Nearly 40% of small businesses delinquent on October rent
A survey found 37% of U.S. small businesses were delinquent on October rent, with inflation and rising costs absorbing “most sales gains.”
A new survey found 37% of America’s small business owners were unable to pay rent on time or in full during October, citing inflation, rising rent, labor and gas costs for the growing delinquency.
Alignable’s monthly business report said 59% of entrepreneurs reported less consumer spending in October than the month before. During September, business owners reported a 30% delinquency rate.
Commercial property tax rates are projected to increase $1.8 billion during the next four years. Those tax hikes are factored into rent by landlords.
Illinois businesses already face challenges from a looming unemployment tax hike, the nation’s third-highest number of regulations and the potential for a recession. The Tax Foundation’s state business tax climate ranking recently showed Illinois dropped 7 places in five years as neighboring states rose or held steady.
Commercial properties are not the only ones facing property tax increases. Homeowners also face hikes. All told, Illinois is expected to see an extra $4 billion in property taxes by 2026, with homeowners paying half of that.
If property tax rates simply continue to increase at their long-run average rate, the typical homeowner will pay over $2,100 in additional property taxes during the next four years. Illinoisans already are paying the nation’s second-highest property taxes, which are double the nation’s average.
State lawmakers can blunt the economic headwinds facing businesses and homeowners by making property tax relief a priority.