The implementation of a rolling three-year assessment system is expected to impact local governments and property owners significantly. By averaging property values over three years, the volatility in property taxes during fluctuating real estate markets could be mitigated, providing both predictability for taxpayers and stability for revenue forecasting for local governments. This approach may lead to a more equitable distribution of tax burdens among property owners, especially in areas experiencing rapid growth or declining values.
House Bill 3439, introduced by Rep. Amy Elik, proposes amendments to the Property Tax Code in Illinois. The bill establishes a rolling three-year assessment period for property taxation that will take effect starting from tax year 2025. Specifically, it mandates that each chief county assessment officer is responsible for determining the value of each property listed for taxation at 33 1/3% of its fair cash value, averaged over three years. This legislative change aims to create a more stable and predictable property tax assessment process.
As the bill is slated to be enacted immediately upon authorization, its passage is important for stakeholders, including homeowners, real estate agents, and local government officials who rely heavily on property tax revenues. Ongoing discussions will likely focus on how effectively this new assessment framework works in practice and whether it achieves its intended goals of fairness and stability in property tax assessments.
The proposed bill may generate discussions regarding its implications on local autonomy and revenue for local governments. Critics might argue that standardizing the property assessment process could limit the ability of local assessors to respond to immediate market changes uniquely applicable to their jurisdictions. There might also be concerns over the funding allocations and if the rolling assessments adequately reflect current market conditions, especially in more dynamic real estate markets.