Policy Forum. Why is the Property Tax so Unpopular? By Nathan Anderson and Daniel McMillen. About the Authors

Size: px
Start display at page:

Download "Policy Forum. Why is the Property Tax so Unpopular? By Nathan Anderson and Daniel McMillen. About the Authors"

Transcription

1 Policy Forum Why is the Property Tax so Unpopular? By Nathan Anderson and Daniel McMillen Volume 22, Number 3 April 2010 About the Authors For local governments the property tax has long been a reliable source of significant levels of revenue. Yet, perhaps more than any other tax, the property tax has also long been the source of widespread discontent. In a recent paper, Anderson and Pape (2010) argue that uncertainty and confusion are the main sources of this antagonism toward the property tax. 1 Uncertainty arises in part because property taxes generally rise as property values increase, making it possible for a household s taxes to rise significantly even as its income holds steady or even falls. Uncertainty also arises because households find it difficult both to predict changes in their assessed values and to understand how assessment changes affect their tax bills. Moreover, the sheer complexity of the property tax system makes future tax bills hard for households to predict. A complicated property tax system is difficult for voters and policymakers to understand, let alone reform, and the lack of transparency in property tax bills makes the system appear unduly complicated. More transparency might go a long way toward increasing public understanding of the property tax. In turn, if better understood, these taxes might draw less of the public s ire. 1 Anderson, Nathan B. and Andrea D. Pape, Explaining the Tax Revolt: The Insurance Motivation for Property Tax Limits, manuscript, University of Illinois at Chicago, February The Property Tax in Illinois The starting point for the Illinois property tax system is the estimated market value of a property. We discuss below whether these estimates of how much each home could sell for in a given year are accurate. It is common in the United States for property taxes to be levied not on the full estimate of a home s market value, but on an assessed value, that is only a percentage the market value. The assessment level is 1/3 for all types of property in 101 of Illinois 102 counties. The exception, Cook County, has a classified system in which different types of property have different assessment levels. Prior to 2008, Cook County s assessment levels were 16 percent for small (six units or fewer) residential properties, 24 percent for large residential properties, 36 percent for industrial properties, 38 percent for commercial properties, and 22 percent for vacant land. Although the assessment levels were not formally changed in 2008, the Cook County Board of Commissioners established alternative market value percentages as the basis for assessment appeals. The market value percentages are 10 percent and 16 percent for small and large residential properties, respectively, 25 percent for commercial and industrial properties, and 10 percent for vacant land. The market value percentages serve the same function as the Nathan Anderson is jointly appointed the University of Illinois Institute of Government and Public Affairs and to the Department of Economics at the University of Illinois at Chicago. He earned a BA from Case Western Reserve University in 2000, then MA and PhD degrees from the University of Michigan in 2003 and 2005, all in Economics. Most of his research concerns taxation and public finance. Daniel McMillen holds appointments in the University of Illinois Institute of Government and Public Affairs and the Department of Economics at the University of Illinois at Urbana- Champaign. He earned BS and MA degrees from the University of Illinois at Chicago, and a PhD in Economics from Northwestern University in Much of his research focuses on land and home values. Policy Forum is an occasional publication of the Institute of Government and Public Affairs at the University of Illinois. It examines crucial issues facing the state of Illinois.

2 assessment level: they represent the proportion of the estimated market value serving as the basis for the tax. Once assessed values are determined, most states allow various exemptions before imposing the tax. Exemptions may include standard homeowner exemptions and special exemptions for favored groups such as senior citizens, long-time occupants, disabled persons, and veterans. Illinois has special exemptions for each of these groups, but most households qualify only for the general homestead exemption, currently $6,000. The assessed value less the exemptions is the basis for the tax. In Illinois, assessed values are also adjusted by an equalization factor. Outside of Cook County properties are required to be assessed at 1/3 of market value. If, for example, a county assesses properties at 1/6 of market value on average, the equalization factor would be 2 to ensure that the sum of all assessments is equal to 1/3 of market value. After a concerted effort in the 1990s to eliminate the widespread practice of under-assessment, nearly every county in Illinois now has an equalization factor of 1. A salient exception is Cook County, which continues to drastically under-assess most property, as is evident from the substantial differences between the market value percentages and the statutory assessment levels. The 2007 equalization factor for Cook County was , which indicates that the average property was assessed at approximately 35 percent (1/2.8439) of its statutory rate; much lower than the 50 percent rate (approximately 16 percent / 33 percent) implied by the Cook County classification system. Table 1 shows the progression from estimated market value to the tax bill for two $100,000 small residential properties, one in Cook County and the other elsewhere in the state. The final entry in the table is the tax rate. As is the case in most states, Illinois requires that the tax rate be the same for all properties within a taxing jurisdiction. However, tax rates can vary dramatically across jurisdictions and within jurisdictions over time. Indeed, myriad taxing units in Illinois school districts, municipalities, townships, counties, special districts can lead to significant variation in tax rates for properties that are quite Table 1. Examples of Property Tax Calculations for Cook County and Elsewhere in Illinois Cook County Other Counties Estimated Market Value (MV) $100,000 $100,000 Market Value Percentage /3 (Cook) or Assessment Level (AR) = Assessed Valuation $10,000 $33,333 Equalization Factor (EF) = Equalized Assessed value $28,439 $33,333 (EAV) - Homestead Exemption - $6,000 - $6,000 = Adjusted Equalized Value $22,439 $27,333 (Adj. EAV) Tax Rate (t) t t = Tax $22,439 t $27,333 t close to one another, but are located in different tax districts. In the example above, the final tax rate could end up being higher in Cook County than elsewhere. The final tax payment, in turn, depends on both the adjusted equalized value and the tax rate. A Simple Tax Structure? Although the tax structure appears quite complicated, it can be expressed as a simple linear function of the estimated market value. Using the notation shown in the table, the final tax is: Tax = (t)(ef)(ar)(mv exemption) The tax structure is far simpler than the federal income tax schedule, with its innumerable deductions and marginal rates that vary by income. The tax schedules implied by the table when t = 0.10 are simply MV in IGPA University of Illinois Urbana-Champaign Chicago Springfield 2

3 Cook County and MV in other counties. Since these taxes cannot be negative, these schedules imply that homeowner facing a 10 percent tax rate pays no tax when the home s estimated market value is below $21,126 in Cook County or below $18,018 elsewhere in the state. Above these thresholds, each additional $10,000 in estimated market value increases the tax payment by $284 in Cook County and by $333 in other counties when the tax rate is 10 percent far less than the $1,000 that may appear to be implied by a 10 percent tax rate. Taxes increase by much less than the proportion implied by the nominal tax rate primarily because the property tax is levied on a fraction of market value rather than the full estimated market price. Although a linear tax schedule is easy to understand in principle, each of the terms is cloaked in confusion in Illinois. Estimated Market Value Market values, by definition, fluctuate constantly. The official estimated market value used for tax purposes is updated every three years in Cook County and at least every four years in the rest of the state. These changes are often the subject of contentious dispute, leading to appeals to assessment offices and boards of review. Market values can be hard to estimate in areas with few comparable sales. When prices are appreciating rapidly, homeowners estimated market values can increase much more rapidly than their perceived ability to pay. Homeowners anxieties are exacerbated by the apparently widespread belief that increases in market value translate directly into increases in tax payments. Tax Rate The tax rate may well be the single most confusing aspect of the Illinois property tax system. We have arbitrarily set the tax rate at 0.10 in our examples above. In fact, tax rates vary substantially even within small geographic areas. A single property may be part of a school district, park district, a village or city, a community college district, a water district, and a township and county, all of which cover different areas and all of which set different tax rates. In the end, the homeowner pays one property tax bill covering the total charges levied by all the individual 3 taxing units. Showing the multiple components of the property tax individually on the tax bill is laudable from the point of view of transparency, but all of the detail might confuse some taxpayers. Moreover, the multiplicity of taxing authorities means that a household s property tax bill can easily end up increasing even when, for example, a highly publicized school district tax levy is defeated. In most states, including Illinois, jurisdictions request a level of property tax revenue. The tax rate faced by taxpayers falls out as the ratio of the requested revenue to the tax base. With income and sales taxes in mind, most people think of tax rates as being fixed, and amounts varying with changes in the bases (e.g. income, purchases). With property taxes, however, tax rates are computed based on revenue requirements and assessments levels. Moreover, the rates are often adjusted annually. Thus, when assessed value rises, tax rates often fall, resulting in only modest tax increases for some homeowners. When assessment values decline, however, tax rates often rise, resulting in tax increases for many homeowners. Assessment Timing The timing of the assessment cycle in Illinois also creates confusion. Assessments are officially put in place on January 1 at the start of an assessment cycle, after which they normally stay in place for three years or four years. If the assessment cycle begins on January 1, 2010, it would be natural to assume that assessments were determined during the latter part of 2009, and then announced on January 1. Instead, assessments tend to take place retroactively; assessments for January 1, 2010 are unlikely to be announced until mid This timing causes particular confusion and anxiety in declining markets in which homeowners know very well that they could not sell their house for the amount that they could have received a year and a half earlier. Do Assessment Increases Reflect Overall Price Trends? Although much of the antagonism toward the property tax may be a result of confusion over its details, it still is true that homeowners IGPA University of Illinois Urbana-Champaign Chicago Springfield

4 Figure 1. Distribution of Assessments Changes for Class 2 Properties in Chicago Percent Percentage Change in Assessment Percent Percentage Change in Assessment Red line = CPI; Blue line = repeat sales price index; Source: author s calculations IGPA University of Illinois Urbana-Champaign Chicago Springfield 4

5 tax bills sometimes increase significantly even while their incomes or wealth are not rising. Figure 1 shows the distribution of assessment changes for Class 2 properties in the City of Chicago for the and cycles. The first six years of the decade were a time of extraordinary increases in home prices. Whereas the consumer price index (CPI) for the Chicago metropolitan area indicated that overall prices rose by 6.2 percent and 7.5 percent between and , respectively, a repeat sales index of home prices indicates that the sales prices of Class 2 properties in the City of Chicago rose 28.9 percent and 36.1 percent during the same three-year intervals. The figure shows that more than half of the assessment increases exceeded the rate indicated by a repeat sales price index for both and , and the vast majority exceeded the relatively low rate of inflation indicated by the CPI. A tiny proportion of the assessments fell; a much larger proportion had new assessments that exceeded their old values by significantly more than the average rate of inflation of home values as revealed by the repeat sales price index. While many neighborhoods in Chicago had booming real estate markets during the period, others did not. Although the property tax rate in Chicago actually fell during this period, the tax rate reductions were not enough to shield homeowners with large increases in assessed value from significant tax increases. While homeowners housing prices were rising their incomes may not have been rising. Further, many of the housing price increases from 2000 to 2006 were the result of a rapid short-term increase in prices that was not accompanied by long-term increases in wealth. A Simple Policy Prescription: More Transparency Clearly, the property tax system could be simplified many ways. But much of the confusion over the property tax could be eliminated if tax bills indicated the reasons for all changes in tax liability. Taxpayers bills could indicate what portion of their tax bill change is due to assessed value changes and what portion is due to taxing jurisdictions revenue increases. 5 Without great difficulty, the counties could add this information for each jurisdiction, and for the grand total, clarifying which taxes are rising, and why. Greater transparency in property tax bills would help focus voters ire. What causes a tax bill to increase by, for instance, $500? Perhaps the household s relative assessed value increased, but the local taxing jurisdictions did not increase their total tax revenues. The tax bill would inform the household that the local government was not responsible for its tax increase. Without this information, homeowners could mistakenly believe that increases in local expenditures caused their taxes to increase. Showing the portion of any tax increase that is due to revenue increases would allow taxpayers to understand better the revenue decisions of their cities, counties, and school districts. The failure of the state s existing property tax relief efforts to temper voters frustration with the property tax will continue unless greater transparency demystifies the property tax system. IGPA University of Illinois Urbana-Champaign Chicago Springfield

6 The Institute of Government and Public Affairs seeks to improve public policy and government performance by producing and distributing cutting-edge research and analysis of public policy issues and providing public engagement that enlightens and educates elected officials, students and the general public. The institute was created in 1947 by resolution of the Illinois General Assembly. IGPA is distinct among premier policy research units because of its dedication to public service. Its work not only advances knowledge but also provides practical assistance to government and public policy makers. The faculty and professionals at IGPA are dedicated to responding rapidly to the challenges facing society and assisting government to meet those challenges. They are also out front with innovative research, cutting-edge education, pragmatic training, and informed consultation. IGPA faculty hold joint appointments with departments such as political science, economics and sociology. IGPA forges partnerships with civic organizations and state associations, such as the Jane Addams Hull House Association and the United Counties Council of Illinois, to open policy discussion to a broader audience beyond government and academia. IGPA focuses on critical issues in governance, health policy, public finance, race and public policy and social policy. I G P A University of Illinois Urbana-Champaign Chicago Springfield 1007 West Nevada Street Urbana, Illinois Non-Profit Org. U.S. Postage P A I D Permit # 75 Champaign, IL

Policy Forum. Understanding the Effects of Medicare Prescription Drug Insurance. About the Authors. By Robert Kaestner and Kelsey McCoy

Policy Forum. Understanding the Effects of Medicare Prescription Drug Insurance. About the Authors. By Robert Kaestner and Kelsey McCoy Policy Forum Volume 23, Issue 1 October 2010 Understanding the Effects of Medicare Prescription Drug Insurance By Robert Kaestner and Kelsey McCoy The Medicare Modernization The size and potential significance

More information

The State Role in Providing Property Tax Relief

The State Role in Providing Property Tax Relief The State Role in Providing Property Tax Relief Andrew Reschovsky Robert M. La Follette School of Public Affairs University of Wisconsin-Madison reschovsky@lafollette.wisc.edu Selected Property Tax Facts

More information

Property Tax Real. hio. Taxpayer The tax is paid by all real property owners unless specifically exempt.

Property Tax Real. hio. Taxpayer The tax is paid by all real property owners unless specifically exempt. 108 Property Tax Real Taxpayer The tax is paid by all real property owners unless specifically exempt. Tax Base The tax is based on the assessed value of land and buildings. Assessed value is 35 percent

More information

Property Tax Relief: The $7 Billion Reality

Property Tax Relief: The $7 Billion Reality August 2008 Property Tax Relief: The $7 Billion Reality In the spring of 2006, Texas lawmakers passed a massive package of school finance reforms. School tax rates for maintenance and operations were to

More information

Citizens Guide to Property Tax Bills

Citizens Guide to Property Tax Bills Citizens Guide to Property Tax Bills 1 B R I D G E T G A I N E R C O O K C O U N T Y C O M M I S S I O N E R, 1 0 TH D I S T R I C T T E L E P H O N E : ( 3 1 2 ) 6 0 3-4 2 1 0 W E B S I T E : W W W. B

More information

UNDERSTANDING PROPERTY TAXES IN COOK COUNTY

UNDERSTANDING PROPERTY TAXES IN COOK COUNTY UNDERSTANDING PROPERTY TAXES IN COOK COUNTY 1 A PERSPECTIVE COOK COUNTY NEW TRIER TOWNSHIP 2 nd Largest County in U.S. 5.3 Million People 1.8 Million Parcels 1.2 Million Residential Parcels One of Smallest

More information

Property Tax 101. Understanding the Property Assessment and Tax Process

Property Tax 101. Understanding the Property Assessment and Tax Process Property Tax 101 Understanding the Property Assessment and Tax Process July 31, 2014 Presented by Senator Christine Radogno 41 st District Representative Jim Durkin 82 nd District Representative Ron Sandack

More information

An overview of Colorado s state and local tax structures. Daphne Greenwood and Tom Brown

An overview of Colorado s state and local tax structures. Daphne Greenwood and Tom Brown An overview of Colorado s state and local tax structures Daphne Greenwood and Tom Brown Colorado has a highly decentralized revenue-raising structure compared to many other states. Although combined state

More information

The Property Tax in New York State. Condition Report Prepared for the Education Finance Research Consortium December 2008

The Property Tax in New York State. Condition Report Prepared for the Education Finance Research Consortium December 2008 The Property Tax in New York State Nelson A. Rockefeller Institute of Government 411 State Street Albany, New York 12203 Condition Report Prepared for the Education Finance Research Consortium December

More information

Property Tax Relief for Seniors A Policy-Based Approach

Property Tax Relief for Seniors A Policy-Based Approach Property Tax Relief for Seniors A Policy-Based Approach The Province of New Brunswick has committed to property tax relief for seniors. It has invited feedback and suggestions in the development of an

More information

Homestead Tax Credit

Homestead Tax Credit Homestead Tax Credit Prepared by Al Runde Wisconsin Legislative Fiscal Bureau One East Main, Suite 301 Madison, WI 53703 Homestead Tax Credit Introduction The homestead tax credit program directs property

More information

Answers To Commonly Asked Questions

Answers To Commonly Asked Questions Answers To Commonly Asked Questions What is a re-assessment and how will it affect my association? Property in Cook County is re-assessed once every three years. Your assessment determines the real estate

More information

What if Indiana Eliminated Personal Property Taxes? Larry DeBoer Department of Agricultural Economics Purdue University. June 2014

What if Indiana Eliminated Personal Property Taxes? Larry DeBoer Department of Agricultural Economics Purdue University. June 2014 What if Indiana Eliminated Personal Property Taxes? Larry DeBoer Department of Agricultural Economics Purdue University June 2014 Economic Development, Tax Shifts and Revenue Losses Eliminating the personal

More information

THE COOK COUNTY PROPERTY TAX EXTENSION PROCESS. A Primer on Levies, Tax Caps, Tax Bills and the Effects of Tax Increment Financing Districts

THE COOK COUNTY PROPERTY TAX EXTENSION PROCESS. A Primer on Levies, Tax Caps, Tax Bills and the Effects of Tax Increment Financing Districts THE COOK COUNTY PROPERTY TAX EXTENSION PROCESS A Primer on Levies, Tax Caps, Tax Bills and the Effects of Tax Increment Financing Districts Updated on September 7, 2011 ACKNOWLEDGEMENTS The Civic Federation

More information

Policy Forum. Racial and Ethnic Health Disparities in Illinois: Are There Any Solutions?

Policy Forum. Racial and Ethnic Health Disparities in Illinois: Are There Any Solutions? Policy Forum I N S T I T U T E O F G O V E R N M E N T&P U B L I C A F F A I R S I N S T I T U T E O F G O V E R N M E N T&P U B L I C A F F A I R S Racial and Ethnic Health Disparities in Illinois: Are

More information

Background Paper 79-1 PROPERTY TAX RELIEF

Background Paper 79-1 PROPERTY TAX RELIEF Background Paper 79-1 PROPERTY TAX RELIEF PROPERTY TAX RELIEF Introduction For at least the past decade, demands to reform the property tax have increased in strength and volume. There are several reasons

More information

The City of Houston s Finances Is Now The Time To Raise Property Taxes?

The City of Houston s Finances Is Now The Time To Raise Property Taxes? The City of Houston s Finances Is Now The Time To Raise Property Taxes? September 9, 2015 No. 2 Greater Houston Partnership Municipal Finance Task Force Overview On July 24, 2015, the Greater Houston Partnership

More information

The Property Tax in Missouri

The Property Tax in Missouri The Property Tax in Missouri This brochure is designed to give taxpayers an understanding of the way property taxes are assessed and levied in Missouri, and how they affect individual taxpayers. A separate

More information

150-303-405 (Rev. 6-09)

150-303-405 (Rev. 6-09) A Brief History of Oregon Property Taxation 150-303-405-1 (Rev. 6-09) 150-303-405 (Rev. 6-09) To understand the current structure of Oregon s property tax system, it is helpful to view the system in a

More information

Evaluating the Stability of B.C. s Assessment Rolls

Evaluating the Stability of B.C. s Assessment Rolls Evaluating the Stability of B.C. s Assessment Rolls I. Introduction: Origins of the Issue Concerns about assessment roll stability have their most recent origins in the early mid 1980s beginning with a

More information

OVERVIEW OF ARIZONA STATE PROPERTY TAX SYSTEM IN MARICOPA COUNTY

OVERVIEW OF ARIZONA STATE PROPERTY TAX SYSTEM IN MARICOPA COUNTY Maricopa County Department of Finance Prepared: 10/22/13 OVERVIEW OF ARIZONA STATE PROPERTY TAX SYSTEM IN MARICOPA COUNTY The following Overview of the Arizona State Property Tax System was prepared by

More information

An explanation of. 2011 Edition ARIZONA CAPITOL TIMES. Arizona Tax Research Association ARIZONA TAX RESEARCH ASSOCIATION 1814 W WASHINGTON STREET

An explanation of. 2011 Edition ARIZONA CAPITOL TIMES. Arizona Tax Research Association ARIZONA TAX RESEARCH ASSOCIATION 1814 W WASHINGTON STREET NON-PROFIT ORG. U.S. POSTAGE P A I D PHOENIX, AZ PERMIT #2184 An explanation of ARIZONA TAX RESEARCH ASSOCIATION 1814 W WASHINGTON STREET PHOENIX AZ 85007 2011 Edition ARIZONA CAPITOL TIMES Arizona Tax

More information

No one likes paying taxes, especially when they aren t sure how they re figured or where the money goes. For property owners, coming up with that one

No one likes paying taxes, especially when they aren t sure how they re figured or where the money goes. For property owners, coming up with that one No one likes paying taxes, especially when they aren t sure how they re figured or where the money goes. For property owners, coming up with that one or two large payments each year feels more painful

More information

Understanding How Changes in EAV Affect A School District's Tax Rate and Levy This presentation will explain the important relationship between

Understanding How Changes in EAV Affect A School District's Tax Rate and Levy This presentation will explain the important relationship between Understanding How Changes in EAV Affect A School District's Tax Rate and Levy This presentation will explain the important relationship between property values, property tax rates, and property taxes.

More information

Chapter 6: Value Added Tax A Major Replacement Alternative

Chapter 6: Value Added Tax A Major Replacement Alternative Chapter 6: Value Added Tax A Major Replacement Alternative Introduction In its authorizing legislation, the Legislature required the Committee to be guided by the principle of neutrality in developing

More information

GFOA NYS UNDERSTANDING THE NEW REAL PROPERTY TAX LEVY CAP. New York State Government Finance Officers' Association, Inc.

GFOA NYS UNDERSTANDING THE NEW REAL PROPERTY TAX LEVY CAP. New York State Government Finance Officers' Association, Inc. UNDERSTANDING THE NEW REAL PROPERTY TAX LEVY CAP (How the Real Property Tax Levy Percentage Cap and the Real Property Tax Rate Differ) It seems everywhere you turn people are talking about the Tax Cap.

More information

An Economic Analysis of New Jersey s Realty Transfer Fee. Prepared for the. New Jersey Association of Realtors Government Research Foundation, Inc.

An Economic Analysis of New Jersey s Realty Transfer Fee. Prepared for the. New Jersey Association of Realtors Government Research Foundation, Inc. An Economic Analysis of New Jersey s Realty Transfer Fee Prepared for the New Jersey Association of Realtors Government Research Foundation, Inc. By the Rutgers Economic Advisory Service Center for Urban

More information

Informational Paper 21. State Property Tax Credits (School Levy and Lottery and Gaming Credits)

Informational Paper 21. State Property Tax Credits (School Levy and Lottery and Gaming Credits) Informational Paper 21 State Property Tax Credits (School Levy and Lottery and Gaming Credits) Wisconsin Legislative Fiscal Bureau January, 2007 State Property Tax Credits (School Levy and Lottery and

More information

Eligible Personal Property Exemptions for Assessors

Eligible Personal Property Exemptions for Assessors Eligible Personal Property Exemptions for Assessors In December of 2012 Governor Snyder signed into law Public Acts 397 through 403 and 406 through 408 of 2012. These Public Acts significantly changed

More information

Property Tax Relief 2011: Who Wins? Who Loses?

Property Tax Relief 2011: Who Wins? Who Loses? Property Tax Relief 2011: Who Wins? Who Loses? 2011 Florida League of Cities Annual Conference August, 12, 2011 Alan Johansen 2011 Legislature Passed HJR 381 Amendment 4 on 2012 Ballot - Grants selective

More information

The cost and complex logistics of the proposal were not discussed by the Commission.

The cost and complex logistics of the proposal were not discussed by the Commission. Remarks to the Tompkins County Legislature, January 21, 2014 NYS Tax Relief Report Overview and an Alternative Strategy On December 10, 2013 a New York State Tax Relief Commission created by the Governor

More information

Missouri Real Property Tax: Important Information about a Critical Local Funding Source

Missouri Real Property Tax: Important Information about a Critical Local Funding Source February 11, 2008 Missouri Real Property Tax: Important Information about a Critical Local Funding Source Tom Kruckemeyer, Chief Economist Gerald Holden, Policy Analyst Intern Amy Blouin, Executive Director

More information

Glossary of Assessment Terms:

Glossary of Assessment Terms: Glossary of Assessment Terms: Abatement A reduction or elimination of a tax or charge imposed by a governmental unit, applicable to property tax bills, motor vehicle excise taxes, fees, charges, and special

More information

What You Need to Know about the Tax Levy Cap

What You Need to Know about the Tax Levy Cap 1. What is the tax levy cap? The tax levy cap is a law that places strong restrictions on how school districts can raise revenues. At its basic level, the tax levy cap legislation makes it very difficult

More information

Course Objectives. What are Property Taxes? 2/14/2012. Tax Settlements

Course Objectives. What are Property Taxes? 2/14/2012. Tax Settlements 2/14/2012 Tax Settlements Presented by: Local Government Services 1 Course Objectives To enhance your understanding of how to read and record the information contained on your tax settlement sheets To

More information

ANNUAL TAX LEVY PACKET

ANNUAL TAX LEVY PACKET ANNUAL TAX LEVY PACKET OF THE OREGON PARK DISTRICT FOR THE 2013 TAX YEAR We Create Fun for a Lifetime OREGON PARK DISTRICT ANNUAL TAX LEVY PACKET FOR THE 2013 TAX YEAR CONTENTS 2012 Tax Year District Statement

More information

SHARED REVENUE AND TAX RELIEF

SHARED REVENUE AND TAX RELIEF 455 SHARED REVENUE AND TAX RELIEF GOVERNOR S BUDGET RECOMMENDATIONS Source FY01 FY02 % Change FY03 % Change of Funds Adjusted Base Recommended Over FY01 Recommended Over FY02 GPR 1,717,508,900 1,715,169,400-0.1

More information

PROPERTY. Prepared as a public service for residents by. C.I.A.O.\I Antioch Township Assessor www.antiochassessor.com. HEATHERKUFAlK-MAROnA,

PROPERTY. Prepared as a public service for residents by. C.I.A.O.\I Antioch Township Assessor www.antiochassessor.com. HEATHERKUFAlK-MAROnA, A TAXPAYER'S GUIDE TO PROPERTY TAX RELIEF -: Prepared as a public service for residents by C.I.A.O.\I Antioch Township Assessor www.antiochassessor.com HEATHERKUFAlK-MAROnA, P.O. Box 658 Antioch, Illinois

More information

School District Property Tax Review

School District Property Tax Review Fall 2011 School District Property Tax Review Property Tax Reform Policy Development Team Representative Seth Grove Team Co-Leader Majority Policy Chairman Representative Dave Reed Representative Jim 1

More information

YOUR PROPERTY TAXES. understanding property tax. assessments. appeal process. property taxes and schools. frequently asked questions.

YOUR PROPERTY TAXES. understanding property tax. assessments. appeal process. property taxes and schools. frequently asked questions. 2006 YOUR PROPERTY TAXES understanding property tax assessments appeal process property taxes and schools frequently asked questions relief programs legislation South Dakota Department of Revenue & Regulation

More information

September 24, 2007. To The Honorable, the City Council:

September 24, 2007. To The Honorable, the City Council: September 24, 2007 To The Honorable, the City Council: The establishment of the FY08 property tax rate by the Board of Assessors, subject to the approval of the Massachusetts Department of Revenue, is

More information

Assessment Caps and the Point of Sale Provision

Assessment Caps and the Point of Sale Provision September 2009 Assessment Caps and the Point of Sale Provision Holley Hewitt Ulbrich SOUTH CAROLINA S REAL PROPERTY ASSESSMENT CAP In 2006 a companion bill to Act 388 (the sales tax for property tax swap)

More information

Oklahoma Ad Valorem. 1 of 14. Central Valuation by Oklahoma Tax Commission: All Public Service Corporations (multiple county impact)

Oklahoma Ad Valorem. 1 of 14. Central Valuation by Oklahoma Tax Commission: All Public Service Corporations (multiple county impact) Oklahoma Ad Valorem - Founded Before Statehood And Codified in the 1907 Populist Constitution And Current Laws - Township Assessors in 1894 - County Assessor System Set Up in 1911 - Tax Commission Oversight

More information

The municipality must stay within the state s 2 percent property tax cap; and

The municipality must stay within the state s 2 percent property tax cap; and Background http://www.governor.ny.gov/press/01062014-tax-relief-proposal http://www.nyspropertytaxreform.org Below is from http://poststar.com/news/opinion/editorial/ EDITORIAL: Cuomo s state taxes plan

More information

Texas Property Tax System

Texas Property Tax System FAQ Texas Property Tax System What is Property Tax? Property taxes are local taxes that are assessed locally, collected locally and used locally. You pay your property taxes to the local tax collector.

More information

HANDOUTS Property Taxation Review Committee

HANDOUTS Property Taxation Review Committee HANDOUTS Property Taxation Review Committee Legislative Services Agency September 1, 2004 Criteria For Good Proposals for Property Tax Reform Dr. Thomas Pogue, University of Iowa DISCLAIMER The Iowa General

More information

Tax Levies Explained: Julie Joyce-Smith, Real Estate Manager, Butler County Auditor s Office April 8, 2015

Tax Levies Explained: Julie Joyce-Smith, Real Estate Manager, Butler County Auditor s Office April 8, 2015 Tax Levies Explained: Julie Joyce-Smith, Real Estate Manager, Butler County Auditor s Office April 8, 2015 Millage Types Unvoted Millage or Inside Millage: approved by Budget Commission and cannot exceed

More information

The Property Tax Is a Bad Tax, but It Need Not Be

The Property Tax Is a Bad Tax, but It Need Not Be The Property Tax Is a Bad Tax, but It Need Not Be Keith R. Ihlanfeldt Florida State University Economists have long argued over the nature of the property tax is it a benefits tax or a capital tax with

More information

Family Matters: Pennsylvania s 100% Marginal Income Tax Rate. Gary L. Welton Ph.D.

Family Matters: Pennsylvania s 100% Marginal Income Tax Rate. Gary L. Welton Ph.D. Family Matters: Pennsylvania s 100% Marginal Income Tax Rate Gary L. Welton Ph.D. According to the National Taxpayers Union, the U.S. Tax Code includes 3,951,104 words. It is more than twice the length

More information

Brief Analysis of Options for Reducing Speculative Land Banking Wednesday, 6 August 2014

Brief Analysis of Options for Reducing Speculative Land Banking Wednesday, 6 August 2014 Brief Analysis of Options for Reducing Speculative Land Banking Wednesday, 6 August 2014 Purpose of this memo This memo briefly assesses options for reducing land banking, where land is strategically dripfed

More information

Momentum Traders in the Housing Market: Survey Evidence and a Search Model

Momentum Traders in the Housing Market: Survey Evidence and a Search Model Federal Reserve Bank of Minneapolis Research Department Staff Report 422 March 2009 Momentum Traders in the Housing Market: Survey Evidence and a Search Model Monika Piazzesi Stanford University and National

More information

ANNUAL TAX LEVY PACKET

ANNUAL TAX LEVY PACKET ANNUAL TAX LEVY PACKET 2015 TAX YEAR OREGON PARK DISTRICT We Create Fun for a Lifetime OREGON PARK DISTRICT ANNUAL TAX LEVY PACKET FOR THE 2015 TAX YEAR CONTENTS 2015 Tax Year District Statement Section

More information

Capital Gains Taxes: An Overview

Capital Gains Taxes: An Overview Order Code 96-769 Updated January 24, 2007 Summary Capital Gains Taxes: An Overview Jane G. Gravelle Senior Specialist in Economic Policy Government and Finance Division Tax legislation in 1997 reduced

More information

Property Tax Relief in Pennsylvania

Property Tax Relief in Pennsylvania Property Tax Relief in Pennsylvania 412 N. 3 rd St, Harrisburg, PA 17101 www.pennbpc.org 717 255 7156 May 12, 2015 One of the primary issues being negotiated in the 2015 16 budget is school property tax

More information

Measuring the Impact of Tax and Expenditure Limits on Public School Finance in Colorado

Measuring the Impact of Tax and Expenditure Limits on Public School Finance in Colorado Measuring the Impact of Tax and Expenditure Limits on Public School Finance in Colorado Executive Summary Most people think that Tax and Expenditure Limits (TELs) keep taxes and government spending lower

More information

The Shares of Indiana Taxes Paid by Businesses and Individuals: An Update for 2006

The Shares of Indiana Taxes Paid by Businesses and Individuals: An Update for 2006 The s of Indiana Taxes Paid by es and Individuals: An Update for 2006 Larry DeBoer Department of Agricultural Economics Purdue University October 2007 Summary The s of Indiana Taxes Paid by es and Individuals:

More information

CRC Notes. What is tax increment financing? FINANCING COEXIST MILLAGES ICHIGAN?

CRC Notes. What is tax increment financing? FINANCING COEXIST MILLAGES ICHIGAN? 2013-01 A publication of the Citizens Researc esearch Council of Michig higan January 2013 CAN AN DEDIC EDICATED MILLAGES AND TAX INCREMENT FINANCING COEXIST IN MICHIGAN ICHIGAN? Since 1975, Michigan cities,

More information

Updating LWVO State Finance and Taxation Policies

Updating LWVO State Finance and Taxation Policies Updating LWVO State Finance and Taxation Policies By J. Donald Mottley Study Committee Chair 1 (DRAFT, Updated December 8, 2008) With Concurrence of Committee Current LWVO Policy Statements. At present,

More information

Momentum traders in the housing market: survey evidence and a search model. Monika Piazzesi and Martin Schneider

Momentum traders in the housing market: survey evidence and a search model. Monika Piazzesi and Martin Schneider Momentum traders in the housing market: survey evidence and a search model Monika Piazzesi and Martin Schneider This paper studies household beliefs during the recent US housing boom. The first part presents

More information

COMBINED REPORTING WITH THE CORPORATE INCOME TAX

COMBINED REPORTING WITH THE CORPORATE INCOME TAX COMBINED REPORTING WITH THE CORPORATE INCOME TAX Issues for State Legislatures William F. Fox and LeAnn Luna * November, 2010 Report commissioned by the NCSL Task Force on State & Local Taxation of Communications

More information

Property Tax Levy Cap

Property Tax Levy Cap Published October 2011 Understanding New York s Property Tax Levy Cap as it relates to public schools In this first year of New York s property tax cap, details about its provisions and implementation

More information

Economic Implications of Florida s Proposed Property Tax Amendment

Economic Implications of Florida s Proposed Property Tax Amendment Volume 4, No. 1 January 2008 Jim Dewey David Denslow Lynne Holt Bob Lotfinia Bureau of Economic and Business Research University of Florida On January 29, Floridians will vote on a proposed constitutional

More information

Yavapai County Assessor s Office. Valuing People and Property.

Yavapai County Assessor s Office. Valuing People and Property. Yavapai County Assessor s Office www.yavapai.us Valuing People and Property. In Prescott: In Cottonwood: 1015 Fair Street 10 S 6th Street Prescott, AZ Cottonwood, AZ (928)771-3220 (928)639-8121 PAMELA

More information

Real Property Tax Reform White Paper

Real Property Tax Reform White Paper Real Property Tax Reform White Paper A look at the assessment process and tax reform in New York State By New York State Assessors Association, Inc PO Box 888, Middletown, NY 10940 Email - nysaa@nyassessor.com

More information

ALTERNATIVE FUNDING STRATEGIES FOR THE SUPPORT OF REGIONAL CULTURAL FACILITIES IN SOUTHEAST MICHIGAN. This project was funded in part by grants from:

ALTERNATIVE FUNDING STRATEGIES FOR THE SUPPORT OF REGIONAL CULTURAL FACILITIES IN SOUTHEAST MICHIGAN. This project was funded in part by grants from: ALTERNATIVE FUNDING STRATEGIES FOR THE SUPPORT OF REGIONAL CULTURAL FACILITIES IN SOUTHEAST MICHIGAN This project was funded in part by grants from: McGregor Fund The Skillman Foundation Matilda R. Wilson

More information

PROPERTY TAX STATEWIDE ECONOMIC GROWTH AND TAXATION ISSUES IN SOUTH CAROLINA SC DEPARTMENT OF COMMERCE

PROPERTY TAX STATEWIDE ECONOMIC GROWTH AND TAXATION ISSUES IN SOUTH CAROLINA SC DEPARTMENT OF COMMERCE PROPERTY TAX STATEWIDE ECONOMIC GROWTH AND TAXATION ISSUES IN SOUTH CAROLINA SC DEPARTMENT OF COMMERCE INTRODUCTION The property tax is the primary source of revenue for local government entities in the

More information

2015 ASSESSMENT RATES

2015 ASSESSMENT RATES 2015 ASSESSMENT RATES FOREWORD WorkSafeNB determines employers assessment rates annually. Several factors influence rates, such as WorkSafeNB s current financial obligations, the prevailing economic environment,

More information

Are Missoula s Property Taxes High?

Are Missoula s Property Taxes High? Are Missoula s Property Taxes High? Page 1 Are Missoula s Property Taxes High? A Report to the Missoula Organization of REALTORS Douglas J Young Professor Emeritus Montana State University Bozeman djyoung@montana.edu

More information

Minnetonka Independent School District 276 Levy Adoption Taxes Payable in 2012

Minnetonka Independent School District 276 Levy Adoption Taxes Payable in 2012 Minnetonka Independent School District 276 Levy Adoption Taxes Payable in 2012 Public Schools Established by Minnesota Constitution ARTICLE XIII MISCELLANEOUS SUBJECTS Section 1. UNIFORM SYSTEM OF PUBLIC

More information

The Effects of TABOR on Municipal Revenues and Spending in Colorado

The Effects of TABOR on Municipal Revenues and Spending in Colorado The Effects of TABOR on Municipal Revenues and Spending in Colorado Colorado s cities and towns face some of the most restrictive constitutional limits on spending and taxing found in the nation. 1 First,

More information

T he personal income tax is the only major progressive

T he personal income tax is the only major progressive CHAPTER FOUR THE EW YORK PERSOAL ICOME TAX T he personal income tax is the only major progressive tax levied by state and local governments. The ew York income tax helps to offset the regressivity of the

More information

M E M O R A N D U M. Mayor Prussing and Members of the Urbana City Council

M E M O R A N D U M. Mayor Prussing and Members of the Urbana City Council M E M O R A N D U M TO: Mayor Prussing and Members of the Urbana City Council FROM: Interim Comptroller RE: Property Tax Levy DATE: November 7, 2013 Attached for your consideration is the 2013 property

More information

State Property Tax Credits (School Levy, First Dollar, and Lottery and Gaming Credits)

State Property Tax Credits (School Levy, First Dollar, and Lottery and Gaming Credits) State Property Tax Credits (School Levy, First Dollar, and Lottery and Gaming Credits) Informational Paper 21 Wisconsin Legislative Fiscal Bureau January, 2013 Wisconsin Legislative Fiscal Bureau January,

More information

SCHOOL LOCAL PROPERTY TAX OPTION 1999 Legislation

SCHOOL LOCAL PROPERTY TAX OPTION 1999 Legislation STATE OF OREGON LEGISLATIVE REVENUE OFFICE H-197 State Capitol Building Salem, Oregon 97310-1347 Research Report (503) 986-1266 Research Report # 5-99 SCHOOL LOCAL PROPERTY TAX OPTION 1999 Legislation

More information

2011 Legal Update: Virginia Legal Developments of Interest to Assessors

2011 Legal Update: Virginia Legal Developments of Interest to Assessors 2011 Legal Update: Virginia Legal Developments of Interest to Assessors Andrew H. Herrick Senior Assistant Albemarle County Attorney Overview Passed Legislation Failed Legislation Attorney General s Opinions

More information

The Gallagher Amendment

The Gallagher Amendment The Gallagher Amendment What it was/is What was the occasion How it happened What Amendment 1 accomplished Observations on property tax politics Scott T. Moore, Ph.D. Associate Professor of Political Science

More information

Overview. January, 2009

Overview. January, 2009 Information Guide January, 2009 Nebraska Homestead Exemption NOTE: Nebraska Homestead Exemption Application or Certification of Status, Form 458, is mailed to homestead exemption recipients in January,

More information

Reforming and Rationalizing Tax Expenditures: Developing and Testing a Framework

Reforming and Rationalizing Tax Expenditures: Developing and Testing a Framework Reforming and Rationalizing Tax Expenditures: Developing and Testing a Framework Jason Juffras D.C. Office of Revenue Analysis 2013 FTA Revenue Estimation and Tax Research Conference October 8, 2013 The

More information

Connecticut Tax Study Panel Briefing Note The Estate and Gift Tax

Connecticut Tax Study Panel Briefing Note The Estate and Gift Tax Connecticut Tax Study Panel Briefing Note The Estate and Gift Tax For Connecticut Tax Panel Discussion December 8, 2015 draft/rde Summary Connecticut Estate and Gift Taxation 1. A Brief History. The passage

More information

The Property Tax Extension Limitation Law, A Technical Manual. Page 2

The Property Tax Extension Limitation Law, A Technical Manual. Page 2 Page 2 The Property Tax Extension Limitation Law, A Technical Manual Table of Contents Introduction Purpose... 6 Summary The PTELL does not cap individual property assessments... 7 The PTELL limits the

More information

Policy Forum. Medical Malpractice Liability Reform in Illinois: First, Do No Harm by Lorens A. Helmchen. Author:

Policy Forum. Medical Malpractice Liability Reform in Illinois: First, Do No Harm by Lorens A. Helmchen. Author: Policy Forum About Medical Malpractice Liability Reform in Illinois: First, Do No Harm by Lorens A. Helmchen More than two years after medical malpractice liability reform first took effect in Illinois,

More information

THE CATSIMATIDIS COMMON SENSE PLAN

THE CATSIMATIDIS COMMON SENSE PLAN THE CATSIMATIDIS COMMON SENSE PLAN www.cats2013.com https://www.facebook.com/johncats2013 https://twitter.com/jcats2013 Supporting New York City s Small Businesses August 13, 2013 Overview It is critical

More information

A S S E S S M E N T F. A. Q. S

A S S E S S M E N T F. A. Q. S A S S E S S M E N T F. A. Q. S FREQUENTLY ASKED QUESTIONS What is the difference between the Assessed Value & Taxable Value of my home? Assessed Value is defined by state law as 50% of the market value

More information

Targeting Property Tax Relief: A Design to Expand Illinois Circuit Breaker

Targeting Property Tax Relief: A Design to Expand Illinois Circuit Breaker Targeting Relief: A Design to Expand Illinois Circuit Breaker This paper proposes to expand the current Illinois Circuit Breaker Program and provide property tax credits to up to 4.7 million households

More information

The Impact of Lock-In Effects on Housing Turnover and Implications for a Housing Recovery

The Impact of Lock-In Effects on Housing Turnover and Implications for a Housing Recovery W RESEARCH BRIEF The Impact of Lock-In Effects on Housing Turnover and Implications for a Housing Recovery FEBRUARY 2014 TABLE OF CONTENTS SECTION I Introduction 3 SECTION II Background Lock-In Effects

More information

Reynolds Has Now Returned $4 Million to Local Governments

Reynolds Has Now Returned $4 Million to Local Governments News Release September 10, 2013 Reynolds Has Now Returned $4 Million to Local Governments Conservative Leadership Leads to 6 Straight Years of Surpluses HAMILTON, Ohio For the sixth consecutive tax year,

More information

Hawai i s Workers Compensation System; Coverage, Benefits, Costs: 1994-2004

Hawai i s Workers Compensation System; Coverage, Benefits, Costs: 1994-2004 Hawai i s Workers Compensation System; Coverage, Benefits, Costs: 1994-2004 Lawrence W. Boyd Ph. D. University of Hawaii-West Oahu Center for Labor Education and Research January 12, 2006 1 Introduction

More information

Property FAQs. Where do I pay my property tax? Generally speaking, property taxes are paid to local Tax Collectors where the property is located.

Property FAQs. Where do I pay my property tax? Generally speaking, property taxes are paid to local Tax Collectors where the property is located. The following is intended to provide general information concerning a frequently asked question about taxes administered by the Mississippi Tax Commission. It is an informal interpretation of the tax law

More information

Fiscal Year 2013-14 LAUSD Debt Report and Debt Management Policy Changes

Fiscal Year 2013-14 LAUSD Debt Report and Debt Management Policy Changes Fiscal Year 2013-14 LAUSD Debt Report and Debt Management Policy Changes Presentation to the Budget, Facilities and Audit Committee Office of the Chief Financial Officer May 7, 2015 District s Debt Policy

More information

B u d g e t B r i e f

B u d g e t B r i e f BUDGET PROJECT B u d g e t B r i e f April 1996 IS CALIFORNIA A HIGH TAX STATE? Are California s tax rates uncompetively high? Is the tax burden on households and businesses in California out-of-line with

More information

POLICY PAPER #5 October 3, 1986 OPTIONS FOR THE STATE. by Robert Kleine, Editor of FISCAL AWARENESS SERVICE and Senior Economist

POLICY PAPER #5 October 3, 1986 OPTIONS FOR THE STATE. by Robert Kleine, Editor of FISCAL AWARENESS SERVICE and Senior Economist policy Paper Series POLICY PAPER #5 October 3, 1986 FEDERAL TAX REFORM: OPTIONS FOR THE STATE by Robert Kleine, Editor of FISCAL AWARENESS SERVICE and Senior Economist One result of federal tax reform

More information

Arkansas Property Tax: Revenue, Assessments & Rates

Arkansas Property Tax: Revenue, Assessments & Rates Madison County 1 Arkansas Property Tax: Revenue, Assessments & Rates Project Director Wayne P. Miller Data Analysis Vuko Karov Cooperative Extension Service University of Arkansas Division of Agriculture

More information

What will become of the car tax?

What will become of the car tax? What will become of the car tax? by John L. Knapp championed by Republican candidate James S. Gilmore III John L. Knapp is professor emeritus at the University reimbursement to localities in exchange for

More information

New York State Property Tax Freeze Credit Fact Sheet

New York State Property Tax Freeze Credit Fact Sheet New York State Property Tax Freeze Credit Fact Sheet The Property Tax Freeze Credit is a two-year tax relief program that reimburses qualifying New York State homeowners for increases in local property

More information

PROPERTY TAX RELIEF FUND CASINO CONTROL FUND CASINO REVENUE FUND GUBERNATORIAL ELECTIONS FUND

PROPERTY TAX RELIEF FUND CASINO CONTROL FUND CASINO REVENUE FUND GUBERNATORIAL ELECTIONS FUND PROPERTY TAX RELIEF FUND CASINO CONTROL FUND CASINO REVENUE FUND GUBERNATORIAL ELECTIONS FUND PROPERTY TAX RELIEF FUND GIA 82. DEPARTMENT OF THE TREASURY 70. GOVERNMENT DIRECTION, MANAGEMENT AND CONTROL

More information

COOK COUNTY PROPERTY TAX APPEALS: A Primer on the Appeals Process with Comparative Data for 2000-2008

COOK COUNTY PROPERTY TAX APPEALS: A Primer on the Appeals Process with Comparative Data for 2000-2008 COOK COUNTY PROPERTY TAX APPEALS: A Primer on the Appeals Process with Comparative Data for 2000-2008 November 17, 2009 ACKNOWLEDGEMENTS The Civic Federation would like to thank the following individuals

More information

The NEVADA PLAN For School Finance An Overview

The NEVADA PLAN For School Finance An Overview The NEVADA PLAN For School Finance An Overview Fiscal Analysis Division Legislative Counsel Bureau 2013 Legislative Session Nevada Plan for School Finance I. Overview of Public K-12 Education Finance

More information

WICKLIFFE BOARD OF EDUCATION 5-Year Financial Plan (SM-7) Assumptions: Fiscal Year 15 January 12, 2015

WICKLIFFE BOARD OF EDUCATION 5-Year Financial Plan (SM-7) Assumptions: Fiscal Year 15 January 12, 2015 Exhibit 11 WICKLIFFE BOARD OF EDUCATION 5-Year Financial Plan (SM-7) Assumptions: Fiscal Year 15 January 12, 2015 The Ohio General Assembly enacted House Bill 412 requiring public school systems annually

More information

2016 ASSESSMENT RATES

2016 ASSESSMENT RATES 2016 ASSESSMENT RATES FOREWORD WorkSafeNB determines employers assessment rates annually. Several factors influence rates, such as WorkSafeNB s current financial obligations, the prevailing economic environment,

More information

READING 11: TAXES AND PRIVATE WEALTH MANAGEMENT IN A GLOBAL CONTEXT

READING 11: TAXES AND PRIVATE WEALTH MANAGEMENT IN A GLOBAL CONTEXT READING 11: TAXES AND PRIVATE WEALTH MANAGEMENT IN A GLOBAL CONTEXT Introduction Taxes have a significant impact on net performance and affect an adviser s understanding of risk for the taxable investor.

More information