CMAP should continue to facilitate a regional perspective on the interaction of tax policy, land use, the economy, and successful communities. Assistance for local jurisdictions to improve planning processes and coordination can help, but it does not address systemic issues that affect communities’ ability to adapt to changing consumer preferences, technology, and mobility. Via policy changes addressing multiple revenue sources and identifying options to support office and industrial development, a reformed tax system could reduce market distortions and better support desired development and goals of the region’s communities, even in the face of a changing retail landscape. Reforms should be undertaken through a deliberative process in partnership with local governments, ensuring that communities are not negatively impacted.

Action 1

Expand the sales tax base to additional services in a manner that helps communities create a more balanced land use mix, improves horizontal equity, minimizes economic distortions, and mitigates the cascading nature of sales taxes.

Implementers

The State of Illinois

Action 2

Phase out the property tax classification system to reduce commercial and industrial properties’ current burden, which deters development and creates pressure for higher taxes overall.

Implementers

Cook County

Action 3

Reform state revenue disbursement criteria, addressing multiple revenue sources, to reduce wide divergences across municipalities, allow each municipality to support its own desired mix of land uses, and adapt to changing development patterns.

Implementers

The State of Illinois

Action 4

Coordinate with partners to promote tax policy changes to support better land use outcomes, including to conduct public education as well as legislative outreach.

Implementers

CMAP

Action 5

Engage in fiscally sustainable practices to ensure a stable business climate and guarantee the reliability of state support to the region, including for local governments, transit agencies, and nonprofit service providers.

Implementers

The State of Illinois