Property taxes in Illinois were in the middle of the pack nationwide 20 years ago, but since then have risen 52%, driven largely by pensions, according to new research released today from the Illinois Policy Institute.
The report, “Pensions make Illinois property taxes among the most painful,” reveals that the cost of pensions is outpacing spending on state and local services.
The Institute found more than half of every new property tax dollar levied in the last 20 years went to pay for pensions, benefits and debt, not the delivery of services such as public safety or education.
“Illinois’ crushing property tax burden is weighing down residents across the state, who end up paying more and getting less,” said Orphe Divounguy, chief economist at the Illinois Policy Institute. “If Illinois is serious about providing meaningful property tax relief, the state must deal with its pension crisis.”
Key findings from the research:
• Property taxes have risen 52% statewide in the past 20 years.
• Statewide, 81¢ of every additional property tax dollar for police departments went to pensions rather than police protection services.
• Statewide, 78¢ of every additional property tax dollar for municipal fire departments went to pensions rather than fire protection services.
• Property tax growth vastly outpaced home values in many major Illinois counties over the past 20 years.
• In Cook County, residential property taxes have grown 76% faster than home values.
• In Lake County, residential property taxes grew 160% faster than home values.
• In St. Clair County, property taxes have grown 214% faster than home values.
• In Sangamon County, property taxes have grown 49% faster than home values.
• In Peoria County, property taxes have grown 86% faster than home values.
—Illinois Policy Institute
