PROPERTY TAX PROPOSAL

2/24/25

In an effort to combat population loss attributed to the state having the second-highest property taxes in the United States, an Illinois legislator has introduced a bill that would eliminate property taxes for those who have owned a home for 30 years.

According to the US Census Bureau, Illinois’ population has declined for 10 consecutive years, with a loss of 32,826 residents from July 2022 to July 2023.

A recent analysis from WalletHub found that Illinois residents paid the second-highest property taxes in the nation, behind New Jersey.

The average residential property taxes paid on a home stood at 2.07%, with the typical homeowner paying $5,189 a year on real estate taxes, based on a median home value of $250,500.

The bill, introduced in the Illinois Statehouse by Senator Neil Anderson and co-sponsored by Sen. Dave Syverson, would establish a homestead exemption for any qualified taxpayer who has paid property taxes on a residential property for 30 years.

“This country is founded upon freedom and property rights and at some point, you have to be able to own your property,” Anderson told The Center Square.  “This bill is a way to keep people in Illinois.  If they own a home for 20 years and they have an option of moving to another state because they’re tired of being taxed in Illinois, now all of a sudden, maybe, with the passage of this bill, they hang out another 10 years and now they don’t have to pay property tax.  That keeps them in the state and buying goods in the state and paying taxes in a different way.”

The bill, if it becomes law, would only apply to a single-family residence that is occupied as a principal residence by a qualified taxpayer.