After Facing Potential 3,000% Property Tax Hikes For 2025, Some Illinois Landowners Breathe A Sigh Of Relief As The Plan Is Paused

Some Illinois landowners can finally take a deep breath after learning that the massive property tax hikes they were bracing for won't be happening—at least for now.

Late last year, property owners in Montgomery County were shocked to receive tax assessments that had skyrocketed by as much as 3,000%. The spike came from a 2007 state law that requires timberland and farmland to be taxed at the same rate as residential properties—33% of their assessed value. While this law had been on the books for years, it had never been properly enforced in Montgomery County until now.

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One landowner, Brenda Lance, told KSDK-TV news of St. Louis that her tax bill for a 96-acre parcel jumped from $756 to over $10,000. "I have a confirmation email from the Montgomery County Assessor that tract of land is going up due to a woodland assessment," she said. 

Understandably, property owners like her were outraged, arguing that such extreme increases would force people to sell their land just to keep up with taxes.

“People are going to lose their property when you’re looking at a 1,500% increase or a 3,000% increase on property. You’re not going to have the ability to maintain and pay the taxes,” Montgomery County Assessor Kendra Niehaus told KSDK. 

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Beeler also added that they're being denied due process in Montgomery County. “The majority of our parcels do not have a township assessor. We don't have township assessors in most of our townships."

Facing significant pushback, the Illinois Policy Institute shared that Montgomery County officials have decided to put the plan on hold. County Board Chairman Doug Donaldson acknowledged that while the tax hikes followed state law, their consequences for landowners were too severe. An ad hoc committee has been created to review the issue and explore possible solutions.

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The delay also allows time for a broader statewide review of Illinois' property tax system, set to begin in 2025. Illinois has the second-highest property taxes in the country, driven in part by the state's heavily underfunded pension system, which had a $142 billion shortfall in 2023.

While the pause is a relief for now, the long-term solution remains unclear. Landowners will be watching closely to see if lawmakers take meaningful steps to fix Illinois' notoriously high property taxes before the issue resurfaces.

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