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Fact check: Illinois has the second highest property taxes of any state in the U.S. largely to fund their public sector pensions.

Checked on January 7, 2025

1. Summary of the results

The statement is well-supported by multiple sources. Illinois indeed has the second-highest property tax rates in the United States at 2.32%, second only to New Jersey's 2.38% [1]. The median property tax bill in Illinois was $5,055 in 2022, more than double the national average of $2,457 [2]. The connection to public sector pensions is also confirmed, with Illinois ending fiscal year 2023 with $211 billion in unfunded state and local pension liabilities [2].

2. Missing context/alternative viewpoints

Several important contextual elements are missing from the original statement:

  • Historical Context: Since 1996, property tax extensions in Illinois have increased by 52% after adjustment for inflation, transforming the state's burden from around the national average to one of the highest [3].
  • Per-Household Impact: The average Illinois household carries approximately $45,151 in state and local pension debt [4].
  • Total Pension Liability Range: The total pension liability estimates vary significantly, ranging from $130 billion to $250 billion [5].
  • Specific Usage Example: In one case, out of a $94 million property tax increase, $42.5 million was specifically allocated to address pension fund shortfalls [1].
  • Home Value Context: In 2021, homeowners paid an average of $4,942 in property taxes on a median home value of $217,500 [6].

3. Potential misinformation/bias in the original statement

While the original statement is factually accurate, it simplifies a complex issue:

  • The statement might lead readers to believe that pensions are the sole driver of high property taxes, when in fact property taxes also fund various other local services [7].
  • The statement doesn't acknowledge that local governments are responsible for $75 billion in pension debt specifically [4], which is part of a larger systemic issue.
  • The pension spending has "far outpaced spending on state and local services" [3], suggesting a broader fiscal management issue beyond just the pension system itself.

This issue affects multiple stakeholders:

  • Property owners who bear the tax burden
  • Public sector workers whose retirement security depends on these pensions
  • Local governments struggling to balance their budgets
  • Taxpayers who ultimately fund these obligations through various means
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