Unlike neighboring Indiana and several other states across the country, fraternities and sororities in Illinois are faced with rising property taxes, sometimes to the tune of an additional $700 a year in room and board costs for their members.
Gregory Somers, chief executive officer of Sigma Alpha Epsilon Financial and Housing Corp., made the comparison in a letter asking past fraternity members for their support for a new law exempting Greek organizations from property taxes in Illinois.
The letter also stated that the City of Champaign has raised property taxes 61 percent for fraternities and sororities. About two years ago, according to the letter, the Illinois Beta chapter paid $13,434 in annual property taxes, whereas now it pays $27,858.
Gregory Somers
| Sigma Alpha Epsilon Financial
The increase is even more dramatic if you compare the taxes over a longer period.
“Five years ago, we were paying like $7,000 a year, whereas now we are paying $28,000 a year,” Somers said. “Urbana property taxes went down, but Champaign taxes went up. It just tells you the City of Champaign wanted more tax revenue and property taxes were an easy place to get it from.”
Somers also pointed out the fraternities have to pay an additional recycling fee of roughly $200 per quarter that the city instituted a few years ago, based on how many beds each Greek house contains.
Based on what he has seen over the past 15 years with the organization, Somers predicted the high fraternity and sorority costs could have a chilling effect not only on their enrollment, but their viability as well. He has seen some frat houses torn down due to low occupancy and replaced with apartments.
“At some point, it just becomes cost prohibitive, so no one’s going to want to join the fraternity because the fees are too high,” he said. “If you can’t get guys who join the fraternity to live in the house, eventually you’re going to have to sell the house, which is, ironically, what’s been happening.”
The best solution, according to Somers, would be to pass legislation exempting fraternities and sororities from property taxes. In the letter to past members, Somers asked for their help in supporting HB 4914, a bill put forward by state Rep. Robert W. Pritchard (R-Hinckley) that would eliminate property taxes for nonprofits sanctioned by schools.
“If we were exempt from property taxes, we could cut every single kid’s bill by $700 annually,” Somers explained.
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