Neighbors in Chicago's Pilsen neighborhood brace for more property tax increases
CHICAGO (CBS) – Even before Chicago Mayor Brandon Johnson proposed a $300 million property tax increase to close a nearly $1 billion city budget deficit, property taxes have been a hot-button issue in neighborhoods like Pilsen.
Homeowners there said they're still playing catch-up after paying their bigger tax bills from the last two years. Now, they're bracing for potentially further impact.
A majority of the Chicago City Council will still have to approve a tax increase in the 2025 budget. While that increase is unclear, many Pilsen residents, especially those who are retired and on a fixed income, said they cannot endure another hike.
Back in 2022, Pilsen was among the neighborhoods that saw their property taxes increase by over 40%. Even though homeowners protested and filed appeals, that still wasn't enough to lessen the blow.
Multiple factors, including gentrification, appeared to contribute to the increase.
The frustration on the block has boiled over into anger in the wake of Johnson's 2025 budget announcement, which calls for an estimated 4% increase on average for homeowners, many who said they're prepared to exercise every option on the table to fight back.
"The day I leave, I'm gonna leave in a box," said homeowner Mary Gonzales. "But no politician is going to force me out of Pilsen. It's my neighborhood."
Gonzales, and her husband Gary Galluzzo have owned their home for decades. The community organizers have been helping friends and neighbors navigate the treacherous waters of property taxes in the predominately Latino neighborhood, a trend they said spiraled out of control just two years ago as more developers moved in.
"It was all of the sudden when they discovered that this is a neighborhood that is highly valuable and boom the taxes shot up," Galluzzo said.
Maryann Nuskl, another homeowner, said her family has "been here longer than quite a few mayors that we've had, and I am going to stay longer than this mayor. He'll be out before me."
Nuskl has lived in her family home on 22nd Place her entire life. She said another tax increase would be too much to bear.
"I don't think it's fair that every time the city needs money we are getting hit up, the taxpayers," she said. "We pay enough. For this city, we pay a lot!"
Ald. Byron Sigcho-Lopez (25th), who represents a large part of Pilsen, said he does not support a property tax increase and was among the many urging the mayor to find another way to support his budget.
City Council budget hearings are expected to begin next week.