 But that didn't stop Gov. Pat Quinn from adding one more issue to
the mix. The governor unveiled a new proposal to reform the property
tax system.Quinn said he is compelled to act by the crisis
situation homeowners are facing.
"Right now we have to deal with an emergency in property taxes;
there's no question about it, it's a big problem because the
assessment process is not keeping up with the real estate market,"
he said. "The market has gone down for many people … and lo and
behold, they get a higher property tax bill."
Quinn's proposal would extend a $20,000 credit on a home's
taxable value for an additional year. The credit was set to expire
in January. Legislators increased the cap on property taxes in Cook
County from $5,000 to $20,000 in 2007 as a form of tax relief when
property values began to plummet.
The question remains whether the proposal can become law. The
General Assembly is entering its final week of session with budget
talks still in turmoil, due in part to Quinn's proposed 33 percent
income tax increase.
Quinn has said the income tax increase is needed to make up for a
$1 billion shortfall in funding for education, and he has threatened
drastic cuts to the system without it. His newest proposal could
also affect school districts.
Illinois' property tax system is managed by county governments,
which use the money to fund school districts. Extending the cap
could mean less tax money at the local level. But Quinn said he
wants to change the way school districts are funded by increasing
Springfield's presence in local education.
"I believe that there should be more state funding from
Springfield for education so it isn't relied upon so much at the
local level by using the property tax," he said.
Quinn said he wants legislators to stay in session until a budget
is passed, but time is not on his side. He believes the property tax
measure can be passed, despite initial opposition from leaders in
the General Assembly, including Speaker Mike Madigan, D-Chicago.
"I've spoken with the speaker of the house and the president of
the Senate, and I'm confident we'll get good attention to an issue
that affects really every taxpayer in Illinois," he said. "The
largest tax system in our state by far is the property tax system."
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Madigan spokesman Steve Brown said the speaker is working with
Quinn on the measure. But he also faulted Cook County Assessor James
Houlihan for failing to address the issue of rising property taxes
at a time when home values were dropping.
"We're going to try and work with Gov. Quinn and see what can be
done," he said. "We're sort of hopeful that the assessor might have
done his job properly this time."
Quinn's measure does not dramatically alter the makeup of the
property tax system in Illinois, but it would increase transparency
in the process.
If passed, the proposal would allow for the creation of citizen
watchdog boards through petition drives or ballot referendums. The
groups, which Quinn dubbed Taxpayer Action Boards, would mirror the
structure of the Citizens Utility Board, which Quinn championed
nearly three decades ago.
Quinn said county boards could help expose and correct incidents
of waste and fraud in the property tax assessment process.
The transparency effort would also require county governments to
better inform citizens of the process. Assessment notices and bills
would come with a fact sheet for citizens to review. That mailing
would include information about property assessment functions,
median levels of assessments and home sales statistics.
Quinn said such statistics can give homeowners an idea of how the
state came to appraise their property.
The proposal is sponsored by Rep. John E. Bradley, D-Marion, and
will hit the House floor this week.
[By BILL McMORRIS; posted on
Illinois
Statehouse News]
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