tax rates and exacerbate inequities, particularly in historically disinvested areas. These and future studies provide a comprehensive look at the factors driving inequity in Cook County’s property tax system and lay the groundwork for meaningful, data-driven reforms.
Research for this project was supported with funding from the Cook County Equity Fund as part of the PTAX Reform Group convened by Preckwinkle. The reform group was created to work collaboratively on effective, long-term change throughout the property tax system and includes leadership from the Office of the President, the Cook County Assessor’s Office, Cook County Clerk’s Office, Cook County Board of Review and Cook County Treasurer’s Office.
The PTAX Reform Group’s mission is to ensure that the property assessment and tax system produces predictable, accurate, fair and equitable results in a timely and efficient manner for Cook County residents.
To access the study, click here.
