Illinois Has Second-Highest
Property Taxes
By Bob Tivnan, Chicago
Illinois has the dubious distinction of having the second-highest property tax burden
in the nation. Only New Jersey has higher property taxes, according to the UrbanBrookings Tax Policy Center.
It’s an especially tough situation for corporate property owners in Cook County,
who are assessed at a much higher ratio level than homeowners. Commercial and
industrial properties are assessed 150% higher than residences based on the differences
in the assessment ratios from the classification system. This disturbing trend has made
professional tax management a necessity for companies trying to hold the line on their
tax expense.
It’s an important factor this year for commercial and industrial taxpayers in the Cook
County south suburban townships, which historically have some of the highest local
tax rates in the state. The assessor is conducting a triennial reassessment for this area
of the county in 2014.
IMPORTANT REVENUES
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Property taxes are a critical revenue source for local governments. In recent years,
they have accounted for approximately three-fourths of local tax funding.
At the state and local level, more tax revenue is collected from property tax than from
any other source, according to the Tax Policy Center report.
VALUES MAY DECLINE—TAXES DON’T
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With the recent economic downtown, there were significant declines in property
values. However, property taxes continued to soar in many Illinois jurisdictions due to
local government spending that causes local tax rates to rise each year. © 2014 Marvin F. Poer and Company
continued from page 1
Brian Costin, Director of Government Reform for the Illinois Policy Institute told the
Chicago Magazine, “Most local taxing bodies charge the maximum increase they can
do under law each year.” He explains that taxing bodies are asking for more of a share
on property assets, even though asset values have dropped.
Costin says there’s another way that rising property taxes are hurting the real estate
market. Corporations may relocate to a lower-tax state due to considerations not only
for their own rising tax bills but for those of their employees too.
Ultimately, Costin predicts Illinois is on its way to eclipsing New Jersey on property
taxes. “A couple more years like this and we could be number one. But it’s not a
number you want to be.”
© 2014 Marvin F. Poer and Company