McConchie Bill Would Allow Tax Districts to Take Credit for Tax Cuts

A press release from State Senator Dan McConchie:

McConchie legislation providing transparency to property taxpayers passes Senate

Springfield, IL… The Illinois Senate has recognized the importance of providing property taxpayers with some practical transparency, said State Senator Dan McConchie (R-Hawthorn Woods), as it unanimously passed his legislation on Thursday which would clearly outline for taxpayers when they receive a property tax break from their units of local government.

Senate Bill 1072 requires local property tax bills to clearly indicate when a local taxing body chooses not to collect the full amount of property taxes for that year and allows taxpayers to keep a portion of the money.

Dan McConchie

“Not only does this bill provide much-warranted transparency to taxpayers, but it also gives local governments more of an incentive to provide property tax reductions,” said Sen.McConchie.

“It allows taxpayers to see when a school district or another taxing entity reduces their taxes for that year.

“For example, if a school district has a surplus of funds and doesn’t need to collect the full amount of taxes for that year, that school district can decide to reduce taxes.

“Under this proposal, taxpayers would clearly see which units of government are returning their hard earned money.”

Sen. McConchie’s proposal would require every property tax bill to list the total dollar amount that would have been due if no decrease was given, the dollar amount of any “abatement” being given back to the taxpayer, and then the total reduced tax bill that is actually due.

McConchie noted that when a taxing body does not collect the full amount of property taxes it is legally able to collect, the uncollected portion is “abated” back to the taxpayer.

However, under current law, a taxing district can decrease the property tax amount that is owed, but it is not required to show that reduction on a taxpayer’s bill.

Currently, when taxpayers look at their tax bill, they have no idea whether a local unit of government has declined to take all the money it could. This bill would change that.

Senate Bill 1072 now heads to the House for a vote.

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The bill is not in the House Revenue Committee.


McConchie Bill Would Allow Tax Districts to Take Credit for Tax Cuts — 1 Comment

  1. SB 1072 in the 100th General Assembly passed the Senate on May 4, 2017.

    It was assigned to the Revenue & Finance Committee on May 15, 2017.

    The last action taken was by the House on May 19, 2017:

    “Committee Deadline Extended – Rule 9(b) May 26, 2017.”

    The bill is scheduled for a Revenue & Finance Committee Hearing on Wednesday May 24, 2017 at 11:30 AM in the Stratton Building Room C-1, Springfield.

    The proposed added language to 35 ILCS 200/20-15 is as follows:

    “…16 including, in the case of a taxing district that authorized

    17 an abatement of taxes for the tax year, an itemization of

    18 the total dollar amount that would have been due based on

    19 the taxes extended if the abatement had not been granted

    20 and the dollar amount of any reduction allocable to the

    21 abatement, and…”

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