A property tax break for landlords in Cook County could reduce rent for tenants. But many Northwestern students and landlords in Evanston are doubtful of the impact it would have.
If the tax break is finalized at the County Board Meeting on Feb. 15, it would reduce assessments on apartment buildings of seven units or more by six percent.
The current assessment for these buildings are at 26 percent of the market value, and the measure would bring it down to 20 percent.
“It’s our hope and prediction that the property tax decreases will be passed on to the renters,” said John M. Sallon, a spokesperson for County Assessor James Houlihan.
Even with the tax break, rent could still increase slightly, some Evanston landlords said.
“If it does happen, there’s a better chance (rent) won’t go up by much,” said Eric Paset, a property manager for North Shore Apartments & Condos, Inc. “We’ve held rent pretty firm these past years. They have to increase either way this year.”
Some NU students who rent in Evanston are uncertain the tax break would present many changes.
“I don’t think it will really make a difference,” Weinberg senior Tom Pichert said, “but I’m open to anything that would decrease the rent.”
Paset said rent has gone up by two percent this past year and is expected to increase again next year. Any changes created by the tax break will be represented in next year’s rent
In contrast, property taxes have increased much more.
“Property taxes have gone up drastically in the past three years, anywhere between 20 percent to 30 percent,” Paset said.
Landlords have struggled to balance the cost of the rent with their taxes, but many remain skeptical of the influence a tax break would have.
“As far as Cook County and landlords, there aren’t any breaks that landlords get,” Aram Bayzaee, an Evanston landlord for Optima Horizons, on Maple Avenue, said.
Although most people understand that Evanston and Chicago are generally expensive places to live, county officials are still searching for ways to improve the situation.
The Office of the Assessor has passed several measures to improve homeowner and tenant costs, including a recent seven percent homeowner’s exemption and a similar property tax break last year for condos and six-unit apartments, Sallon said.
“The assessor is committed to addressing and proposing real property tax reforms,” Sallon said. “In the meantime, initiatives such as (these) are necessary to get by.”
Reach Diana Xin at [email protected].
