Capitol - Your Illinois News Radar » Legislative move shines light on antiquated law
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Legislative move shines light on antiquated law

Friday, Sep 22, 2017

* The new state budget authorized $297 million in transfers out of the Corporate Personal Property Replacement Tax Fund, and that is having an impact on some school district which thought they would be held harmless like every other district when the new school funding reform bill was enacted

“We certainly now have huge red numbers, because of the diversion of CPPRT and the estimate of this year compared to last year.” [said Vic Zimmerman, superintendent of Monticello schools] […]

CPPRT was created when local units of government gave up their power to tax businesses in 1979. It basically promises local government units, including schools, the same money they got in corporate and personal taxes from corporations back in the 1970s — even for companies that no longer exist. CPPRT isn’t much of a factor in funding school districts that never had big corporations in their areas. But in areas that had major manufacturing plants in the 1970s, CPPRT is crucial, as Zimmerman can attest.

“I was superintendent at St. Joseph-Ogden before I came here, and we got $30,000 in CPPRT,” he says. “Then I come over here and I see we’re getting, you know, $6.5 million, and I’m like: What’s this?”

In the 1970s, Monticello was home to Americana Healthcare, Illinois Power, and General Cable. During the height of the cable television boom, General Cable company supplied most of the fiber for the nation, Zimmerman says. Like Illinois Power, General Cable is long gone, but the amount of their tax contributions — frozen in CPPRT — added up to 40 percent of Monticello Schools’ budget.

Monticello will lose $900,000.

But, man, we sure have some weird laws in this state.

- Posted by Rich Miller        

  1. - 4 percent - Friday, Sep 22, 17 @ 11:44 am:

    The CPPRT makes the effective corporate tax rate 9.5 percent while it adds another 1.5 percent to small businesses.

    People never account for this when they say our income tax rates are 5 and 7 percent.

  2. - Perrid - Friday, Sep 22, 17 @ 11:45 am:

    I can see how that law would make sense for a transitional period, but there should be a weaning off of dollars for companies that no longer exist. As in maybe a re determination happens every 5 years or something that recalculates how much property tax businesses would have generated.

  3. - 47th Ward - Friday, Sep 22, 17 @ 11:55 am:

    Huh. Always wondered what the heck PPRT was and now I know.

  4. - JS Mill - Friday, Sep 22, 17 @ 11:59 am:

    I struggle to feel to badly for Vic. He and his team were very cavalier about funding issues because they get most of their funding through CPPRT and were able to keep their property tax rate lower as well. They were not real interested in engaging in the effort to reform school funding. Now the shoe is on the other foot.

    It is a bad deal, the no red numbers is a canard again, the politicians seem to always find a way to take what they say they give.

  5. - Blight Wing - Friday, Sep 22, 17 @ 12:12 pm:

    I hate these specialty, carved/out deals. Same with the EDGE tax credits. We’re picking winners and losers in the state. Not very democratic.

  6. - Anonymous - Friday, Sep 22, 17 @ 12:25 pm:

    Crazy Illinois…..nothing that happens ever surprises me.

  7. - wordslinger - Friday, Sep 22, 17 @ 12:28 pm:

    4P, what percentage of Illinois corporations are paying your so-called effective tax rate of 9.5%.?

    It’s not an “effective” tax rate if no one is paying it.

  8. - Fairness and Fairness Only - Friday, Sep 22, 17 @ 12:29 pm:

    This is one more piece of an overly complicated formula. This should have been cleaned up with the rest of school funding (or at least included in the attempt to clean up school funding). My family worked hard to help support and pass a local property tax referendum just to get the local school district up to a reasonable funding level. We are transparent that our district is 75-80% funded by local property taxes. Then you have old deals cut years ago that don’t make any sense. These payments should have been reassessed and phased out long ago for any business that closed or moved.

  9. - Whatever - Friday, Sep 22, 17 @ 1:32 pm:

    ==As in maybe a re determination happens every 5 years or something that recalculates how much property tax businesses would have generated.==

    That would be so easy and inexpensive to do.

  10. - 4 percent - Friday, Sep 22, 17 @ 1:58 pm:


    My point is simply that policymakers ignore the CPPRT and claim that the rates are lower than they actually are in reality. It’s a fact that they don’t like to admit when they try and compare IL with other states.

  11. - wordslinger - Friday, Sep 22, 17 @ 2:12 pm:

    4P, you need to look up the definitions of “effective tax rate” vs. “statutory tax rate.”

    When two-thirds of Illinois corporations pay zero state income tax, the effective tax rate is nowhere near even 7%, much less 9.5%.

TrackBack URI

Sorry, comments for this post are now closed.

* Reader comments closed for the weekend
* Amazon HQ2 site list unveiled
* Out of sight out of mind?
* Frerichs tries to use state investments to prod Facebook into cleaning up its act
* The rise of the billionaire governors
* Camelot promises to grow lottery sales by 40 percent
* Munger tries to defend Rauner veto of Debt Transparency Act
* Rauner: "I can’t comment on any business disputes"
* Question of the day
* Rauner finally takes a stand on a federal issue
* Moody's says "political backlash" against pop tax could make other tax hikes more difficult
* Report: Amazon subsidy could add up to $2 billion
* *** UPDATED x1 *** 10,800 jobs lost in a single month, but Illinois media barely notices
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* MLB open thread
* Yesterday's stories

Visit our advertisers...





* Voter advocates push Illinois to exit multistat.....
* Governor's Administration Present Budget Cuts -.....
* Governor's Administration Present Budget Cuts -.....
* Chicago releases list of possible Amazon headqu.....
* Chicago releases list of possible Amazon headqu.....

* Illinois city, county to implement domestic violence program
* Suburban neighborhood evacuated after gas explosions
* New Fort Wayne home planned for extensive Lincoln collection
* Peoria police officers to widely use body cameras by spring
* Cemetery won't allow mention of "rapist" priests at grave
* Lincoln museum exhibit features Christmas at the White House
* Voter advocates push Illinois to exit multistate database
* EXCHANGE: Encounter group spawns group of lifelong friends
* EXCHANGE: Woman finds meaning in helping animals in need
* Medical students in limbo as young immigrant program ends

* Illinois Lottery's new manager projects $4B in sales
* UIS students could study at newly proposed Chicago research center
* Aaron Schock attorneys contest federal claims on misstatements
* Under the Dome Podcast: Will lawmakers address gun control during the veto session?
* Chicago lawyer announces bid for Illinois attorney general
* Illinois borrows $1.5B at reduced interest to pay down debt
* Rauner cuts human services, other area in state budget
* Pritzker makes list of richest Americans; Rauner releases tax returns
* Pritzker makes list of richest Americans; Gov. Rauner doesn't
* Pritzker makes list of richest Americans, Gov. Rauner doesn't

* Is Dem primary over? No, but Pritzker rivals need to pick up pace
* The biggest Chicago-area building sales
* Here are the sites Chicago is pitching to Amazon
* Emanuel's challenges are far from over
* Clarification

* Person killed in Chicago Heights stabbing
* 2 men hurt in Lawndale shooting
* Man charged with driving away from traffic stop with cocaine, shotgun
* Cubs fire pitching coach Chris Bosio: report
* Man wanted in connection with wallet theft at Aurora gas station
* Man shot to death in Grayslake
* ARTHUR CYR: Iran – a crisis without an end
* Trump tweets he’ll allow release of classified JFK shooting files
* BROWN: In one Puerto Rican village, the river ran wild
* Today at the Chicago International Film Festival: ‘Princess Cyd’

* Cubs reportedly fire longtime pitching coach Chris Bosio
* Pau Gasol on Mirotic-Portis fight: 'That's not the way to do it'
* DeVos rescinds 72 guidance documents outlining rights for disabled students
* 2 wounded in shooting on West Side
* Woman found killed in Gary home identified by coroner
* Spain demands Catalonia elect new leaders weeks after region voted for independence
* Illinois pollution board to rule on complaint alleging coal ash contaminated groundwater
* Lake County deputies investigate fatal shooting of Zion man
* Vote: Top plays of the high school football weekend

» Voter Advocates Push Illinois To Exit Multistate Database
» Lawmaker Says Facebook Refuses To Fact Check Ads
» State Week: Chasing Amazon, Bonding Debt
» Teaching Kids To ‘Say Something’ In An Era of School Shootings
» Illinois Issues: Cities Lose Out On Retail Tax As Online Shopping Booms
» What Could Hurt Chicago’s Bid For Amazon’s HQ2?
» At CPS, More Special Education Dollars Go To White, Wealthier Students
» Illinois Bond Sale To Help Pay $16bn Debts
» Mayor To Propose Higher Prices For Ridesharing, Big Concerts
» WBEZ Investigation: CPS Secretly Overhauled Special Education At Students’ Expense

* Guest Column: What taxpayers should demand from next attorney general
* Ed Rogers: The Democratic Party's obsession with Hollywood celebrities was bound to blow up
* Illinois Lottery's new manager projects $4B in sales
* Counterpoint: Updating antiquated systems will open door to transparency
* Point: Taxpayers deserve a better look at the state’s bills
* Thumbs Up: To recent acts of kindness in Springfield
* Eugene Robinson: Trump's the one who didn't know 'what he was signing up for'
* UIS students could study at newly proposed Chicago research center
* Aaron Schock attorneys contest federal claims on misstatements
* Illinois Trial Lawyers Association: U.S. Chamber Poll is another attack on the rights of Illinois citizens

* LIVE! Minnesota
* Active shooter in Carbondale shot by police
* PHOTOS: American Heart Association's Macon County Heart and Stroke Walk 2017
* What you may have missed last week: Monroe Street shooting, Pritzker visit
* 'Ghost signs': Faded artistry spirits viewers into Decatur's past
* Dosunmu: 'I can change the culture'
* Suspect injured after shooting outside Curbside in Carbondale
* Shooting in Carbondale leaves 1 injured
* Game of the Week: STM-Uni High boys' soccer sectional title game
* Selling self-confidence: Sue's II boutique in Benton helps those struggling with hair loss

* Report: Chicago Cubs fire pitching coach Chris Bosio
* St. Charles police arrest man, 21, with loaded defaced gun, marijuana
* DuPage inmate, held on $3.7 million bail, racks up additional charges in jail
* Rockets say Chris Paul is 'week-to-week' with knee injury
* Dortmund mini-slump continues in 2-2 draw at Frankfurt

* Measure extends term of FSOC independent m...
* Helsinki Commission urges Erdogan to end p...
* Dissident artist Ai Weiwei and US Rep. Ran...
* Hultgren 'disappointed' about potential re...
* Democratic 14th Congressional District can...
* GOP congressmen say Rauner 'let down' Illi...
* Bipartisan group of lawmakers pushes job t...
* Hundreds of high school students tour Smit...
* Naperville's Lauren Underwood to run for R...
* Rival: Kinzinger not conservative - MyWebT...

* Rock Island gets $971183 in federal grants......

* Infrastructure a priority in meeting with ......

* Sarah Karp’s report on Forrest Claypool’s secret study, special ed service cuts and outrageous consultant fees. $15 million for proof reading?
* Inappropriate.
* Palatine para-professionals aren’t worth an 11 cent raise but they are too essential to allow them to strike.
* Keeping retirement weird. They don’t want to just end our defined benefit. They’re going after the defined contribution too. Shameless thieves.
* Do knee-jerk pols put any thought into votes they cast on govt. business?
* Chicago Design Week’s best events
* Illinois teacher retirees: What the hell is Walgreen’s up to?
* Raimondo and Rahm make an offer to Amazon. It’s a secret.
* Will Third Time Be The Charm For 4537 N. Clark?
* The Chicago Trib’s scab columnist John Kass calls me a fanatic.

* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

* Emonster sues Apple for violating Animoji trademark
* GitHub’s scandalized ex-CEO returns with Chatterbug
* How many HTC U11 Plus specs can fit in an evleaks tweet?
* Google will refund you if you overpaid for a Pixel 2 at a pop-up store
* Redesigning the TechCrunch app
* JerryRigEverything slams Pixel 2 durability
* Google Pixel 2: A Fantastic First Impression (Video)

* Sporcle Saturday: Long bombs
* Petricka undergoes surgery on right elbow
* Avisail sees similarities in rebuild, stellar year
* White Sox Arizona Fall League overview
* Ron Gardenhire’s second chance back in AL Central
* Jimenez among prospects in winter leagues
* The five longest White Sox home runs of 2017

Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0

Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller