New report reveals over 50 cents of every new property tax dollar in Illinois goes to pensions, not services
CHICAGO (July 31, 2018) — Property taxes in Illinois were in the middle of the pack nationwide 20 years ago, but since then have risen 52 percent – 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 like 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 percent statewide in the past 20 years.
- Statewide, 81 cents of every additional property tax dollar for police departments went to pensions rather than police protection services.
- Statewide, 78 cents of every additional property tax dollar for municipal fire departments went to pensions rather than fire protection services.
- Property tax growth also vastly outpaced home values in many major Illinois counties over the past 20 years.
- In Cook County, residential property taxes have grown 76 percent faster than home values.
- In Lake County, residential property taxes grew 160 percent faster than home values.
- In St. Clair County, property taxes have grown 214 percent faster than home values.
- In Sangamon County, property taxes have grown 49 percent faster than home values.
- In Peoria County, property taxes have grown 86 percent faster than home values.
- In McLean County, property taxes have grown 151 percent faster than home values.
Additional county-level data are available upon request.
The Illinois Policy Institute’s full report, “Pensions make Illinois property taxes among the most painful,” can be viewed online here: https://illin.is/pensions
For bookings or interviews, contact Melanie Krakauer at media@illinoispolicy.org or (312) 607-4977.