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Chicago Tribune
17 hours ago
- Politics
- Chicago Tribune
Cook County tax board commissioner, staff face multiple fines from ethics board
Cook County's ethics board fined Board of Review Commissioner Samantha Steele and aides for a series of breaches this week, finding that she provided confidential information to the press about the Chicago Bears' Arlington Heights property and wrongly allowed a staffer to attend a conference on county time. A top Steele aide was separately fined for attending Cubs games and traveling for personal trips on county time. Reached Friday, Steele said she 'absolutely disagreed' with the findings but declined to comment further. Steele is one of three commissioners on the county's Board of Review, which hears property tax appeals. She is currently running in the Democratic primary for county assessor. The county's board of ethics released three findings related to Steele's office this week. The highest-profile found that Steele had improperly shared appraisal information about the Chicago Bears' Arlington Heights property with the media three different times. She did so first in the middle of settlement negotiations in mid-2023, and then again later that year during an appeal. Steele had been warned by the county's general counsel afterwards that the board was prohibited from commenting on pending, confidential board matters, noting the property tax code required board members to 'remain fair and impartial and free from bias or influence,' and that confidence in the board would be eroded if the board's decision-making was perceived to be 'subject to inappropriate outside influences.' But Steele again commented for February 2024 stories about an appeal, triggering an email from the Bears' lawyer, who asked why the press was notified before the team. The board of ethics found Steele's comments to Crain's Chicago Business, NBC Chicago and the Tribune amounted to three violations of confidentiality code in the county's ethics ordinance and fined her $3,000, which she must pay in 30 days. Steele was arrested in 2024 for driving under the influence of alcohol after a car crash, but has been fighting the charge and is due back in court later this summer. She won back her right to drive after her attorney argued she wasn't given proper warning of the consequences of refusing a breathalyzer test. She was fined another $1,000 by the ethics board this week and her top aide, Dan Balanoff, $750 for permitting an employee to attend an unauthorized conference unrelated to his county duties on county time. That employee, Ryan McIntyre, was fined the equivalent of 16 hours of county pay after he improperly attended the 2023 International LGBTQ+ Leaders Conference in Washington D.C. McIntyre managed Steele's calendar, meetings, and outreach events. He told the ethics board he was 'told to go' to the conference with Steele in late 2023. After learning about the trip, BOR staff told Balanoff twice that McIntyre would need to use paid time off to go because the conference was 'political in nature and unrelated to McIntyre's County duties,' according to the board's ruling. Balanoff told them Steele pushed back and he went on to approve travel and lodging expenses. The board did not determine attendance was 'prohibited political activity,' but did conclude it was unrelated to his job at the county. Balanoff, they said, 'still approved and submitted' McIntyre's request for reimbursement, permitting him 'to misuse County property,' and failing to ask about the purpose of the conference or review any materials related to it. Steele, meanwhile, 'had even more of a duty' to meet the highest ethical standards as the head of the office, including getting preauthorization for attendance at conferences and training sessions. In the third finding, the ethics board concluded Balanoff, Steele's director of special projects, 'conducted dual employment' by doing legal work for his own firm and attended non-government activities — including two Cubs games — on county time on four separate occasions. Balanoff admitted to answering client calls and working on three real estate transactions during county hours, though he contended he did not have a set 9-to-5 schedule at the county. Balanoff posted pictures of himself at Wrigley Field and the nearby bar, Murphy's Bleachers, on social media on August 4, 2023, when the team played against the Braves, after clocking in at the county that morning. He posted on his Instagram from Wrigley again on April 1, 2024, the day of the Cubs season opener against the Rockies. According to the board, he used sick time to attend when he should have used vacation time, a violation of the county's attendance policy. Balanoff also joined a Board of Review meeting virtually in September 2023 while on a plane for a personal trip after clocking in that morning and not requesting time off. He said he had notified Steele of the travel. The board reported a similar incident in which Balanoff traveled for personal reasons without clocking out. The board separately found Balanoff took non-county calls during normal working hours. Balanoff tried to challenge the board's investigatory findings after he resigned on May 25, arguing the board didn't have jurisdiction anymore, that he did not knowingly violate the county's rules, and that his use of county resources was 'de minimus,' because they did not interfere with his county duties or impose extra taxpayer cost. The board said those arguments were 'unavailing,' that his behavior was 'troubling,' and that the comingling of the outside activities 'creates the appearance of impropriety' and misused taxpayer funds, but was not 'an indictment of Balanoff's performance of his County duties.' He was fined a total of $4,500 for various ethics provisions, which are due within 30 days. Balanoff on Friday said the ruling was a political attack by opponents to unionization within the office. 'We obviously don't agree with it, I'm going to appeal,' he said.
Chicago Tribune
09-05-2025
- Business
- Chicago Tribune
George Cardenas: Property tax burden has shifted to homeowners, but businesses are still in distress
The recent report issued by Treasurer Maria Pappas presents just one part of the property tax assessment system in Cook County — the appeals process. While raising important points about regressivity, the report makes brief mention of the broader context, but for the rising property tax bills, that is where the focus needs to be. To begin with, the assertion that nearly $2 billion in property taxes has shifted from businesses to homeowners through the appeals process neglects the significant economic distress currently affecting commercial properties. The COVID-19 pandemic dramatically devastated the valuation of commercial properties nationwide, particularly in downtown Chicago, resulting in unprecedented vacancies, reduced rental income and a general economic downturn for businesses. As anyone can see, downtown Chicago has dramatically changed during the last four years. There are fewer places to eat, many retail shops on Michigan Avenue and the Loop have closed, and workers have not fully returned. All the above absolutely had an impact on market valuation. As a point of fact, according to the Cook County assessor's office in January 2021: 'The adjustment process (the COVID-19 factor) for the City of Chicago started with an understanding of where current market values stand relative to recent sales. In a sales ratio study of 2018 estimated market values conducted by the International Association of Assessing Officers, many commercial properties were already under assessed when compared to 2018 market sales and therefore further decreases to reflect the effects of COVID-19 were not needed.' Thus, even though commercial properties in Chicago were dramatically impacted by COVID, the assessor's office provided little relief through the COVID factor. Decisions by the assessor's office, such as the ill-designed COVID-19 factor, necessitated careful consideration of the real value of property by the Board of Review. Upon appeal to the Board of Review in 2021, the resulting decreases from the assessor's office increases were justified to reflect actual market conditions. Moreover, the focus of discussion needs to be the other major contributors to property tax increases: the significant growth in property tax levies from various taxing bodies, most notably Chicago Public Schools. According to the Cook County clerk, CPS alone increased its property tax levy from 2014 to 2023 from $2.4 billion to $3.8 billion, respectively. By focusing on appeals, are we missing the primary drivers of property tax increases? Additionally, the disparities in appeal rates among neighborhoods highlighted by the treasurer's report largely stem from inequities in information access and education regarding the appeals process, rather than just the appeals mechanism itself. The Board of Review actively promotes homeowner education and conducts numerous outreach efforts, particularly aimed at underserved communities. Last year, the Cook County Board of Review's 1st District hosted 50 town halls, where the board accepted approximately 7,400 appeals. Pappas' office, as the issuer of tax bills, can assist in this essential role in addressing these disparities by proactively notifying homeowners of appeal opportunities in multiple languages already available through Cook County. The Cook County Board president commissioned a thorough study by Josh Myers Valuation Solutions, titled 'Analysis of Commercial Valuation Practice in the Cook County Property Tax System,' published in December. This comprehensive report recommended improvements including standardizing valuation methodologies, improving data sharing between the assessor and the Board of Review, and enhancing overall assessment accuracy and uniformity. These solutions directly address the core issues within our property tax system, unlike the treasurer's focus solely on appeals outcomes. Lastly, the report raises valid concerns about the regressive nature of the property tax system but offers no practical or comprehensive solutions. The Cook County Board of Review has consistently advocated for reforms to improve initial assessments and ensure equitable outcomes for all taxpayers. Real and lasting change will require collaboration across all county offices, including the treasurer's office, to enhance transparency, fairness and equity in the assessment and appeals processes. We invite Pappas and all relevant stakeholders to partner constructively with the Board of Review in developing and implementing comprehensive reforms that address the root causes of property tax regression and promote fairness for all Cook County residents.
CBS News
05-05-2025
- Business
- CBS News
Nearly $2 billion in Cook County property taxes shifted from businesses to low-income homeowners, study finds
A study from the Cook County Treasurer's Office found nearly $2 billion in property taxes shifted from county businesses to the lowest income homeowners over just three years. The study found property tax assessment appeals submitted by businesses in Cook County caused their collective tax bill to drop by $3.3 billion, while residential tax bills went up $1.9 billion. The study also found the additional tax burden on homeowners fell mainly on low-income Black and Latin homeowners who make less than $50,000 a year, who contested their assessed values at a much lower rate than wealthier white homeowners. Cook County Treasurer Maria Pappas said she has found that most homeowners are overwhelmed by the daily tasks in their lives and so taking actions like appealing your property assessment or taxes are simply not on their radar. Pappas' office said the study suggests current efforts by the Assessor's Office and the Board of Review to standardize their methodology and share date could lead to fewer and smaller small business assessment reductions which could, in turn, reduce the shifts in the tax burden onto low-income homeowners. Her office also suggests outreach to low-income homeowners so they have the knowledge and tools to appeal their assessments.
Axios
05-05-2025
- Business
- Axios
Property taxes hit low-income areas hard
While office tower values shrank in recent years, homeowners — especially in the city's poorest neighborhoods — paid the price, a new Cook County Treasurer's report says. Why it matters: The study helps explain why homeowners and renters have seen their taxes and rents rise in recent years, adding to the city's housing cost burden. From 2021 to 2023 commercial real estate owners saw their property tax bills drop by $3.3 billion, while homeowners took on nearly $2 billion more in taxes. Yes, but: Those years wreaked havoc on the commercial real estate market as remote work slashed demand for office space. So their lowered valuations and taxes aren't a huge surprise. By the numbers: The analysis revealed that business property owners appealed their valuations more than twice as often as homeowners. While business reductions rose to $25.5 billion from 2021 to 2023 (compared with $9.9 billion from 2015 to 2017), assessed value reductions for homeowners declined. What they're saying: The Board of Review"cut $17.3 billion in commercial property values on appeal, turning $22.5 billion of potential growth into an increase of just $5.2 billion," Cook County Assessor spokesperson Christian Belanger tells Axios. The other side: The BOR reduced the assessment because "the Assessor has been overvaluing properties," BOR commissioner Samantha Steele tells Axios. Our "role is to give the taxpayers their due process. … It's time for the Assessor to do the basic functions of the office and get the assessments right in the first place." Of note: An independent analysis of CCAO and BOR actions suggests that both agencies have mis-assessed values, albeit in different county regions. Rich vs poor neighborhoods: Homeowners in the wealthiest neighborhoods were four times more likely to appeal their assessment than those in the lowest-income areas, the Treasurer's report says. Appeal rates in primarily white neighborhoods were 35.5% but 10.85% in Black and 14.06% in Latino areas. The tax burden from appeals increased by about 5% in high-income areas and about 10% in low-income areas. The intrigue: Filing appeals can seem daunting (and we explain how to do it here), but the analysis suggests it can make a difference, citing these two examples: In one Census tract of Gage Park, a low-income majority Latino community where only 5.2% of homeowners appealed, tax bills rose nearly 23%. But in a tract of high-income, majority white North Center, 60% of homeowners appealed their assessment; tax bills rose less than 15%. What's next: Belanger says the assessor's office will be "sharing information and working with the BOR on joint standards for property valuations" to create a more "uniform process."
Chicago Tribune
05-05-2025
- Business
- Chicago Tribune
Appeals system raised property tax bills for Cook County homeowners, report says
Cook County's property tax appeal process shifted $1.91 billion in taxes from businesses onto homeowners over the last three years, exacerbating inequities in the city and suburbs, a new report found. Homeowners' bills grew by a total of about 7% over that span as a result of the shift, according to the latest report from the Cook County treasurer's office, the first to calculate how much shifting burdens have cost on property tax bills. Those increases fell more on lower-income Black and Latino taxpayers, the report found. The report does not draw conclusions about whether those appeals were correct, but does show 'that the county's assessment appeal system works far more to the advantage of business property owners than homeowners, and at the same time favors wealthier white homeowners over lower-income minority homeowners.' It looked at the impact of appeals at the county assessor's office and the three-member Board of Review during the 2021 and 2023 tax years. Though those years corresponded with much of the pandemic, its conclusions echoed similar findings from a Chicago Tribune and ProPublica investigation in 2017 about appeals' impact on assessments. Properties are reassessed every three years. Every year, owners have two chances to knock down their assessments via appeals before the value is finalized: once at the assessor, next at the Board of Review. If they're dissatisfied with those results, they can take their case to the Illinois Property Tax Appeal Board or to circuit court. Owners of businesses have historically been far more likely to appeal. In the span of the study, nearly 64% of commercial building owners appealed, representing more than $100 billion in value. More than 46% of all businesses were 'serial' filers, appealing every year, according to the report. Business appeals 'were particularly successful' in the period of the study, the report found, lowering 'their taxes through appeals by a total of 12.5%,' or about $3.3 billion. Owners that didn't appeal wound up paying for it: Any reduction in assessed value for one property owner shifts the burden onto others. Successful appeals for valuable commercial buildings have a much bigger impact and shift millions in tax burden onto homeowners and other businesses. While overall 27% of homeowners appealed, the study found 'wide variations' in which homeowners filed their own appeals. Just 3.4% of homeowners in West Englewood, a majority-Black and low-income neighborhood on Chicago's South Side, disputed their assessment during 2021 city cycle, while nearly all Loop homeowners — 96% — did so. That could be because assessments dropped in Englewood and went up in the Loop that year as Cook County Assessor Fritz Kaegi rejiggered the office's methodology. In the suburbs, just 22% of south suburban homeowners appealed during that reassessment year, compared with 60% of those in the north suburbs. Homeowners and businesses in lower-income areas were 'hit the hardest,' the study found. 'Homeowners in those neighborhoods were less likely to appeal, less likely to win and, when they did win, received lower overall dollar reductions in their homes' assessed values,' the report said. Appeals led to bills increasing by about 5% for homeowners 'in high-income areas and about 10% in low-income areas, most of which had predominantly minority populations.' The assessor's office said a major reason for appeal rate disparities by neighborhood could be that median bills in wealthier neighborhoods are much higher. In some Chicago neighborhoods, the treasurer highlighted particularly sharp hikes where residents could least afford it. The South Deering neighborhood, which is majority Black and has a median household income below $35,000, saw overall tax bills go up 24.3% following appeals during the 2021 Chicago cycle. So did the majority-Latino Gage Park neighborhood, where median household income is about $50,000. It saw bills go up by 23% that year after appeals. But while all property owners have the right to appeal, Cook County Treasurer Maria Pappas said the answer isn't necessarily for everyone to do so. Rather, the assessor's office and Board of Review need to get on the same page about their data and methodologies so owners trust the assessments in the first place and so reductions for businesses aren't as dramatic, she said. Both offices pledged to do just that in December, after a county report concluded decades of communication failures had helped fuel gaps in how each office approached assessments. That study, commissioned by Cook County Board President Toni Preckwinkle, found suburban businesses were assessed too low compared with their actual sale prices and that appeals to the Board of Review made assessments less accurate. It also found Kaegi initially assessed Chicago commercial properties too high in 2021. But the political reality of reaching consensus is thorny. Board of Review Commissioner Samantha Steele and two board employees with ties to Commissioner Larry Rogers Jr. are running to replace Kaegi in the March primary. Steele and Rogers, meanwhile, are also rivals. 'These two offices are in a war zone, and if they don't stop their war zone, this is going to go on,' Pappas said. 'Can we get to the middle to get to a solution that doesn't hurt people?' Assessments for commercial buildings have been a hot button issue since Kaegi took office. The previous Tribune investigation found high-end downtown businesses had been under-assessed. For thousands of those properties, the investigation found, their assessment did not change 'even by a single dollar,' while for others, their assessments were 'so riddled with errors that they created deep inequities.' Kaegi pledged to fix those issues. The first commercial assessments he mailed were 82.5% higher in the north suburbs in 2019, 55.6% higher in the south suburbs the following year, and up 76.5% in Chicago in 2021. Business owners, believing Kaegi overcorrected, filed appeals, and the county's Board of Review, which disagreed with Kaegi's methodology, often granted reductions. Kaegi's office, in a statement, said the latest report backs up its long-held contention that 'outsized reductions' granted by the Board of Review to big commercial appellants are what is driving the shift. 'By comparison, the tax bill changes due to differences in residential appeal rates are relatively minor. We don't believe the problem of property tax unfairness is solved by pitting homeowners against each other, distracting us from the much more consequential inequities at play,' the statement continued, noting that independent analyses found Kaegi's assessments are more accurate than past years. Rogers, the chairman of the three-member Board of Review, said the assessor's 'flawed valuations' are to blame. 'The buck starts and stops with Fritz Kaegi.' Pappas' study suggests if the two offices standardized their data, they might grant smaller business breaks and reduce the massive shifts from the appeals process. The two previously promised to work together, and she said she hoped the report would help 'nudge' them to collaborate. Until then, the report said low-income homeowners should also be given tools to help appeal their assessments. Kaegi's office, the statement said, participated in more than 200 outreach events for homeowners to help with appeals and exemptions last year.
