Tax Protest for McHenry Township – Part 1

Attorney Tim Dwyer has also filed suit against the tax rates in McHenry Township. You can read the first part of the document below:


McHenry Township is a municipal entity formed under the Illinois Compiled Statutes.

As an entity with the power to levy and collect ad volerem taxes, Algonquin Township is subject to the Illinois Revenue Code, the Property Tax Limitation and Extension Act, as well as the common law which has evolved under the aforesaid statutes.

While taxing officials are permitted a reasonable latitude in the accumulation of public funds to assure having funds on hand to meet legitimate expenditures as they occur, this discretion must not be abused.

No statutory authority exists for large accumulations to provide for possible emergencies, which may or may not occur, since emergencies engendered by unforeseen circumstances are amply provided for in the statute, and may not be anticipated, as no resource is ample to meet every emergency which could possibly occur.

If discretion can be abused, there must exist a yardstick by which discretion can be measured, and the Illinois Supreme Court, in the case of People ex rel. Leaf v. Roth, 389 Ill. 287, 59 N.E.2d 643 (Ill. 1945) approved a formula of average actual expenditures “as established by recent prior experience”, using the actual expenditure of the three preceding years as a basis for determining the estimated expenditures for the ensuing year, in the absence of specific predetermined requirements which supplant mere conjecture and judgment of taxing authorities.

The Illinois Supreme Court has repeatedly held that a tax levy can be made for the requirements for the ensuing year only, and may not be made to create a fund for possible future needs. C.C.C. & St. L. Ry. Co., v. People ex rel. Selby, 208 Ill. 9, 69 N.E. 832 (Ill. 1904).

Both the Township and the Road Districts’ levies are void due to excessive accumulation.

In November 2015, McHenry Township adopted its Tax Levy Ordinance.

The Township levy was for $1,875,435.00.

The Road District levy was for $3,328,104.00.

The Board of Trustees of Algonquin Township vote and authorize the levy for both the Township, as well as the Road District.

Although the Township and the Township Road District are separate entities for purposes of its tax levy, the Township audit incorporates both entities.

After McHenry Township and the McHenry Road District issued its levies in November of 2015, the last audit for both entities found that at the end of the 2015 fiscal year, the Township had $12,380,182 in cash and investments.

Prior to issuing its 2015 levies, the Township and the Township Road District had a three year average annual expenditure of $4,771,150, according to its own internal audits.

As of its last fiscal year or March 31, 2015, the Township and the Road District had cash assets of $12,380,182, according to its 2013-14 comprehensive audit.

The assets on hand, coupled with the tax revenue from its previous levy, puts the Township and the Road District having in excess of 16 million dollars, or three times the available funds for that which is necessary for its annual expenses.

Spending approximately 4.8 million dollars per year, the Township and the Road District had ample funds in order to meet their respective annual expenses without even imposing a levy.

This remains a violation of Illinois law, rendering both levies as excessive, invalid and illegal.

Accordingly, the Township levy rate of .197701 and the Road District levy rate of .350649 are illegal and should be rebated to the Objectors.

WHEREFORE, Plaintiff Tax Objectors, pray that the Court consider the matters raised herein, find, determine and otherwise adjudicate the entire levies issued by McHenry Township and the McHenry Road District are illegal as a matter of law, order that the McHenry County Treasurer issue payments to the Tax Objector Plaintiffs of the entire amount levied upon the Objectors by said districts, and issue whatever further relief this Court deems just and equitable.


Tax Protest for McHenry Township – Part 1 — 2 Comments

  1. There are two typos in the document.

    Algonquin Township is mentioned twice instead of McHenry Township.

  2. McHenry Township in the news again, but for all the wrong reasons.

    Taxpayers Arise! Ye have nothing to lose but your tax-feudalism!

    Down with the tax-hogs.

    Good luck to the conservatives in the GOP who bounced the Township ward heelers from the Republican Party!

    They deserved to be sacked!

    Give Peace a Chance!

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