SB 1498: Save Our Homes!

Aldermen Flores, Tunney and Schulter, Assessor Jim Houlihan and State Representative Fritchey at Tuesday's rally for SB 1498 at the State of Illinois building.

Alderman Schulter is pleased to announce ...

On Monday, July 12, 2004, property tax relief legislation developed by Cook County Assessor Jim Houlihan was signed into law by Governor Rod Blagojevich at a ceremony on Chicago's Northwest side. Senate Bill 2112 will cap residential assessment increases at 7% per year and further expand existing exemptions for homeowners throughout Illinois. For more info please visit www.cookcountyassessor.com

The Neighborhood Preservation Homeowner Exemption (NPHE) will act as an assessment cap, assuring homeowners that the taxable value of their homes will not increase by more than 7% in any one year.

"This change will provide homeowners of all ages and incomes with the peace of mind that comes with knowing that they will be able to anticipate and plan for their property tax bills," according to Cook County Assessor Jim Houlihan.

"While the long-term goal is reducing the over-reliance on property taxes by restructuring Illinois' tax system, we must first stop the increasing tax burden that is threatening to destroy our neighborhoods," Houlihan said. "We need to take this first step and provide relief to homeowners now, and then keep the momentum going to bring substantial structural change to our property tax system in Springfield."

Taxpayers currently have little ability to predict how their assessments and their subsequent tax bills will change from year to year. The current large jumps are a function of the rapid escalation of residential property values throughout the County and the County?s triennial reassessment system, which takes all of the growth that occurred over a three-year period into consideration at one time.

Under the Neighborhood Preservation Homeowner Exemption, homeowners can expect:

* Elimination of dramatic increases in assessed value that occurs during reassessment years.
* Creation of a more predictable taxable value of their residential property.
* Protection against future dramatic increases in market value that could potentially drive them out of their neighborhoods.

While in the long run increased property values are desirable, the dramatic widespread increases being experienced throughout the County -- coupled with Illinois' current over-reliance on property taxes -- are having a devastating effect on taxpayers' pocketbooks, making immediate relief necessary.

"The Neighborhood Preservation Homeowner Exemption acts as a type of insurance against potential future assessment increases for Chicago and Cook County homeowners. It will provide taxpayers with certainty and protection from the increases that are the result of an unpredictable real estate market and economic climate," said Houlihan.

"In addition to encouraging residents to remain in their homes, this plan also enables them to welcome neighborhood improvements by eliminating the fear that these desired changes will adversely affect their tax bills," said Houlihan. "At the same time, potential homebuyers will benefit by being able to budget for the costs of ownership."