This is a recent excerpt from a submission by Ted Biondo to the Rockford Register-Star regarding the real estate tax bills. Even with declining property values, as he indicates, the government bodies are allowed to receive 100% of last year’s taxes plus 5% or inflation, which ever is less. Your assessed value dropping will not necessarily lower your bill.
Below read Ted’s excerpt……….
Hope you have cashed in some of your gold or silver in the last few weeks at the current price, so that when you open your property tax bill next week, it will not be such a shock. Despite the declining value of your property, your taxes will most likely be increasing.
An unintended consequence of the Tax Cap law allows the taxing bodies to receive the taxes collected last year, plus the rate of inflation or 5% whichever is less. When property values decrease, the taxing bodies can increase the rates to make up for the property value’s loss plus the rate of inflation.
He is addressing Winnebago County but Boone has the same situation. The “Caps” law sure looked a lot better when enacted than it does now. Don’t you wish your job had the same benefits?
Ken Dillenburg