With the November elections drawing near, Illinois voters face a pivotal decision on an advisory referendum that could see those making over $1 million yearly facing a 3% tax increase on income exceeding that threshold. As reported by the Chicago Sun-Times, this move is proposed to generate at least $4.5 billion more each year, aimed primarily at offering property tax relief for the state's homeowners. This referendum, importantly non-binding, signals a broader push that lawmakers could take come 2026, potentially leading to a constitutional amendment to officially enact the tax.
Former Governor Pat Quinn has been a vocal supporter of the measure, suggesting it as a way to address Illinois' "upside down tax system," where millionaires receive tax breaks while homeowners bear the brunt of increasing property taxes. He expressed concern that "for too long, millionaires have been getting tax breaks, and Illinois homeowners have been getting higher and higher property tax bills," in a statement obtained by the Chicago Sun-Times. The proposed increased tax could affect some 77,323 Illinoisans reported to have an adjusted gross income exceeding $1 million annually, based on reports from the state's revenue department.
While advocates see this as a step towards fiscal fairness, opponents argue the opposite. The WTTW News cited conservative think-tank Illinois Policy Institute, which cautioned that the tax hike could ultimately hamper the state's financial obligations in other areas, including pensions. The referendum is riding the heels of a previous attempt at tax reform in 2020, which unlike the current advisory bent, was a definitive Constitutional amendment proposal that was defeated with 53.27% of voters rejecting it.
The approach this year diverges from the earlier campaign's high-profile blitz, maintaining a quieter presence, yet aims to uniquely mobilize public opinion on tax equity. Kent Redfield, professor emeritus at the University of Illinois-Springfield, suggested the advisory nature of the referendum still carries weight, stating, "If this wins with a huge majority, that is ammunition for people that are saying property taxes are a burden pushing people out of state," according to a WTTW News interview. The referendum could also pave the way for necessary legislative action, considering the state is bracing for a tough fiscal year ahead as COVID-19 relief funds dry up.
This vote comes alongside two other advisory measures state-wide: one probing voter opinion on civil penalties for election interference by candidates, and another on the requirement for health insurance plans to cover medically assisted reproductive treatments including in vitro fertilization. Each measure, including the property tax relief referendum, awaits voter input to potentially shape future legislation, an immediate effect not set in stone regardless of the outcome. The measures landed on the ballot following legislation signed by Governor J.B. Pritzker earlier this May. Amidst growing frustrations over property taxes, Quinn told WTTW News, "It’s a punch in the nose when they open the envelope."
