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Rauner gets another property tax press pop

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* From the Illinois Policy Institute’s news service

Gov. Bruce Rauner was joined by homeowners in south suburban Chicago Thursday as he took steps to end a property tax system he called immoral, unethical and something that should be illegal.

At the news conference, Rauner announced he signed an executive barring lawmakers from arguing cases in front of the Illinois State Tax Appeals Board. […]

In order to fight high property taxes under the current system, Rauner said homeowners have to hire politically connected law firms, like the one where longtime House Speaker Michael Madigan works.

“No one who sets tax policy, no one who has an influence to increase taxes on one hand should be in a position where they financially benefit from fighting about property taxes and try to get them reduced on the other hand,” Rauner said. […]

Rauner said the system to dispute high property taxes is rigged. In addition to signing the executive order barring lawmakers from arguing cases in front of the Illinois State Tax Appeals Board, he proposes a law to ban lawmakers from making money from property tax appeals.

“We also don’t let legislators argue cases in the Court of Claims. We should do the same thing for property tax appeals,” Rauner said. “It’s a conflict of interest. It’s unethical. It’s immoral. We should also make it illegal.”

OK, first of all, he didn’t sign an EO yesterday. He said he plans to sign one in the next few days. Secondly, not many regular homeowners are hiring politically connected property tax appeals attorneys. Thirdly, legislators have to specifically vote to appropriate money to fund Court of Claims rulings, so that would definitely be a direct conflict of interest. I’m not sure such a direct conflict exists with the state property tax appeals board.

* Fourthly, can he do this? The only reference to executive orders in the Illinois Constitution

The Governor, by Executive Order, may reassign functions among or reorganize executive agencies which are directly responsible to him.

As I told subscribers this morning, the highlighted text above along with the highlighted text in the enabling statute is a problem for the governor’s EO

The Property Tax Appeal Board shall consist of 5 members appointed by the Governor, with the advice and consent of the Senate. The Governor, with the advice and consent of the Senate, shall designate one of the members as Chairman. The Property Tax Appeal Board shall be totally independent of the Department [of Revenue].

That makes an EO pretty iffy.

* Meanwhile, the governor was asked yesterday about this recent analysis by the Illinois Campaign for Political Reform which suggests that the Department of Revenue has some unused powers over Cook County, but he didn’t have an answer

In Illinois, the Department of Revenue (DOR) only contributes to the final calculation of property values through an equalization assessment, and does not serve in an oversight role, as in other states. Illinois state law gives the Department of Revenue the authority to provide more oversight to county assessors, but this practice is not currently in place. Specifically, the DOR does not conduct the same equity studies that occur in Florida and Arizona, or audits similar to those in California. […]

While the Illinois statute defining their powers is somewhat vague, the Department of Revenue may have the authority to initiate critical oversight measures for the assessment process. ICPR recommends that these steps are taken by the DOR:

The goal of these recommendations is to ensure a more transparent and accountable assessment process across the state, and encourage oversight for this important responsibility.

* Related…

* Rauner says he’ll order state lawmakers to stop handling tax appeals

* Governor presents plan to correct property-tax system flaw

posted by Rich Miller
Friday, Jan 19, 18 @ 10:40 am

Comments

  1. –to end a property tax system he called immoral, unethical and something that should be illegal.–

    That progression of adjectives immediately brought to mind this classic from Richard J:

    “They have vilified me, they have crucified me; yes, they have even criticized me.”

    Comment by wordslinger Friday, Jan 19, 18 @ 10:50 am

  2. To the EO, it’s more than a wee bit iffy. It’s a transparently empty political stunt on the taxpayer dime.

    At least Rauner’s transparent about something.

    Comment by wordslinger Friday, Jan 19, 18 @ 10:54 am

  3. Nice to know the Governor has time for more political stunts but no time to actually run the State.

    Rauner’s staff might want to do a little research and determine if any legislator has actually appeared before PTAB. My guess is none have filed actions with PTAB.

    Neither the executive or legislative branches of government can regulate the practice of law. Only the Supreme Court can do that. Any law that limits the ability of a person to hire an attorney to bring an action on their behalf in an adjudicatory process is likely unconstitutional.

    Comment by FCCMJM Friday, Jan 19, 18 @ 10:59 am

  4. ===if any legislator has actually appeared before PTAB===

    Madigan hasn’t personally, but his firm has. Rauner says he wants to make it so Madigan couldn’t profit from that.

    Comment by Rich Miller Friday, Jan 19, 18 @ 11:03 am

  5. Shocking the Governor’s didn’t explain the prohibition on legislators practicing before the Court of Claims and Workers’ Compensation Commission is consistent with Illinois Supreme Court Rules and there are exceptions. The same can’t be said for PTAB.

    See 5 ILCS 420/2-104:

    Sec. 2-104. No legislator may accept or participate in any way in any representation case, as that term is defined in Section 1-113, before (1) the Court of Claims of this State or (2) before the Illinois Workers’ Compensation Commission, when the State of Illinois is the respondent.
    This Section does not prohibit participation in such a representation case by a person with whom the legislator maintains a close economic association, unless the fact of that association is used to influence or attempt to influence the State agency in the rendering of its decision.

    Comment by Fake lawyer Friday, Jan 19, 18 @ 11:06 am

  6. ==- Rich Miller - Friday, Jan 19, 18 @ 11:03 am:

    Madigan hasn’t personally, but his firm has. Rauner says he wants to make it so Madigan couldn’t profit from that. ==

    I get that, but the Governor can’t regulate the activities of law firms. Plus, he has no idea what type of agreement Madigan has with his law firm. It’s likely he doesn’t receive any compensation for such actions. Most lawyers with perceived or actual conflicts have firewall agreements.

    Comment by FCCMJM Friday, Jan 19, 18 @ 11:08 am

  7. Much like his FBI wiretapping Ad buy, this is not really about the EO. Rather it is about the buzz that will be created by very publicly pointing out that Democratic Leader Madigan is a corrupt insider. The beauty of it is that it will be free advertising for him.

    Comment by Texas Red Friday, Jan 19, 18 @ 11:22 am

  8. Madigan, Madigan, I gotta get Madigan. Nothing else matters.

    Comment by zatoichi Friday, Jan 19, 18 @ 11:24 am

  9. IDOR publishes a property tax statistics report annually which breaks down, by county, stastics including CoD, and Price Related Differntials.

    Comment by Nitemayor Friday, Jan 19, 18 @ 11:29 am

  10. FCCMJM

    I thinkm you meant to say most ethical* lawyers

    In all seriousness, while we agree that it is a perceived or actual conflict of interest, what else would his compensation be based on. As far as I can tell that’s all the firm does. From what I’ve alwaays read his role is to bring in the clients and his partner actually handles the appeals or at least appears before the board.

    Comment by Anon Friday, Jan 19, 18 @ 11:33 am

  11. How Trumpian of him. A fake EO as a campaign event.

    Comment by walker Friday, Jan 19, 18 @ 11:37 am

  12. Style
    _________

    Substance

    Comment by Oswego Willy Friday, Jan 19, 18 @ 11:42 am

  13. Lovely. 1.4% is denying a plantiff their choice of legal counsel. Lawsuits in 3, 2, 1 . . .

    Comment by Huh? Friday, Jan 19, 18 @ 11:51 am

  14. All that matters is the press pop.

    For rauner, the constitution is, at best, advisory. Think about it. Tterm limits amendment unconstitutional – – the Supreme Court is corrupt. No budget no pay. Unconstitutional. So what? No budget no pay. And now this

    Comment by Langhorne Friday, Jan 19, 18 @ 12:06 pm

  15. Rauner loves to try to use the legal system to achieve his goals … and try to find a loophole wherever he can.

    But the court will knock this one down …

    Comment by RNUG Friday, Jan 19, 18 @ 12:07 pm

  16. Nitemayor is correct. In fact much of that data was used in the original Tribune reporting. So, ICPR doesn’t know what it’s talking about. Anybody shocked.

    Comment by Taxguy Friday, Jan 19, 18 @ 12:07 pm

  17. -huh?

    –lawsuits in 3,2, 1…–

    Who has standing to sue? My thought is legislators that do PTAB work and the AG for an illegal EO. I may be wrong as I just don’t know for sure. But lets say I am right. That leaves Speaker Madigan, President Cullerton and Rep. Martwick plus AG Madigan. Ha, check…this is pure political and quite honestly a decent move. Totally illegal. But which one of them wants to file a lawsuit ahead of the November election?

    Comment by Baggs McCoy Friday, Jan 19, 18 @ 12:11 pm

  18. ==Who has standing to sue?==

    Any person who wants to use a lawyer that happens to work at a law firm that a legislator is affiliated with. They can’t use the lawyer of their choice - they have standing.

    Comment by Anons Friday, Jan 19, 18 @ 12:17 pm

  19. “Immoral, unethical, outta be illegal” those seem to be the new Rauner catchphrases. He’s used them for both Pritzker and Madigan today. I agree that the only objective is to get these labels to stick. Most people aren’t going to sweat the details. But it does make me wonder what’s happening in that other courtroom today. I’m sure that it’s nothing immoral, unethical or illegal.

    Comment by Pundent Friday, Jan 19, 18 @ 12:25 pm

  20. Anons 12:17

    Ok, makes sense if a citizen is denied there choice of lawyer. The question remains as to whether any law firm that has a legislator would welcome a lawsuit with their firm named. I can think of three that probably wouldn’t.

    Comment by Baggs McCoy Friday, Jan 19, 18 @ 12:28 pm

  21. You all really want to go down the road of defending the brazen corruption of the Cook County property tax appeals system using legal minutia? That seems like a winner.

    Comment by JB13 Friday, Jan 19, 18 @ 12:39 pm

  22. Thank you, Governor Rauner, for placing a spotlight where the sun don’t shine. Explaining to the general public exactly how legislative leaders are profiting from the property tax appeal process, a clear conflict of interest, is a welcome move.

    Comment by Anonymous Friday, Jan 19, 18 @ 12:46 pm

  23. -JB13-
    What “brazen corruption?” Perhaps you think the system is broken. Fair enough. No one has gone to jail. As far as I can tell, no one is under investigation. Berrios was investigated by the FBI. Twice. No charges filed. People like to use that word, but I’m pretty sure it means stealing public funds for personal use, no? Do you have an actual example of “brazen corruption?”

    Comment by andjusticeforall Friday, Jan 19, 18 @ 12:55 pm

  24. =JB13=

    I have no interest in defending the property tax appeals system. But I also recognize this for what it is. A political stunt by Rauner that’s not supported by the law designed to distract from his record. As stunts go I put it up there with withholding legislator pay.

    Comment by Pundent Friday, Jan 19, 18 @ 12:58 pm

  25. @ wordslinger; that was great, thanks

    Comment by Rutro Friday, Jan 19, 18 @ 1:02 pm

  26. –The beauty of it is that it will be free advertising for him.–

    You’re good with this cynical abuse of gubernatorial powers on the taxpayer dime.

    How is that not corrupt, Mr. Conservative?

    Comment by wordslinger Friday, Jan 19, 18 @ 2:02 pm

  27. “Perform audits of county assessment procedures every three years, and publish reports of recommended changes”
    ———–

    A little history here that most don’t know….

    Back once upon a time, there was an honest Illinois Governor named Richard Ogilvie. His administration started the process of doing on-site property tax audits by County. And then the IL DOR audit staff got to a place called ‘Cook County’, and the Assessor’s office was run by P.J. ‘Parky’ Cullerton.

    The report on Cook County got killed. I knew some of the people who worked on it. In fact, the entire Audit staff got disbanded. ‘Scorched Earth’ within IL DOR.

    So, yeah, in theory IL DOR could audit a County’s real estate tax system. But it will never happen. Not any more.

    The Cook County Real Estate tax system has been an excellent example of the ‘Third Rail’ of Illinois politics.

    BUT,…..

    The ironic thing is, the Illinois property tax system as it currently exists is going to eventually go the way of the dinosaur because it’s becoming unworkable. Because of technology always changing.

    I remember a phrase which sums up the current Illinois Property Tax System: “Complexity is easy, simplicity is HARD”.

    Comment by Anon Downstate Friday, Jan 19, 18 @ 3:36 pm

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