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Home rule, no financial panacea for struggling Illinois municipalities

A four part survey by Northern Illinois University’s Center for Governmental Studies found that several significant changes occurred in home rule municipalities between 1986 and 2002. First and foremost, there was a very significant increase in the use of home rule taxing powers. Additional retail sales taxes were increased in 61% of the home rule cities, and property tax statutory limits were exceeded by two in five home rule municipalities. The study concluded that, “Clearly, taxation has become a major use of municipal home rule powers...

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Increased property tax exemptions shifts tax burden without relief

On April 6, 2017, the Illinois House passed HB0156 by an overwhelming vote of 108 to 1 expecting to provide much needed property tax relief in state counties by increasing the value of numerous property tax exemptions. Basically, the two most substantial exemptions approved would increase the exemption for seniors over the age of 65 to $6000 annually from the current $5000 and the General Homestead/Owner Occupied exemption to $8000 from the current $6000. Other exemptions increased in the bill would have much less impact on taxing districts...

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EAV Fluctuation has little effect on property taxes under Tax Caps

Most people in Rockford and around the state believe that when property values increase in a taxing district due to a real estate market turnaround, Tax Increment Finance (TIF) districts expiring or new construction, the tax base increases and the net result will be lower property taxes in that district. It doesn’t work that way under current Illinois property tax laws. Taxes do not decrease simply because the Equalized Assessed Valuation (EAV) increases in a given tax district since Winnebago County is subject to the Illinois Property Tax...

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Rockford’s proposed Property Tax Refund Program could cause tax rates to rise

Initially, the Rockford Homebuyer’s Property Tax Refund Program appears to be a well-intentioned proposal to eliminate some of the blight in the city and to revitalize home values. The program gives property tax refunds for three years to those who build single-family homes, or buy foreclosed or “short-sale” homes as their primary residence, anywhere within the City of Rockford, if the homes are under contract by the end of the year. After the property owners, who purchase a qualifying home, pay their normal property taxes, the city will...

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Is it time to get rid of Tax Caps?

Property tax bills have arrived and it is obvious that the Property Tax Extension Limitation Law – PTELL – commonly known as the Property Tax Cap Law, is not working as intended. PTELL was supposed to protect property owners in non-home rule districts from huge tax increases when home values were increasing very rapidly by limiting taxing districts to the taxes levied the previous year plus inflation up to 5% and an additional amount for new construction. The law was not intended to hurt taxpayers by increasing property taxes, even as...

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Boone County Board destroys future credibility

If there was ever an action taken by an elected body that eliminated any lingering trust in elected official’s credibility, look no further than the Boone County Board majority. In order to aid the passage of a 1999 referendum for construction bonds to fund a $9.3 million dollar jail expansion, members of the Boone County Board and bond proponents promised voters, and added a clause in a 2011 ordinance, that pledged when the bonds were retired in 2018, the one-half cent sales tax would be repealed – a sunset clause. In March, 2015, the Boone...

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