Should taxes be allowed to increase when property values fall?

Under new legislation proposed by state Rep. Jack Franks [Dem.Crystal Lake], taxes could not go up at all — not a penny — in any year in which the gross value of property in a taxing district decreases. The only exception is if voters approve a hike by referendum.

“Home values have plummeted in recent years, but the tax burden on those properties continues to rise,” said Mr. Franks, a McHenry County Democrat. “It is unconscionable that property taxes have increased as more and more homeowners are under water with their mortgages.”

Under current law, taxes can go up by the rate of consumer inflation or 5%, whichever is lower.

Mr. Franks has several co-sponsors, most of them Republicans.

Full text available at:  http://www.ilga.gov/legislation/fulltext.asp?DocName=&SessionId=84&GA=97&DocTypeId=HB&DocNum=3793&GAID=11&LegID=61913&SpecSess=&Session=

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3793

Introduced , by Rep. Jack D. Franks - William Cunningham, Ed Sullivan, Jr., Kent Gaffney, Lisa M. Dugan, et al.

SYNOPSIS AS INTRODUCED:

35 ILCS 200/18-185

35 ILCS 200/18-205

Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if the total equalized assessed value of all taxable property in the taxing district for the current levy year (excluding new property, recovered tax increment value, and property that is annexed to or disconnected from the taxing district in the current levy year) is less than the total equalized assessed value of all taxable property in the taxing district for the previous levy year, then the extension limitation is (a) 0% or (b) the rate of increase approved by voters (instead of the lesser of 5% or the percentage increase in the Consumer Price Index during the 12-month calendar year preceding the levy year or (b) the rate of increase approved by voters). Effective immediately.

LRB097 12395 HLH 56861 b

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY