March 27, 2009
Right on the heels of Governor
Quinn's proposed 50% income tax increase, some in the Illinois General Assembly
are trying to raise your property taxes as well!
Did you know that there are currently two bills in the Illinois General
Assembly (one in each house) that will allow local government(s) to increase
your property taxes faster than currently allowable under the current "tax cap"
law.
The House version, HB 2502, "amends
the Property Tax Extension Limitation Law in the Property Tax Code also known as
the Tax Cap Law. It Provides that the extension limitation may not be less
than 2%. Effective immediately." The Senate version, SB 2126, does the same.
What does this mean? The law currently states the
maximum local government can raise their property tax levy is the rate of
inflation up to 5% plus the amount coming from new construction added to the tax
rolls each year. (Note: If the new construction takes place in a TIF district
it is treated as if it did not happen.)
The property tax bill we will all be paying this summer is
for tax year 2008 which uses the CPI from calendar year 2007. The 2007 CPI was
4.1%. Local government is happy with this kind of increase as they have built
in annual salary and benefit increase of at least 3%.
Here is the problem. The CPI for calendar year 2008 which
applies to tax year 2009 payable next year is only .9%. This means local
government will receive less then a 1% increase next year and on top of that
little or no new construction will be added to the tax rolls. The result is
they cannot make their built in 3% plus annual salary and benefit increases.
This is why we are hearing about layoffs being planned for next year at Kankakee
School District 111.
The legislation introduced will change the Tax Cap Law to
say local government can never drop below a 2% increase even when the true CPI
is less.
Please call our state elected
officials below and ask them to vote NO to House Bill 2502
and Senate Bill 2126.
State Representative Lisa Dugan: Springfield
office- 217-782-5981 or District office-
815-939-1983
State Representative Careen Gordon: Springfield
office- 217-782-5997 or District office-815-634-3096
State Senator Gary Dahl: Springfield office-217-782-3840
or District office-815-220-8720
State Senator Toi W. Hutchinson (replaced Debbie
Halvorson) Springfield office-217-782-7419 or District office-708-756-0882
Please ask your friends and neighbors to do the same.