Illinois property tax
Illinois derives considerable revenue through property taxes. In fact this revenue method is the largest contributor to the state exchequer among all the state taxes. It is an ad valorem tax that is applied in a rationalized structure. Property taxes directly or indirectly affect almost every citizen in the state of Illinois. All properties, be it land, residential or rental buildings, industrial units and commercial buildings are liable to pay tax. All residents contribute either directly as tax or in the form of rent to the owners of the properties. Since the utilities and benefits that the tax revenue funds cover a large spectrum of public services, even temporary residents are dependent on them. The funding of many facilities like maintenance of roads, police department, the fire department, county services, public schools, public libraries and so on get a major funding if not the total amount through property taxes.
Implementation and Administration
Since 1932 the State has entrusted the responsibility of levying property taxes to local bodies counties, school districts, municipalities, and others and has refrained from undertaking any legislation itself. There is a proper and competent mechanism to ensure that assessment, collection and expenditure of taxes is done efficiently at the local level itself. The work is done under the supervision and control of chief county assessment officers, county collectors, township assessors, local boards of review, etc.
Property tax is applicable only on real properties like landed property, buildings, permanent improvements, etc. Tax on personal property was discontinued from 1970. Earlier, even movable items like furniture and fittings, livestock, vehicles, cash, etc. were liable for assessment under property tax laws. Taking into account the hardships being faced by commercial and other business establishments, legislation was enacted to exempt them from personal property tax. An alternate tax on investment and income was levied in its place, which was accepted as more equitable. While owners of all categories of land, homes, commercial and industrial buildings are taxed directly, there are some exempted categories that attract tax only when they are leased out. Here the lease holder is assessed for the tax, while the owner is exempted.
The systematic and efficient process of assessment, collection and distribution of taxes is implemented in a regular two-year cycle. Local assessing authorities first appraise and evaluate all properties. The final property values and the rates of tax applicable on them are assessed by the chief county assessment officer. Assessments and enhancements have to be uniform and within the legal stipulations. Reasonable time is provided for redressing any complaints regarding perceived or genuine inequitable assessments, improper valuation, and for granting exemptions. If the disputes is not settled at the local level, the issue can be submitted before the State property Tax Appeal Board or the Circuit Court.
The next step is to equalize assessments among the counties, and this is done by the Illinois Department of Revenue. A state equalization factor is arrived at, which forms the basis of the assessments for each county. After quantifying their specific requirements for funds, the taxing districts proceed to certify levies to the county clerk. Any necessary public hearings and discussions are held before this. The county clerk then undertakes a series of calculations to arrive at specific rates of property tax. The tax rate is calculated after applying the equalization factor, to determine the legally permissible taxes each tax district can levy. The total levies are then allocated proportionally (based on equalized assed values) among the properties within the taxing district. The bills for property taxes are prepared by the county collector, who also collects the payments. The collector then distributes the amounts to the respective tax districts that levied them. The collector has powers to take enforcement measures to collect unpaid taxes.
Conclusion
There are more than 6000 taxing districts in the state of Illinois, and the income is considerable. School districts are the biggest beneficiaries. Units that have no means for raising additional tax revenue are entirely dependent on this revenue. Often state and federal funding is inadequate to meet their requirements. Detailed information concerning the tax structure and system can be had by visiting the official site of The Illinois Property Tax System of Illinois Department of Revenue.
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