HB3338 is a revenue study bill that directs the Illinois Department of Revenue, working with the Governor’s Office of Management and Budget, to study whether the state could eliminate the property tax system by January 1, 2030 and replace that revenue with income tax receipts. The measure does not itself abolish property taxes or change tax rates; instead, it creates a formal feasibility study on a major restructuring of state and local revenue sources.
The bill is framed as an exploratory step toward a potential shift from property-based taxation to income-tax-funded revenue. Because the proposal is limited to a study, it would not immediately alter how taxpayers are assessed or how local governments are funded, but it could inform future legislation on tax reform, school funding, and local government finance if the study finds replacement feasible.
Impact
HB3338 would amend the Department of Revenue Law of the Civil Administrative Code of Illinois by adding a new section requiring a feasibility study. The practical legal effect is limited to assigning the Department of Revenue and the Governor’s Office of Management and Budget an analytical task; it does not directly repeal any property tax statutes, create a new income tax, or redirect revenue on its own. Its broader impact would be to place the question of replacing property taxes with income tax receipts into the state policy process and potentially set the stage for future changes affecting taxpayers, homeowners, local taxing bodies, and school districts.
Sentiment
There is no recorded committee transcript or vote history available for HB3338, so no formal debate or roll-call sentiment can be identified from the provided materials. Based on the bill’s caption and text, the proposal appears to be an exploratory tax-reform measure rather than an enacted policy change, suggesting a neutral-to-aspirational posture focused on studying a controversial but significant fiscal idea.
Contention
The central point of contention inherent in the bill is the proposal to eliminate the property tax system and replace it with income tax receipts, a change that would affect homeowners, renters, local governments, school districts, and state revenue policy. Supporters would likely view the study as a way to examine property tax relief and a more equitable funding structure, while critics may worry about revenue stability, shifting tax burdens, and the feasibility of replacing locally generated property tax revenue with state income tax receipts. No specific objections or endorsements are documented in the provided committee or voting materials.