Board Policy
Illinois Chamber Tax Institute Tax and Fiscal Policies

adopted June 2006

The Illinois Chamber of Commerce Tax Institute believes that Illinois’ fiscal policy and business tax laws should actively promote economic growth in Illinois by encouraging increased capital investment, productivity, and the creation of new job opportunities for the citizens of Illinois, by decreasing the overall tax burden and costs of doing business, particularly those costs associated with unnecessary and burdensome tax administration at the federal, State or local level.

To ensure economic growth and a fair and competitive tax climate for our members, the Illinois Chamber of Commerce Tax Institute strongly recommends adoption of the following pro-business Illinois tax policy:

Local Property Taxes

The Illinois Chamber supports tax reform measures that result in more equitable taxation of commercial and industrial property in Cook County so that business taxpayers do not bear an ever-increasing and disproportionate share of the property tax burden.

Business Perspective: The Illinois Chamber opposes legislation like this spring's SB 2691 which would have extended the 7 percent homeowner exemption for Cook County. As shown by a University of Illinois study released by the Illinois Department of Revenue, SB 2691 would extend the tax cap that operated to shift the property tax burden from property-rich homeowners in booming areas to commercial and industrial property owners and to homeowners in areas not experiencing rapid appreciation in value. Commercial and industrial properties paid $171 million more in the first year alone as a result of this tax shift. By imposing higher tax bills on job creators such as small and large businesses, legislation like SB 2691 operates to undermine economic growth and job creation in Cook County. Business and industrial taxpayers cannot continue to shoulder a disproportionate share of Cook County government costs.

We support the existing property tax appeal system in Cook County whereby all taxpayers, including commercial and industrial taxpayers, are allowed to appeal adverse property tax assessments to the Illinois Property Tax Appeal Board (PTAB) and to have their property tax assessments reviewed by the same Constitutional standards and using the same appeal procedures as all other Illinois property taxpayers.

Business Perspective: The Illinois Chamber of Commerce strongly supports the existing property tax appeal system in Cook County whereby all taxpayers, including commercial and industrial taxpayers, are allowed to appeal adverse property tax assessments to the Illinois Property Tax Appeal Board (PTAB) and to have their property tax assessments reviewed by the same Constitutional standards and using the same appeal procedures as all other Illinois property taxpayers. The existing burden of proof for contesting a property tax assessment is equitable and the correct standard to be applied to all PTAB appeals.

The Property Tax Appeal Board should embrace fairness, equity and uniformity in pursuit of a just and non-discriminatory property tax assessment system in Illinois. A Recent PTAB decisions holding unconstitutional certain property tax assessments issued to commercial and industrial property holders in Cook County as in violation of the 1 to 2.5 ratio requirements of the Illinois Constitution are not grounds for removing Cook County appeals from PTAB jurisdiction or for mandating the use of Cook County ordinance levels for review of affected properties. Revenue impact notwithstanding, all taxpayers are entitled to a fair and just constitutional review of their property tax assessment based upon uniform statewide standards.

Cook County commercial and industrial taxpayers should not be deprived of the same fundamental appeal rights and processes afforded to all other classes of taxpayers in Cook County and to all other taxpayers in Illinois. The existing appeal process is the result of tax reform legislation that sought to treat all property taxpayers in Illinois uniformly by allowing them to resolve their tax disputes at the earliest opportunity and by using a less costly process without prepayment of tax and should not be altered or limited to any particular class of taxpayers. It is inequitable and unacceptable discrimination towards the Cook County business community to impose more stringent requirements to appeal a commercial or industrial valuation to the State Property Tax Appeal Board than for a comparable appeal by any other taxpayer in any other county in Illinois.

The current standard of review, requiring “clear and convincing evidence” to rebut a board of review determination is the correct standard to apply to all appeals to the Property Tax Appeal Board. A board of review assessment is now presumed to be correct and legal but may be rebutted by “clear and convincing evidence.”

The Chamber strongly objects to legislative initiatives to change existing law by imposing a higher burden of proof for assessment appeals solely on Cook County business taxpayers. The object of such legislation is clearly to construct barriers and make it more difficult for business taxpayers to contest an adverse decision of a local board of review. While there may be a legitimate concern about the loss of local revenue as the result of a reduced assessment, it cannot justify the denial of a taxpayer’s right to a fair and equitable assessment review. Uniformity is a fundamental principle of law that must be defended.