Illinois Faces $185 Million Tax Revenue Loss Due to Rising Organized Retail Crime

Retailers, consumers, and taxpayers in Illinois are all feeling the impact of organized retail crime.

Illinois Attorney General Kwame Raoul explained that this type of crime goes beyond smash-and-grab incidents. It includes theft from trains, warehouses, and large stores like Home Depot and Walmart, affecting both urban and rural areas across the state.

Raoul mentioned that his office is collaborating with local, state, and federal law enforcement to tackle this growing problem. He also noted that organized retail crime manifests in various ways, from groups targeting convenience stores to large retailers in urban and suburban areas.

To combat this, Raoul established the Illinois Organized Retail Crime Task Force in 2021, following a tip from a Home Depot representative. Illinois taxpayers are contributing $5 million to fund this task force in the 2025 fiscal year.

According to Capital One Shopping, retail thefts cost Illinois an estimated $185 million in tax revenue in 2022. Additionally, 70.7% of retailers nationwide reported an increase in organized retail crime over the past five years.

Khris Hamlin, Vice President of Asset Protection at the Retail Industry Leaders Association, confirmed that organized theft is on the rise. He emphasized the importance of collaboration between retailers, law enforcement, and other organizations to address the issue and reduce repeat offenses.

Hamlin also highlighted the difficulty in estimating the total cost of organized retail theft but pointed out the serious consequences, including the loss of life among loss-prevention professionals and retail employees during these crimes.

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