Linda Ekendahl hoped buying property for her business would be the best move – until her $30,000 property tax bill came. Another tax hike under Amendment 1 would further damage her business.
At 26, Linda Ekendahl asked her parents to leverage their home equity so she could start a business they’d never heard of. After 18 years, Ekendahl successfully runs two Edible Arrangements locations in Chicago.
When she bought her first retail space, she hoped investing in her business would build a nest egg for her son. She has found more of a burden than financial security because of property taxes.
“We started out renting, and as our business grew I felt confident about buying a location. I found one in Oak Park for $320,000 and thought, ‘I can totally do this,’” Ekendahl said.
“The previous owners received a property tax bill for about $9,000 – the vacant rate – so I knew I was going to end up having to pay around $18,000 or $19,000, the occupied rate. Then that first year our property taxes were $29,000. It went up by $10,000,” she said.
Unexpected and rapidly growing property taxes have both shut down businesses in Illinois and prompted others to leave. From 2018 to 2023, Illinois dropped seven spots to rank 36th in the Tax Foundation’s State Business Tax Climate Index while neighboring states rose or held steady.
“I was hoping that having a mortgage payment would be my security and that paying it off would help me in a sense of having something for my future. I want to leave a legacy for my son. I thought buying was a pretty smart move, but I didn’t realize how costly the property taxes would be,” Ekendahl said.
Commercial property taxes are set to rise $1.8 billion by 2026 at the historic rate, but the growth would likely be even faster under Amendment 1. Proponents misleadingly call it the “Workers’ Rights Amendment,” but if it passes Nov. 8 Ekendahl and other business owners like her expect it will hurt them just as a recession looms.
The first question on the ballot will ask Illinois voters about a “Proposed Amendment to the 1970 Illinois Constitution.” That’s Amendment 1.
Amendment 1 would have four main impacts. It would:
Under Amendment 1, businesses would be at risk for significant tax increases as Illinois became the only state to hand union bosses the ability to strike over virtually limitless demands and to override state law through their contracts, which would carry the weight of the Illinois Constitution. Greater public union demands mean a higher tax burden for Illinois residents and businesses.
Commercial property tax hikes in Cook County will vary widely by region. Commercial properties on the South Side of Chicago could pay an estimated additional $10,179 in property taxes by 2026, while properties in central Chicago could pay nearly $100,000 during the same period.
Properties such as Ekendahl’s on the West Side could pay nearly $30,000 more over the next four years – a 100% increase.
“I hope the property taxes don’t push me out into that level where I’m going to have to move because moving a business is also expensive. I’m hopeful it will work out, but I might have to be creative,” Ekendahl said.
Ekendahl was fortunate enough to find some relief after hiring three property tax appeals lawyers. Not every business owner or family might have that ability should Amendment 1 push their taxes to an unmanageable level.
“I’m not confident I could sell. I mean, who would ever purchase a 1,700-square-foot retail shop with a $30,000 annual tax bill?” Ekendal said. “And under Amendment 1 they would rise even faster? I can’t even imagine that.”
