Inventory Tax
Treatment: Broadly exempt
Assessment & Filing
Assessment date: January 1
Property is assigned a value that reflects its value as of January 1 of the assessment year; tax bills are calculated and mailed the following year (PTAX-1004; 35 ILCS 200/9-95). Property tax administration, assessment, equalization, and collection are performed at the local level by township assessors, chief county assessment officers, county clerks, and county collectors. Illinois does not have a state property tax.
Illinois statutes require that the assessed value of non-farm property equal 33 1/3 percent of its market value, except for Cook County (PTAX-1004; 35 ILCS 200/9-145). Cook County classifies property, with assessment levels from 10 percent (residential) to 25 percent (commercial) of market value (PTAX-1004). Farmland and coal use other methods.
Additional Exemptions
No Personal Property Tax (Inventory Included)
Only real property is taxed in Illinois. The 1970 Illinois Constitution directed the legislature to abolish personal property taxes; corporations, partnerships, limited partnerships, joint ventures, and similar entities continued to pay taxes on personal property until 1979 and now pay a replacement tax on income and invested capital to the state (PTAX-1004). Ill. Const. art. IX, §5(c): 'On or before January 1, 1979, the General Assembly by law shall abolish all ad valorem personal property taxes.'
Sources: https://tax.illinois.gov/content/dam/soi/en/web/tax/research/publications/documents/localgovernment/ptax-1004.pdf. https://www.ilga.gov/commission/lrb/con9.htm
Frequently Asked Questions
Is business inventory taxed in Illinois?
No. Only real property is taxed in Illinois; ad valorem personal property taxes were abolished, and businesses now pay a replacement tax on income and invested capital to the state (PTAX-1004).
When is the Illinois property tax assessment date?
Property is assigned a value that reflects its value as of January 1 of the assessment year; tax bills are calculated and mailed the following year (PTAX-1004; 35 ILCS 200/9-95).
Who administers property taxes in Illinois?
Property tax administration, assessment, equalization, and collection are performed at the local level by township assessors, chief county assessment officers, county clerks, and county collectors. Illinois does not have a state property tax. The Illinois Department of Revenue provides technical assistance and training to local officials, maintains taxing district maps, approves non-homestead exemptions, equalizes assessments among counties, and publishes assessment information.
What business personal property is taxed in Illinois?
None. Only real property is taxed in Illinois (PTAX-1004). Real property includes 'buildings and fixtures permanently or constructively attached to a building' (PTAX-1-A, citing Section 1-130).
What is the Illinois property tax assessment level?
Illinois statutes require that the assessed value of non-farm property equal 33 1/3 percent of its market value, except for Cook County (PTAX-1004; 35 ILCS 200/9-145). Cook County classifies property, with assessment levels from 10 percent (residential) to 25 percent (commercial) of market value (PTAX-1004). Farmland and coal use other methods.
Primary Source
Sources
Illinois Property Tax Code — 35 ILCS 200/1-1 et seq.
35 ILCS 200/9-95 — Listing of property
35 ILCS 200/9-145 — Statutory level of assessment
35 ILCS 200/9-155 — Valuation in general assessment years
Illinois Constitution, Article IX
PTAX-1004, The Illinois Property Tax System (Illinois Department of Revenue)
PTAX-1-A, Introduction to Residential Assessment Practices (Illinois Department of Revenue)
Related Guides
This page is general information, not tax or legal advice. State tax laws and local rates change. Confirm current positions with the state revenue department, county assessor, and qualified advisors before committing to a location.