Thursday, January 05, 2006
District 300 Newsletter - Fair & Balanced?
The property tax cap, which District 300 calls by its more or less official name--the Property Tax Extension Limitation Law (PTELL)--is known by most taxpayers as the Tax Cap or Property Tax Cap.
The law was pushed through the General Assembly in 1991 "over the dead bodies of Democrats," so to speak, by Governor Jim Edgar. Objections were heard from about every real estate taxer in the state and their employee unions. The law has been weakened somewhat for park districts, but continues to limit the increase in the amount of money that a school can tax to whatever is the increase in the cost of living.
In virtually every year, the value of real estate increases more than the cost of living, so this means the Tax Cap has saved taxpayers millions of dollars in District 300 alone. Please note at the bottom of the page that District 300 points out the increase in the Consumer Price Index, but not the increase in the value of homes--which is, or course, much, much higher than the rise in the CPI.
Of course, school adminstrators statewide take about how much the Tax Cap has "cost" their school district.
The newsletter talks about "the loss of $14 million of revenue for the 2004 tax year." It points out that its maximum tax rate has decreased from $3.76 to $3.18 since 1997, "a loss of 58 cents" (per $100 of assessed valuation
Impled, but not explicitly stated--as a fair and balanced article would be--is that District 300's property owners saved $14 million this year because of the Tax Cap.
District 300's article on the Tax Cap probably is capable of confusing almost everyone with its excessive detail, but it seems relatively accurate...as far as it goes.
It does not point out that besides inflationary growth allowed by an increase in the "tax take" amounting to the rise in the Consumer Price Index, all tax districts are able to capture all new assessed valuation resulting from new construction. It does not matter whether it is a new subdivision of homes or the massive commercial venture known as Algonquin Commons on Randall Road.
That massive increase in assessed valuation is mutliplied by the tax rate and District 300 gets every dime.
Also not mentioned is the huge Sears Tax Increment Financing District which is due to expire in 2012-13. District 300's assessed valuation for the TIF has been frozen since Sears moved to Hoffman Estates. All of the tax money generated from construction and rising property values have are now going to subsidize the developer. When the TIF expires, District 300 will see a windfall of $10 million per year, according to the outside audit.
That far-from-small-fact is not reported on page 6 or anywhere else in the newsletter. of $14 million of revenue for the 2004 tax year."
To return to McHenry County Blog, click here.
The law was pushed through the General Assembly in 1991 "over the dead bodies of Democrats," so to speak, by Governor Jim Edgar. Objections were heard from about every real estate taxer in the state and their employee unions. The law has been weakened somewhat for park districts, but continues to limit the increase in the amount of money that a school can tax to whatever is the increase in the cost of living.
In virtually every year, the value of real estate increases more than the cost of living, so this means the Tax Cap has saved taxpayers millions of dollars in District 300 alone. Please note at the bottom of the page that District 300 points out the increase in the Consumer Price Index, but not the increase in the value of homes--which is, or course, much, much higher than the rise in the CPI.
Of course, school adminstrators statewide take about how much the Tax Cap has "cost" their school district.
The newsletter talks about "the loss of $14 million of revenue for the 2004 tax year." It points out that its maximum tax rate has decreased from $3.76 to $3.18 since 1997, "a loss of 58 cents" (per $100 of assessed valuation
Impled, but not explicitly stated--as a fair and balanced article would be--is that District 300's property owners saved $14 million this year because of the Tax Cap.
District 300's article on the Tax Cap probably is capable of confusing almost everyone with its excessive detail, but it seems relatively accurate...as far as it goes.
It does not point out that besides inflationary growth allowed by an increase in the "tax take" amounting to the rise in the Consumer Price Index, all tax districts are able to capture all new assessed valuation resulting from new construction. It does not matter whether it is a new subdivision of homes or the massive commercial venture known as Algonquin Commons on Randall Road.
That massive increase in assessed valuation is mutliplied by the tax rate and District 300 gets every dime.
Also not mentioned is the huge Sears Tax Increment Financing District which is due to expire in 2012-13. District 300's assessed valuation for the TIF has been frozen since Sears moved to Hoffman Estates. All of the tax money generated from construction and rising property values have are now going to subsidize the developer. When the TIF expires, District 300 will see a windfall of $10 million per year, according to the outside audit.
That far-from-small-fact is not reported on page 6 or anywhere else in the newsletter. of $14 million of revenue for the 2004 tax year."
To return to McHenry County Blog, click here.
# posted by Cal Skinner : 3:11 PM
