Property taxes are the primary revenue source for Illinois local governments, funding schools, pensions, and essential services. Maintaining strong property tax collection rates—typically above 95%—is critical for community stability and fiscal health. This report's findings underscore deep structural inequities in Illinois’ reliance on property taxes to fund local services. Without intervention, declining collection rates and widening disparities will continue to undermine the fiscal health of…
Tax Increment Financing (TIF) Districts are a complex, often misunderstood part of Chicago’s tax structure. TIF Districts segment and dedicate a portion of property tax collections within a designated geographic area to fund economic development and capital or infrastructure projects. They do not, as critics often claim, siphon funds away from local governments. Instead, TIF districts limit the taxable value of property, or the tax base, from which local governments can draw their property tax…
This report explains the system and method for how property taxes are levied, calculated and collected in Cook County, Illinois. This is called the tax extension and billing process. Additional Civic Federation primers will explain the Cook County assessment, property tax appeals and tax increment financing (TIF) systems.The purpose of this report is to make the property tax system more transparent and understandable for policymakers, homeowners, renters, business owners, and residents across…
A coalition of Illinois policy and civic leaders released Modernizing Illinois' Sales Tax: A Pathway to a Sustainable Future, which outlines the potential impacts of updating the state’s sales tax system. The report — coauthored by organizations that represent a broad range of government and tax policy viewpoints — details how specific reforms could apply sales tax to more consumer services, address revenue shortfalls, and ensure sustainable funding for essential public services like public…
CHICAGO – Today, the Civic Federation released a comprehensive report calling for Illinois legislators and Governor Pritzker’s administration to begin work on modernizing Illinois’ tax structure and improving its budgeting process. This report follows a Civic Federation issue brief outlining the State of Illinois’ economic challenges: Illinois Economic Landscape and Fiscal Structure. Together, these reports provide data and evidence of the economic and structural tax challenges that hinder…
Executive Summary Illinois’ fiscal policies significantly influence economic growth and employment in the state. How do those choices affect Illinois’ status as a top-tier place to “live, work, and do business,” and what specific fiscal factors appear most related to desired economic growth and investment state-wide? This report complements the Civic Federation’s upcoming State Budget Roadmap report by providing a substantive overview of Illinois’ economic landscape and fiscal structure,…
This short report presents trends on increases in total property tax extensions for all the governments on typical Chicago property tax bills. A taxpayer in the City of Chicago pays property taxes to 7 or 8 local governments, depending on which part of the City they live.
This report provides an estimate of the full market value of property in Cook County between tax years 2013 and 2022 using data provided by the Cook County Assessor’s Office and the Illinois Department of Revenue. Data to estimate the full value of real estate in 2023 and 2024 using this report’s methodology will not be available for several years.
The Civic Federation released our latest report on effective property tax rates in selected communities in Northeast Illinois earlier this month. The report looks at ten years of data from 2013-2022, the most recent year for which data are available. That period encompasses the aftermath of the Great Recession of 2007-2009 and subsequent growth in property values. Generally, effective residential property tax rates have declined across the board in the 12 Cook County communities studied in…
This report lays out several major issues facing the Chicago Mayor and City Council as they prepare to enter the FY2025 budget cycle and beyond, including the City’s structural deficit, pensions, long-term debt, public safety and more.
