Legislation Addresses Unnecessary Property Tax Increases

SPRINGFIELD, Ill. - Working to increase government accountability, state Rep. Fred Crespo, D-Hoffman Estates, has filed legislation to prohibit local governments from imposing unnecessary property tax increases when their reserves go unused.

"During a time when so many families have been overburdened with some of the highest property taxes in the country, we must ensure that units of government can't go back to taxpayers year after year and raise taxes unnecessarily," Crespo said. "Taxpayers want value for their money, and every dollar that sits in reserves is a dollar that could be put towards building stronger schools, maintaining our roads or providing social services for our most vulnerable citizens."

A recent Daily Herald article highlighted how a local school district annually budgets additional funds for contingencies, yet the additional revenue often goes unused. Any leftover funds are annually deposited in the district's reserves with new funds being appropriated the following year.

Crespo's House Bill 4267 would amend the Property Tax Extension Limitation Law (PTELL) by providing that if a taxing district has 50 percent or more of its annual operating budget in reserves; the levy for the next year cannot be increased without voter approval. Under current law, the extension limitation for taxing districts subject to PTELL can annually be increased by the lesser of the previous year's growth in the Consumer Price Index or 5 percent.

"It is my hope that this legislation helps encourage taxing bodies to utilize reserve funding before seeking to increase the tax levy," Crespo said. "This is a common-sense reform that will help bring more accountability to government."