|
Mazon, IL | I got volunteered to be on my county Illinois farmland assessment board last year. Didn’t know what to expect so I just went along with the group. This year comes along and I decide to to some analysis of the values the state provided. Created a spreadsheet comparing last year to this year for all 48 soil PIs.
For those not familiar with the voodoo economics in Illinois, it works as follows:
Some think tank determines the net income per acre for each PI. That value is then divided by the 5 year average farm interest rate. That number is the ag economic impact. Divide this by 3 and it gives you the equalized assessed value.
The actual tax value is something less than this, with the highest productive soils being about 50% of the EAV and dropping to about 32% for the poorer soils. No one on this committee could explain what the relationship between the EAV and approved value was supposed to be.
Last year the highest PI soil was at about 50%. The state says to raise the approved rate by 10% of the median PI rate for all soil types. This results in low PI soils seeing an increase of close to 20% and pushes the high PI soils above 50% of EAV. Keep in mind there is no defined relationship between EAV and approved value.
I objected to this and proposed to keep the approved values capped at 50% of EAV. We shall see how the state responds as my proposal was approved by our county committee. If the state comes back and says the final goal is to have the approved value equal to the EAV then we are going to make Nebraska taxes seem cheap.
Edited by SEBneil 6/15/2022 21:31
| |
|
Illinois farmland property taxes
