All owners of real property must pay property tax unless specifically exempted by State law. Leaseholders must pay property tax if they are leasing real estate from an owner whose property is exempt. Owners of business, industrial, agricultural and residential all pay property tax directly. In Illinois, taxpayers now pay property taxes only on their real property. 

When Illinois became a state in 1818, the Constitution contained a provision for taxing property in direct proportion to the value of property. From 1818 to 1930, amendments to the Constitution provided the State with various powers and authorities concerning property tax.The Revenue Act of 1872 gave Illinois final authority for setting valuations.The last year the State levied real estate taxes was 1932.

Since then, property taxes have been levied at the local level. Property tax is a local tax assessed by the County (or township). Revenues from property tax are collected and spent at the local level.