Schaumburg Democrat Michelle Mussman wants to raise property taxes on businesses-- including local retailers and manufacturers. | State of Illinois
Schaumburg Democrat Michelle Mussman wants to raise property taxes on businesses-- including local retailers and manufacturers. | State of Illinois
Rep. Michelle Mussman (D-Schaumburg) wants to raise property taxes on businesses and some homeowners.
She's a sponsor of House Bill 156, which seeks to change the property tax formula to shift more of the local property tax burden to commercial and industrial real estate.
Mussman’s bill, filed April 4, would slightly increase the amount by which selected categories of homeowners can discount their home values for the purpose of calculating their property tax bills.
As such, the bill would effectively raise property taxes on everyone else.
Carol Portman of the Illinois Taxpayer Federation says Mussman’s bill will force local governments to increase their property tax rates by 2 percent.
“Essentially, it’s a shift of tax burden from one group onto another, and not necessarily a tax decrease, even for (Mussman’s selected) homeowners,” Portman said. “(The bill) will require additional tax rate increases, and the higher rates will hit all property owners, whether eligible for (Mussman’s proposed tax) exemptions or not.”
Craig Lesner, Budget and Tax Research Director for the Illinois Policy Institute calls Mussman’s bill “fake property tax relief” that “makes an even bigger mess of an overly complicated property tax system” and “gives job creators just one more reason to leave Illinois.”
“Most Illinois homeowners don’t understand the property tax system in Illinois and why their taxes seemingly always go up, even when a property tax cap law exists in large parts of the state,” he wrote.
Businesses in Mussman’s northwest Cook County district already pay some of the highest property taxes in not just Illinois, but the entire country.
According to a 2015 Chicago Tribune study, effective business property tax rates range from as high as 7.90 percent in Streamwood to 5.66 percent in Hoffman Estates.
Northwest Cook County Property Tax Rates
Cook County commercial and industrial property tax rates are among the highest in the U.S.
| Community | Effective Business Property Tax Rate | Tax Bill on $300,000 property | Tax Bill with 2% Effective Rate Increase |
| Schaumburg | 6.62% | $19,860 | $25,860 |
| Hoffman Estates | 5.66% | $16,980 | $22,980 |
| Palatine | 7.11% | $21,330 | $27,330 |
| Elk Grove Village | 6.00% | $18,000 | $24,000 |
| Rolling Meadows | 7.16% | $21,480 | $27,480 |
| Streamwood | 7.90% | $23,700 | $29,700 |
| Arlington Heights | 6.73% | $20,190 | $26,190 |
Source: Chicago Tribune
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