Sauer Says Statewide Property Tax is Not the Cure

State Representative Nick Sauer (R-Lake Barrington) is sponsoring legislation in opposition to a proposal outlined by economists with the Federal Reserve Bank of Chicago that recommends Illinois enact a statewide property tax assessment in addition to the property taxes Illinois homeowners already pay. Specifically, the economists suggest a special property assessment they estimate would be about 1% of actual property value each year for 30 years to pay down state pension debt. This would lead to an average increase of 40 percent to an Illinois homeowner’s property tax bill.

“We Illinoisans have already seen our property taxes grow six times faster than incomes between 2008 and 2015,” said Sauer. “On top of that, our state population has declined every year since 2010 with our tax burden being the number one reason people left the state. Instead of losing even more people with another tax increase, we need to have a serious discussion about constitutional pension reform.”

House Resolution 1072 calls on the Illinois General Assembly to oppose any legislative proposal or initiative that would enact a statewide property tax assessment. An Illinois homeowner living in a home valued at $184,000 (the median home value in the United States) pays approximately $4,300 in annual property taxes. Many Illinois homeowners pay far above that average. Comparatively, a homeowner in Wisconsin pays approximately $3,600; in Michigan, $3,200; in Iowa, $2,800; in Missouri, $1,800; and in Indiana and Kentucky $1,600.

Illinois already ranks among the states with the highest property tax liabilities, frequently vying with New Jersey for the highest average tax bill. Based on the 1% of property value proposal, the average Illinois homeowner would see their property taxes increase from $4,300 to $6,140, cementing Illinois as the undisputed property tax leader in the United States. Sauer said this is completely untenable.

For more information about HB 1072, Click Here.

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