The second installment Cook County Property Tax Bills for Tax Year 2022 will be delayed. By law, second installment bills are supposed to be issued in July, with a due date in August. However, per Cook County officials’ reports, the bills are expected to be available online by November 1, 2023, with a due date of December 1, 2023. This delay will be the third in a row, continuing a trend that began with delayed second installment tax year 2021 bills and delayed first installment tax year 2022 bills. Cook County Officials said the latest delay resulted from the COVID-19 pandemic and a critical overhaul of the property tax system’s technological system.
Although taxpayers may welcome the extra time, delayed property tax collections could strain school districts’ budgets. But school districts have options for maintaining cash flow during the delay. Through interfund loans and permanent interfund transfers, school boards can manage their current cash allocations among their operating funds. Another source for cash inflow can come from “anticipating,” or drawing against, the delayed property taxes by issuing tax anticipation warrants or notes or obtaining a line of credit, all payable when the property taxes are ultimately received. School boards can also anticipate future state aid payments through lines of credit or state aid anticipation certificates and obtain advances of revenue streams through personal property replacement tax notes, revenue anticipation notes, or teacher orders. All these alternatives must comply with specific statutory procedures, and the practicality of their use will depend on the timing since the lead time for approval varies. As a result, consultation with legal counsel is advised.
If your district is exploring short-term cash-flow options for weathering the expected delay in property tax collections, please contact Steve Richart, Heather Brickman, Tony Senagore, or any other attorney in our Corporate Practice Group.
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