The Impact of Property Tax Appeals on Vertical Equity in Cook County, IL

Cook County has one of the highest rates of property tax appeals in the country. Do appeals make property taxes more fair and accurate? Using administrative property tax data from for 2003-2015, I quantify the level of regressiveness in property taxes. I find property taxes to be highly regressive. I then investigate whether the appeals process mitigates or exacerbates regressiveness. I find that post-appeal assessment ratios are more regressive than pre-appeal ratios, providing evidence that the property tax appeal process decreases vertical equity. I further find that effective tax rates are higher in neighborhoods with a higher percentage of minorities, and lower in wealthier and better educated neighborhoods.