From State Rep Allen Skillicorn:
Skillicorn Files Legislation to Delay Property Tax Installments
in Wake of Coronavirus
Springfield–State Representative Allen Skillicorn (R- East Dundee) filed legislation today to establish guidelines to provide property tax relief for Illinoisan’s during public health emergencies, such as the coronavirus we are currently experiencing.
Rep. Skillicorn said, “During this difficult time we find ourselves in with the coronavirus, families ordered to stay at home have enough to worry about. Property taxes should be the last item to burden residents during this or any other time of a public health emergency.”
The legislation provides that if a disaster is declared by the Governor for all counties in the State due to a public health emergency, then the due date for the first installment of property taxes for that year shall be delayed by 90 days, and no penalties or interest shall be accrued during that extension.
Rep. Skillicorn said, “I am putting forward this legislation to help bring peace of mind to the people of Illinois during this crisis and any future crises that may arise. We are all feeling the weight of this virus and the uncertainty accompanying it for families and their means of income. What this legislation proposes to do is provide some breathing room for Illinois families. With property taxes continuing to skyrocket, the least we can do during a crisis is allow a delay in payment so families can focus on what is most important.”
“I look forward to working with my colleagues to move this bill forward and get it passed. The State of Illinois owes it to our communities,” added Rep. Skillicorn.
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Meanwhile, McHenry County Boar Chairman Jack Franks announced that the McHenry County Board would move ahead on the same track without additional legislation.
According to County Treasurer Glenda Miller, he cites 35 ILCS 200/21-40.
McHenry County would be following the example set by President Donald Trump, then, followed by Governor JB Pritzker.
While were stranded in our leper colony communes, gubmint offers money saving tax payment coupons.
Meanwhile #### Who pays? You pay ####
Chicago Mayor Lori Lightfoot issued an executive order Tuesday to ensure that illegal immigrants and refugees in the city are able to access the city’s coronavirus relief benefits.
“This order is more than just an official decree, it is a statement of our values as a city and as Americans,” Lightfoot said in a statement. “Since COVID-19 first reached our city’s doorstep, we have been working around the clock to ensure all our residents are secure and supported, including our immigrant and refugee communities, who are among the most vulnerable to the impact of this pandemic.
Undocumented immigrants do not meet the criteria for state unemployment insurance or the stimulus checks the federal government is sending out to every American as part of the $2 trillion coronavirus relief bill Congress passed.
However, non-citizen residents will be able to receive benefits through Chicago’s Housing Assistance Grant program, learning resources through Chicago public schools, and will have access to the $100 million Chicago Small Business Resiliency Fund.
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Up to 280,000 undocumented immigrants worked in Illinois in 2018, most of them in the Chicago area, according to a WBEZ analysis of census data.
Illinois reported 73 coronavirus deaths on Tuesday, the state’s highest number of deaths from the virus in a single day, as the total number of cases in the state passed 13,500.
This same subject came up here about a week and a half ago and I wondered if there would be any impact to this strategy as most taxpayers have their property taxes escrowed by their lendor.
This subsequent NW Herald article from 3/31 confirmed by Glenda Miller that 67% of residents use an escrow account: https://www.nwherald.com/2020/03/30/proposal-to-waive-late-fees-interest-on-mchenry-county-property-tax-bills/amw6626/
Therefore, the deferral would have no impact on the vast majority of residents.
While most taxing bodies will be able to get by with a 90-day cash flow delay, there may be some outliers that cannot.
Particularly those school districts that are depending upon the collection of the tax levy in June in order to make upcoming debt service payments on bonds and Tax Anticipation Warrants.
As one example, given their weak financial position, Johnsburg D-12 just issued about $3 million in Tax Anticipation Warrants (TAWs) using the future levy proceeds as collateral.
Typically, TAW repayments are set up to be collectible the moment the County deposits the first levy proceeds in the school district’s bank account.
The bank sets up a tax intercept program to immediately take the cash out of the account to payoff the outstanding principal and accrued interest.
Failure to make a TAW re-payment triggers a default and then a long series of very, very bad things begin to happen.
So, the officials at the state and county levels better stress-test this proposal against every taxing body in the county to determine which taxing bodies might/will fail the test before we go ahead and defer the collection of property taxes in order to benefit hardly anybody.
There is no such thing as an illegal immigrant.
The proper legal term, as we all know, is illegal alien.
This is Orwellian double speak purposely designed to
confuse the populace and promote the Left’s agenda.
“Coffey” is accurate, but now the follow-up facts in the Northwest Herald makes it sound that, assuming mortgage companies aren’t going to pass the break to the homeowners, the county’s action will only impact the nearly 1/3 of property taxpayers who’ve paid off their mortgages, or own their properties outright, or no longer required to put their property taxes into escrow.
So Allen Skillicorn and Kane County Treasurer Dave Rickert were incorrect state legislation is needed to waive late payments/interest on the first installment of property taxes.
I believe I heard Governor Pritzker state it is up to the counties.
And I also like the emphasis that if a property tax payer can afford to make their first installment, they should voluntarily waive the late fee reprieve and pay their 1st installment by the spring due date.
I just thought, with the booming economy of the past three years until COVID-19 brought it to a halt, that more taxpayers would have taken advantage of the boom and paid off their mortgages early, and maybe some had.
Didn’t expect 2/3 of property tax payments are handled by escrow payments from mortgage lenders.
Kicking the can down the road helps no one.
How about just repeal the first installment entirely?
When I was County Treasurer from 66-70,some school districts were in trouble and wondered if I could help out.
I decide to give more than had been collected from their taxpayers with their getting less later on in order to balance out.
I distributed tax checks each Friday after sweeping the various v\banks’ collection accounts.
So, are the mortgage lenders really going to pay the property taxes for people who are being forced to default on their mortgage payments?
And how are the school districts going to get by when the next flood of property foreclosures begins and the property tax cash cow dries up?
Also consider the possible collapse of property values,
Like the last recession.
According to the latest Mortgage Bankers Association Forbearance and Call Volume Survey which highlights the “unprecedented, widespread mortgage forbearance already requested by borrowers affected by the spread of the coronavirus”, the total number of loans in forbearance grew to 2.66% as of April 1; just one month ago, on March 2, the rate was 0.25%, or a 1,064% increase in just one month.
For loans backed by Ginnie Mae, which serves low- and moderate-income borrowers, the surge was much greater, with total loans in forbearance soaring to 4.25% from 0.19% one month ago.
Overall, the MBA reports that total forbearance requests grew by 1,270% between the week of March 2 and the week of March 16, and another 1,896% between the week of March 16 and the week of March 30.
According to Bloomberg, borrowers with relatively low credit scores, many of whom live paycheck to paycheck, are most likely to seek relief. Over the past two years, Ginnie Mae has guaranteed $583 billion of 30-year mortgages with FICO scores below 715, according to data compiled by Bloomberg. However, the longer the coronavirus shutdown lasts, the higher the FICO cutoff for those borrowers unable (or unwilling) to make mortgage payments.
Paul Revere, your racist comments about our Dear Leader and Bug-Eyed Lesbian will merit you a visit from the Ill. Human Rights Commission to convince you to change your tune or pay $750,000 in penalties.
“Failure to make a TAW re-payment triggers a default and then a long series of very, very bad things begin to happen”
If by that you mean State takeover of school district financial decisionmaking, how can it be any worse that current local financial decisionmaking which has willfully overspent the means of its community in order to benefit insiders?
Why hasn’t Franks been charged?
Heavyfoot whines about her people still shooting at each other…her liquor curfew will morph into a general one.
Big looting sprees forecast for warmer weather.
Her outgoing interim police chief (after the last chief lied to Heavyfoot about his barnyard antics and drinking spree as a kidney transplantee) warned some of Mag Mile honchos bad things coming quick to Chiraq!
Susan, it can always get worse.
The Panel established by the state to run a school district is not bound by the PTELL restrictions on levy increases.
As part of the financial solution to a district’s problems, the panel can pierce the tax cap and raise the operating levy to whatever level they deem necessary.
Additionally, they can issue any new debt they deem necessary to recapitalize a weakened district’s balance sheet.
Lastly, property values typically suffer relative to neighboring towns due to the stigma of a state takeover of a school district, as well as from the negative impact driven by the new tax increases.
Yes the County Treasurer, Glenda Miller came up with this idea for the McHenry County Taxpayers!
Thank you, Glenda Miller!!