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Senator Harmon News:

From the Illinois Senate
State Senator Don Harmon

OCTOBER 18, 2007

Harmon: Property Tax Relief Legislation Passes Senate

SPRINGFIELD, IL – Illinois State Senator Don Harmon (D-Oak Park) announced that legislation extending the 7% property assessment cap for an additional three years will become law. Senator Harmon joined his colleagues in both the Senate and the House recently to override the Governor’s veto of House Bill 664.

Senator Harmon, one of the bill’s chief sponsors, noted that, “Folks have seen their home values reassessed and property taxes rise along with the assessments. This hits homeowners where it hurts—especially when their incomes aren’t rising along with their tax bills.”

House Bill 664 extends the 7% property assessment cap for an additional three years increasing the maximum exemption value from $20,000 in the first year to $33,000.

This legislation also creates a long-time occupant homestead exemption, which brings relief to homeowners who have owned their residence for ten years or more. There are two sets of guidelines for this exemption, split according to income. Households with incomes less than $75,000 see no more than a 7% increase in annual taxable equalized assessed value (EAV). Households with an income of $75,000 or more, but less than $100,000 will see no more than a 10% increase in annual taxable equalized assessed value (EAV).

“Long-term homeowners are vital to thriving communities, and the most at risk when property values skyrocket,” Harmon noted. “Property tax relief legislation needs to be especially sensitive to long-time occupants. I am pleased that residents of my district will see immediate relief from this bill.”

This measure also establishes the Property Tax Task Force to further explore issues related to property tax reform. Each of the legislative leaders will appoint members to serve on this task force and it will report its findings to the General Assembly before January 1, 2010.

“House Bill 664 is a great start,” remarked Senator Harmon, “but a lot more needs to be done, especially when you consider the inefficiency in the system.

Our goal as legislators is to ensure that the tax burden is applied fairly, and that everyone who needs relief gets it. The task force will explore whether the system is working the as well as it possibly can for the people of Illinois.”

With the Governor’s veto overridden by both the House and the Senate, the last hurdle remaining for the proposal is approval by the Cook County Board, which is expected to meet on the issue soon.