(le^ifteHiJbe^ iHi/lfoun. 



MONEY 



* * • * 



By* 

 L. H. SIMERL 



CHARLIE Johnson stopped his trac- 

 tor at the mailbox. From it he 

 took a daily paper, a farm maga- 

 zine, and an official looking letter. 

 After reading the newspaper headlines 

 he opened the letter. It was from the 

 county tax collector and contained 

 Charlie's property tax bill. 



Charlie examined the bill for a 

 moment. Then he exploded like a 

 miniature atomic bomb. A summary of 

 Charlie's remark would be "how is a 

 man expected to raise a family and pay 

 his debts with the prices of farm prod- 

 ucts going lower and taxes getting high- 

 er every year?" 



This may sound odd now but a lot 

 of Illinois farmers may find themselves 

 in Charlie's shoes a few years hence. 

 The increase in taxes may come about 

 as a result of new laws which have 

 been enacted by the Illinois General 

 Assembly. These laws will permit 

 large tax increases in almost every 

 county in the State. After the expira- 

 tion of temporary limitations on such 

 tax increases, in many counties the new 

 laws will permit tax increases of 50 to 

 100 per cent, while in a few counties 

 the tax increases may amount to 150 

 per cent or even more. In view of 

 these facts, taxpayers should take every 

 precaution to insure that unjustified 

 tax increases will not be made. 



The main provisions of the new tax 

 laws, which go into effect January 1, 

 1946, are as follows: 



I. Property assessments will be in- 



creased so that they will average 

 100 per cent of actual sale value in 

 each county. 



II. All important existing tax rate 



limitations, whether established by 

 the state legislature or loca' refer- 

 endum, will be reduced by one- 

 half, (except as indicated in III 

 below) . 



III. The effects of I and II above are 

 modified by several provisions es- 



tablishing alternative tax ceilings 

 and floors. 



Special tax ceiling provisions limit 

 tax increases for a five-year period 

 beginning with 1946. 



1. Increases in taxes (i.e., tax ex- 

 tensions) may not exceed 15 per 

 cent of the maximum legal 

 amount in 1942; and in any one 

 year the increase in effective tax 

 rates may not exceed 5 per ceiit 

 of the maximum effective rate in 

 1942. 



2. Increases in taxes extended un- 

 der rates authorized by a refer- 

 endum held before 1946 may not 

 in any one year exceed 5 per 

 cent, nor in the entire five-year 

 period exceed 15 per cent, of 

 the maximum taxes extendable 

 for 1942 or for the year in which 

 the referendum was held, which- 

 ever is later. 



Special tax floor provisions limit 

 the application of the general re- 

 duction of 50 per cent in maximum 

 tax rates. 



1. No tax rate or tax extension 

 shall be limited to less than suf- 

 ficient to establish eligibility for 

 state grants for poor relief or 

 educational purposes. 



2. Tax rates authorized by a refer- 

 endum shall not be reduced to 



less than sufficient to produce 

 the amount legalized in the year 

 the referendum was held. 

 3. For a five-year period beginning 

 with 1946 no tax rate shall be 

 limited to less than sufficient to 

 produce the amount available on 



■ the basis of the 1942 assessment 

 and maximum tax rates legal in 

 1945 or authorized for by ref- 



■ erendum before 1946, with ad- 

 justment for actual changes in 

 cash value of the taxable prop- 

 erty after 1942. 



C. During the five years beginning 

 with 1946 the legal voters of any 

 taxing district may establish a tax- 

 rate limit either higher or lower 

 (by not more than 25 per cent) 

 than that otherwise provided by 

 law. 

 The increase in assessments in each 

 county will depend largely upon the 

 assessment ratio (per cent of actual 

 value used in assessments) previously 

 used in the county. The maximum 

 increase in taxes will also depend uf)on 

 the county assessment ratio. The ac- 

 companying table shows for each 

 county: (1) the 1944 assessment ratio, 

 (2) an estimate of the probable in- 

 crease in property assessments, and (3) 

 an estimate of the maximum increase 

 in taxes permitted by the new legisla- 

 tion. 



L A. A. RECORD 



