SENATE
BILL WOULD GIVE VOTERS AUTHORITY TO CUT PROPERTY TAXES BY REFERENDUM
Illinois Policy Institute/
Vincent Caruso
Since 1991, some Illinois counties have
traded voters’ ability to influence reductions in property taxes for a
statutory limit on their growth. A recent Senate bill, however, would
restore voters’ ability to reduce property tax levies through
referendums.
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The growth in Illinoisans’ property tax burden can appear to
know no bounds. But a recent Senate bill could empower taxpayers to have more
say in what they pay.
An amendment to Senate Bill 2670, filed by state Sen. Dan McConchie, R-Hawthorn
Woods, would allow Illinoisans to reduce local taxing bodies’ property tax
levies through voter referendum.
To land a property tax referendum on a ballot in a given taxing district, voters
would need to collect a number of signatures amounting to least 10 percent of
that taxing district’s voter turnout in the previous gubernatorial election.
The bill would specifically apply to voters residing in counties bound by the
Property Tax Extension Limitation Law, or PTELL, a statute under which growth in
property tax extensions, or taxes billed, is limited in dozens of counties.
When PTELL isn’t enough
Passed in 1991, PTELL established limitations that regulate the rate at which
non-home rule taxing districts could grow property tax extensions in the collar
counties and in Cook County. Since 1996, voters in other Illinois counties have
voted to implement PTELL through referenda. For counties subject to PTELL,
annual property tax growth of non-home rule taxing districts may not exceed the
lesser of 5 percent or the rate of inflation. There are exceptions to this, such
as taxes for payments on bonds approved by voters, as well as tax increases
approved through voter referendum.
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Since its passage, PTELL has extended to 39
counties.
But as residents in these counties have discovered, even the
limitations imposed by PTELL have failed to prevent property tax
bills from soaring beyond the affordability of taxpayers. In fact,
many households have seen property tax bills rise in spite of
declining property values.
Rising property taxes have continued to weigh heavily on households
across the state. The average property tax bill paid in Illinois
jumped by nearly 50 percent between 2008-2015. The amendment
proposed by McConchie would offer many taxpayers a mechanism for
achieving property tax relief beyond what PTELL provides.
This bill shows taxpayers’ frustrations are increasingly registering
with lawmakers in Springfield. While there’s much more lawmakers can
do in the way of offering taxpayers property tax relief, SB 2670
would do its part by returning to them the authority to petition for
reductions in levies.
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