A sin tax is a special tax levied on goods or services that are deemed harmful to individuals or society at large, such as alcohol, tobacco, or gambling. Unlike general sales taxes, sin taxes are targeted and intentional; they are designed both to generate revenue and discourage consumption of the product being taxed. Since sin taxes are meant to reduce the targeted behavior over time, governments that rely on them should plan for declining revenue as consumption decreases.
Property Taxes are taxes on residential and commercial property that are based on the property's assessed value. They are among the most significant sources of local government revenue in Illinois and are levied to fund public services such as education, public safety, infrastructure, parks, and other governmental functions. Because property taxes are generally stable and predictable, they provide an important foundation for local government budgets.
