Modest Apartment Complex Hit Hard by Tax Hike
A family in Chicago is facing a dramatic increase in property taxes for their modest apartment complex. Michael and his mother, owners of the building, are dealing with a 440% increase in their property tax bill, which has jumped from $23,674 last year to $128,282 this year.
Financial Strain on Property Owners
The building, consisting of one-bedroom apartments typically rented by college graduates, is now at risk of bankruptcy due to the sudden tax hike. Michael noted that the only feasible way to cover the increased tax would be to significantly raise rents, which could deter potential tenants.
Legal Appeal in Progress
Michael’s attorney is currently appealing the tax increase with the assessor’s office. The significant hike is attributed to a change in property classification by the county. Previously considered commercial, these buildings are now classified as residential, which, according to the assessor’s office, corrects an unfair tax advantage given to them under the previous classification.
Potential Solutions and Broader Impact
The assessor’s office suggested that since the family are the sole owners of the building, they could apply to have the property reclassified as commercial for the next tax year, potentially lowering their future tax bills. Meanwhile, a study by the treasurer’s office indicated that property taxes across the county have increased by $614 million this year, a rise of 3.8%.
Community Impact and Future Steps
Michael expressed hope that the assessor’s office would reconsider the value of the property in light of the steep tax bill. He highlighted that many others in the community are also grappling with rising property taxes, underscoring a broader issue affecting property owners in the area.
