By Brian Massie, A Watchman on the Wall
We attended a meeting in Concord Township to listen to the Trustees, Administrator, and Fiscal Officer discuss their decision to institute a Residential Incentive District.
Here is a 30 minute video of the County Administrator explaining the R.I.D. He also reads correspondence from the Riverside Chief Financial Officer, Mr. Gary Platko, and School Board member Belinda Grassi objecting to the Township enacting the R.I.D.
Here is an explanation we found on-line about Residential Incentive Districts:
RID Explanation (Residential Incentive District)
A RID is legislation enacted by an entity to help pay for public improvements. The entity chooses to divert a portion of tax the taxpayer is already earmarked to pay, for a determined period of time (usually 30 years). [Concord Township is looking at a 10 year R.I.D.] The taxpayer pays no more or no less as a result of the RID. Each taxing authority agrees to give up their portion of the RID money for this period of time.
At the time the RID is enacted, the value of the parcel is locked. Those taxes against that locked value are calculated, billed and distributed to the county, township, schools, etc. in the normal fashion. Any increase in the value from that point on is put on an exempt parcel. This parcel is coded as exempt in order to avoid a bill being calculated.
The exempt parcel looks identical to the real taxable parcel except that it ends in an “R”. The taxes are calculated against the value on the exempt parcel and assigned to the regular, taxable parcel as a special assessment.
In order for a taxpayer to see their 100% true market value, they must add the values on their regular bill to the exempt or “R” parcel.
Example: House is $100,000 at time of RID. From that point on, the taxes collected on that $100,000 get distributed the usual way. If the house increases to $125,000 in value, the taxes on the new $25,000 are diverted to the township or municipality that has established the RID.
Here is the letter sent by Mr. Gary Platko, Chief Financial Office of the Riverside School District, to the Concord Administrator, Mr. Andy Rose:
Categories: Concord, Lake County Cities & Townships