Pappas study shows property tax collections throughout Cook County outpaced inflation

A new report from Cook County Treasurer Maria Pappas shows property taxes collected by county taxing bodies over the past 30 years grew at twice the rate of inflation.

In 1995, Cook County local governments collected a combined $6.8 billion from commercial property owners and homeowners. By 2024, those same taxing bodies collected almost $19.2 billion — a 182% increase, according to data from the report released today.

By comparison, inflation between 1995 and 2024 grew by 91%.

“It’s enough already,” Pappas said. “If this continues we’re going to see more rental cars and Hertz trucks moving people out of here.”

The study also shows property tax collections in the county outpaced average wage growth during the past 30 years, which increased by 161% during that time.

Pappas hopes the study will move legislators to enact meaningful property tax reforms and persuade local government officials to rein in spending.

“The annual increases in taxes are relentless, taking more and more money out of peoples’ pockets,” she added.

In Illinois, property taxes largely go toward education funding, amounting to about 70% of all tax bills. However, municipalities, park districts, libraries, fire protection agencies, townships, counties and other local government agencies also collect property taxes.

Property tax hikes in Illinois should be kept in check by the state’s Property Tax Extension Limitation Law that is supposed to restrict taxing bodies from seeking increases equal to the past year’s inflation rate or 5%, whichever is lowest. But the report notes there are numerous loopholes.

Some funds that local governments collect property taxes for are not subject to PTELL.

There are also ballot initiatives where taxing bodies can seek voter approval to raise property taxes. Pappas notes these often are decided by a small minority of the electorate because of low voter turnout.

“We’ve just been through an election where 80% of the people complaining about property tax increases didn’t bother to show up to vote,” she said. “The 20% that do vote continue to set policy.”

There’s also the spike in tax increment financing districts throughout the suburbs over the past 30 years that Pappas’ research team said has contributed to property tax growth. The districts are designed to spur economic development by using some property tax revenue generated in the district to cover infrastructure and other development costs.

Because TIF districts aren’t subject to PTELL and revenue generated in the district can be added to other local taxing bodies’ collections, this allows those local taxing bodies to again circumvent PTELL’s growth restrictions.

During the past 30 years, the number of suburban TIFs grew from 124 in 1995 to 310 by 2024, the report shows.

The Civic Federation, a Chicago-based nonpartisan government research organization, recently issued its own report on TIFs, noting they continue “to shape local development decisions and property tax dynamics in ways that aren’t always well understood.”

The Illinois Department of Revenue also is working on a study due in July on property taxes.

IDOR Director David Harris said the study is intended to “evaluate the state’s property tax system and recommend possible improvements to the levy, assessment, appeal and collection processes.”

Pappas said she is worried that study will wind up “put on a shelf to gather cobwebs” like previous reports intended for just legislators.

She said her report is intended for the public foremost, but it also will be sent to every elected official in the county. She praised her research unit’s thoroughness.

“You got to take your hat off to these guys that are devoting themselves to these things,” she said. “We have a team of investigative journalists in this office to do this kind of work because it’s important.”