Steve Reick Sees Through “Tax Freeze” Headline Bill

These are Steve Reick’s thoughts on the “tax freeze” bill that didn’t pass the Senate after sailing out of the House:

Electoral Chicken Feed Disguised as a Tax Freeze

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They call it “Veto Session”, but it really ought to be called “Propose Bills and Make Speeches That Can Be Used on Campaign Materials Session”.

Case in point: Senate Bill 851, which would require counties to freeze all property tax levies for two years, and would increase the real estate homestead exemption from $6,000 to $10,000 and would increase the Senior homestead exemption from $5,000 to $8,000.

Generally, I’d say that anything that lowers property taxes is a good thing, and I’d be in full support. What S.B. 851 does is give everyone in Illinois the same homestead and Senior exemption that was given to Cook County in May.

However, if it wasn’t good enough to give to everyone outside Cook County then, what makes it such a good idea now?

Why?

Electoral politics, of course.

The bill’s sponsor is considered a target in the November election and needs to burnish her credentials for the folks back home.

I voted against S.B. 473 in May because it did nothing for the people in my district, and while it now gives us the same treatment as Cook County, the combination of this with the two-year freeze will do more harm than good.

And here’s why:

  • First of all, it paints all taxing districts with the same broad brush. There are plenty of taxing districts here in McHenry County that have held their levies flat for years, and in some instances decreased them. They don’t need that model of financial rectitude, the Illinois legislature, to tell them how to do their business.
  • Second, the combination of increased exemptions and the freeze will do nothing to lower property taxes; all it will do is shift that burden to renters and businesses. We’re having a hard enough time as it is attracting and keeping businesses in this county, we don’t need to drive up their tax burdens even further.
  • While property taxes are too high, S.B. 851 carves out an important exemption: debt. Local governments have in most cases already set their budgets for the current year. If this bill were to be enacted, they’d be driven into a situation of having to borrow to pay current bills. Raise your hand if you think that’s a good idea.

I’ll be the first to say we need property tax reform, I’ve been saying it for years. But you don’t get reform by offering up “gotcha” bills just before an election year.
I spoke against the bill on the floor of the House, my comments are here:

Here’s the final clue that this bill was just electoral chicken feed.

After passing the House, the Senate adjourned without taking it up.


Comments

Steve Reick Sees Through “Tax Freeze” Headline Bill — 3 Comments

  1. Senate Bill 473 (SB 473) became Public Act 100-0401 (PA 100-0401) on August 25, 2017.

    Like many bills in the General Assembly, the entire contents of the bill were changed from the time it was introduced to the time it became law.

    The Illinois General Assembly does not represent the people at large.

    It mainly exists to re-elect politicians, who hide the lawmaking process as much as they can from the taxpayers.

    Changing the entire contents of a bill from the time it is introduced to the time it becomes law is one example.

    No videotaping sessions and posting them on the internet for free viewing to all is another example.

    Illinois legislative government sucks at transparency and representing the taxpayers and people at large for many reasons, and those are two of the reasons.

    It is a dud.

    +++++++++++++

    Here is the Synopsis of the language of House Floor Amendment 3 for SB 473, which was the last amendment passed for that bill:

    “Makes changes to the engrossed bill by providing that the maximum reduction for the Senior Citizens Assessment Freeze Homestead Exemption shall be:

    (1) for taxable year 2017, (i) $65,000 for qualified property located in a county with 3,000,000 or more inhabitants and

    (ii) $55,000 for qualified property located in a county with fewer than 3,000,000 inhabitants; and

    (2) for taxable years 2018 and thereafter, $65,000 for all qualified property.”

    ++++++++

    The Synopsis of SB 473 is found in the Bill Status of SB 473 which is located here:

    http://www.ilga.gov/legislation/BillStatus.asp?DocNum=473&GAID=14&DocTypeID=SB&LegId=100414&SessionID=91&GA=100

  2. Here is more information about SB 473 / PA 100-0401, from the law as it appears on the General Assembly website.

    Section 5 – Property Tax Code

    35 ILCS 200/15-170

    Sec. 15-170 – Senior Citizens Homestead Exemption.

    For taxable years 2017 and thereafter, the maximum reduction is $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties.

    +++++++++++

    35 ILCS 200/15-172

    Sec. 15-172 – Senior Citizens Assessment Freeze Homestead Exemption

    Maximum Income Limitation means:

    (6) for taxable year 2017,

    (i) $65,000 for qualified property located in a county with 3,000,000 or more inhabitants and

    (ii) $55,000 for qualified property located in a county with fewer than 3,000,000 inhabitants; and

    (7) for taxable years 2018 and thereafter, $65,000 for all qualified property.

    Notwithstanding any other provision of law, for taxable year 2017 and thereafter, in counties of 3,000,000 or more inhabitants, the amount of the exemption shall be the greater of

    (i) the amount of the exemption otherwise calculated under this Section or

    (ii) $2,000.

    +++++++++++++++++

    35 ILCS 200/15-175

    Sec. 15-175 – General Homestead Exemption

    For taxable years 2017 and thereafter, the maximum reduction is $10,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties.

    +++++++++++

    http://www.ilga.gov/legislation/publicacts/100/PDF/100-0401.pdf

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