Illinois voters approve an advisory referendum that calls for higher taxes on income over $1 million

Late Tuesday, a call to impose higher taxes on the wealthiest class of Illinoisans to pay for statewide property tax relief passed in one of three statewide advisory referendums that won voter support.

The tax measure called for imposing a 3 percent levy on income of more than $1 million, which state finance officials said could pump at least $4.5 billion more into state coffers each year, which could then be used to reduce the tax redirect property tax.

Its passage could boost efforts in Springfield in 2026, the year of the state's next gubernatorial election, to place a constitutional amendment on the ballot to authorize Illinois' new tax on millionaires.

The measure received 60% of the vote, with 83% of estimated votes counted, the Associated Press reported, and the agency called it a victory Tuesday night.

The question was put to voters after lawmakers presented it in May as part of a broader election package signed by Illinois Gov. JB Pritzker.

The exact wording of the ballot question was: “Should the Illinois Constitution be amended to impose an additional 3% tax on income over $1,000,000 to use the funds collected for property tax relief?”

Proponents of the plan, including state Rep. Jay Hoffman, D-Collinsville, touted the vote as a first step in addressing the public's “clamor” for a cut in property taxes across the state.

An analysis by Cook County Treasurer Maria Pappas' office found that homeowners in Chicago's south and southwest suburbs were hit by an average increase in property tax burdens of a record 19.9%, with some in the south suburbs experiencing one this year recorded an increase of over 30 percent.

The U.S. Department of Revenue estimates that 77,323 Illinoisans reported having adjusted gross income of more than $1 million per year in tax year 2021, the most recent year available.

In 2020, voters rejected a similar plan to impose higher taxes on the wealthiest in Illinois. At that time, Pritzker planned to amend the state constitution to replace the state's flat 4.95% individual income tax rate with a sliding tax rate that would force wealthy people to pay higher tax rates.

That graduated income tax proposal received less than 47% support, a defeat for Pritzker, who was up against another billionaire, Kenneth Griffin, who poured $54 million of his own money into opposing the ballot initiative.

In 2014, lawmakers put a similar advisory referendum on the ballot requiring state millionaires to pay 3% on income over $1 million, with the proceeds earmarked specifically for schools. Nearly two-thirds of voters on the question — 64% — supported the idea.

Former Democratic Gov. Pat Quinn was a vocal supporter of a yes vote on Tuesday's ballot question.

“For too long, millionaires have received tax breaks, and Illinois homeowners have received ever-increasing amounts of property taxes,” Quinn said before Tuesday’s vote.

He said the referendum would give voters “a chance to reform an unfair, topsy-turvy tax code and provide long-overdue property tax relief to homeowners across the state.”

But Republicans objected to the ballot question, saying higher taxes on wealthy Illinoisans would not lead to greater economic growth. Pritzker remained silent on the referendum, although he signed the legislative package authorizing the vote.

If a 3% tax on income over $1 million had been in effect for tax year 2022 – the last year for which the billionaire Illinois governor and his wife have reported their taxes – he and MK Pritzker would have an additional $67,485 US dollars paid. A WBEZ analysis shows.

Voters were also asked two other statewide questions: one, whether state officials should be advised to impose civil penalties if a candidate interferes with poll workers, and the other, whether medically assisted reproductive treatments, including in vitro fertilization, are covered by health insurance should plan in Illinois.

The poll worker question was asked by the Associated Press just before 9 p.m

With about half of the estimated votes counted statewide, the percentage supporting the advisory question was nearly 90% as of 9:15 p.m. Tuesday, according to the Associated Press.

And on the issue of in vitro fertilization, the Associated Press also called it a victory Tuesday: An estimated 72% supported the measure and 83% of the estimated votes were counted.

Dave McKinney covers Illinois government and politics for WBEZ and is the former longtime Springfield bureau chief for the Chicago Sun-Times.