The immediate effect of SB2845 is to alter the way long-time occupants benefit from property tax exemptions in Illinois. By lowering the rate of increase on homestead values, the bill is positioned to offer more stable and predictably lower increases in property taxes for eligible homeowners, particularly those on fixed incomes. This could ease the financial burden for many long-time residents, allowing for better financial planning and stability in housing costs, particularly for those with more modest means.
Summary
SB2845 proposes amendments to the Property Tax Code concerning the long-time occupant homestead exemption. The bill stipulates new formulas for calculating the adjusted homestead value, which will now increase by a maximum of 5% for qualified taxpayers with an income over $75,000 but not exceeding $100,000, and 3% for those earning $75,000 or less. This marks a significant reduction from the previous increments of 10% and 7%, respectively. The changes aim to adjust property tax relief for qualified homeowners based on their income levels, thereby providing targeted support.
Contention
While the bill presents potential benefits, it also raises points of contention. Critics argue that adjusting the exemption formulas may limit the long-term benefits initially intended for long-time residents, effectively continuing the trend of rising property taxes in a state where housing affordability is an ongoing concern. Additionally, stakeholders may contest whether the new income thresholds adequately reflect the ever-changing economic landscape, which could leave lower-income families without sufficient relief.
Individual income tax: property tax credit; credit percentages; modify. Amends secs. 508, 510 & 522 of 1967 PA 281 (MCL 206.508 et seq.). TIE BAR WITH: SB 0345'25
Individual income tax: property tax credit; credit for disabled veterans or widow or widower of disabled veterans who rent or lease a homestead; increase. Amends secs. 506, 520, 522 & 530 of 1967 PA 281 (MCL 206.506 et seq.).
Individual income tax: income; certain references in the income tax act; make gender neutral. Amends secs. 311, 504 & 522 of 1967 PA 281 (MCL 206.311 et seq.). TIE BAR WITH: HJR F'23
Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0096'23
Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: HB 4895'23
Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0455'23
House Substitute for SB 300 by Committee on Taxation - Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, providing for certain transfers to the special city and county highway fund and decreasing the rate of ad valorem tax imposed by a school district.