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 Illinoisans pay some of the highest property taxes in the
country, but homeowners in the two counties surrounding Springfield pay the
14th-highest property tax rate among the nation’s large communities.
The average household in the Springfield area last year paid 2.33% of the value
of their home in property taxes, or $3,176. That ranks the metro area covering
Sangamon and Menard counties 14th in the nation for areas with at least 200,000
residents, according to ATTOM Data Solutions. It is also double the national
average in 2018 of paying 1.16% of a single-family home’s value in property
taxes.
In Sangamon County, residential property taxes outgrew home values by 49%
between 1996 and 2016. That translates to $446 worth of property tax increases
per person when adjusted for inflation.
It would be one thing if the property tax hikes were boosting services, but
pensions are driving property tax increases and outpacing taxpayers’ ability to
pay. All of the property tax levied by the city of Springfield goes to pay for
pensions.
Sangamon County property taxpayers see 95 cents of every $1 taxed for municipal
police go to pensions, and the entire $1 taxed for fire services go to pensions.
Growing pension obligations crowd out services and tie the hands of local
governments during the budget process.
Illinois Gov. J.B. Pritzker is trying to convince state lawmakers to ask
Illinois voters for a constitutional amendment allowing for a progressive income
tax. Supporters claim the “fair tax” will be a magic solution to the financial
woes plaguing the state. However, without serious pension reform, any
progressive tax proposal will be consumed by pensions and inevitably lead to tax
hikes on all Illinoisans.
Illinois voters in key state House districts oppose Pritzker’s plan.
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In Democrat state Rep. Sue Scherer’s district –
which covers Decatur and parts of Springfield – residents dislike
Pritzker’s plan. Voters in the district view Pritzker favorably by
31% to 28%, but they oppose his plan to change to a progressive tax
41% to 32% – regardless of whether they have heard of his proposal.
Given brief descriptions of both flat and progressive income taxes,
voters said they would vote against changing to a progressive income
tax, 50% to 39%. To amend the state constitution, 60% of voters must
approve the proposed amendment.
Pritzker’s proposed progressive tax rates fall
short of their $3.4 billion revenue target by at least $1 billion,
according to an Illinois Policy Institute analysis. While Pritzker
hinged many of his promises on increased revenue from a progressive
tax, a new ad from Think Big Illinois – a group which lists Pritzker
among their major donors – walks back the promise of tax relief for
97% of Illinoisans to only claim taxes will not be raised on them.
And in a walk back to the walk back, Pritzker told WLS-TV, Channel
7, in Chicago he couldn’t guarantee his tax plan won’t raise taxes
later on those making less than $250,000 a year.
“As you know, we currently live in a system in which the taxes can
be changed at any moment so there’s certainly no guarantees, but
what I will tell you is that I am fighting for the plan that I put
forward,” he said April 23.
The Illinois Constitution doesn’t need an amendment to remove
protection of the flat income tax. Illinois needs to amend the state
constitution to protect already earned pension benefits, while
allowing for changes to future, unearned accruals.
For Springfield area homeowners who face one of the highest
effective property tax rates, a progressive tax would depress job
growth, accelerate population loss and leave fewer working families
to share the property tax burden. And with Pritzker refusing to
guarantee middle-class residents won’t face a state income tax
increase, the only guarantee is of higher taxes and even more
residents fleeing the burden.
Residents should contact their lawmakers and ask them to vote
against the progressive tax amendment. Illinois needs pension
reform, not higher taxes.
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