Illinois is considering a 3% tax on millionaires to solve the state’s skyrocketing property tax problem

The skyline of Chicago. Illinois is considering a millionaires tax to alleviate some of the country’s highest property taxes.

Voters in Illinois will decide in November whether to add a special tax on people who make $1 million or more. State leaders say it could alleviate the burden of high property taxes on the average resident.

A state estimate conducted by Illinois Gov. JB Pritzker’s administration found that the new tax would generate $4.5 billion annually if passed into law, according to WBEZ, Chicago’s public radio station, which obtained the estimate through a public records request.

The legislation in Illinois is similar to taxes on the wealthy passed in other states, like Massachusetts. Massachusetts approved a 4% tax on those earning more than $1 million in 2022, which generated $1.8 billion in the first three quarters of this fiscal year and helps pay for every public school student in the state to have access to free lunch.

Voters in Illinois will be faced with a ‘yes or no’ question on their ballots: “Should the Illinois Constitution be amended to create an additional 3% tax on income greater than $1,000,000 for the purpose of dedicating funds raised to property tax relief?”

While the vote results are non-binding, if approved, the measure would send a message to legislators to push for a constitutional amendment.

Illinois has the second-highest property taxes in the United States, according to the Tax Foundation, a tax policy nonprofit.

Housing prices in Illinois have also skyrocketed in the last year, especially in Cook County, where Chicago is located.

Cook County Treasurer Maria Pappas said in a report that the county’s median tax bill increased by more than 19% in the past year, with the biggest increases coming in 15 southern suburbs where taxes soared by 30% or more.

“Many homeowners are going to be shocked and angry when they get their bills,” Pappas said. “South suburban homeowners already pay some of the highest property taxes in the county, and these increases will make paying those bills even more difficult.”

Former Illinois Gov. Pat Quinn has been an open supporter of the November ballot measure, which he says would help the state’s poorest residents.

“It’s hammering a lot of folks who live from paycheck to paycheck, and getting a property tax relief referendum on the ballot is the voice of the people and the voice of the taxpayers,” Quinn told WBEZ. “That’s the way you win reforms and relief that are long overdue.”