Evening star., 1933-12-28
Illinois Substitutes Sales Levy for
Realty Charge.


SPRINGFIELD, ILL.,, December %
R.-Illinois yesterday abolished real
estate and personal property taxes SO
far as State assessments were con-
cerned. 1t was the first complete sub
stitution OF a sales tax for property
taxes in the United States.
The step was taken after State
officials decided a 2 per cent tax on
retail sales, with perhaps some help
from liquor taxation, would be adequate
to replace the s35,o0o, 600 levied an
nually in recent years on general
property
Although cities, counties, park sys-
TENS, sanitary districts and other local
units will continue to tax real and per-
sonal property. abolition Of the States
share Of the revenue will result in a
saving Of from Z to l9 per cent to
property owners.
The abolition Is effective on 1888
taxes, for which property owners will
be billed early in 1884, except in Chi
cago, where 1888 taxes have not yet
been billed.
100000, 900 Now Overdue.
Taxing authorities said they hoped
the action would be of beneficial re-
suit In Chicago and Cook County, where
5000, 100000 Is overdue in taxes for
1929, 80 and 81.
Although Cook County's saving will
be only SIS 100000, or about per
cent of the total general property levy,
officials believed the reduction would be
considerable encouragement to heavi-
ly burdened taxpayers.
The States share of the property tax
for 1882 was SO cents on the 500
valuation, an increase Of Is cents over
the previous year. Were 1t not for the
sales tax, officials said, the rate would
have had to be between 10 cents and
81 in 1898, due to the fact the valua-
ton of general property has dropped
from $1,000 900, 900 to $500 900 900.
Assessor J. L. Jacobs and other Cook
County officials had feared such boost
would result in additional millions of
dollars In taxes going uncollected.
Board Makes Decision.
The decision to discontinue the States
"cut" was made by the board, COM
posed of Gov. Henry Horner. State
Treasurer John c. Martin and State
Auditor Edward J. Barrett, at the an
nual session.
Illinois, for the first time in l15
years, has been able to relieve real es-
tate and personal property of the State
tax" Horner said The reduction in
individual tax bills is the largest in
dollars and cents that Illinois property
owners ever have received in a single
year"
Horner said the reduction was made
possible in part by reductions In gov
ernmental expenses. but he gave most
Of the credit to the sales tax, which
was declared constitutional recently by
the State Supreme Court
Among the benefits which the Gov
ernor said would come from elimination
Of the State tax rate was an improve
ment in the finances of certain special
funds, including educational units,
which have depended on the State rate.
with adequate revenue assured for
1884" Horner said, 1.-The elimination Of
the State tax rate means the State, for
the first time in several years, can pay
the school distributive fund in full,
make payments of blind pension funds
to the counties. and pay the principal
and interest charges on the soldiers
State.
Expects Schools to Gain.
Payment of the s1O,5OO,OOo school
distributive fund in 1884 will go long
way toward relieving the serious finan-
cial difficulties Of the elementary schools
Of the State. These schools have suf-
fered from lack Of revenue for several
years.
1.-THE removal also will eliminate in
1894 the inequalities of State tax pay
ments that have existed for many
years under the ad valorem system of
taxation"
Savings to property owners will range
from 3 to II per cent greater In down.
State counties than in Cook County,
due to the heavy drain in Chicago for
the support Of parks, Fairgrounds, the
sanitary district and other projects
which require levies.
Collections from the sales tax have
averaged $2,000,000 month since 1t
became effective last Summer. After
January /, that revenue can be used
only to replace the general property
tax, and the revenue Is expected to
increase because of better enforcement
and more efficient collection.
Tax experts said other States, such
as Mississippi reduced payment of gen.
eral property taxes to the State, through
sales Or other new types of taxation.
Coincident with the change in sys-
tenn, Cook County Assessor Jacobs said
tax collections in Chicago had been
improved materially Recently a sys-
tenn has been adopted of throwing tax
delinquent property into receiverShip
and allowing the county to apply in
come from the property to overdue tax
bills.