Property taxes in Cook County have grown twice as fast as inflation over the past three decades, forcing homeowners and business owners to set aside an increasing portion of their annual income for local authorities, according to a study released Monday by Treasurer Maria Pappas.
During those 30 years, property taxes in Cook County rose by 182% to reach 19.2 billion dollars, while inflation rose by less than 91%, and average earnings by 161%.
The study states that the Illinois Department of Revenue is working on a comprehensive report on property taxes and suggests that now is the right time for Illinois lawmakers to implement significant tax reform and find ways for local taxing institutions to reduce spending.
“Annual tax increases are relentless and are taking more and more money out of citizens’ pockets,” Pappas said. “I see this every day in my office, where people wonder how they will pay their tax obligations or even if they will be able to stay in their homes.”
“In 2025, Illinois held the infamous title of the state with the highest residential property tax rate in the country,” Pappas added. “Chicago also has the highest commercial property tax rate in the US. It is time for the governor, state legislators, and local leaders to devise a reform that will work for taxpayers — instead of producing another report that will gather dust.”
Property taxes rose sharply despite a state law intended to limit increases, primarily because authorities utilized legal loopholes in the law.
Key among those loopholes is that there are no restrictions on tax increases in special tax districts, where a portion of tax revenue is set aside to subsidize private development and job creation. Taxes in those Tax Increment Financing (TIF) districts, which have multiplied significantly over the years, rose by more than 1,000% and exceeded 1.8 billion dollars in the 2024 tax year.
The increase in taxes, faster than inflation and wage growth, was also contributed to by a 189% increase in taxes imposed by primary and secondary schools, significantly exceeding the inflation of 91%. In 2024, school districts collected more than 10.5 billion dollars in taxes, accounting for nearly 55% of the total tax burden in the county.
The study titled “How State Laws Failed to Stop Decades of Soaring Property Taxes: The Case for Reform” states that lawmakers have long been aware of the unsustainable tax growth, but despite numerous analyses and legislative initiatives, they have failed to provide relief for the economy and property owners.
In some cases, state authorities further exacerbated the problem by increasing pension benefits in local self-governments and reducing the portion of state revenues transferred to cities and municipalities, whose taxes rose by 201% during that period.
MORE TOPICS:
Source: Serbian Times, Photo: Privatna arhiva