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Read Next Story. For the optimum Mansion Global experience, please turn off any ad blockers and refresh this page. Since , Illinois property taxes have grown 2. This long history of growth has resulted in an average effective property-tax rate of 2. Although all property owners residential, commercial, industrial, etc. Twenty years ago, residential taxpayers paid 52 percent of all property taxes. Today, they pay over 64 percent. Property taxes are the main source of income for local governments in Illinois.
The state has nearly 7, local government districts with the power to levy property taxes, far more than any other state. These local entities, from airport authorities to forest preserves to fire-protection districts, all levy property taxes that are layered on top of each other — making the total property-tax bill for Illinoisans more expensive and more opaque.
However, the biggest driver of property-tax growth throughout Illinois has been property taxes that fund schools, which constituted 63 percent of all property taxes in Since , school-related property taxes have grown at the rate of 5. All areas in Illinois — whether Cook County, the collar counties or downstate — have experienced growth in property taxes in excess of inflation. Individually, almost every county in Illinois has seen a dramatic increase in its property-tax burden since Overall, Illinois has one of the highest overall tax burdens of any state, meaning that Illinoisans are taxed more heavily across a majority of tax categories than most other Americans.
In fact, Illinois has the ninth-highest state and local tax burden per capita and the 13th-highest burden as a percentage of income. But the law has been largely ineffective in reducing the property-tax burden and has only added one more layer of complexity to an already overly complex, broken property-tax system.
In Illinois, capping the rate of property-tax growth is not enough. The state needs to reduce the property-tax burden for all Illinois residents. Freezing property taxes at current levels would achieve that objective by lowering the tax burden in relation to the economy and household incomes over time. However, a property-tax freeze would only be a first step. Below is a brief breakdown of several studies from the Urban Institute and the Brookings Institution, the Tax Foundation, and the American Legislative Exchange Council and the Laffer Center, which examined property taxes and overall tax burdens across the 50 states.
Illinois has the sixth-highest average home-property-tax rate in the country, according to research using U. However, when examining only counties with populations over 65,, Illinois has the second-highest property-tax rate in the nation. There are 23 such counties in Illinois and counties nationwide. In , owners of average homes in these 23 Illinois counties paid taxes equal to 2. Only New Jersey had a higher property-tax rate, and by only a small margin 2. When all counties — counties in Illinois and 3, counties nationwide — are included in the averages, which are only available as blended averages for the years through for statistical reasons, the average Illinois homeowner paid in taxes an amount equal to 1.
The median for all states was 0. Illinoisans are paying 92 percent more than — or nearly double — the median of all states. A second property-tax study showed similar results. Illinois has the second-highest effective property-tax rate as a percentage of home value, according to the Tax Foundation. Another report by the Tax Foundation shows that Illinois ranks 44th in business-tax competitiveness when it comes to property taxes.
In other words, Illinois has the seventh-most burdensome tax structure with regard to property taxes. Illinois ranks near the bottom — 42nd — in property-tax competitiveness according to this study. The Tax Foundation concluded in its study that, unlike some other states, Illinois does not maintain high property taxes to compensate for other, lower tax rates:. According to the Tax Foundation, Illinois has the third-highest corporate income tax, the fifth-highest cellphone tax, the 10th-highest local and state sales tax, the sixth-highest local and state debt per person, the ninth-highest excise taxes, and is one of only 18 states to impose a capital stock tax.
Illinois ranks 40th for economic outlook when considering the overall tax structure in addition to other factors. In addition, Illinois ranks 46th in economic performance, with weak growth in the state gross domestic product 43rd , poor employment growth 44th and extremely high absolute out-migration 48th.
Three reputable studies, then, show essentially the same results. In addition, two of those three organizations put property taxes in context. Illinois collects more from residents in property taxes than any other revenue source.
Growth in property-tax extensions, i. In the short run, the difference is not significant, but in the long run, it is extremely important because annual growth rates compound.
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How the Appraiser Arrives at Value. Comparing Rates. Correlation With Other Tax Rates. Property Tax Relief. Here are 3 reasons why property taxes are so high in Texas. Despite having the 6th highest property taxes in the nation, the state of Texas has an average tax burden for its citizens.
Sales tax for the state is comparatively low at 6. However, as taxation is a vital source of revenue for local government, the burden falls squarely on property taxation to make up for the lack of other revenue.
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