New Bill Aims to Protect Illinois Homeowners From Property Tax Hikes

The biggest complaints heard from Rockford area homeowners usually involve property taxes, and now a local lawmaker is proposing a major change to bring some long-term relief.

Illinois Property Tax Prices

Owning a home and paying property taxes sucks wherever you live, but it can be extremely painful for those of us living in Illinois.

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Since my husband and I bought our current home in 2021, our mortgage payment has gone up over $600 a month thanks to property tax increases, and if the trend continues, we will be forced to make some tough decisions.

Many other Illinois families are facing the same struggles we are, but new legislation has been filed in Illinois that could provide some relief.

Illinois Property Tax Relief Legislation

State Representative Joe Sosnowski has filed House Bill 4626, legislation that would base a home’s property taxes on its Equalized Assessed Value (EAV) at the time of purchase. Essentially, this means if your home increases in value over time, your property tax bill wouldn’t automatically rise with it.

The sad fact is, Illinois homeowners pay either the highest or second-highest property taxes in the country. This bill is aimed at helping first-time buyers, working families, and seniors on fixed incomes, and would make sure residents aren't punished financially just because their home values go up.

In addition to House Bill 4626, Sosnowski has also introduced two related proposals that would cap annual property tax increases at 1% for seniors, and 3% for all homeowners. (House Bills 3723 and 3724)

Property Tax Relief Legislation Concerns

While any legislation that relieves our property tax woes sounds amazing, many Illinois homeowners are asking important questions like:

• If the property value goes down, will the tax amount stay the same or will it go down too?
• If homeowners are paying less for property tax, will other services be eliminated to make up for the lost revenue?
• What happens if you refinance your mortgage?

Obviously, there are a lot of questions to be answered, and the legislation still has a long way to go before it is put into action. But, for Rockford families watching every dollar, this is legislation worth keeping an eye on.