Republican County Board Chairman Kurt Prenzler and his Democrat rival Bob Daiber are sparring over proposed plans to lower property taxes.
Prenzler, also a certified public accountant, first issued a pair of press releases Thursday and Friday proposing a limit on property tax growth by putting a Property Tax Extension Limitation Law (PTELL) referendum on the November ballot.
PTELL caps the total amount certain property taxes may increase year to year by the lesser of a consumer price index or 5 percent. Voters must approve increases beyond that.
“Property taxes are out of control,” Prenzler stated. “I want to give the voters an opportunity to do something about it.”
“The county board cannot force other taxing districts to reduce their taxes, but it can put PTELL on the ballot for voters to decide,” he added. “And I believe voters should have that choice.”
Prenzler scheduled a special County Board meeting for Wednesday at 5 p.m. to address the issue.
“This year, as the result of businesses being shut down due to COVID, taxpayers deserve this option more than ever,” he stated.
PTELL began in 1991 and is the law for about 80 percent of the Illinois population. In April 1999, Madison County voters narrowly rejected a referendum to enact PTELL.
Prenzler says that Madison County has more than 220 districts with the power to levy taxes. Of the property taxes collected, roughly two-thirds go to public schools and community colleges, with less than 8 percent going to county government.
He said that in spite of county efforts to keep property taxes low, "it has no power to do anything about 92 percent of your tax bill."
“Except one thing … the county board can vote to put PTELL on the ballot, for the voters to decide,” he stated.
Prenzler added that some will oppose PTELL, but said "it's one tool in the toolbox, and taxpayers should have the choice whether to use this tool or not."
Prenzler stressed that the question is whether Madison County voters should be able to decide whether to enact PTELL for their property taxes.
“The voters may vote for or against it, but it’s my opinion that they should be given the opportunity,” he stated.
Prenzler outlined how his administration has lowered taxes since he was elected treasurer in 2010.
He said he kept a promise to reduce the cost of the treasurer’s office from $1 million per year to $700,000.
“In 2016, I led a petition effort to gather 10,000 signatures to put a binding referendum on the November ballot to reduce the maximum general fund rate from $.25 to .20. The voters approved it by a vote of 4 to 1.
“The newly elected county board followed up by reducing the county government levy by $1.8 million, and it has remained flat.
“Five years ago, the county government rate on your tax bill was $.73 per $100 of assessed value. This year it’s $.57,” he stated.
Daiber, a former regional superintendent of schools in Madison County, responded by issuing a press release after Prenzler rolled out his PTELL proposal, detailing a plan that focuses on reforming the property tax assessment procedure.
“Like thousands of other property owners in Madison County, my property taxes increased yet again this year,” he stated. “It is time for real property tax reform to take place, not just lip service that sounds good in a political campaign.”
“The current assessment system is somewhat unfair and confusing,” he added. “Taxpayers are working harder and harder to make ends meet and simply cannot afford property tax increases at this current rate, particularly during a global health pandemic that has damaged our economy.”
Daiber proposes a three-step plan:
- Step 1 - Introduce a resolution to freeze all property tax assessments for one year. Only those parcels that are issued building permits or receive zoning changes would be subject to new assessments.
- Step 2 - Establish a bi-partisan committee to develop an intra-township assessment procedure by regional subdivision areas to create a more fair and transparent assessment process for property owners.
- Step 3: Initiate legislation to amend the farmland assessment valuation process to place limitations on the percentage of increased assessed valuation on an annual basis.
“The property tax assessment on my wife and I’s home increased this year by $6,700, resulting in the taxable value of our property increasing by $8,190,” Daiber stated. “That means that as homeowners, my wife and I will pay additional taxes on $8,190 this year and every year to come until the assessment process is reformed. Property value changes of such magnitude should only occur if a building permit was issued for a parcel and if structural changes were made.”
“This change in assessed value resulted in a property tax increase of $800 for my wife and I’s home, and many homeowners saw even larger increases,” he continued. “Not only did the taxes on our home increase, but we experienced increases on every parcel of property we own.”
“I encourage everyone to compare the increase in the Fair Market Value of the property from 2018 to 2019 and the increase in their taxable value on their tax bills,” he added. “Residents should also closely review their ‘Notice on Assessed Value Change for 2020’ they will receive in the coming weeks from Madison County.”
In an Aug. 3 press release, Prenzler responded by saying Daiber “earns an ‘F’ in the basic fundamentals of property taxes.”
“When it comes to property taxes,” Prenzler stated, “he needs to go back to school.”
"My opponent’s plan is to wave a magic wand, in an attempt to ‘freeze’ property tax assessments,” he added. “He can’t do that, and even if he could, it wouldn’t solve the problem.”
Prenzler explained that the county has 135,000 parcels, and their values are determined by many people in township and county assessment offices. The property values are then sent to Springfield for review.
“If they lowball property assessments, the state will just add a multiplier to raise it back up,” he stated.
Prenzler recognized that taxpayers challenge their assessments every year, with many receiving reductions.
“At the end of the day, your tax bill is the result of districts imposing taxes,” he stated. “I’m proud of how we’ve reduced the county’s tax rate.”
“There’s simply no free lunch,” he added. “The solution to property taxes is local districts spending less money and growing the tax base through economic growth.”