The Illinois Senate has approved a measure that could put the brakes on property taxes in communities with rapidly rising home prices. The bill, which passed with just 30 votes, would allow Illinois counties 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 $121,000 for the third year.
The bill now moves on to the desk of Gov. Rod Blagojevich, who has said he will sign it. 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 confusinhomeg system, threaten funding for schools and shift the tax burden unfairly to businesses and rentals.