The state of Illinois has the second highest property taxes in the nation. Illinois has 6,918 local units of government as of the latest Census Bureau data, more than any state in the nation. Redundant government entities and a flawed assessment model contribute disproportionately high property taxes. The Small Business Advocacy proposes the following reforms to help stabilize property taxes in the State of Illinois.
School District Consolidation
Reduce the number of school districts to reduce property taxes. The SBAC is advocating for the creation of a twenty-person nonpartisan task force to make recommendations on school district consolidation throughout Illinois. Taxpayers will then be given the opportunity to vote on the recommendations issued by the taskforce, leaving the decision-making power in the hands of local communities.
Reduce the number of government entities to reduce property taxes. The SBAC is advocating for the creation of a twenty-person nonpartisan task force to make recommendations on government consolidation throughout Illinois. Taxpayers will then be given the opportunity to vote on the recommendations issued by the task force, leaving the decision-making power in the hands of local communities.
Change in Assessment Formula
Establishing a base value system for property where the taxes paid by a homeowner or business is set at the time of a purchase or fair-market transfer of the property. The base value of a property would be: (a) reset each time the property is sold/transferred (based on the sale/transfer price); and (b) increased based on improvements made to the property by an amount equal to the lesser of the actual cost of the improvements and the estimated increase in value resulting from the improvements. The percentage increase in property values per reassessment will be determined on a county-wide basis (based on changed to the values of the properties within the county as a whole) rather than on an individual property basis and will be capped 5% or the total inflation percentage from the last reassessment year. The property assessment appeal process would remain largely unchanged but limited to inaccuracies in one or more of the included components only (e.g., a claimed error in the “base value” or some addition thereto). To offset some of the potential tax loss caused by the above modifications, a 1% transfer tax on the sale of properties would be implemented with .5% going to local municipalities wherein the transfer took place and .5% going to local school districts
ADVOCACY The SBAC is fighting to help the small business community recover from the pandemic and thrive. Learn about our legislative agenda here: Please translate this page to the language of your choice. Supporters Fifth Third Bank Saul Ewing Arnstein Lehr Inland Bank Ntiva Daily Herald Tandem HR Interprenet Signature Bank Lexitas Empower Korey…
Big Legislation for Small Businesses President Biden has signed The American Rescue Plan Act (H.R. 1319) into law. Accordingly, the State of Illinois is expected to receive over 7.5 billion in funds to foster recovery from the pandemic. A robust coalition of small business advocates are urging lawmakers to pass Senate Bill 1982, which will…
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