Chicago Property Taxes: The Pension Problem
Chicago property tax pressure on investors — the pension shortfall driving bills higher, appeal strategy, and how to model Cook County taxes in DSCR NOI.
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Video transcript
Lightly edited for clarity.
The city of Chicago has a $44 billion pension hole. That's just the tip of the iceberg on unfunded pension liabilities.
80% of the property taxes in Chicago are now going just to pay for pensions. So 80% are going to pay former workers, not current city workers. And moreover, those pensions are only 25% funded. So they've already overpromised by 75% — benefits that they can't afford.
How is this going to work?