Why Illinois is considering a property tax hike

Illinois property tax rates are expected to increase to 12.5 percent next year, according to a new state report.

The Illinois Policy Institute (IPSI) released its property tax reform plan Monday, with a 10 percent increase, and is considering asking voters to approve the proposal.

While Illinois lawmakers have approved several property tax increases in recent years, the new proposal would be the first time it’s proposed to raise taxes on the entire state, according the IPSI.

In its proposal, the IPSE said it would “continue to aggressively explore other tax-increment financing options” in order to raise enough money to finance the tax increases.

Illinois is already among the top five states in property taxes.

IPSI said it is working on a comprehensive property tax plan for the state that would include more than 20 tax-related revenue sources.

“We believe that Illinois should consider the potential revenue generated by property taxes to pay for additional programs, infrastructure and services that are critical to Illinois,” the IPSO said in a statement.

Other states have proposed property tax hikes this year.

In April, California voters approved a ballot measure that would raise the state’s property tax by about 4 percent next July, a measure that had a significant impact on the state budget.

In February, Texas voters approved Proposition 1, which raised the state property tax to 12 percent by 2020.

State Rep. Jeff Smith, a Democrat, has introduced legislation to raise the Illinois property-tax rate by an additional 4.25 percent next June, according CBS Chicago.

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