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* 49 aldermen signed a letter criticizing House Speaker Michael Madigan’s property tax assessment cap legislation. And Mayor Daley, who until now has said he supported Madigan’s plan, was giving off conflicting signals yesterday afternoon.
The Tribune…
Mayor Richard Daley has signed on to the House version because he wants to ensure “we can provide our residents with good relief as opposed to nothing,” spokeswoman Jodi Kawada said.
The Sun-Times…
Deputy mayoral press secretary Jodi Kawada said Daley signed on to Madigan’s plan only after Houlihan’s version was overwhelmingly defeated.
But…
Now that the General Assembly is in overtime, a super-majority vote is an even longer-shot, [Kowada] said.
“The reality of this legislative session is that we are at risk of ending up with no relief for homeowners,” she said.
* 49 aldermen don’t sign something unless the mayor is quietly encouraging it. But despite the hot rhetoric…
Chicago homeowners could see their property tax bills rise by 40 percent over the next three years if the Illinois General Assembly follows House Speaker Michael Madigan’s lead and phases out a 7 percent cap on annual assessment increases, a dozen aldermen warned Monday.
“They’re really going to get clobbered in years two and three. . . . People are going to be forced out of our neighborhoods — and God knows where they’re going to end up,” said Ald. Eugene Schulter (47th).
…It’s likely to pass and be signed into law…
A key Senate sponsor said Monday that lawmakers would compromise in favor of a bill pushed by House Speaker Michael Madigan of Chicago, even as a group of Chicago aldermen complained it was not good enough. […]
Gov. Rod Blagojevich shares the aldermen’s concerns and hopes lawmakers will amend the bill, but it’s unlikely he would veto the House version if that’s what lands on his desk, spokeswoman Abby Ottenhoff said.
Sen. Terry Link (D-Waukegan), the chief sponsor of the Senate version, said he expects the Senate will approve the exemption provisions passed by the House. But he said the bill will include a requirement for a review next year to possibly increase the exemption for 2008 and 2009.
* And Assessor Houlihan, who’s been leading the fight against Madigan’s bill, took a whack at Madigan and his alderman yesterday, the only one who didn’t sign the letter…
Cook County Assessor Jim Houlihan called out Ald. Frank Olivo (13th) in a news release Monday. Houlihan said Olivo is only supporting the pending property tax relief bill because of his close ties to Illinois House Speaker Mike Madigan, who is pushing the bill.
“We’re just pointing out that 49 out of 50 aldermen sign it and the one alderman that doesn’t is Madigan’s,” said Houlihan spokesman Lucio Guerrero. “And (Madigan) has been consistently against long-term relief for homeowners.”
Thoughts?
posted by Rich Miller
Tuesday, Jul 24, 07 @ 9:52 am
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I am sick about this bill Madigan is pushing - why is it that the aldermen have spoken, our own assessor has spoken and Madigan is ruling above that - we are going to get clobbered - seriously clobbered to the point that moving out of cook county will now be my option - hoping that i can sell my house in such a high property tax district - i know my neighborhood is about to get hit to the point where i am going to have to add close to $150 per month in property tax - how is that fair - Speaker Madigan, if 49 of 50 Chicago Aldermen and our Cook County Assessor are speaking against then PLEASE listen - people will be pushed out and pushed to their limits gien the increases that surround us in gas, electric, etc and it will hurt, badly…
Comment by annoyed all the time Tuesday, Jul 24, 07 @ 10:31 am
One wonders if this is the ultimate retribution against the Assessor for obstructing the practice of obtaining tax exemptions for owners of high end properties in Chicago and Cook County. Who are the rich that Barbara Currie contends don’t need a tax cap——Those who can afford high price atorneys????????????????????
Comment by Loyal Alumn-Uof I 65 Tuesday, Jul 24, 07 @ 10:43 am
Annoyed all the time, Speaker Madigan is a property tax attorney, and I’m willing to bet he understands the issue much better than the aldermen. This legislation really is quite complicated. I’d recommend reading the U of I study and the Civic Federation study on this before taking the word of Assr. Houlihan. If you don’t want to pay that much in taxes, it’s time to start asking your local govt officials to show some fiscal discipline. Remember, Stroger has suggested raising property taxes to generate more revenue for Cook County next year. Every reduction in your assessment spreads the tax liability onto other property owners. That means as your proeprty tax assessments go down thru this legislation, the assessments of the business community, renters, seniors in the freeze program, and owners of properties that don’t appreciate faster than the tax rate have to pick up the slack.
Comment by Gene Parmesan Tuesday, Jul 24, 07 @ 10:56 am
These are the same aldermen who have created over 160 TIFs in the city diverting $400,000,000 annually from property taxes into off the budget accounts. By 2011 the city of Chicago will probably be collecting more money for TIFS than the $700,000,000 the city collects from property taxes. Yet they continue to tell everyone that TIFs don’t raise property taxes. And newspapers do not seem to challenge that assertion. I read both Chicago dailies and noone challenges the claims the city continues to make about the benefits of TIFs chief being they don’t raise taxes. Explain to me how Arne Duncan’s proposed increase is going to affect all of us not in a TIF?
Comment by Jeff Tuesday, Jul 24, 07 @ 10:58 am
Jeff,
Excellent point.
Comment by Rep. John Fritchey Tuesday, Jul 24, 07 @ 11:33 am
Loyal - I won’t pretend to be an expect as Madigan is however, a 40% increase in my neighborhood is ridiculous - i certianly can understand moderate rates of increases however, I know some neighborhoods are going to be slammed and those of us who barely afford our neighborhoods are going to hurt - I think Stroger is a moron and am tired of his way of conducting business for certain and maybe this will be my excuse to finally stop whining and leave cook county behind -
Comment by annoyed all the time Tuesday, Jul 24, 07 @ 11:51 am
sorry, that was to gene not loyal…
Comment by annoyed all the time Tuesday, Jul 24, 07 @ 11:52 am
If your neighborhood has appreciated enough that your tax bill will go up by 40%, then you are very fortunate because you now have more $$ in assets. One of the problems with assessment freezes or caps is they subsidize those whose property is in rapidly appreciating areas and those subsidies are provided by those whose properties are in less appreciating areas and properties not covered by the freeze or caps. It seems that those who benefit under such schemes are middle class and above and those that are harmed are poorer.
Comment by cermak_rd Tuesday, Jul 24, 07 @ 12:00 pm
If I were a conspiracy theorist I would:
a) agree with Ben Joravsky of the Chicago Reader regarding the theory that the Mayor cut a deal with Madigan to support House Amendments 1&2, in exchange for getting support on the Central Loop TIF district (as discussed on Chicago Tonight).
As Mayor, I would then:
b) Allow the Aldermen to sign a letter saying they don’t approve of the Madigan bill - in order to give local Alderman political cover for when the bill passes. “Here’s your political cover. Here’s your TIF money.”
But, as Rich has pointed out, there is only a “reported” Daley/Madigan deal. But it makes sense.
And yet, I’m not a conspiracy theorist (it offers no per diem.)
The assessment increases are real, and are out-of-whack with family incomes - causing people to continue to move out of Cook.
Comment by silentk Tuesday, Jul 24, 07 @ 12:23 pm
It all seems nice in theory as far as living in an area that has appreciated but there are exceptoins - not everyone in that neighborhood has the cash flow to be able to keep it up - there are many retirees, elderly and people like me who squeak by that although it’s nice our neighborhood as a whole is doing well in overall value, doesn’t make the cash flow come any easier, or quicker to cover our bases -
Comment by annoyed all the time Tuesday, Jul 24, 07 @ 12:35 pm
“Deputy mayoral press secretary Jodi Kawada said Daley signed on to Madigan’s plan only after Houlihan’s version was overwhelmingly defeated.”
When did that happen?!!
Houlihan’s $60,000 cap PASSED in the Senate, but was never called for a vote in the House. The Madigan plan - Amendments 1&2 - await further action - but Houlihan’s plan was never called.
Our legislators have not been given the opportunity to make a choice.
Comment by silentk Tuesday, Jul 24, 07 @ 1:02 pm
I see somebody finally caught on. I was waiting for that one.
Comment by Rich Miller Tuesday, Jul 24, 07 @ 1:04 pm
why is it that there is a Madigan or nothing attitude when it comes to property tax relief plans?
rep. fritchey asks what the aldermen who protested Madigan’s bill yesterday will do when the 7% is not extended. well, hopefully the alderman - and their constituents - will ask the same question of their state reps.
if madigan’s plan is no good - which everyone besides business groups (oh, and Madigan) agrees it’s not - why not offer a different solution rep. fritchey? why not give people something besides a take-it or leave it option?
i know it’s not a word widely used in springfield, but someone may want to look up the word “compromise” and see if that can make it into the discussion.
Comment by looking for leadership Tuesday, Jul 24, 07 @ 1:34 pm
To “looking” - Rep. Fritchey and others did provide alternative proposals… but they were never allowed to be considered. Remember, the Speaker tightly controls what bills/issues are to be dealt with by the House and its members.
Secondly, many should realize that this problem is really the making of the Assessor himself. The Assessor has consistantly done two things to create this problem: (1) artificially inflated the “market value” of the residential property in Cook County; and (2) under-assessed those same residential properties for years (actual rate is 16%… most properties assessed at 10% or less).
His mistakes are just now catching up to him, and he crafted the 7% cap to “buy time” before the full impact of his “neglect of duties” caught up with him.
Comment by unclesam Tuesday, Jul 24, 07 @ 2:12 pm
unclesam, I’m not privy to your first point regarding Madigan, but your second regarding Houlihan is right on the mark.
Comment by Gene Parmesan Tuesday, Jul 24, 07 @ 2:16 pm
Where can I get copies of the Uof I and Civic Federaion studies to read.
Living in the collar counties, we get reassessed every year and pay taxes on 1/3 of our assessments. When I look at the $$ generated by EAV in Chicago for education and compare it to the collar c ounties, it looks like Chicago is stiffing the children.
I hope someone has links for thos documents for me to read. Thanks in advance.
Comment by Plutocrat03 Tuesday, Jul 24, 07 @ 3:20 pm
U of I Study: www.revenue.state.il.us/IGPA_final.pdf
Civic Federation Study: http://www.civicfed.org/articles/civicfed_243.pdf
Enjoy.
Comment by Gene Parmesan Tuesday, Jul 24, 07 @ 3:31 pm
The MOST important aspect of dealing with property taxes is reducing waste in government. I think we may have a wee bit of that here in Chicago and Cook County. Everywhere else too for that matter.
Next thing. Don’t panic. Just because your assessment is going up 40 percent doesn’t mean your taxes are going up at the same rate. Depending on how you measure it using average or median the rate of “assessment increase” in Chicago is nearly 40 percent. That essentially means that if you are above or below that “average” you can expect a tax adjustment based on that. That is a very “rough” approximation.
It is virtually impossible to find any clear reporting on the issue.
Here is a thread from Yochicago that may bring a bit of light to the darkness.
http://yochicago.com/today/housing-trends/mayor-warns-chicago-property-taxes-could-double-for-some-homeowners_2414/
Or it may not.
Comment by irishpirate Tuesday, Jul 24, 07 @ 4:04 pm
How about total and complete property tax reform? If complete reform doesn’t work, try a different version. BUt to sit here and listen to a bunch of whiny legislators cry about the aldermen and a bunch of aldermen who have been around for decades rat out the state reps - and Madigan is just no help whatsoever - is like the pot calling the kettle black.
Comment by Reform Tuesday, Jul 24, 07 @ 11:04 pm
Assessor Houlihan is a joke. Hope he has an opponent next time.
Comment by anon Wednesday, Jul 25, 07 @ 8:09 am