(The Center Square) – Republicans and Democrats introduced legislation Thursday to address the high cost of housing in Illinois.
State Sen. Christina Castro, D-Elgin, has introduced the Illinois Home Buyer Savings Accounts Act, which would offer tax-advantaged savings accounts to those looking to purchase a single-family residence in Illinois. Account holders could deduct contributions to the savings account from their state income taxes, up to $5,000 for individual filers and $10,000 for joint filers.
The measure states if funds are withdrawn for purposes other than housing costs, the entire balance will be included in the account holder’s taxable income, and a 10% penalty will be assessed.
“The inventory crisis in Illinois has put housing attainability and affordability more and more out of reach,” said Jim Clayton, senior director of Government Affairs with Illinois Realtors. “In fact, home prices in parts of the state have increased nearly upwards of 40% in just the past five years.”
The annual median sale price of a home in Illinois in 2024 reached $290,000.
Republicans on the other hand are addressing the state’s high property taxes. State Sen. Chapin Rose’s, R-Mahomet, bill would amend the Property Tax Code.
The legislation “provides that the assessed value of residential property in any general assessment year shall not exceed the assessed value of the property in the last general assessment year multiplied by one plus the percentage change in the Consumer Price Index during the 12-month calendar year immediately preceding the general assessment year for which the reassessment is conducted.”
“There’s absolutely no reason assessed value should go up 10% or more, that’s more than the rate of inflation,” said Rose. “That’s absolutely insane.”
Another measure would amend the Illinois Income Tax Act and provide that the credit for residential real property taxes is refundable.
Illinois has the second highest property taxes in the nation.
