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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.
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