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Bill

HB 1827

PROP TX-INCOME PROPERTY

104th Regular Session Introduced by Will Davis

Illinois HB 1827 proposes creating a new state property income tax on rental and property-derived revenue to increase state tax collections.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 1827

Legislative bill overview

HB 1827 proposes to establish a property income tax in Illinois, creating a new tax on income generated from property ownership and rental activities. The bill would expand Illinois's tax base beyond the current income tax system to capture revenue from property-related income sources. This represents a significant shift in the state's tax structure, as Illinois currently does not have a dedicated property income tax.

Why is this important

Property income represents a substantial portion of wealth generation for many Illinoisans, and taxing it could generate meaningful state revenue for public services, education, and infrastructure. However, this would directly impact landlords, real estate investors, and property owners, potentially affecting rental costs, property values, and investment decisions in the state. The policy decision reflects broader debates about progressive taxation and how states should fund government operations.

Potential points of contention

  • Economic competitiveness: Additional taxation on property income could push real estate investors to other states, potentially reducing property development and investment in Illinois
  • Housing affordability: Landlords may pass tax costs to renters, exacerbating Illinois's housing affordability challenges, particularly in lower-income communities
  • Implementation complexity: Defining taxable property income, distinguishing from capital gains, and preventing double taxation would require detailed administrative framework and enforcement mechanisms

Compiled from official sources — confirm details with the bill’s official record.

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