As Illinois grapples with rising property taxes for the past three decades, a significant budget shortfall of $1 billion has ignited discussions among lawmakers regarding potential alternatives to the current tax system.
With the 2026 budget season underway, concerns loom over whether homeowners can expect another increase in property taxes. However, Mayor Brandon Johnson has pledged that the upcoming budget will not lead to an increase in property taxes.
In light of this situation, the Chicago Reporter has delved into legislative efforts in Springfield aimed at alleviating property tax concerns.
A staggering 161 bills related to property taxes are currently under consideration in the Illinois House of Representatives, categorized into themes such as “relief,” “equity,” “abatements,” “tax surplus,” “exemptions,” and “senior freeze.” Notably, the “exemptions” category boasts the highest number of proposed bills.
To address the growing sentiment for property tax relief, Illinois House Republicans have proposed a “Property Tax Relief” package, which encompasses several bills focusing on various aspects of property tax reform, including exemptions and assessment limits.
On the other side of the aisle, House Democrats have formed a working group led by State Rep. Jehan Gordon-Booth to evaluate the property tax system in Illinois, with a particular emphasis on initiatives that can provide relief for middle-class families while ensuring adequate funding for communities and school districts.
State Rep. Mary Beth Canty, a member of the Property Tax Working Group, emphasized the necessity of incremental measures, such as those targeting relief for seniors. She acknowledged that while these steps do not entirely resolve the issue of high property taxes, they represent progress towards greater equity.
“Property taxes, especially in relation to education funding, are complex and encompass more than just one solution,” Canty remarked.
One key proposal within the Republican’s relief package is HB0009, which aims to provide grants to school districts using state revenue. State Rep. Dan Ugaste, a sponsor of HB0009, asserted that the proposed measure could significantly reduce reliance on property taxes for school funding, potentially offering up to $2.8 billion in property tax relief for Illinois residents in the previous year alone.
Meanwhile, a recent referendum in Illinois received voter support for a proposed 3% income tax surcharge on millionaires, which was then introduced in January by Democrats. The revenue generated from this additional surcharge is intended to be allocated to school districts on a per-pupil basis.
State Rep. Abdelnasser Rashid, also a member of the Property Tax Working Group, lauded such tax policies as critical for making necessary corrections in the system, facilitating proper investments in education and local services to alleviate the burden on taxpayers.
Accuracy and fairness in property assessments have emerged as crucial issues among legislators. Bills such as HB1827 and HB1829 propose that property owners must submit detailed descriptions of their properties along with financial information to the Cook County Assessor’s Office, a move aimed at ensuring equitable property tax assessments.
Despite potential resistance from corporate lobby groups, Rep. Rashid expressed optimism regarding these proposals.
When asked about the potential for bipartisan collaboration on improving the property tax system, State Reps. Ugaste, Canty, and Rashid acknowledged a willingness to collaborate but highlighted that such cooperation often does not materialize in practice.
Rep. Ugaste pointed out that some Democrats privately support HB0009 but refrain from publicly co-sponsoring the bill, likely due to concerns over party leadership’s stance.
“This often makes it challenging for them to show visible support,” he explained.
Rep. Rashid underscored the importance of working together to achieve tax relief, emphasizing that the focus should be on developing a fair tax system rather than leveraging the situation for political gain.
In her remarks, Rep. Canty expressed openness to new ideas from the Republican side, noting that collaboration could lead to productive discussions. “If you’ve got an idea that you believe is beneficial for the people of Illinois, don’t hesitate to reach out,” she encouraged. “Even if we don’t always agree, it might help us find common ground.”
As Springfield continues to evaluate proposed legislation that could have lasting impacts on property taxes, Mayor Johnson and the Office of Budget and Management will simultaneously collect feedback from city departments about their needs for the upcoming year.
Johnson is expected to present a proposed budget to the City Council by October 15, which will be followed by public hearings before a Final Action Plan is submitted to the U.S. Department of Housing and Urban Development in December as part of the funding consideration process.
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