The share of property taxes collected by the city and then claimed by Chicago’s tax increment finance districts grew approximately 6.3% in 2022, fueled in part by the reassessment of the value of every property in Chicago, according to a report by Cook County Clerk Karen Yarbrough.
Demolishing the record set in each of the past three years, $1.3 billion poured into the city’s 127 TIF funds in 2022, according to the annual report from the clerk’s office. That accounts for approximately 41% of the nearly $3.15 billion in property tax revenue banked by city officials, according to data compiled by the clerk’s office.
The equalized assessed value of properties in Chicago dropped slightly, one year after the reassessment conducted by Cook County Assessor Fritz Kaegi.
The growing share of city property taxes sent to TIF districts is sure to fuel the argument over whether the districts, which capture all growth in the property tax base in a designated area for 23 years, actually spur redevelopment and eradicate blight or serve to exacerbate growing inequality in Chicago.
The burst of additional TIF revenue allowed Mayor Brandon Johnson to declare $433.8 million in TIF funds to be in surplus — returning $100 million to the city with the rest headed to Chicago Public Schools and other taxing districts. That is slightly more than in 2023, and Johnson used about half of that surplus to bridge the city’s 2024 budget gap.
The transit TIF district formed by the city in 2016 to fund the renovation of the CTA’s Red and Purple train lines is once again the city’s highest-grossing TIF, according to the report.
The transit TIF has generated approximately $817 million since 2016, including $190.1 million in 2022.
Chicago now has two transit TIFs, the second to fund the extension of the CTA Red Line south from 95th Street to 130th Street. That TIF collected $5.5 million in its first year, according to the report.