The Chicago Board of Education agreed, January 26th, to pay almost a quarter of a million $ to the Trump Tower condominium owners, and also voted to pay $2 million to another group of Chicago luxury condo owners, in the Gold Coast, as property tax refunds.
What is a property tax and how can one appeal
Property tax is a tax paid on property owned by an individual or other legal entity, a business, a corporation etc. Most commonly, property tax is a real estate ad-valorem tax, which can be considered a regressive tax. The tax is calculated by the local government of the area where the property is located and paid by the owner of the property. The tax is usually based on the value of the owned property, land included.
Property taxes are levied, collected, and spent locally to finance a major part of the services provided to the residents by the local government.
The local governing body will use the assessed taxes to fund water and sewer improvements, and provide law enforcement, fire protection, education, road and highway construction, libraries, and other services that benefit the community.
Typically, Chicago’s public school system gets about half of the city’s property tax revenue, meaning it stands to lose the most if property owners nab a big refund.
The appeal process begins at the local level. The property owner is appealing the assessed value of your property, not the tax bill. The amount of the tax bill is determined by the different tax rates applied to the assessment based on the levies of various local government taxing districts which include counties, townships, municipalities, school districts, special districts, etc. If the assessment increases, the change must be published in a local newspaper. Individual notices will also be mailed in some instances.
Reasons for an appeal include:
The assessor’s market value is higher than actual market value. (This claim can be supported if you have recently purchased your property on the open market or if you supply a professional appraisal.)
The assessed value is at a higher percentage of market value for the property than the prevailing township or county median level as shown in an assessment/sales ratio study. The primary assessment of the property is based on inaccurate information, such as an incorrect measurement of a lot or building. The assessment is higher than those of similar neighboring properties.
The settlement avoided paying a higher sum to the trump Tower condo owners
The board authorized the settlement of appeals by Trump International Hotel & Tower regarding property at 401 N. Wabash Ave., Chicago, Illinois. The total sum to be paid is of $221,802.00 plus interest, for the tax years involved. The refund will be implemented by reductions in the Board’s property-tax revenues in calendar year 2021 or thereafter. This settlement does not involve a direct payout of Board funds.
The condo owners , represented by attorney Patrick McNerney, who has also done legal work for Trump, argued their $647 million combined assessment was only worth $500 million.
Although the taxing body has to pay back the condo owners, Board of Education attorney Ares Dalianis told the Chicago Tribune the school board saw the settlement as “favorable” because the residents in Trump Tower were seeking far more when they appealed. If the condo owners had succeeded in that argument, the Chicago Board of Education would owe the condo owners $1,351,000, Dalianis said.
As stated on the settlement authorization, Chicago Board of Education’s General Counsel has determined that this settlement is in the Board’s best interest.
The board also voted on January 26th, to pay $2 million to another group of Chicago luxury condo owners, this one along North DuSable Lake Shore Drive in the Gold Coast. The money will also be deducted from the Board’s tax revenues in calendar year 2021 or thereafter.
In the Trump Tower case, the condo owners collectively appealed their 2015 Cook County property tax assessments to the Illinois Property Tax Appeal Board. They combined their 484 condo units and 676 parking spaces into one entity when arguing the county had assessed them too high.
High-rises in the city, places for business and fun
Though Trump Tower, developed by former President Donald Trump, contains a hotel and offices, besides condos, those properties were not related to the case.
There are plenty of high-rise buildings in Chicago, and most of them contain both hotels and rooftop bars, on top of condos.
No matter the time of year you are looking to travel, there are tons of options to choose from. Whether you are someone who enjoys an evening on the rooftop bar or waking up to sights along the river or a central location in the middle of bustling city life, you can find just the right hotel.
So, whether you live in the Chicago area and want to have some down time and admire the city’s skyline over a drink, or you came here for business or pleasure, check out this local guide to Chicago hotels with rooftop bars, which include some of the best rooftop bars in the city.
The Trump International Hotel and Tower is home to one of these sweet spots to admire the city from. Terrace 16 has sweeping views with floor-to-ceiling windows, opening out to stunning views of the Chicago skyline and some of the most recognizable landmarks, and a quaint patio garden to complete its aesthetically pleasing design.