Here’s some good news for you: No property tax hike in 2023 for Chicago and some Illinois communities!
In this article, you will learn about the following:
1. Mayor Lightfoot's Stability Budget
2. Other Places with no increase in property taxes
A. Cook County
B. Kane County
C. Peoria
Today I will discuss no property tax hikes for Chicagolanders. As we previously mentioned in our previous videos, living in Chicago is very expensive. The tax burdens on every family and resident are very heavy. And with inflation rising higher than before, Chicagoans are feeling the pinch in their pockets. But fortunately, there would be less stress for everyone here because the City of Chicago and some other local governments enacted no property tax hikes in 2023.
So let’s get down to business. Here’s how there would be no property tax hikes in 2023.
No more property tax hikes for 2023 in Chicago
Last August, Mayor Lightfoot said that she wants a $42.7 million increase in property taxes for the following year, which would cost the owner of a $250,000 home about $34 annually. This is tied to inflation and to help close a $127.9 million budget gap. But in November, the Mayor’s office said that there is no need for the property tax increase, due to stronger than projected receipts of city revenues.
This is because the 2023 budget is Mayor Lightfoot’s Stability Budget.
Mayor Lightfoot’s Stability Budget
According to Mayor Lightfoot, 2023 is our "stability budget, if 2021 was our 'pandemic budget,' and 2022 was our recovery budget. This Stability Budget was approved by the City Council with a 32–18 vote.
And Chicago’s not the only place in Illinois to enjoy no increase in property taxes in 2023! Here are three other places that will impose no new property taxes:
Other Areas that will have no property tax hike in Illinois:
Cook County
Toni Preckwinkle, president of the Cook County Board, announced that her $8.7 billion spending plan for 2023 would not include any tax or fee hikes for the sixth year in a row. Cook County’s budget shortfall is the smallest it has been in ten years, at just $18.2 million, due to higher-than-anticipated income statistics, including an extra $124 million in sales taxes and $1 billion in American Rescue Funds. So there was no need for the county to raise taxes or reduce services.
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Kane County
The Kane County Board unanimously approved a measure that will prevent any new taxes or tax hikes from being included in the 2023 county budget. However, the proposal transfers responsibility for resolving the county's budget problems to whoever voters choose to represent them on the board, even while the budget relieves taxpayers of any more financial strain as they decide who will serve on the board following the November election. The County Board also decided not to ask for a new local sales tax.
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Peoria
The Peoria County Board approved the county's budget for the upcoming fiscal year, which runs from January 1 to December 31, 2023. The budget includes (1) no property tax increases (2) fully funding Illinois Municipal Retirement Fund (pension) obligations (3) allocating American Rescue Plan Act Funds and reserve funds for the construction of a new Health and Human Services building.
“The approved budget sends a strong signal to our residents that Peoria County remains fiscally sound, while still progressing forward with needed infrastructure improvements,” said Andrew A. Rand, Peoria County Board Chairman. ". This budget does not raise property taxes, fully funds our pension obligations, and still allows for growth in key service areas.”
Conclusion
Tax rate reductions or simply no hike in taxes have a beneficial impact on the growth of the economy because they increase the after-tax benefit of investing, saving, and working. Through the effects of substitution, these increased after-tax returns encourage additional work effort, saving, and investment. With no property tax hikes for the next year in Chicago and some parts of Illinois, it will benefit both residents and investors. It makes Chicago more attractive as a real estate market.
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