Theodore M. Swain
GR Review

The annual 7% limitation on residential assessment increases, first enacted for tax year 2003 for Chicago (2004 and 2005 for the Northern and Southern suburbs), faces an uncertain future in the extended session of the Illinois legislature.  If no action is taken, the law will "sunset" for Chicago for tax year 2006 (2007 and 2008 in the suburbs).  The issue will likely be resolved before you read this or shortly thereafter.

Currently assessment increases are limited to 7% each year (compounded to 22% for the triennial), but with a cap on the amount of the increase that can be eliminated to $20,000 of equalized assessed valuation.  A bill extending the life of the 7% limitation for three more years (with slightly increased caps) passed out of the Illinois House on the final day of the regular session, but was not acted on by the Senate that day, so it now needs a 60% majority to be enacted.

If not extended, the prior triennial's limitations will automatically be restored plus whatever usual triennial increases are added.  Therefore, the fate of this bill is of substantial significance to residential taxpayers.

Ted Swain is an Of Counsel member of Gould & Ratner's Real Estate Group.  He may be reached at 312.899.1604 or via email at tswain@gouldratner.com.