Sangamon Sun

Raising taxes on commercial and industrial real estate in Illinois could be great business for neighboring states, where many former Illinois manufacturers have already fled, Mike Denzler, vice president of the Illinois Manufacturing Association, suggested recently.

Denzler said his industry has lost more than a quarter-million jobs over the last two decades.

“Cook County lost nearly 40 percent of its manufacturing base due in large part to politicians saddling businesses with higher property taxes,” Denzler told the Sangamon Sun.

The latest proposal he envisions causing more damage comes in the form of House Bill 156, introduced by Rep. Michelle Mussman (D-Schaumburg), which would raise property taxes on businesses and some homeowners. The measure is co-sponsored by Rep. Katie Stuart (D-Edwardsville).

Formally proposed in early April, the bill is designed to alter the formula for assessing taxes, placing a greater local levy on commercial and industrial real estate. It would also allow certain homeowners the option of discounting their properties at greater values when property tax bills come due.

"This politically motivated legislation will shift hundreds of millions of dollars in higher property taxes onto the backs of commercial and industrial businesses,” Denzler said.

Illinois Federation President Carol Portman has also slammed Mussman’s proposal, as has Craig Lesner, research director for the Illinois Policy Institute, who branded it as "fake property tax relief.”

By Portman’s estimates, the bill would trigger at least a 2 percent property tax increase among all the local governments that stand to be impacted by it.

Denzler said the timing couldn’t be worse for the already financially crippled state, which continues to struggle with out-migration largely brought on by runaway taxes and a dormant job market.

“Illinois needs comprehensive property tax relief for all taxpayers," he said.

Meanwhile, business taxes in the areas governed by Mussman rate among the highest in the state, with a recent Chicago Tribune study pegging them as high as at 7.90 percent.

A 2017 WalletHub study found Illinois has the second-highest property taxes in the country, behind only New Jersey, at 2.3 percent, or an annual average of $2,140 per family.

In comparison, eastern neighbor Indiana's rate stands at just 0.87 percent.

In 2015, U.S. Census Bureau data showed nearly 20,000 now-former Illinois residents fled for Indiana, and Illinois lost more than 12,000 manufacturing jobs, MyStateLine reported.