Property tax change may not help suburban homeowners

SPRINGFIELD — A plan to deliver property tax relief to Illinoisans in exchange for paying higher income taxes might not help many suburban homeowners, one suburban Republican lawmaker predicted Friday.

And a suburban Democrat said the idea of getting annual $325 checks to help with property tax bills is a “big, big joke.”

Senate President John Cullerton told reporters Thursday that those rebate checks also would replace current rules that allow Illinois homeowners to take an income tax credit worth 5 percent of their owed property taxes.

Rep. Ed Sullivan, a Mundelein Republican, said many of his constituents with large property tax bills fall under a category of homeowners who would not benefit.

“Anybody with property tax bills over $6,500 loses completely because they would have had a bigger exemption on their income taxes then what they are going to get back from the state,” said Sullivan, who also is the assessor in Fremont Township.

Rep. Fred Crespo, a Hoffman Estates Democrat who has said he would not approve an income tax increase without property tax relief, said Friday the idea of a $325 check is a “big, big joke.”

“That doesn't even amount to anything,” Crespo said. “It's almost an insult.”

The checks would be paid for by part of the proposed income tax increase from 3 percent to 5.25 percent, Cullerton told reporters Thursday. One quarter of 1 percent of the increase would generate the roughly $775 million needed to pay for the checks. Renters are not included in the plan.

Sullivan said the notion the plan is fair for all taxpayers is incorrect because the Democrats' proposal punishes the wealthy.

“They are also paying more for their house and putting more into schools because of their house, so they should receive a larger exemption,” he said.

Cullerton said if the proposal is approved, taxpayers would get the credit when they fill out their income tax returns this year. They'd get their first rebate check about a year from now in the next tax cycle.

• Daily Herald State Government Writer Mike Riopell contributed to this report.