An Idea for Property Tax Relief

Another property tax relief commission is supposed to report recommendations by the end of the year.

Here’s an idea I submitted to the Illinois House in the mid-1970’s after former Governor Jim Edgar, then a freshman State Representative proposed an income tax hike half of which would go for real estate tax relief.

The major problem I saw with Edgar’s bill was that the other half of the increased tax revenue would go to schools.

So, Edgar was proposing a new net tax.

That stimulated an idea that would not result a net tax increase.

I conceived the idea of a local option individual income replacement tax by school district (with the tax and the local rate to be determined in the referendum),   

All of the proceeds would go to lower the residential real estate tax levy in the next year.

There are problems with the idea, of course.

  • Double taxation in the first year.  
  • Recessions that lower individual income tax collections would mean higher property taxes the next year.
  • Renters would not be guaranteed lower rents.

But, the big advantage besides shifting the way local schools could be financed is that income taxpayers would not be forced to subsidize those in other school districts.


Comments

An Idea for Property Tax Relief — 5 Comments

  1. I guess this is the cue for everyone to trot out their best how-to-lower-property-tax fish stories.

  2. How about just paying for your own Kid to go instead of making everyone else pay for them!

    let the seniors off the hook at minimum or those who no longer or never had cheeldrens…

  3. Until pensions are fixed, deregulation of businesses, and double taxation for business owners this state is going to be the next Titanic!

    Can someone name one society or State that taxed their way to prosperity?

  4. An Idea:
    Illinois taxpayer positions can be described as in two categories:

    Self-serving, sociopathic predatory behavior,
    and self-defense.

    Self-serving sociopathic predatory behavior is the category containing those who profit from the predatory, statutorily-guaranteed defined-benefit pension mechanisms which obligate all Illinois non-TIF-exempted properties.

    Self-defense includes knowing or (non-willfully) ignorant taxpayers who are obligated to pay the sociopathic-predator class in Illinois with full value of owned-property or -businesses in Illinois.

    By definition, self-serving sociopathic predatory class includes teachers,
    and self-defense class includes medical professionals (docs and nurses) who are not employed by schools or government.

    IDEA:

    let the self-defense class of taxpayers form a funded watchdog group to police civil-law compliance of the self-serving sociopathic predator class of tax-takers, in order to determine of all the predatory self-enriching tax-taking is within the constraints of Illinois law (Joke: law is only a constraint if it is enforced).

  5. Susan makes good sense.

    That’s what this blog and Illinois Leaks does!

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