ILLINOIS TAX FACTS

by Maurice W. Scott Executive Vice-President Taxpayers Federation of Illinois

Who is still "king" among State and local taxes as a revenue producer? "The property tax," answered the Taxpayers' Federation of Illinois today in its bi-weekly release to its members, officials and news media.

This tax, whose receipts go entirely to local governments, produced $3,137,483,030 when it was extended and collected in 1973. School districts, including 12 grade unit districts, elementary, high, non-high, and Junior College districts, received 58.89% of this total amount. Next in line were cities and villages, receiving 19.21% of the total extension. Special districts, such as sanitary, park, forest preserve, fire protection and airport authority, got 10.03% of the total. Counties came into the picture for 8.44% of the pie. Townships and road districts were at the bottom of the ladder, receiving 3.42% of the total bill.

It should be remembered that the 1973 property tax bill was part of a process that commenced on January 1, 1972, with the assessment of real estate. The assessment date for personal property (yes, this tax, about $400,000,000 worth, still remains on corporate personal property, trusts, estates, partnerships and certain fiduciaries) is April 1.

This year, 1975, is the year of the quadrennial assessment of real estate for township organization counties, and new valuations can be placed on the realty in such counties by the assessing officials. Cook County does its quadrennial assessing by quadrant each year.

The equalization process, the issuing of a multiplier by the State Department of Local Government Affairs to each county clerk who multiplies the local assessments by this factor to raise local assessments to a county average level, goes on each year. The statute defines this level to be 50% of actual value, but with inflation and many other factors entering the picture, no county today is above 40%. The Special Joint Sub-Committee of the House and Senate Revenue Committees, chaired by Senator Terrel E. Clarke, to study property tax reform and to make recommendations to the 79th Illinois General Assembly, is putting together its recommendations and will probably recommend that the equalization level be lowered from 50% to 40%. When this Committee finalizes its recommendations, the Federation will summarize them in one of its releases.

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The Income Tax and the Sales Tax continued to be the leading revenue producers for Illinois' General Revenue Fund for fiscal 1974 (the period from July 1, 1973 to July 1, 1974), the Taxpayers' Federation of Illinois reported. The State Income Tax, with rates of 4% on incomes of business and industry and 21/2% on incomes of individuals, produced $1,413,340,604, while the Sales tax (R.O.T. and related taxes) was a close runner-up, producing $1,370,520,722.

More people are playing bingo in Illinois, because receipts from this tax totaled $5,180,206 for the State in fiscal 1974, compared to $4,015,218 in fiscal 1973. This tax was "born" in fiscal 1972, having been enacted by the General Assembly in 1971, effective October 1, 1971, and even with a late start, it produced $1,173,796 for the State in that fiscal year.

The State Utility Tax, levied at a rate of 5% on the receipts of the sales of gas, electricity, telephone and telegraph messages, is a giant revenue producer. In fiscal 1974 it produced $202,166,060 for the State, compared to $183,991,871 in fiscal 1973. Even those paying for their overnight sleep in Illinois contributed something toward the State's General Revenue Fund; the Hotel-Motel Tax brought in $13,093,243 in fiscal 1974, compared to $12,669,557 in fiscal 1973.

Even when you die, your heirs pay for the privilege of receiving your estate; the State Inheritance Tax brought in around $80,800,795 in gross figures in fiscal 1974, down a bit from the $87,915,307 figure in fiscal 1973. Of course, receipts from this tax depend upon when Illinois residents die and the size of the decedents' estates.

Receipts from the racing taxes in fiscal 1974 show that Illinois citizens and their visitors still like to do a little wagering. Taxes on running horse races were responsible for $9,516,381 going into the General Fund, $3,295,300 into the Agricultural Premium Fund, the same amount into the Fair and Exposition Fund, $13,201,805 into the Metropolitan Exposition Auditorium and Office Building Fund. Wagering on horses that run races while pulling carts brought $21,824,555 into the Agricultural Premium Fund and $1,747,562 into the Illinois Fund for Illinois Colts in fiscal 1974, while also contributing to the General Revenue Fund.

Even with the energy shortage, gross Motor Fuel Tax receipts amounted to $400,072,854 in fiscal 1974, compared to $393,253,617 in fiscal 1973. The decline in car sales was felt in 1974, because receipts in 1974 from license fees were $279,019,286, down from $284,122,328 received in fiscal 1973. (Source of above data: Office of State Comptroller George W. Lindberg.)

Illinois Parks and Recreation 31 May/June, 1975