The primary impact of SB2395 will be on property owners in Cook County, as it directly modifies how interest is charged on unpaid taxes. By lowering the interest rate, the bill seeks to alleviate some of the financial strain that delinquent taxpayers experience, potentially reducing the incentive for property owners to allow their taxes to become delinquent. This could lead to fewer foreclosures and tax sales, maintaining community stability and supporting local government revenues indirectly by potentially increasing compliance rates among property owners.
Summary
SB2395 proposes amendments to the Property Tax Code, specifically targeting the interest rates associated with delinquent taxes in Cook County. The bill aims to reduce the interest rate for delinquent taxes from the current rate of 1.5% to 0.75% per month for the tax year 2023 and beyond. This legislative change is designed to provide financial relief to property owners who may struggle with fulfilling their tax obligations due to financial hardships, ensuring that such obligations are less burdensome in their interest accumulation.
Contention
However, there are concerns about whether this reduction in interest rates could affect local government revenue. Critics may argue that while the intention is to help struggling property owners, it could also place additional fiscal pressure on local governments if a significant number of property owners benefit from the reduced penalties for delinquent taxes. Balancing taxpayer relief with the need to maintain sufficient funding for local services will likely be a point of contention as discussions around the bill move forward.