Illinois income taxes jump nearly 32%, second-highest in nation
By Abdon M. Pallasch Political Reporter firstname.lastname@example.org April 17, 2012 12:46PM
The Illinois State Capitol in Springfield. (AP file)
Updated: April 17, 2012 2:26PM
Illinois income tax collections jumped 31.9 percent in 2011 — the second-highest jump in the nation — thanks largely to a hike in the state income tax from 3 percent to 5 percent, new numbers from the Census Bureau show.
Only North Dakota saw a bigger jump: 42.6 percent.
Sales taxes and corporate income tax collections are also up, said Sue Hofer, spokeswoman for the Illinois Dept. of Revenue.
It’s not just the hike in the state income tax rate driving the higher numbers, Hofer said.
“Illinois added more than 30,000 jobs last year,” she said. “More people are working. You don’t pay taxes if you don’t work.”
The numbers released Tuesday cover the fiscal year from July to June, so only half the 67 percent hike in the state income tax is reflected.
Nationwide, sales tax revenue was up 5.4 percent over last year, at $234.5 billion.
More recent collection estimates from the state show collections for this not-yet-complete fiscal year through February are $10.3 billion or $3.8 billion ahead of last year, Hofer said.