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.