Tuesday, May 04, 2010
 
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Quinn throws property tax into the mix

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[May 04, 2010]  CHICAGO -- Legislators have a lot on their plate as they enter the final week of the spring session, including stalemated budget talks.

HardwareBut 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."

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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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