Mike Fourcher’s “The Daily Line” email today talks about the apparent impending repeal of the soda tax by the Cook County Board.
Included is information about property taxes.
What first caught my eye was the follwoing sentence:
But after decades of relatively low taxes–yes, you heard me right–Chicago and Cook County citizens are discovering somebody has to pay for all the stuff we’ve got here.
How rare is it for those based in Chicago to admit that their taxes are low!
Unfortunately, Fourcher concentrates on comparing tax rates, which ignores the fact that homes in Cook County are assessed about two-thirds as high as those outside of Cook County.
He reports this observation:
While this might be news to most Cook County residents, downstaters are acutely aware of it.
During last summer’s debate over education funding, witnesses regularly testified how they were paying sky high property taxes to keep their schools open.
One downstate school superintendent testified he paid $8,000 a year on a $300,000 house.
That means if Cook County residents, and Chicagoans in particular, have a gripe about their taxes, the rest of the state will not give a hoot.
There is a better way to compare property tax burdens than using tax rates.
As readers of McHenry County Blog might remember, there is a measure called the “effective tax rate.”
By dividing one’s tax bill by the value of one’s home, one can obtain one’s effective tax rate.
I found a web site, SmartAsset.com that provides this information.
The link in the previous sentence shows McHenry County’s effective tax rate–2.766%.
That means people living in McHenry County–on average–pay 2.766% of the value of their home in taxes every year.
Using the same web site for Cook County shows an effective tax rate there of 2.009%.