Local State and Federal Taxation
Local and State Taxation
Where businesses locate is frequently influenced by state and local taxes. As owners and managers of commercial office buildings, BOMA/Chicago members have an interest in a tax climate that encourages new business to locate in Chicago, and existing businesses to remain.
The state’s primary source of tax revenue is from sales and income tax, which is shared with local government in various ways. Often times, these taxes are not particularly stable and do not grow along with the overall economy. The state is especially affected by this volatility. Local governments feel some of the volatility, but have a more stable tax – the property tax – on which to rely. The state, however, can only look to increase sales or income tax, and other state derived fees.
Since Illinois increased the corporate income tax rate from 4.8 percent to 7 percent, other states have capitalized on the increase by broadcasting negative ads and marketing more favorable tax climates in an attempt to lure businesses out of the state.
The business community, including BOMA/Chicago, has been vocal and critical of the tax climate and continues to express frustration with tax policy and the failures to address crippling debts and the state and local pension crisis.
As a member of the BOMA International federation, BOMA/Chicago members, along with members of other local BOMA organizations, are represented on Capitol Hill by the BOMA International Advocacy Team.
Learn more about BOMA International’s advocacy efforts on federal taxation.