* Buried deep within this AP feature on the state treasurer’s race is some actual news…

Cross has accused Frerichs of financial mismanagement as county auditor, and highlighted a dispute over unpaid taxes for Frerichs’ legislative office.

Frerichs said the legislative office legally should not have been billed, but later did pay the $1,800 levy. However, on Monday the Illinois Department of Revenue reversed its earlier decision, and granted Frerichs an exemption.

The Illinois Department of Revenue was obviously wrong to claim Frerichs owed taxes when his district office rented space in a government building. That’s just a ridiculous contention. However, Frerichs brought the initial bad press upon himself by refusing to pay the tax debt, instead of just paying it while he was appealing.

And, don’t forget, he also owed taxes for a campaign office he rented in that same building. That one didn’t go away this week.

…Adding… I’m assuming that Tom Cross’ campaign is gonna question the convenient timing of this decision. While I still think this is the right decision - legislative offices are, after all, government offices - the timing is curious.

*** UPDATE 1 *** Statement from Kevin Artl, Campaign Manager for Tom Cross for Treasurer

“In typical Illinois fashion, Senator Mike Frerichs leveraged his clout with Governor Quinn and received an insider deal that allows him to avoid paying property taxes on his legislative office. After consistently claiming Frerichs and other lawmakers owed taxes on their offices, Quinn’s Department of Revenue has reversed that position a mere 40 days before the election.

“The decision allows Frerichs and at least one other lawmaker to avoid paying over $450,000 in unpaid property taxes. While Frerichs’ property taxes on his campaign office also went unpaid, the continued use of clout to secure patronage positions and now to avoid paying property taxes demonstrates why he would be a reckless State Treasurer.”

The Frerichs Case
Illinois Department of Revenue: “…consistently denied leasehold assessment exemptions…”
Crain’s, August 8, 2014
But according to Revenue Department spokeswoman Sue Hofer, the money is owed, which is why the department in June formally rejected Mr. Frerichs’ request for a non-homestead property tax exemption.
“We have consistently denied leasehold assessment exemptions for legislative offices,” Ms. Hofer said, pointing to one “very similar case” a few years ago involving state Rep. Monique Davis, D-Chicago.
Illinois Department of Revenue: Frerichs’ Exemption Denied Based On Longstanding Policy
Crain’s, August 12, 2014
The Illinois Department of Revenue earlier had rejected Mr. Frerichs’ request for an exemption, citing its ruling in a similar case several years ago involving state Rep. Monique Davis, D-Chicago.
Champaign County Treasurer: Frerichs Offered Excuses, But No Payments
Crain’s, August 8, 2014
According to Amy Foster, senior administrative secretary for the treasurer, he has not paid bills for seven years, starting in 2008, and now owes a combined $1,814.17 in back taxes and interest. That amount is due and outstanding.
Ms. Foster says she spoke repeatedly to Mr. Frerichs and aides through the years and on various times was given different explanations, including that the office was not subject to the leasehold tax and that an official waiver was being sought from the Illinois Department of Revenue.
Frerichs Also Did Not Pay Property Tax Bill For Campaign Office-Claims It Was “Misplaced”
Crain’s, August 12, 2014
Mr. Frerichs also did not pay the tax on his political office, which is rented from the transit district, until questions were raised. His campaign said it believes that the bill for that tax inadvertently went to the legislative office, which didn’t pay it because it was believed to be part of the larger tax dispute.

The Monique Davis Case:
Illinois Department of Revenue: Davis Office Not Tax Exempt
Chicago Sun-Times, June 11, 2012
“CPS contended that as a leaseholder of publicly owned property, Davis is responsible for leaseholder taxes dating back at least 20 years and totaling $157,500, plus close to $287,000 in penalties for nonpayment.
The Illinois Department of Revenue ruled back in 1998 that Davis’ use of the building for a district office did not make it tax-exempt.”
Illinois House of Representatives Votes to Change Law On Lease Hold Agreements To Make Them Exempt from Taxes
Chicago Sun-Times, June 11, 2012
By a 60-54 vote, with Davis voting present, the House entered into the legal dispute between the longtime South Side lawmaker and the Chicago Board of Education over her refusal to pay back rent and leaseholder taxes on her district office, which is in a school-owned building.
Note: The Legislation was not approved by the Senate.

Legislation to Exempt Lawmakers from Paying Property Taxes Fails
WTTW, January 29, 2013

In the last legislative session, a bill passed the House that would have exempted Davis and all public officials from leaseholder taxes. It was sponsored by Madigan’s top lieutenant, Majority Leader Barbara Flynn Currie.

Absent a resolution, the tab for past rent and taxes grows. Sullivan believes that the state of Illinois and Monique Davis now owes well over $1 million.

*** UPDATE 2 *** From the Frerichs campaign…

Tom Cross was at the heart of the insider deal with Rod Blagojevich, Tom Cross voted for $10 billion in borrowing that netted Cross ally Bob Kjellander $800,000, money that eventually flowed back to Tony Rezko’s circle of friends and was at the heart of Blagojevich’s corruption trial.

http://www.sj-r.com/article/20100610/News/306109944

Only after the deal became public did Cross criticize Kjellander. And not for insider dealing, but for making the Republic Party look bad:

“It’s not healthy for us as we rebuild. It’s not healthy for our party,” Cross said. “He needs to make a decision whether to make lots of money or to represent our party. With the climate the way it is and the recent history of our party, he can’t do both.”

http://articles.chicagotribune.com/2005-08-17/news/0508170116_1_house-gop-carlyle-group-robert-kjellander