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HB 5464

PROP TX-INCOME PROPERTY

104th Regular Session Introduced by Yolonda Morris and 1 co-sponsor

Illinois bill proposing property income taxation; could increase taxes on real estate investments and rental income, affecting landlords and potentially housing costs.

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WeVote Research Nonpartisan
Bill Summary · HB 5464

Legislative bill overview

HB 5464 proposes a property income tax for Illinois, though the bill text itself is not publicly available in standard legislative databases. Based on the title and sponsorship, it likely establishes or modifies taxation on income derived from property ownership or rental activities. The bill has been referred to the Revenue & Finance Committee, indicating it involves significant tax policy changes.

Why is this important

Property income taxation directly affects landlords, real estate investors, and potentially renters if costs are passed through. Illinois currently has a flat 4.95% income tax on all income types; any carve-out for property-specific taxation could reshape how real estate investments are treated and generate state revenue. This intersects with housing affordability concerns and Illinois's ongoing budget pressures.

Potential points of contention

  • Whether property income should be taxed differently (higher or lower) than wages and other income sources
  • Impact on small landlords and family-owned rental properties versus large institutional investors
  • Whether the tax would encourage or discourage residential rental housing investment in Illinois
  • Administrative complexity of separately tracking and taxing property-source income
  • Potential constitutional questions about differential taxation of income types under Illinois law

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

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