By: Brittany Flaherty Theis
We know many of our clients are closely monitoring developments regarding property taxes to modify their cash flow estimates accordingly. Yesterday, the Kane County Board voted unanimously to waive the penalty (or interest) on late property tax payments of the first installment for 30 days. Therefore, tax bills due to be paid June 1, 2020 will not be charged penalties if the bill is paid by July 1, 2020. As of today, late payments will be assessed penalties beginning on July 2, 2020.
The Kane County Treasurer indicated he recommended this approach rather than delaying the due date to minimize disruptions in property tax receipts by taxing districts, to the extent possible. The Kane County Treasurer still anticipates tax bills will be sent on time and disbursements to taxing districts will occur on time – although the collection rates will likely be different. The Kane County Treasurer specifically noted in his recommendation of this approach that escrows are required to pay by the property tax bill due date.
If you have any questions regarding the Kane County Board’s resolution, please do not hesitate to contact Stuart Whitt or Brittany Flaherty Theis. We are also available if you wish to discuss options available to your School District pursuant to the School Code to address any gaps this development or other COVID-19 implications may have created in your cash flow estimates.
You can also anticipate a future News & Knowledge Blog post regarding interfund loans, interfund transfers, and short-term borrowing options available to school districts. Please sign up at www.whittlaw.com/news to receive these posts delivered directly to your email.
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