Cook assessor: Bring back maximum homeowner exemption

Jim Houlihan wants to go back to the future.

The Cook County assessor says he'll push to meet with legislative leaders and the governor to bring back a plan that gave homeowners a maximum homeowner's exemption of $40,000.

Known as the 7 percent law, the measure is being phased out after the Illinois House voted recently to gradually push the exemption back to its original $6,000, and Houlihan says that's sending homeowners' property taxes skyrocketing this year. The 7 percent represents a cap in an increase in a property's taxable value.

In Chicago alone, Houlihan said, 137,000 homeowners have seen their taxes rise because the maximum homeowner's assessment exemption fell from $40,000 to $26,000 under the legislation. Conversely, and as a related result, 80 percent of businesses in Cook County this year have seen their tax bills drop, he said. The phaseout essentially shifts the burden back to homeowners, he contends.

Across Cook County, says the assessor's office, 8.5 percent of homes will see a 25 percent increase or better in their tax bill. In Chicago, 15 percent of homes will receive a 25 percent jump or better. Chicago is harder hit because it saw the exemption drop this year. The North suburbs will see that drop - and the corresponding tax bill increases - next year, said Houlihan spokesman Eric Herman.

Houlihan blamed Madigan's exemption phaseout for the rising bills but stopped short of saying Madigan, a real estate tax attorney, doesn't care about taxpayers.

"I would never say the speaker is tone deaf," he said in response to a radio reporter's question. "I think he (just) had a different view about the size and the impact (of his exemption reduction)."

Madigan spokesman Steve Brown questioned the accuracy of Houlihan's assessments and contended the assessor does too much analysis by computer monitoring of sales. He said he's sure the legislature will look at Houlihan's proposal, but he made no promises.

Houlihan spokesman Eric Herman said there's nothing wrong with his boss's assessment practices, which he contended have been lauded far and wide by civic groups.

Houlihan also proposed a "circuit breaker" fund in Cook County for homeowners whose property tax burden is greater than 5 percent of their income. That could be funded by the county's new sales tax and by city TIF funds, he suggested.

Gov. Rod Blagojevich said he enthusiastically supports restoring the full exemption.