Illinois’s Economy: Death by 1,394 Fees

by Mark Cavers In January, the General Assembly passed a tax hike that is projected to take around seven billion dollars from the taxpayers of Illinois. Tax hikes like this one get a lot of attention from the media for the harm they cause businesses and taxpayers. But there are other government policies that can be just as harmful...

by Mark Cavers

In January, the General Assembly passed a tax hike that is projected to take around seven billion dollars from the taxpayers of Illinois. Tax hikes like this one get a lot of attention from the media for the harm they cause businesses and taxpayers. But there are other government policies that can be just as harmful yet receive a lot less attention. For example, Illinois uses a broad system of fees to raise revenue and fund higher spending. According to the Comptroller, in fiscal year 2009, the State of Illinois imposed 1,394 different fees on individuals and businesses. Taken together, the fees cost taxpayers and businesses $7,069,000,000, the equivalent of the projected revenue taken through the recently passed tax hike.

The fees charged range in cost from 50 cents for copying a single piece of paper to $878,864 to operate a nuclear power reactor. They span the breadth of actions from registering your motorcycle, to getting your FOID card or fishing permit, to acquiring a dry cleaning license. The Secretary of State enforces the most fees, 461, and collects the most revenue, $1,836,164,083. These include vehicle registration fees, special hauling permits, and incorporation filing fees, to name just three.

In fiscal year 2009, there were sixteen state agencies that collected over $50 million in revenue from fees. The Department of Healthcare and Family Services only imposed ten different fees but collected $1,743,539,753 in revenue, the second most of any state agency. Other agencies collecting over $50 million in fees included the Departments of Revenue, Financial and Professional Regulation, Treasurer, Natural Resources, Central Management Services and the Environmental Protection Agency. The remaining ones are mostly state universities, which collected over $50 million in tuition and other fees.

In fiscal year 1997, state agencies collected $2,610,000,000 in fees, by fiscal year 2009, that number had grown to $7,069,000,000. Over this 12 year span that is an increase of $4,459,000,000 billion in fees. On average, we paid $371,583,333 more each and every year in fees, often times for the exact same license, permit, or certificate. Because the fees are often set by agencies instead of the General Assembly and are raised sporadically they garner much less attention. Still the end result is the same, less money for businesses to invest and fewer dollars in citizens’ pockets.

From getting a death certificate to going camping to starting a nonprofit or becoming a massage therapist, in Illinois it will cost you.

To read to Comptroller’s full report on fees click here