By: Brittany Flaherty Theis
Taxing districts throughout Illinois rely upon property tax receipts for their programming, operations, staffing, supplies, and more. The unprecedented nature of COVID-19 presents unique challenges for taxing districts and property owners. On April 15, 2020, we reported that the Kane County Board voted unanimously to waive the penalty on late property tax payments on the first installment for 30 days. Last week, the Kendall County Board also authorized relief in the form of delaying the imposition of interest penalties.
On April 21, 2020, the Kendall County Board voted unanimously to postpone interest penalties on the first installment of property taxes. Taxpayers in Kendall County experiencing financial difficulties will be eligible to complete an application for the waiver of interest penalties. So long as the property taxes due to be paid on June 10 are paid by August 10, which is the due date for the second installment of property taxes, interest will not accrue for the period between June 11 and August 10. If, however, the full amount of property taxes owed for both installments is not paid by August 10, interest penalties will be owed. In that case, the amount owed will retroactively include interest penalties for the period of June 11 through August 10 for the first installment, as well as any interest penalties for the period after August 10.
The application for the waiver of interest penalties will be included with tax bills when they are mailed in the near future. Please note that property taxes paid from escrow are not eligible for the waiver.
If you have any questions regarding the Kendall County’s waiver, 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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