Sept. 15--Mayor Rahm Emanuel on Tuesday defended his plan to raise exemptions for some Chicago homeowners as a "fair and equitable" way to protect vulnerable people from the massive property tax increase he's prepping, and said he's confident Gov. Bruce Rauner will agree to the change.
Emanuel said it's important to spare people on fixed incomes from the worst effects of the property tax hike he's expected to introduce to the City Council next week. "I'm committed to making sure that seniors on fixed income, people that go from paycheck to paycheck at the end of the month, are held harmless," Emanuel said.
The idea would require state government approval, and Springfield has ground to a halt amid partisan bickering. In addition, Rauner's office has reacted coolly to the plan, given that the governor wants a two-year statewide freeze on property taxes and the mayor is poised to raise them in Chicago.
Despite that, Emanuel said he's confident the governor will come around and agree to a proposal that would shield the owners of homes worth $250,000 or less from paying the city more in property taxes as a result of the mayor's hike.
"We are going to address our challenges, and I think when the governor looks at the whole budget he will see that we didn't leave any stone unturned," the mayor said at an unrelated event. "Second, the homestead exemption is a fair and equitable way to do it. It's never been controversial. And specifically for somebody who has talked about a property tax freeze, (Rauner) will understand that then therefore the homestead exemption is another way both of achieving the same goal and you can't have only one way to get toward helping your average homeowner."
Emanuel's idea is to create an exemption that would shield the owners of homes worth $250,000 or less from paying the city more in property taxes as a result of the mayor's hike, a source familiar with the proposal told the Tribune this week. For more expensive homes, the property tax bill would go up, but less than it otherwise would have without the exemption, the source said.
Exemptions work by lowering the assessed value of a home on which a tax bill is calculated. State tax code provides an exemption on all homeowners' primary residences, plus other special tax breaks for senior citizens, home improvements and the like.
jebyrne@tribpub.com
