The Madison County Board rejected a referendum seeking to place a controversial Property Tax Extension Limitation Law (PTELL) question on the March 2024 primary ballot.
A special County Board meeting was held July 13 to discuss PTELL and what action the board should take regarding the issue. Only four board members supported the referendum.
If it had passed, the referendum would have read: Shall the Property Tax Extension Limitation law (35 ILCS 200/18-185 through 18-245), which limits annual property tax extension increases, apply to nonhome rule taxing districts with all or a portion of their equalized assessed valuation located in Madison County?
Board members supporting the measure argued that it was their responsibility to let the voters decide if they want to implement PTELL.
Paul Nicolussi (R-Collinsville) said he has heard both the positives and negatives of PTELL, but it is ultimately up to the voters.
“PTELL is not like a genie lamp that you rub and it’s going to cure all your tax problems … It also doesn’t appear to be the wrecking ball that some people say it might be,” he said.
“What I’m wrestling with is not whether I’m for or against it, it’s whether I shut the voters out and don’t give them a voice on it,” he added. “And I have to let them choose.”
Skip Schmidt (R-Edwardsville) also supported putting PTELL on the ballot, saying he promised to his constituents that he would “vote with a conscience.”
“I’m not here to be popular,” he said. “I’m here to do what is right.”
Stacey Pace (R-Troy) said PTELL would result in higher property taxes, calling it “bad legislation.” She argued that voters made their voices heard when they voted for board members to make these decisions.
“They elected us,” she said. “That is our job as county board members, to represent them. We’re the ones doing the research on behalf of them. We’re the ones going to the meetings. We’re the ones coming together, talking about what we’ve learned and discussing it.”
“It disgusts me that people keep going back to, ‘Oh, you gotta give voters a choice.’ We gave them a choice. You just got voted in. Now do your job. What’s best for Madison County? Don’t raise the taxes,” she added.
Terry Eaker (R-Bethalto) agreed, saying voters trust them “to do the right thing.”
“We came to the conclusion that this is not good for Madison County,” he said.
Jason Palmero (R- Glen Carbon) said voters wouldn’t want them to do the research, determine that the issue might have a negative impact on the community, and then “throw the dice and put it on the ballot.”
“My voters voted for me to make a smart decision, and I’m not going to let them down,” he said.
Madison County Chairman Kurt Prenzler explained that PTELL limits the total amount certain property taxes may increase year-to-year by the lesser of a consumer price index (inflation rate) or 5%. Taxes may increase beyond that, but only if voters approve those increases.
“Sometimes voters approve tax increases and bond referendums,” Prenzler said. “PTELL doesn’t stop that.”
Prenzler also argues that PTELL “practically eliminates ‘backdoor referendums’ - a legal loophole allowing taxing districts to issue bonds without voter approval, when those bonds will be repaid with higher taxes.”
However, several board members argue that PTELL would result in increased taxes.
Mike Babcock (R-Bethalto) said they sought counsel from someone who could speak to them in support of PTELL, “and we could not find one.”
He was also critical of home-rule communities that would not be affected by PTELL having the chance to vote on a measure that doesn’t apply to them, including Alton, Collinsville, Granite City, Edwardsville, the Collinsville School District and the Highland School District.
“I don’t think that’s fair representation,” he said.
A recording was played from an event where a Marion County official discussed PTELL’s negative effects.
He explained that without PTELL, taxing bodies levy based upon their needs. He said PTELL districts, however, levy for the maximum amount every year.
Prior to the special board meeting, the Madison County Board’s PTELL subcommittee researched the issue by reaching out to Madison County officials, school district leaders, fire district leaders, highway departments, and others.
“While members had initially hoped that enacting PTELL would lower or slow property taxes in Madison County, the committee has only learned that PTELL does not lower taxes or cap taxes,” the subcommittee’s press release states. “Instead, it raises taxes and it seems to offer financial devastation to local taxing districts, like libraries and fire districts, and even schools, but, at the same time, does not save taxpayers any significant money. PTELL has also had several unintended consequences on top of that.”
The subcommittee submitted a resolution recommending the Madison County Board to reject including PTELL on the ballot. Mick Madison (R-Bethalto) read the recommendation during the special board meeting, which states:
RESOLUTION RECOMMENDING THE MADISON COUNTY BOARD
REJECT A BALLOT REFERENDUM TO ENACT THE
PROPERTY TAX EXTENSION LIMITATION LAW (PTELL) IN MADISON COUNTY, ILLINOIS
WHEREAS, for the benefit of the Madison County Board, the PTELL Sub-Committee was instituted to research the effects of the Property Tax Extension Limitation Law (PTELL) on Madison County Taxpayers, and units of local government subject to its limitations including, among others, school districts, and all other taxing districts such as fire districts, library districts, small townships, excluding, however, units of government not subject to PTELL including home rule units of government and certain others.; and
WHEREAS, the Committee has considered abundant information on the effects of PTELL being enacted in Madison County and has found that PTELL would certainly financially impact and potentially devastate small taxing districts of every type and raise the property taxes of Madison County Residents and property owners; and
WHEREAS, PTELL is not a “Tax Cap” and will never lower property taxes, but will, instead, raise property taxes, as, history shows, taxing bodies will increase their property tax levy to the maximum allowed to protect their tax base the year before PTELL can take effect should the voters approve it; and
WHEREAS, PTELL has been unilaterally imposed on 6 Illinois Counties by the Illinois Legislature, it has been adopted by referendum in only 33 of 102 Illinois Counties, and PTELL has not been enacted in any Illinois county in 23 years; and
WHEREAS, no evidence suggesting that all PTELL Counties have lower property taxes than all non-PTELL Counties has been presented; and
WHEREAS, to date, no person has supplied a factual based assessment to the Committee that PTELL will lower taxes in Madison County; and
WHEREAS, PTELL was designed for the counties surrounding Cook County, the “collar counties”, where it was made effective by the legislature, while considering that all taxing bodies in that area are significantly larger than those in the lesser populated counties, which would certainly be less devastating than in much smaller taxing districts such as those in Madison County; and
WHEREAS, the PTELL Sub-Committee has considered several real effects of PTELL on Madison County taxing bodies and residents including the real-life concerns that small townships may lose the ability to pay their portion of bridge replacements in their districts, causing them to turn to the taxpayers for more money; and small Fire Protection Districts would likely lose their ability to function properly and to purchase fire trucks and other costly necessary equipment thus impacting the vital public safety service they provide; and
WHEREAS, PTELL has had the unintended consequence of forcing taxing districts, such as school districts, to issue bonds, or borrow the maximum allowed in order for them to continue to have the ability to bond in the future, which will raise property taxes. In fact, simply discussing enacting PTELL has the plausible effect of causing districts to issue extensive bonds just in case PTELL is enacted in the county; and
WHEREAS, many voters residing in taxing districts unaffected by PTELL will be allowed to vote on whether or not PTELL should be implemented in Madison County and, therefore, apply to the taxing of districts in which they do not reside; and
WHEREAS, Madison County voters previously rejected a PTELL referendum on the ballot in 1999, and two previous county boards have rejected placing PTELL on the ballot since 2017, as well; and
WHEREAS, the Property Tax Code provides the County Board is responsible for placing the question of whether PTELL shall apply in the County on the ballot, and, therefore, because PTELL may be approved by referendum, it is in essence the responsibility of the County Board to determine whether PTELL would be beneficial to the County as a whole; and
WHEREAS, voters have the right to an objective, factually-based, and responsible assessment of PTELL and its impact and implications on the County by its elected County Board members before they are forced to vote on it; and
WHEREAS, the PTELL Sub-Committee does not recommend that the Madison County Board approve any action to place the statutory PTELL question on the ballot.
NOW, THEREFORE, BE IT RESOLVED by the PTELL Sub-Committee of Madison County, Illinois, that the Property Tax Extension Limitation Law (PTELL) will negatively impact the residents of Madison County, will only raise taxes, and hereby recommends that MADISON COUNTY FULLY REJECT PLACING A REFERENDUM ON THE BALLOT PERTAINING TO THE IMPLEMENTATION OF PTELL IN MADISON COUNTY ILLINOIS.
Adopted this 12th day of July, 2023.