Real Estate Tax System? What System?!

Real estate tax system is unfair
JIM MUIR; The Southern Illinoisan

Mark Twain once said the only difference between a tax collector and a taxidermist is that the taxidermist only takes the skin. I recently read a brief history about Twain and while there was no mention that he ever lived in the Land of Lincoln, it would seem that anybody who had that kind of in-depth knowledge of the way the tax game is played in Illinois would have had to spend some time here.

And without question, Twain must have been referring to real estate taxes when he made reference to a taxidermist. He could have also added that in most instances when a person is robbed there’s a weapon involved. In Illinois that weapon is the annual dose of bad news known as a real estate tax bill - without question the most unfair, egregious tax that exists.

That point was once again driven home after reading a story in the Belleville News-Democrat about the shenanigans that are taking place in St. Clair County. The story centered on state-mandated quadrennial assessments - a total reassessment of every parcel of property within a county that is supposed to be completed every four years. The story reported that even though the Illinois Department of Revenue mandates that quadrennial assessments take place, there has not been one in St. Clair County since 1984 - and that one took place only when then-supervisor of assessments Sam Flood was forced to do the reassessment by department of revenue officials. And the 1984 reassessment was the first one in St. Clair County since the mid-1940s.

Off the subject just a little, it should be of great comfort to the taxpayers in St. Clair County to know that Flood has moved on since his days as supervisor of assessments and was recently appointed by the Blagojevich administration as acting director of the Department of Natural Resources - a position that carries a six-figure salary. I added that last nugget only to illustrate that ‘The Peter Principle' - the theory that some people rise to the level of their incompetence - is alive and well in Illinois political circles. And of course I’m speaking of both Democrats and Republicans when I point that out.

The purpose of the quadrennial reassessment is to determine the fair market value of properties and then determine the equalized assessed value, which is 33.3 percent of the fair market value. Obviously, the reason that the reassessment is supposed to be completed every four years is to make sure all new properties are being assessed and also that other properties are being assessed fairly and accurately.

The story told how St. Clair County will soon embark on trying to straighten out the mess and also how some residents who are under-assessed can expect hefty increases in their real estate tax bills. Recalling what took place in Franklin County in 1998 when a long-overdue quadrennial assessment took place, a hefty increase could mean a 30-40 percent hike in real estate taxes for some people.

Throughout the story, those who were interviewed about correcting the problem used words like 'fair' and 'accurate' and 'reasonable' when discussing ways to correct the problem.

Well, I hate to be the bearer of bad news this morning, but despite what some spineless politician might say about real estate tax reform, there is absolutely nothing fair, accurate or even remotely reasonable about the current system. In fact, taking it one step further, real estate taxes are the most unfair tax that exists, period.

Yet, all we get from Springfield is lip service about the problem that is progressively getting worse rather than better.

Let me explain why this tax is so unfair using Widow Jones, who lives in any town, big or small in Illinois and Joe Unemployed, who lives in the same town.

Mrs. Jones has raised her children, who have all moved away, and now lives alone on a fixed income in a small home she has owned for many years. Each year she receives a real estate tax bill that includes a lengthy list of taxing districts. At the top of that list is the public school where approximately 55 percent of her tax dollars will go, even though her children have not attended the school for 40 years.

On the other side of town Joe lives with his wife and three children in a mobile home he rents. All three of his children attend the same school Widow Jones is helping to support, yet he pays nothing, not a dime toward that school - or the hospital, or the library, or the park or any other taxing district.

And then there is the 'Good Ol’ Boys’ Club' method of assessing real estate taxes. This method involves knowing the brother’s cousin of the wife of a township assessor, which therefore entitles you to a reduced assessment ... or if you live in Franklin County ... perhaps no assessment at all.

And that’s just two of hundreds of examples I could use.

Any system - a sales tax increase, a consumption tax, a hike in income tax or even charging $500 to license a vehicle - would be better than what is taking place throughout the state.

In simple terms, and stopping just short of using the word 'revolution' until the masses in Illinois who are being raped each year by real estate taxes join together and say 'enough is enough' it will remain a broken, flawed and dishonest system.

JIM MUIR is a columnist for The Southern Illinoisan and can be reached at writeon1@shawneelink.netReal estate tax system is unfair