CHAMBER OI COMMERCE
CHAMBER OF COMMERCE
OWNERS AND MANAGERS
The lmpact of the 7 Percent Assessment Cap Law: The Untold Story
The 7 percent assessment
cap law caused an enormous properry ta-x shift in Cook Counry. In2003 md2004, hundreds of thousands
in Chicago and north suburban Cook Councy saw their tax bills rise so properry-rich homeowners in areas of high
appreciation could enjoy tax breaks on their rapidly rppreciating homcs. South suburban Cook County will experience a similar
affcct in 2005.
The over:ril tax extensrons dici not decrease-instead
there was a rrdical shift in whrt different classes of properfy owners prid to
func-l schools, municipal services and other governnent costs. Some got txx breaks, but nlany nlore paid higher tex biils.
The law undermines economic growth and job creation in Cook Cor,rnty by imposing higher tax bills on job creators such as
small :tnd large br.rsinesses,
and conrmercial and industrial properry o\,vners.
WINNERS AND LOSERS
Not all homeowners receivecl breaks. Many homcowners espccidly those in areas of slower appreciation like thc South Side of
Chiclgo and South and Southwest Subnrban Cook County havc paid or will pay mor:c.
Seniors, rpartnrent owncrs and renters, commercirl properties, and small businesses
also paid higher texes. A-ll thcsc groups are
paying r-nore in order to subsidize big tlx brelks to properry-rich homcowners throushout Cook County.
Following are actual examples of the winners and losers under this law.
> This home in Glencoe got a $1 ,435 tax break.
> This home in Chicago paid $104.'16 more.
WINNERS AND LOSERS-REAL
Who is getting the big tax breaks under the 7 percent assessment cap?
' At least 5() percent of hones in'Winnetka received a $1,34U tax break for 2004 under the current ]aw's
EAV cap of$20,000
. Those homes rvould have received a $4,028 tax break if the EAV cap were increasecl
fron $20,000 to $6(),00