By reforming state and local taxation, the region would benefit from new policies that help to advance rather than undermine GO TO 2040 goals. Tax policy should encourage local decisions that make effective use of land, generate good jobs, and trigger sustainable economic activity.
Regional Tax Policy Task Force Advisory Report
Created by the CMAP Board to make recommendations on state and local tax policy matters addressed in GO TO 2040, the Regional Tax Policy Task Force met from April 2011 to January 2012. It was charged with advising the CMAP Board on issues central to state and local fiscal policy, viewed through the lens of the regional economy, sustainability, equity, and the connections between tax policies and development decisions. The task force existed to advise the CMAP Board and had no statutory or independent authority. After ten meetings and extensive staff-supported research, the task force prepared an advisory report, which the CMAP Board received at its regularly scheduled monthly meeting on February 8, 2012.
Impacts of Local Development Decisions
A CMAP report, Fiscal and Economic Impact Analysis of Local Development Decisions, contains a case-study analysis of the fiscal impacts of 31 developments in 10 of the region's communities, as well as an assessment of regional economic and market impacts. The focus of this report is on municipal fiscal impacts, although some analysis of other districts is provided. While each case study exists within a unique set of localized market and fiscal conditions, CMAP has identified several trends regarding fiscal impact practice, revenue sources, and infrastructure and service costs.
Local Economic Development Incentives Report
A CMAP report, Examination of Local Economic Development Incentives in Northeastern Illinois, analyzes how local governments use incentives to attract or retain businesses such as retail stores, auto dealerships, corporate offices, and manufacturing or warehousing industries or encourage the redevelopment of underutilized sites and the construction of affordable housing and mixed-use development. Although 202 out of 284 municipalities in northeastern Illinois are using economic development incentives, their impact is not widely understood. To determine their prevalence, structure, and goals -- along with their effects on development in the region -- CMAP studied the following incentives: sales tax rebates, tax increment financing (TIF) districts, property tax abatements, and property tax incentive classifications unique to Cook County.
Decoding Property Taxes & Classification
Property taxes are among the policies that CMAP is evaluating after a regional task force on state and local tax policy submitted an advisory report to the CMAP Board. The first of two-part issue brief explains how property taxes are determined throughout the region, providing details of how property taxes pay for services delivered by particular units of government.
Cook County Property Tax Classification
The second in this two-part issue brief highlights how phasing out this system could make established communities more attractive for redevelopment and infill of vacant or underutilized land.