Illinois imposes the second highest property tax in the nation on its residents, but a new Republican-backed bill for property tax relief has a new year and a new chance to move forward after languishing most of 2023 in the House Rules Committee.
Since House Bill 3467 was introduced by Rep. Tim Ozinga (R-Mokena) in February 2023, it has gained the support of two Republican co-sponsors. Rep. Dan Ugaste (R-Geneva) signed onto the bill in September, and Rep. Kevin Schmidt (R-MIllstadt) signed on in October.
“I think that in the state of Illinois, special property taxes are too high, and this would be one way to lower them,” Schmidt told the Record.
The property tax relief bill works by offering school districts grants; but in order to receive a grant, the school district would have to match that grant with an equal amount in property tax reduction for residents.
“If you’re a school district and you—just to throw out a number—apply for a $50,000 grant, you would receive the $50,000 grant, and then you would lower property taxes to the taxpayers in your district by $50,000,” he said.
The bill is not designed to delay relief. If adopted, it would take effect immediately, according to the bill’s synopsis. Additionally, each school district would have to provide tax relief within the same fiscal year it gets a grant. The school district would do this by placing a ceiling (determined by the grant amount) on its maximum aggregate property tax extension.
According to Schmidt, any school district could reach out for relief, as the bill does not require any hardship.
To finance this initiative, Schmidt said, “There would be a fund that is set up in the state of Illinois for this purpose, and then however much money’s in there would be awarded out to the districts that apply.”
The bill calls for amending the School Code to create an Education Property Tax Relief Fund with oversight from the State Board of Education. Just how much would be doled out to the districts is not specified.
Schmidt said the bottom line is that tax relief is crucial for Illinois, which imposes one of the highest property taxes on its citizens.
According to the nonpartisan, nonprofit Tax Foundation, Illinois was ranked second for the highest property taxes at 2.08% according to the 2021 Census Bureau data - the most recent data available. New Jersey leads with the highest property tax rate at 2.23%.
However, Schmidt is concerned the tax relief bill will not reach the Democrat-controlled House floor for a vote.
“Historically, bills like this are never voted on,” he said.
To make progress, the speaker would have to call the bill to the House floor for a vote, he explained.
Right now, the bill is back in the Rules Committee, having spent several weeks with the Revenue and Finance Committee and its Property Tax Subcommittee early in 2023, according to the Illinois General Assembly website.
For those who want to see tax relief succeed, Schmidt said they need to take action at the voting booth.
“There are some people that are happy with their property taxes right now, and they’re happy with the state of Illinois—that’s great. There’s other people that are unhappy with their property taxes, and they’re not happy with the state of Illinois. My suggestion to them would be to vote the people out that continue to raise their property taxes. That’s how democracy works.”