The Illinois House has approved a measure that could put the breaks on property taxes in communities with rapidly rising home prices. Under the bill, counties could opt to limit property taxes for three years by keeping increases in assessed valuation to no more than 7 percent.
Under the plan, a $100,000 home whose value increased to $130,000 would only be taxed at a value of $107,000. The home would be taxed based on a value of $114,000 the second year and $114,000 for the third year.
After passing the house by a vote of 77 to 39, the legislation now moves to the Illinois Senate, which already has approved another version of the plan. Chicago Mayor Richard Daley and Cook County Assessor James Houlihan have supported the tax relief, noting that property values have skyrocketed in neighborhoods across Chicago.
Critics, however, say the plan will complicate an already confusing system, threaten funding for schools and shift the tax burden unfairly to businesses and rentals.