Cut assessments but also spending
Assessors will be reducing property assessments for 2009 to reflect tumbling home prices, but such a move will have little impact on tax bills unless local taxing bodies cut spending. The point will be driven home when you get your 2009 reduced assessment and your tax bill, payable in 2010, will increase. Then you will see a very clear picture of how real estate taxes work.
In the wild world of property taxation, the only numbers that matter are the amount of money your school districts, county government including the forest preserve, village governments, etc. want to spend. Budgeted spending by these taxing bodies determines the amount of the tax levy and tax extension, the total tax collected from all property owners in your area. If the levies do not decline, your tax bill won't either.
Easing up on property taxes will be especially difficult for municipal governments because more volatile taxes like sales tax, inspection fees, building permits, business licenses are plunging due to the economy and business closures.
Another problem is the tax cap that most taxing bodies are under. The tax cap limits the levy the taxing bodies can ask for. It is based on the CPI or 5 percent increase, which ever is less based on the previous years levy. So if they reduce the levy this year that reduction would be carried forward forever. Our legislators need to look at this law and make some changes in these depressed times. Don't do away with the tax cap but don't punish taxing bodies in the future for doing a good job now by reducing the tax levy today.
All schools and government bodies must reduce their budgets to fit these bad economic times and make painful cuts in services and jobs. But avoiding these hard choices will only prolong the pain. We don't need to cut services that are essential to public safety or health. But there is no government agency that doesn't have a few unnecessary expenditures to prune. Fact is there are a number of agencies and government bodies that could be consolidated or eliminated with very little effect on the public.
As taxpayers you need to get involved in your area. Attend budget meetings and levy hearings. Voice your opinions and your displeasure with the elected officials that are taxing you. Listen and see where they are spending the tax dollars you don't have to give.
Elections for some of these taxing officials will take place April 7, 2009. Elect candidates that will make the tough choices and reduce your taxes.
Walter Kubalanza
Grant Township Assessor
Fox lake