The link between government debt and Illinois property taxes

On Behalf of | Jun 22, 2021 | tax law | 0 comments

Illinois residents face some of the highest property taxes in the United States. Many state residents have questions about why the property taxes for their homes or businesses are so substantial. Many residents do not realize that a link exists between the amount of government debt Illinois has and how much residents must pay in property taxes each year.  

Per ABC 7 Chicago, Illinois currently has the second-highest property taxes of any state in the nation. The majority of the money received through property taxes goes toward government pensions and the state’s education system.  

Where Cook County debts come from

Residents of Cook County may find their property taxes to be particularly burdensome. There are about 2,200 government entities within the county that may have debts that contribute to a property tax bill. Some of these in-debt entities include cities and towns. Others include schools and parks districts. Cook County property owners also bear the burden of funding unfunded pensions and loans within the county.  

How high property taxes are a burden for homeowners

Many Illinois residents argue that the state’s high property taxes and exorbitant amount of government debt are either preventing them from purchasing homes in the state or making them think twice about doing so. The state’s high property taxes and significant government debt also have many out-of-state business owners questioning whether it makes financial sense to uproot their business and move them to Illinois.  

Some Illinois legislators have spoken out about the property tax and government debt issues plaguing Illinois, arguing that they place too heavy a burden on the state’s home and business owners.