Harmon-Tryon 'Truth In Taxation' Bill Signed Into Law By Blagojevich

[Cross-posted at WurfWhile.com]

Democratic State Senator Don Harmon and Republican State Representative Mike Tryon tried to get their 'truth in taxation' legislation passed last session, but ran out of time. They kept up with the commonsense legislation that says that property tax referenda should spell out the dollar cost of increases instead of just saying the rate of increase - a subtle distinction that has led to about $263 million in taxes that taxpayers weren't aware they would pay, according to the Daily Herald. Here in Naperville District 203, to take one example, a 2002 referendum yielded $24 million above district tax projections according to the Naperville Sun. The final version of the Harmon-Tryon tax reform bill passed both state houses without a single vote against it and was signed into law by Governor Rod Blagojevich June 30.

State Senator Don Harmon, the main senate sponsor, described the legislation to me yesterday.

How Senator Harmon Got Involved

"I started work on this bill because a school district within the senate district I represent got caught [by the complexities of the old law]. The district passed a referendum, but because of a technicality in the ballot language, it was not going to be able realize the benefits of the voters' approval. At the same time, the Daily Herald was running its series of stories on school districts that were exploiting similar vagaries in the tax cap law to realize benefits significantly greater than those approved by the voters. It made a great deal of sense to collapse these two legislative proposals into one, and I'm very pleased with the results."

What The New Law Means For Taxpayers And Future Referenda

"Greater clarity inevitably leads to greater accountability. Voters should be able to easily understand the proposal they are being asked to approve - not only the consequences for the taxing body's finances but also the consequences for their own household finances. Taxing bodies shouldn't count on voter confusion in the effort to pass a referendum.

I was often asked whether this would make it easier or more difficult to pass referenda, and my answer is 'both' - it will make it easier to pass a justifiable referendum and more difficult to pass a suspect referendum. I expect that fewer referenda may be presented, but those that are presented will be easier to explain and easier to justify."

Conclusion

This was a real victory for taxpayers and school districts. The persistence of Senator Harmon and Representative Tryon produced a bill that permits taxpayers to understand what a referendum asks them to pay - and permits school districts to understand what they're asking from taxpayers. Often the focus of news reports is on government failure - and when government fails it deserves blame. This law shows state government working, in a bipartisan manner, to achieve meaningful success. When that happens government deserves praise and credit.