Theodore M. Swain
GR Review

As of this writing, the Machiavellian moves in Springfield have not proceeded to a conclusion, and second installment 2006 real estate tax bills hang in the balance.  The story thus far:

·        The House passed a bill continuing the life of the 7% limitation on increases in homeowners' assessments for another triennial, but with a complete phase-out at the end.  The amount of relief was capped on a declining scale, starting with a maximum first year reduction of $33,000 of equalized assessed valuation (EAV); and a lower limit in each of the two remaining years ($26,000 and $20,000).  There was also a low-income-households' provision for continuing relief.

·        The Senate eventually concurred.

·         The Governor amendatorily vetoed the bill by substituting a cap of $40,000 EAV for all years and making it permanent thereafter.

·          The House overrode the amendatory veto and forwarded it to the Senate.

·          No action has yet been taken by the Senate.

Only two possibilities remain:

(1)               The Senate can also override, which would leave the original house version as the law; or

(2)               The Senate could vote to uphold the veto, in which case the whole bill would stand as being vetoed; and the 7% limitation would expire.

It does not appear that any action could resuscitate the Governor's version which was more generous to homeowners and therefore somewhat more costly to everyone else.

Stay tuned.

Editor's Note:  This article was submitted shortly before the Senate joined the House in overriding the veto.  The House bill thus became law.

Ted Swain is an Of Counsel member of Gould & Ratner's Real Estate Group.  He may be reached at 312.899.1604 or via email at tswain@gouldratner.com.