PROPERTY Taxes

• The Illinois property tax is our most opaque tax. Most citizens have difficulty coming to grips with the complex terms, methods of determination, and appeals process. Furthermore, since many taxing bodies are represented on the same property tax bill, there is a lack of fiscal accountability. Our objective is to create understanding through simplification and instill accountability through financial caps.
• Limit the growth of property taxes. Local governments will have to reasonably spend and accurately budget. In non-home rule units of government, cap the aggregate extension for all taxing bodies to the increase/decrease in the Consumer Price Index (CPI), with no loopholes. Therefore, the total budget of all the taxing bodies within a district may only increase/decrease by the CPI.
• All financial referendums which increase property taxes must be approved by voters on even numbered years in the November election. Mandate all units of local government become transparent with their financial information. Interestingly, private property taxpayers are transparent by virtue of public records. REFORM Tax Increment Financing (TIF) Districts. All new TIF districts and all new renewals must pass by referendum in the November election of even numbered years.

In addition, all TIFs must be transparent: every dime, online, in real time. This transparency must be accomplished at no cost to counties or taxpayers.

ADAM ANDRZEJEWSKI’S PLAN TO LIMIT THE GROWTH OF PROPERTY TAXES

1. Local governments will have to reasonably spend and accurately budget. In non-home rule units of government, cap the aggregate extension for all taxing bodies to the increase/decrease in the Consumer Price Index (CPI), with no loopholes. Therefore, the total budget of all the taxing bodies within a district may only increase/decrease by the CPI. Currently, Property Tax extension Limitation Law (PTEL) has too many loopholes that are exploited for large year over year property tax increases. Adam Andrzejewski will end the loopholes. Local government will have to live with a current budget plus adjustments for the Consumer Price index (CPI). Unless voters pass a tax increase, there are no exceptions! Andrzejewski’s plan can be implemented with simple changes of definitions within the PTEL statute.

2. All property tax and bond referendums must pass in the November election of even numbered years. Local government must learn to plan ahead and anticipate their financial needs. As citizens when we purchase a home or car, we must look to our long term income. Property tax bills with unexpected increases complicate all of our spending decisions. Shouldn’t government be able to budget and make do just as we must?

3. Mandate transparency of financial information for all units of local government. First, this is a no cost proposition as all this information is already compiled for monthly board meetings. Second, the information is already public, so let’s save some money on FOIA requests by proactively posting the information. Third, almost all units of local government have a website, so let’s put more useful information on it! Furthermore, private property taxpayers are transparent, as their records are public. In many counties, public records property databases are online or at local libraries. Simple fairness requires that local and state government become as transparent with their spending!

4. All new and renewal of Tax Increment Financing (TIF) Districts will have to pass by referendum in November of even numbered years. Since 1977, at least 250 municipalities have created over 1,000 TIFs. Chicago itself has over 114 districts. By definition, a TIF ‘freezes’ local property tax collections within its boundaries that go to schools, libraries, parks and any other property taxing body for 23 years. Studies have shown that 36 TIF districts in Chicago will cost Chicago Public Schools $637 million and local taxing bodies $1.3 billion! It only makes sense that the people, not the politicians, should decide on whether such a district should be formed in their community.

TIF REPORTING REFORM - The Illinois Department of Revenue was requested by the General Assembly to study the feasibility of printing TIF taxpayer education reports on property tax bills. The Revenue Department recommended a no-cost solution : “specific TIF information/reports be made available on the Internet at a state web site address and require counties to print the internet address on the tax bill… The benefit to this approach is that property owner can obtain TIF information at little or no cost to the counties”.

ENFORCEMENT - The county collector would be empowered to withhold disbursements to the TIF if the report has not been filed. Enforcement of on-time reporting is critical because right now 60% of TIF districts do not file timely reports with the Comptroller of Illinois.