Coles County Illinois Property Taxes County Clerk - PDF

Document Sample
Coles County Illinois Property Taxes County Clerk - PDF Powered By Docstoc
					       Mattoon CUSD#2
        Presentation
 Illinois County School Facility Tax
          Public Act 95-0675


Larry D. Lilly, Superintendent
Mattoon CUSD#2
    Landmark Legislation for Illinois
       Sales tax vs. Property tax for School Capital
        –   A tax on the sales of retail goods paid by consumers vs. a
            real property tax paid by property owners

       Originated in Iowa in 1998
        –   Adopted by all counties in Iowa

       Passed by the Illinois General Assembly
        on May 30, 2007

       Recently approved by Champaign County in
        April 2009
2
                       Illinois County School Facility Tax Act:




    County where the
    CSFT has passed




3
    Low Impact on Key Business and
    Fixed Income Persons

       Sales Tax Base:
        –   Everything in the municipal and county retail sales tax base
            is included in the tax base except for:
                Cars, Trucks, ATVs
                Boats & RVs
                Mobile homes
                Qualifying Food
                Drugs
                Farm Equipment and Parts
                Farm Inputs

        –   “If it is not currently taxed, it will not be taxed”



4
    Area Sales Tax Rates
    City           Sales Tax Rates

    Charleston     6.75%

    Mattoon        6.75% (7.75% in S. Rt. 45 & Broadway East Business District)

    Oakland        6.25%

    Champaign      8.75%

    Urbana         8.75%

    Effingham      6.50% (7.50% in Ford Ave. Business District)

    Decatur        8.00%

    Terre Haute    7.00%   (Additional taxes on food, hotel, and gas)

    Coles County   6.25%

    Champaign      7.50%
    County
    Effingham      6.50%
5   County
    Use of Sales Tax Revenues
            Eligible Capital Projects                 Ineligible Uses
                    Demolition                             Buses
                  New Facilities                Detached Furniture & Fixtures
             Additions & Renovations                     Computers
                 Land Acquisition                   Moveable Equipment

              Ongoing Maintenance                     Operating Costs
              Architectural Planning               Salaries and Overhead
      Durable Equipment (non-moveable items)
          Fire Prevention and Life Safety
            Disabled Access & Security
                 Financing Costs
                   Parking Lots
    Abatement of Property Taxes Levied to Pay
       Bonds Issued for Capital Purposes



6
     County School Facility Tax (CSFT)
     Worksheet for Coles County - Abatement Impact Per District


          A              B            C              D              E                F               G           H
    District         2008-09       Percent      Adjusted       Adjusted      2007 District      Potential     Effect of
                    Enrollment     of Total      Annual         Annual          EAV             Property        Tax
                     from Fall                  CSFT per        CSFT             (3)              Tax        Reduction
                     Housing                     district      per pupil                        Reduction        on
                      Report                       (2)                                         (Abatement)   $100,000
                        (1)                                                                        (4)         Home
    Charleston         2,664        43.2%      $1.921,986        $721       $265,362,473          $0.52      $173.33

    Mattoon            3,304        53.5%      $2,383,725        $721       $271,994,612          $0.52      $172.93

    Oakland             205         3.3%        $148,189         $721        $26,245,290          $0.41      $136.47

    Total              6173         100%       $4,453,900                   $563,602,375

    (1)   K-12 Enrollment from ISBE Fall Housing Report
    (2)   Based on 1% sales tax derived from Illinois Department of Revenue CST data, also excludes
          registered vehicles, 2008 figure estimated with actual Q1, Q2, Q3, and Q4 of 2007
    (3)   As reported by ISBE Annual Financial Reports and County
    (4)   2009 property tax rates: Charleston 4.70; Mattoon 4.53; and Oakland 5.06
7
    For additional information please contact Tom Crabtree at 1-800-230-5151 ext. 8457 at Stifel Nicolaus
    Property Tax Relief
       If approved, Mattoon CUSD#2 would receive approximately
        $2.3 million in annual sales tax revenue.

       The current elementary bond payment is approximately $1.5
        million annually. District levies approximately .52 cents in
        property taxes to make the bond payment.

       Mattoon Board of Education would reduce district total tax levy
        by .52 cents for the 2010 levy for taxes payable in 2011.

       District would make the annual elementary bond payment with
        sales tax revenue.

       Mattoon taxpayer owning a $100,000 home would save
        $172.93 per year.

8
    Mattoon CUSD#2 Debt Schedule
     Year               Elem. Bonds   MHS Debt Cert.     Total
    2002-03             $1,456,643    $0               $1,456,643
    2003-04             $1,304,985    $0               $1,304,985
    2004-05             $1,331,698    $0               $1,331,698
    2005-06             $1,356,273    $368,989         $1,725,262
    2006-07             $1,383,710    $366,975         $1,750,685
    2007-08             $1,409,759    $368,730         $1,778,489
    2008-09             $1,438,499    $365,480         $1,803,979
    2009-10             $1,468,604    $363,223         $1,831,827
    2010-11             $1,494,854    $365,618         $1,860,472
    2011-12             $1,524,794    $362,281         $1,887,075
    2012-13             $1,556,794    $363,369         $1,920,163
    2013-14             $1,584,794    $363,846         $1,948,640
    2014-15             $1,618,794    $363,694         $1,982,488
    2015-16             $1,648,294    $362,891         $2,011,185
    2016-17             $1,686,944    $361,419         $2,048,363
    2017-18             $1,716,344    $364,160         $2,080,504
    2018-19             $1,755,869    $361,093         $2,116,962
    2019-20             $1,791,963    $362,189         $2,154,152
    2020-21             $943,463      $0               $943,463
    TOTALS              $28,473,078   $3,993,783       $33,937,035
    Remainder To Date   $17,322,907   $2,160,386       $20,953,467
9
     3-Point Plan for 1% Sales Tax Revenue
     (Mattoon CUSD#2)


     1.   Reduce district property tax levy by
          approximately .52 cents.
               Approximately $1.5 million annually


     2.   Pay debt certificates for MHS renovation.
               Approximately $400,000 annually


     3.   Maintain existing district facilities.
               Approximately $400,000 annually


10
     Savings Comparison
     of Sales Tax for Property Tax Swap

        The owner of a $100,000 home, living in the Mattoon school
         district, would save $172.83 in property taxes.

        That same $100,000 homeowner would have to buy over
         $17,293 of goods (exceptions below), in one year, taxed at 1% to
         lose the benefit of the property tax savings.

        Exceptions to the 1% County Sales Tax:
                 Cars, Trucks, ATVs
                 Boats & RVs
                 Mobile homes
                 Most Groceries
                 Drugs
                 Farm Equipment and Parts
                 Farm Inputs
11
     How to Place Before Voters?

        Two Ways:
         –   County Board may pass a resolution
         –   School districts may pass a resolution

        When School Boards representing at least 51% of the
         resident student enrollment in the county adopt
         resolutions, the County board must certify the
         question to the County clerk.

        County Clerk will place on the ballot at the next
         regularly scheduled election.

12
     Required Language on the Ballot

        Public Question:

         Shall Coles County be authorized to impose
         a retailers’ occupation tax and a service
         occupation tax (commonly referred to as a
         “sales tax”) at a rate of one percent to be
         used exclusively for school facility purposes?



13
     Passing the Vote and Receipt of Revenues

        Simple majority of county-wide votes cast needed
         to pass.

        County Board may then adopt an ordinance
         imposing the tax.

        The ordinance and the election results must:
         –   Be certified by the County Clerk
         –   Filed with the Illinois Department of Revenue



14
     Timeline is Critical
     Target Election: February 2, 2010


                Election Date           Nov. 2009    Feb 2, 2010          Nov. 2, 2010

           Pass Resolution (County
                                                     Nov. 30, 2009        Aug. 30, 2010
           Board or School Districts)
            Certify the Resolution                    No later than        No later than
               (County Board)                         Dec. 3, 2009         Sept. 1, 2010


                   Election                           Feb. 2, 2010         Nov. 2, 2010


           County Adopt Ordinance
                                                      No later than        No later than
           and File with IL Dept. of                  April 1, 2010        April 1, 2011
              Rev. to Enact Tax
                                                    After the County     After the County
             Ability to Sell Bonds                     Board has            Board has
             Backed by Sales Tax                        Adopted              Adopted
                                                       Ordinance            Ordinance


          Sales Tax Goes into Effect                  July 1, 2010         July 1, 2011

           Regional Superintendent                  Approximately 90     Approximately 90
                                                    Days after July 1,   Days after July 1,
            Funds from the State                         2010                 2011

            District Receives New
                                                    October 2010         October 2011
             Sales Tax Revenues
15
     Will the 1% Sales Tax Sunset?
     What happens when current bonds retire?
        Options:
       1.   Sales Tax Remains for Maintenance and/or Expansion
               The County Board (CB) imposes the sales tax. The CB may leave the tax
               in effect after bonds are retired. In this option, the school district could
               use the revenue for ongoing maintenance and expand facilities if needed
               without increases in property taxes for facilities.

       2.   Sales Tax Repealed
               The County Board may repeal all or part of the sales tax in .25%
               increments from 0 to 1% at any time; however, the CB must continue
               impose a rate sufficient to pay for bonds supported by the sales tax.

       3.   Property Tax Levy Decreased
               The School Board could decrease property taxes levied for the
               Operations and Maintenance Fund and substitute sales tax revenue to
               pay for some maintenance costs should the tax remain in effect.

16
     Outcomes:

     1.   Eases burden on local property taxpayers
             Shares school facility costs with others from outside the
              county, including EIU, LLC, I-57, and county events

     2.   Supports economic development
             Reduces property tax burden on businesses considering and
              locating in Coles County

     3.   Provides an ongoing revenue stream
             Pays for maintenance and improvement to facilities

     4.   Supports quality learning environment for kids.

17
     Key Resources

           Anne Noble                   Larry D. Lilly                 Tom Sherman                  Lynda K. Given
       Senior Vice President        Superintendent of Schools       Asst. Superintendent for         Kyle Harding
           Stifel Nicolaus               Mattoon CUSD#2                     Business                Chapman and Cutler
       501 North Broadway             1701 Charleston Ave.             Mattoon CUSD#2             111 West Monroe Street
       St. Louis, MO 63102              Mattoon, IL 61938            1701 Charleston Ave.         Chicago, IL 60603-4080
     Phone: 800-230-5151 ext.         Phone: 217-238-8881             Mattoon, IL 61938            Phone: 312/845-3000
                8488                ldlilly@mattoon.k12.il.us        Phone: 217-238-8880           given@chapman.com
        noblea@stifel.com                                         shermant@mattoon.k12.il.us      harding@chapman.com



        Deanna Sullivan             Local Tax Allocation               Jane Quinlan                   Gene Logas
      Director of Governmental            Division                 Champaign-Ford Counties         Chief Financial Officer
           Relations IASB             Illinois Department of                ROE #9                  Champaign CUSD #4
          2921 Baker Drive                    Revenue              200 South Fredrick Street          703 S. New Street
     Springfield, Illinois 62703-     Legal Services Office            Rantoul, IL 61866            Champaign, IL 61820
                 5929                   101 West Jefferson           Phone: 217-893-3219            Phone: 217/373-7353
       Phone: 217/528-9688          Springfield, Illinois 62794     jquinlan@roe9.k12.il.us    logasge@champaignschools.org
                x1123                 Phone: 217/785-6518
        dsullivan@iasb.com




18
     Thank you for your time!




     Parts of this presentation contains proprietary information compiled by Stifel
     Nicolaus. Reproductions may be made with permission from Stifel Nicolaus.
     Please call for Tom Crabtree for permission at 1(800) 230 515, Extension 8457




19

				
DOCUMENT INFO
Description: Coles County Illinois Property Taxes County Clerk document sample