Gov. JB Pritzker on Friday signed a new bill providing property tax relief for senior, veteran and disabled homeowners. What nobody said is that those reductions for some mean increases for others. It’s just a matter of shuffling the property tax burden.
The levy is what’s key. That’s the grand total of property tax collected by a unit of government. Unless the levy is reduced, which the new law does not do, taxpayers as a whole pay the same total. The new bill also may push some of the current levy from a current to a future year but, again, the total amount ultimately taxed is not reduced.
It’s fine to reduce the burden on seniors, veterans and the disabled if that’s appropriate, though it’s worth remembering that plenty of seniors and veterans are well of, and there are more targeted ways to help the poor. In any event, don’t hide the whole story, which is what Pritzker and others bragging about the bill did. News stories on the bill didn’t mention the tax shift, either. Pritzker’s press release quotes Sen. Robert Martwick (D-Chicago):
Democratic members of the House and Senate have delivered on comprehensive property tax relief and reform…Taxpayers need to know that government is working for them. I am proud to have played a lead role in passing this measure, which during this time of so much uncertainty, ensures that all taxpayers, especially seniors and veterans are getting the relief they deserve.
No, it is not “comprehensive” and does nothing for “all taxpayers.” The press release also quotes Rep. Stephanie Kifowit (D-Oswego): “The passage of Senate Bill 1975 shows dedication by the members of the Illinois House to reduce property taxes and provide more efficiency in government,” though at least she added that the bill is targeted to a certain group.
No reforms or structural changes of any kind have been made that will reduce property taxes or any other Illinois taxes.
-Mark Glennon
A mess of uncertainty and litigation is sure to follow.
With $162 billion more from taxpayers, couldn’t you deliver a few bond upgrades, too
Homestead exemption is worthless when all residential rental properties are granted this exemption (by claiming that their tenants are “liable for payment of the property taxes”). When 100% of taxable EAV is lowered by $10,000 each building, the tax RATE simply goes up accordingly. Nearly all commercial (non-residential) property in Woodstock is in a TIF district for 30 more years, so the desired shift of tax burden from residential housing to commercial property is impossible. Chicago is around 33% in TIF? There is no police or enforcement mechanism to determine when and if a tenant is “liable” for payment of… Read more »
Special designations cause more administrative costs and they set up demographic information. Does the admin cost exceed the benefit?
I don’t know none of it makes sense to me, counties bordering cook county the homestead exemption goes from 6,000 to 8,000 and the senior exemption from 5,000 to 8,000 for collar counties. The counties that would qualify and benefit from these updated exemptions would be only Dupage, Kane, Lake, McHenry and Will counties they border cook county and are the collar counties. Anyone have any input what about all the other counties in Illinois, sounds like campaign swindling on Pritzker’s part to fool people.
You are right to be confused, and so am I as I look at that more closely. The official summary of the bill says this: Makes changes to the bill as amended by House Amendment No. 3 to provide that the maximum amount of the general homestead exemption is $10,000 in counties with 3,000,000 or more inhabitants, $8,000 in counties that are contiguous to a county of 3,000,000 or more inhabitants, and $6,000 in all other counties (rather than $10,000 in counties with 3,000,000 or more inhabitants and counties that are contiguous to a county of 3,000,000 or more inhabitants… Read more »
Thank you, and a update would be greatly appreciated
If you notice the only county in Illinois with over 3M is Cook. It is also the largest voting block many of who are democrat. Why not Winnebago county at just over 200K and Boone at 53K. Why are we not eligible for the $10K deduction? Not enough voters that matter in an election is my guess. We are just a few drops of gravy on a large plate of mashed potatoes or just a few sprinkles on a sheet cake to cement the election. Lot of R’s in rural areas so we only get $6K. Sounds like voter discrimination… Read more »
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How exactly did this property tax “reduction” “provide more efficiency in government”??
All due to Ptell. That is why in the 39 counties under Ptell jurisdiction they can collect what was levied the year before plus 5% or 1/2 of inflation whichever is less so they never get less money regardless of property values. That is why Rockford taxes are so high. For years Rockford home values went down except for the last year and a half but taxes went up. The downside was never mentioned only the so called 5% upside cap. What else is not mentioned is anyone/business getting an abatement or tax incentive from the local government for a… Read more »
Spot on, Freddy. And just you wait. Inflation will allow for something like a 4.7% increase in the next levy, almost at the max, and the year after it’s highly likely it will be the max of 5%. So potentially a 10% residential property tax hike in two years. But that’s not all. Commercial and retail assessments are sure to go down significantly due to the low occupancy rates of buildings and shuttered retail stores. Guess who’ll pick up the slack? Residential property owners. The shift to residential has been smooth and steady over the years, from 50 percent to… Read more »
Massachusetts passed proposition 2.5 through ballot make sure years ago. Property taxes capped at 2.5%, or rate of inflation, whichever is greater. The average tax rate of a home there is about half of what it is here in Illinois. That’s what we need here.
They call it taxachusetts, but Sales tax is half of what we pay as well