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Dancing around the edges

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* Daily Herald

Elgin schools officials say they are disappointed unit districts that applied for a portion of $50 million in property tax relief grants from the state this year were sidelined due to the criteria used for calculating eligibility.

Elgin Area School District U-46 sought roughly $43 million — the maximum for which it was eligible — for fiscal year 2019.

Tax relief grants are a provision of the state’s new evidence-based school funding law. A school district’s eligibility is based on whether it has the highest unit equivalent tax rate compared to all the districts that applied. Approved districts must agree to abate a portion of taxes in the coming tax year.

“The way the state evaluated which districts were eligible really favored high school districts,” school board member Sue Kerr said during Monday night’s school board meeting. “Not a single unit district in the state received any property tax relief, and I believe 75 percent of the schools that got it were high school districts. It’s a problem.”

Those grants are a paltry sum in comparison to the actual need. A good explainer about the state law is here.

* Capitol News Illinois

“I’m from Metropolis, right across the river from Paducah, Kentucky,” [Rep. Patrick Windhorst, R-Metropolis] said. “Young families are just picking up and moving to Paducah because they pay less in property taxes. They feel like they have more opportunity, better life quality, and it’s causing a huge problem in Southern Illinois. People are leaving and they’re not coming back.”

And yet, this is one of the first bills he introduced

Amends the Property Tax Code. Provides that the homestead exemption for veterans with disabilities carries over to the benefit of the veteran’s surviving spouse if the veteran resided outside of the State but otherwise qualified for the exemption at the time of his or her death and the surviving spouse relocates to Illinois after the death of the veteran.

No disrespect for out-of-state surviving spouses of veterans, but if you want to help young families with their property taxes, the first thing to do is stop narrowing the property tax base. Somebody always has to pick up the tab.

* Meanwhile…

State Rep. David McSweeney (R-Barrington Hills) has introduced legislation to provide Illinois residents with some much-needed property tax relief.

“We have to do more than just stop property taxes from increasing– we must find ways to lower the property tax burden in Illinois,” McSweeney said. “To that end, I have filed a measure to reduce all property tax levies by 10 percent.”

House Bill 320 reduces property tax levies by 10% total (5% each year for two years) for all local governments, even home rule units of government. The net effect of the measure will be a permanent 10% reduction in property taxes in Illinois in the next two years. Property taxes would be permanently frozen after the 10% reduction and could only be raised if local voters approve an increase by referendum.

According to the most recent data available, Illinois has the second highest property tax rates in the country.

“We know property taxes in Illinois are too high,” McSweeney said. “We know that people are leaving Illinois in droves in large part because the taxes are too high. Illinois lost nearly 45,000 people net last year alone. The longer we delay action on solving the property tax issue in Illinois, the more people are going to leave. We need to reverse this out-migration. It is time to lower property taxes permanently in Illinois.”

House Bill 320 has been introduced and awaits assignment to a House Committee.

Property taxes are a very real problem here. But ordering locals to lower their levies by 10 percent and then freezing them in place forever doesn’t seem like a doable idea without some sort of state help, particularly for schools.

posted by Rich Miller
Tuesday, Feb 5, 19 @ 11:03 am

Comments

  1. Something clearly needs to be done. Looking at my first installment of real estate taxes this year and at a minimum my property tax bill will be 3.5% of my income. This is really hurting people.

    Comment by Anonymous Tuesday, Feb 5, 19 @ 11:14 am

  2. Taxpayers should not be paying the employEE portion of pension costs. We do in my school district. I am a SURS member and I pay my portion.

    Comment by Dog Lover Tuesday, Feb 5, 19 @ 11:19 am

  3. No one understands how property taxes work, so they pound the table for something that addresses symptoms and demand action, when it won’t address how taxes are levied or spent.

    Comment by Anonymous Tuesday, Feb 5, 19 @ 11:24 am

  4. Blindly cutting revenue and hoping locals can find good places to cut costs, and then actually cut them, seems incredibly irresponsible. It’s interesting that McSweeney thinks he knows all local governments budgets, and that every single one can take a blanket, blind 10% cut without any pain to the local taxpayers he professes to be trying to help.

    Comment by Perrid Tuesday, Feb 5, 19 @ 11:25 am

  5. The important thing is that most know our property taxes are much too high and are driving out business and taxpayers.

    Comment by Anonymous Tuesday, Feb 5, 19 @ 11:26 am

  6. =Tax relief grants are a provision of the state’s new evidence-based school funding law. A school district’s eligibility is based on whether it has the highest unit equivalent tax rate compared to all the districts that applied. Approved districts must agree to abate a portion of taxes in the coming tax year.=

    This was a joke from the word go. Politicians wanted to say they did something about property taxes that is all.

    =We know property taxes in Illinois are too high,=

    Based on what? Services cost money. McSweeney and others never talk about costs that are covered by taxation. There is a relationship between the two. I am sure that someone will respond that costs must go down by just cutting wages, another easy solution I am sure.

    Politicians that lack the ability to govern will always go back to “taxes are too high” there is not time in US or colonial history where people have not complained about taxes. Lets decide what the majority want for services and then go from there.

    Comment by JS Mill Tuesday, Feb 5, 19 @ 11:29 am

  7. When, generally, 60% of a property tax bill is for local school funding, it seems like that should be the focus of any legislation to control local property taxes. If the new school funding rules and regs can begin to replace 10-30% of local property taxes, then local taxing districts should begin to lift that same percentage burden from property tax payers. If additional funds are deemed needed by the local schools, then have a referendum for a local sales tax, for instance.

    Or, as I’ve stated here before, give tax payers more of an income tax credit for the school portion of the property taxes they pay.

    Comment by Anon221 Tuesday, Feb 5, 19 @ 11:29 am

  8. Illinois has the second highest property taxes in the country? That’s not too high? Our cost of living is basically at the national average.

    Comment by Anonymous Tuesday, Feb 5, 19 @ 11:35 am

  9. If you think that your property taxes are too high then don’t complain when your police and fire protection, public works and art, music and sports in the schools are cut.

    Comment by A 400lb. Guy on a bed Tuesday, Feb 5, 19 @ 11:37 am

  10. Indiana, Missouri, Wisconsin, Iowa and Kentucky all have a minimum wage about half of $15, good luck keeping employers.

    Comment by Anonymous Tuesday, Feb 5, 19 @ 11:38 am

  11. @11:26: The good thing is that people are upset?

    Wouldn’t the good thing be if people knew what to do to address the problem?

    Comment by Anonymous Tuesday, Feb 5, 19 @ 11:45 am

  12. The problem is our government is too expensive, why does this state with an average cost of living spend so much on government?

    Comment by Anonymous Tuesday, Feb 5, 19 @ 11:50 am

  13. =The problem is our government is too expensive, why does this state with an average cost of living spend so much on government?=

    Compared to what? Show your math.

    Comment by JS Mill Tuesday, Feb 5, 19 @ 11:55 am

  14. Hordes of people bought more home than they could afford.

    How is that my problem, that that needs my services to be cut by 10%?

    When I bought(built) my home, I allowed for 2X the current property taxes as a cushion. That was back when I made 60% less than I do now.

    If you aren’t responsible, change yourself. Not everyone else.

    Comment by TheInvisibleMan Tuesday, Feb 5, 19 @ 11:59 am

  15. Let me say something about how proposals like McSweeney’s would affect local entities other than schools, say, park districts, especially smaller ones. In a word, disaster. For mine, the first consequence would be not hiring part-time maintenance help. The second consequence would be layoff of at least one full-time employee (let McSweeney choose whether it’s the safety supervisor, maintenance supervisor or the program supervisor). Make the freeze permanent and it won’t take long before we close down facilities (no more youth athletic fields, nature centers) and programs (no more Special Olympics, cultural enrichment), and just mow the grass.
    Yes, the state has a property tax problem, but across-the-board approaches like McSweeney’s proposal are destructive and just don’t make sense. Political grandstanding is a lousy basis for problem solving. [Rant over]

    Comment by Flapdoodle Tuesday, Feb 5, 19 @ 12:02 pm

  16. The math is Illinois has an average cost of living but the second highest property taxes in the country. Are you saying property taxes don’t pay for government?

    Comment by Anonymous Tuesday, Feb 5, 19 @ 12:02 pm

  17. =We know property taxes in Illinois are too high,=

    ==Based on what?==

    based on the fact that I can go to Washington state and pay zero state income taxes yet somehow pay less in property taxes.

    Comment by City Zen Tuesday, Feb 5, 19 @ 12:02 pm

  18. This link is helpful:

    https://budgetblog.ctbaonline.org/who-leaves-illinois-and-where-do-they-go-55779062e9ea

    Quote:

    Q: So we wondered: Are people making $100,000 or more especially likely to leave Illinois? And are they especially likely to go to northwest Indiana?

    In a word (or two): no, and no.

    Illinois’ migration troubles are concentrated among those making less than $50,000

    ===

    Comment by Hamlet's Ghost Tuesday, Feb 5, 19 @ 12:16 pm

  19. == Illinois’ migration troubles are concentrated among those making less than $50,000 ==

    And, few people earning less than $50,000 are paying property taxes in Barrington Hills.

    Comment by Hamlet's Ghost Tuesday, Feb 5, 19 @ 12:17 pm

  20. And this quote:

    == The top destination for [IL] households making over $100,000 is actually the New York City metropolitan area — hardly a low-tax oasis. ==

    Comment by Hamlet's Ghost Tuesday, Feb 5, 19 @ 12:20 pm

  21. That chart is terrifying. We are losing people from every income group but the middle and lower classes especially. One good thing is we can reduce government services as we have less people that need them at the lower income levels.

    Comment by Anonymous Tuesday, Feb 5, 19 @ 12:24 pm

  22. Hamlet, if your going to pay very high taxes may as well be in NYC or CA. Illinois’ is neither.

    Comment by Anonymous Tuesday, Feb 5, 19 @ 12:32 pm

  23. ==The top destination for [IL] households making over $100,000 is actually the New York City metropolitan area — hardly a low-tax oasis.==

    Houston is #2. The top destinations somewhat mirror the largest metropolitan areas. In other words, this is an expected result. Were you expected OKC?

    Comment by City Zen Tuesday, Feb 5, 19 @ 1:11 pm

  24. And how does Rep. McSweeney believe that lost revenue should be replaced?

    Rep McSweeney seems to be living in a fantasy world.

    Comment by Demoralized Tuesday, Feb 5, 19 @ 1:18 pm

  25. Rep. McSweeney isn’t your bill an unfunded mandate?

    Comment by Publius Tuesday, Feb 5, 19 @ 1:38 pm

  26. I like to point out to people that if you live in Illinois outside of Cook County your property taxes are most likely set by Republicans. Their response is usually to blame Madigan.

    Comment by striketoo Tuesday, Feb 5, 19 @ 2:44 pm

  27. ==I like to point out to people that if you live in Illinois outside of Cook County your property taxes are most likely set by Republicans. ==

    Like the people in DuPage whose high property taxes are a result of the state contributing a tiny amount to their school district budgets? Blame Manar?

    Comment by City Zen Tuesday, Feb 5, 19 @ 4:00 pm

  28. =based on the fact that I can go to Washington state and pay zero state income taxes yet somehow pay less in property taxes.=

    Lol, you ever spend any real time there? The homelessness and housing issues are atrocious. Their taxes are actually very high, they just spread them out nicely. Go buy a bottle of bourbon at the state store and you will find out.

    Low taxes my big toe. Everybody gets theirs or they don’t offer much.

    Comment by JS Mill Tuesday, Feb 5, 19 @ 5:59 pm

  29. Washington has a much lower tax burden than Illinois. Homelessness has little to do with taxes. Texas doesn’t have a huge homeless problem.

    Comment by Anonymous Tuesday, Feb 5, 19 @ 7:02 pm

  30. “Like the people in DuPage whose high property taxes are a result of the state contributing a tiny amount to their school district budgets?”

    So people in DuPage are willing to make the swap to paying increased income taxes for lower property taxes?

    Comment by Anonymous Wednesday, Feb 6, 19 @ 7:30 am

  31. ==So people in DuPage are willing to make the swap to paying increased income taxes for lower property taxes?==

    $1 for $1.

    Comment by City Zen Wednesday, Feb 6, 19 @ 8:28 am

  32. This constant irritation of property taxes in Illinois, particularly the fact that Education takes the largest bite, is in part factually due to the State failure to fund Education. According to the NCES (Nat. Center Educ. Stat) Illinois is approx. 26% funding the cost compared to national average of 45%. Hence, the burden shifts to Local Property Tax payer.
    While this alone isn’t the problem, it must be acknowledged lest we continue with these radical approaches of a tourniquet “solution” that exacerbates the “problem”

    Comment by SilentTooLong Wednesday, Feb 6, 19 @ 8:29 am

  33. People dont complain about their property taxes when their school district keeps making the property values skyrocket. Whatever. There are tax-cheap places in illinois aplenty. Maybe McSweeney should move to one of them.

    Comment by Anonymous Wednesday, Feb 6, 19 @ 8:58 am

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