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Friday, April 26, 2024

North Shore taxpayers to pay an extra $270M with passage of tax hike law

Illinoiscapitol

North Shore taxpayers will see a total of $270 million in state income tax increases after SB 9, a tax hike measure, passed the Democrat-controlled Illinois State Senate to become law.

The North Shore communities that will see the largest collective increases include Winnetka/Northfield ($65 million), Northbrook ($41.2 million), Wilmette ($34 million), South Glenview ($31.4 million) and Glencoe ($29.1 million).

Taxpayers who will see the highest average increases include residents of Kenilworth ($9,936), Glencoe ($7,578), Winnetka/Northfield ($6,954), Wilmette ($2,682) and North Glenview ($2,105).

Senate Bill 9, a revenue bill that would generate $5.4 billion by raising the income tax rate to 4.95 percent from 3.75 percent and the corporate tax rate to 7 percent from 5.25 percent, passed 36-18 on Tuesday. It passed the House on Sunday. Gov. Bruce Rauner then vetoed the bill, but the Senate quickly overrode his veto. The House is expected to vote on an override Thursday.

LGIS looked at 2014 income taxes paid by zip code to create a ranking of the highest-paying North Shore communities.

The analysis looked at the percentage of total state income taxes paid by zip code, as reported by the Illinois Department of Revenue. It then applied that percentage to the amount Senate Democrats expect their tax hike will raise to calculate an average increase.

The analysis used 2014 tax return data, which is the latest available and also represents a year in which state income taxes were higher — 5 percent, or approximately the level to which the Democrats are raising them.

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Top income tax-paying communities on Chicago's North Shore

Which communities pay the highest income taxes on the North Shore?

RankingCommunitiesZipAverage State Income Tax IncreaseTotal Returns filed by Zip
1Kenilworth60043$9,9361,191
2Glencoe60022$7,5783,837
3Winnetka / Northfield60093$6,9549,347
4Wilmette60091$2,68212,667
5Glenview (North)60026$2,1056,400
6Northbrook60062$2,02820,318
7Evanston (Northeast)60201$1,64217,026
8Glenview (South)60025$1,61219,473
9Evanston (Southeast)/Skokie (East)60202$1,07315,329

Source: Illinois Department of Revenue; Blockshopper.com

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How much more will your community pay?

With state income taxes increasing to 4.95 percent from 3.75 percent, how much more will taxpayers in your community pay for state government?

RankingCommunitiesZipEstimated State Income Tax Increase
1Winnetka / Northfield60093$64,999,991
2Northbrook60062$41,214,952
3Wilmette60091$33,968,377
4Glenview (South)60025$31,396,002
5Glencoe60022$29,075,590
6Evanston (Northeast)60201$27,950,672
7Evanston (Southeast) / Skokie (East)60202$16,442,943
8Glenview (North)60026$13,473,831
9Kenilworth60043$11,833,256

TOTAL

$270,355,614

Sources: Illinois Department of Revenue; Blockshopper.com; Illinois Senate Democrats

*Assumes tax increase will meet Senate Democrats' projections.

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