From the IL Chamber of Commerce:
Only the House was in session this week, meeting on Thursday.
Property Taxes
The House Revenue committee met on Thursday September 24. No substantive legislation was considered by the committee. The committee held a subject matter hearing on a proposal by the City of Chicago for an increase in the homestead exemption from the property tax. The proposal to increase the homestead exemption from the property tax levy for the City of Chicago is coupled Chicago Mayor Emanuel's recently announced proposal to seek a property tax increase in excess of $500 million as part of a plan to address the City's budget deficit.
Deputy Mayor Steve Koch testified that the proceeds of the property tax increase will be earmarked for payment of police and fire pension obligations.
The details of the Mayor's proposal to increase the homestead exemption remain vague. No proposed legislative language was provided to the committee by the witness for the City of Chicago, Deputy Mayor Steve Koch.
The City seeks an expansion of the homestead exemption to exempt the first $250,000 in value of all residential real property from the property tax increase.
The mechanics of the $250,000 exemption remain vague. Based on the testimony of Deputy Mayor Koch, it appears that the City is seeking to increase the homestead exemption only for the property tax levy for the City of Chicago. The remainder of the taxing bodies that levy real property taxes on owner-occupied residential real estate located in the City of Chicago would not be subject to the increased homestead exemption.
Under the proposal as outlined by Deputy Mayor Koch, it appears clear that the bulk of the property tax increase would fall on business. In addition, the Deputy Mayor, in response to questioning by Representative Flowers, confirmed that owners of apartments would remain subject to the property tax increase.
Both Democratic and Republican members of the committee posed questions about the potential adverse impact of the increase on business and individuals who rent their residences.
Representatives of the business community testified as to the adverse impact of property tax increase on business.
The Illinois Chamber of Commerce is on record as opposing the City of Chicago proposal to expand the homestead exemption in the context of the Mayor's proposed property tax increase because of the disproportionate impact on business.
Deputy Mayor Steve Koch testified that the proceeds of the property tax increase will be earmarked for payment of police and fire pension obligations.
The details of the Mayor's proposal to increase the homestead exemption remain vague. No proposed legislative language was provided to the committee by the witness for the City of Chicago, Deputy Mayor Steve Koch.
The City seeks an expansion of the homestead exemption to exempt the first $250,000 in value of all residential real property from the property tax increase.
The mechanics of the $250,000 exemption remain vague. Based on the testimony of Deputy Mayor Koch, it appears that the City is seeking to increase the homestead exemption only for the property tax levy for the City of Chicago. The remainder of the taxing bodies that levy real property taxes on owner-occupied residential real estate located in the City of Chicago would not be subject to the increased homestead exemption.
Under the proposal as outlined by Deputy Mayor Koch, it appears clear that the bulk of the property tax increase would fall on business. In addition, the Deputy Mayor, in response to questioning by Representative Flowers, confirmed that owners of apartments would remain subject to the property tax increase.
Both Democratic and Republican members of the committee posed questions about the potential adverse impact of the increase on business and individuals who rent their residences.
Representatives of the business community testified as to the adverse impact of property tax increase on business.
The Illinois Chamber of Commerce is on record as opposing the City of Chicago proposal to expand the homestead exemption in the context of the Mayor's proposed property tax increase because of the disproportionate impact on business.
To read more from the IL Chamber of Commerce, visit their website!
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