PERSONAL PROPERTY TAX

Property tax time is here again. For those who think that the personal property tax is unconstitutional and can be ignored, a few red flags should be posted, Maurice W. Scott, Executive Secretary of the Taxpayers' Federation of Illinois, warned today.

The personal property tax is a direct personal liability. In addition, the law provides a lien on the personal property for the tax. As a result, two remedies are available for the collection of such delinquent taxes. A personal action may be brought against the taxpayer whether or not there is a lien. The lien may be foreclosed by distress proceedings.

Under the statutes, all taxes on person property in downstate counties are delinquent and bear interest after June 1. In Cook County such taxes are delinquent and bear interest after May 1. Interest is at the rate of 1% per month.

Taxes levied upon personal property constitute a lien against the property from the time the tax books are received by the collector. This lien extends to property acquired after the assessment date as well as to property on hand on April 1.

The county clerk, in delivering the tax book to the collector, attaches a warrant to the book commanding the collector to collect the amounts listed. The warrant provides that in case any person fails to pay his personal tax by the due date, the collector is required to levy against the taxpayer's personal property by distress and sale.

Notice of the sale must be made public at least 5 days previous to the day of sale by posting advertisements in at least 3 public places in the township or district. The sale is conducted by public auction, and no more property should be sold than is sufficient to pay the tax, costs, and charges due.

When personal property taxes are not collected by the sale of personal property, the county board, through the State's Attorney, may bring suit in an action of debt against the delinquent taxpayers. If judgment is given, it may be enforced in the same manner as any other judgment of debt.

A tax on personal property may also be charged against real property when personal property has been moved out of the state, or where the tax cannot be collected out of the personal property.

Therefore, it must not be assumed that personal property taxes are entitled to preferred treatment over real estate taxes and are to be left uncollected. The statutes provide alternative remedies and if diligently applied by the proper officials, collections will be high.

Page 102 / Illinois Municipal Review / May 1958