Senate Bill (SB) 684, introduced by Senator David Koehler has passed the Senate but remains in the House. The bill would grant the local airport authority the ability to increase its property tax base and double its property tax rate without a referendum.
684 would extend the area to be taxed from Bloomington and Normal to throughout McLean County. That automatically increases taxes for everyone in McLean County outside Bloomington and Normal.
In a story published Wednesday, WGLT quoted Bloomington Normal Airport Authority Chair Alan Sender as saying, “For a $175,000 house, the total tax per year to support the airport inside Bloomington-Normal is right now about $83. It would go down to about $55. With this bill in effect. If you’re in rural McLean County or any of the towns outside Bloomington-Normal, that $175,000 home would incur a new tax of about $55 a year.”
This tax increase in itself could make it very difficult for small towns throughout the county to raise taxes for local needs. Lexington Mayor Spencer Johnson said, “For instance, our library board, if they feel they need to get a tax increase just to make ends meet the voters are going to vote that down because they have already raised their taxes enough. So people, they just can’t keep being taxed for this.”
WGLT also quoted Sender as saying, “Agricultural land would be taxed at about 61 cents an acre.”
But there is a potential concern that is larger and likely to impact everyone in the county. Senate Bill 684 would dissolve the current Bloomington-Normal Airport Authority of McLean County and create a new Central Illinois Regional Airport Authority.
Michael Swartz, McLean County Farm Bureau Manager said, “We believe taxpayers should be aware that this legislation actually authorizes the new airport authority to raise the property tax rate for Bloomington-Normal and rural McLean County without a referendum.”
“By virtue of the fact that the bill creates a brand new airport authority, the new entity will be authorized to levy property taxes up to the statutory maximum of 0.075 for their corporate fund, nearly double the current maximum of 0.04,” Swartz says. “The new maximum rate affects the entire district, including Bloomington and Normal property owners.”
According to WGLT, Sender “acknowledged the Peoria, Springfield, and Rockford airports have all raised their property tax rates to the maximum 7.5 cents.”
The Illinois Airport Authorities Act lays out a referendum process for establishing or expanding an airport authority. By pursuing the change via state legislation, the airport authority is seeking a shortcut that will increase their property tax base, raise their corporate fund limit and increase their bond limit.
McLean County rural municipalities, townships and others have also been engaged in opposing SB 684. At least 11 rural municipalities, six rural townships and a fire protection district have all adopted resolutions of opposition.
Senators Sally Turner (R-Lincoln) and Tom Bennett (R-Gibson City) voted no.
Representatives Jason Bunting (R-Emington), Dan Caulkins (R-Decatur), William Hauter (R-Morton) and Dennis Tipsword, Jr (R-Metamora) signed onto a letter of opposition.
The McLean County Board considered opposing the bill at its April Executive Committee meeting but postponed the matter to June.
Representative Sharon Chung (D-Bloomington) supports Koehler and his bill.
