COOK COUNTY 2020 FIRST AND SECOND INSTALLMENT TAX BILLS
Property owners should note, the 2020 first installment real estate tax bill was due on March 2, 2021. Per an ordinance passed by the Cook County Board, late charges were waived by the County if the 2020 first installment tax bills were paid by May 3, 2021. The first installment property tax bill in Cook County is always 55% of the prior year’s (2019 tax bill paid in 2020) full tax bill. Thus, even if you received a reduced 2020 assessed valuation due to our efforts or due to the Assessor’s COVID-19 cuts, the first installment tax bill will NOT reflect the reduction achieved. Any reduction will be reflected in the 2020 second installment bills which are anticipated to be mailed in late August, with an expected due date of October 1, 2021.
We are often asked, if given the COVID-19 crisis and associated economic impact, if real estate tax rates will fall. Several variables determine a property tax bill. The first variable is the assessed value of a property which is determined by appeals to the Assessor and Board of Review. The second variable is the county multiplier which is determined by the Illinois Department of Revenue. The third variable is the money (also called “tax levies”) needed by county and local governments to run their operations. Once we have all three variables, the County Clerk’s Office can calculate the tax rate used to determine a property tax bill. Depending on which variables go up, down, or remain the same, the tax rate can also go up or down. For example, if the assessment goes down, the tax levy goes down, and the county multiplier goes down, then the tax rate should go down.
At this point, it is hard to predict future tax rates in the City of Chicago and surrounding suburbs, but given the fact that many residential properties received reductions in assessed value of around 8%-12%, it is logical to assume that taxes may rise to account for these cuts and for the multitude of relief granted on commercial properties such as hotels and retail establishments.
We will continue to keep you updated as we obtain information.