Wednesday, April 8, 2020
David A. Simon (Kansas), Taxing the Poor Through Real Estate Transfers, 2020 U. Ill. Rev. Online 29 (2020):
This Article collects data on real estate transfer taxes in Illinois. It shows that municipal transfer taxes are more likely to affect poor communities than affluent communities.
Conclusion. The most valued asset of most Illinois residents is their home. In a State with perpetually rising property taxes, policy-makers should train a skeptical eye on additional real-estate related taxes, particularly when they harm the State’s most vulnerable residents. Given that Illinois comprises over 100 counties and over 1,000 municipalities—the overwhelming majority of which do not impose transfer taxes—we should closely scrutinize how, when, and for what purpose(s) municipalities impose them.