The cook county treasurer released a new property-tax study describing how tax bills have risen faster than both inflation and wages over roughly the past three decades, while pointing to structural drivers that local leaders now face pressure to address.
What does the Cook County Treasurer study say about the pace of property-tax growth?
The study, released by Cook County Treasurer Maria Pappas, finds that property taxes in Cook County have grown at twice the rate of inflation over the past three decades. It also states that property taxes outpaced inflation and grew well above wage growth during that period.
The report quantifies that growth in multiple ways. It says the county’s property tax levy increased from $6. 8 billion in 1995 to $19. 2 billion in 2024—described as roughly twice the rate of inflation. The Treasurer’s office calculations add that if the levy had stayed aligned with inflation, it would be closer to $10. 1 billion.
Another set of figures in the study summarizes the broader comparison: over the last 30 years, property taxes imposed in the county grew by 182% while inflation rose by less than 91% and average wages grew by 161%.
What happens when TIF districts and school funding drive tax demands?
The report identifies schools and tax increment financing (TIF) districts as leading contributors. It says schools countywide account for about 50% of the total tax bill and that school tax demands rose 189%, or $6. 9 billion.
It also details growth tied to Chicago Public Schools and other city governments, stating taxes imposed by CPS and other city governments rose from about $2. 9 billion in 1995 to nearly $8. 9 billion in 2024, in large part due to public pension funding mandates. Suburban municipalities added about $6. 3 billion for the funds.
The study further states that CPS has demanded more money because of pension costs, which total about $662 million a year. It says the city district is responsible for 65% of its own pension costs, while suburban school districts pay 2% because the state picks up the rest for them. The report also says Illinois covers a little less than a quarter of its schools’ funds, described as the lowest of any state, with the shortfall made up through property taxes.
Hal Dardick, director of research for the Treasurer’s office, said the pressure on schools “may require some sort of alternate method by the state of funding schools. ” The report notes that in 2017 state lawmakers set a 2027 goal to fund at least 90% of each school’s state funding needs, while stating the effort is $5 billion short.
What if loopholes in PTELL and uneven coverage shape outcomes across municipalities and neighborhoods?
The report argues that local policy design has also played a major role. Pappas points to loopholes in the state Property Tax Extension Limitation Law (PTELL), which was intended to limit tax increases to the rate of inflation or 5%, whichever is less. The study states that local officials used those loopholes to enact tax increases that substantially exceeded that limit, and it adds that 94 of the county’s 135 municipalities are not bound by the law.
Pappas frames the challenge as fundamentally tied to spending decisions. “The biggest culprit is what we call the levy, ” Pappas said. “Locally, we have to cut down how much we’re spending. ”
The study also highlights uneven neighborhood impacts over time, stating predominantly Black neighborhoods on the South and West sides were hit hardest. It cites treasurer’s office data showing the Oakland neighborhood, just north of Kenwood, had a 636. 22% increase in property tax bills between 1995 and 2024, while East Garfield Park had a 447. 22% increase. The Lower West Side, West Garfield Park, and North Lawndale each saw increases above 200%.
In the suburbs, the report provides comparisons that include unincorporated Riverside, where bills rose about 235% over the same timeframe, and Phoenix, Illinois, which saw an increase of 192. 73%.
The cook county treasurer study also lands amid ongoing state-level review efforts. In an email included in the coverage, Illinois Department of Revenue Director David Harris said the agency “continues to make progress on the property tax study required [by law], ” which directs it and other state agencies to evaluate the state’s property tax system and recommend possible improvements to associated processes.
Pappas is calling on state and local government leaders to produce a reform plan that works for taxpayers, as the report lays out both the magnitude of long-term growth and the policy and funding mechanisms that have compounded it.
