ICYMI: The Burke case and the need for property tax reform in Illinois

ILGOP Chairman Schneider renews call to prohibit lawmakers from performing property tax appeals legal work, agrees with Chicago Mayor Emanuel’s proposed ban for City Council

Illinois Republican Party Chairman Tim Schneider authored a guest column in the Daily Herald discussing the need for property tax reform, specifically prohibiting the practice of lawmakers at any level of government from operating law firms on the side that perform property tax appeals. Chicago Alderman Ed Burke and House Speaker Mike Madigan are among those lawmakers.

From Chairman Schneider’s guest column:

…Nowhere else is the property tax system so corrupt and unethical. The recent indictment of property tax attorney and Chicago Alderman Ed Burke for extortion of a Burger King franchise in his ward is simply the tip of an enormous iceberg. The public has known for years that the entire property tax system is fundamentally broken, yet no reforms have been enacted by our elected officials to correct it.

Either we demand a fairer system of property taxation in Cook County, and elected officials who actually look out for their constituents, or we are doomed to lose even more residents to the Republican-run, taxpayer-friendly states of Texas, Tennessee, Indiana and Florida.

Don’t let this moment pass with a cynical acceptance of Chicago’s corrupt culture. We must reform our property tax system and end conflicts of interest. We can no longer allow the very people who write public policy to profit from it.

Legislators and policymakers — the Ed Burkes and Mike Madigans of Illinois — should be prohibited from performing property tax appeal legal work as long as they are elected officials. It is impossible for them to perform the public work the people entrusted them to do without considering the profitability and interests of their own private law firms. They should be free to choose one or the other, but not both…

Recently, Chicago Mayor Rahm Emanuel unveiled an ethics reform package following the Burke indictment that would “preclude council members from representing developers and property owners in the kind of property tax abatement work Burke did through his outside law firm.” Chairman Schneider supports Mayor Emanuel’s proposed ban and urges Governor Pritzker and the General Assembly to take up legislation that would enact similar rules for state lawmakers.

Crain’s Chicago Business also published an editorial calling on Governor-elect J.B. Pritzker and Chicago’s next mayor to outlaw the “indefensible” practice of “[representing] businesses on their property tax appeals and hold immensely powerful political offices.”

###

ILGOP Chairman Tim Schneider Statement On Gov. Pritzker Unpaid Spending Promises, Budget Uncertainty

Moments ago, Governor J.B. Pritzker issued an executive order authorizing pay increases for thousands of state employees without specifying the costs to taxpayers. Illinois Republican Party Chairman Tim Schneider issued the following statement in response:

“Governor Pritzker has barely been in office for 24 hours, and he’s already signed an executive order spending an undefined amount of taxpayer dollars on state employee pay increases. Yesterday, we heard promises from Pritzker that he would work with Democrats and Republicans to balance the budget. Yet today, Pritzker unilaterally made reckless spending promises without specifying the costs, creating more budget uncertainty. It’s clear – the Pritzker agenda is the same agenda that has dragged our state down for decades – borrow, tax, spend, repeat.”

###

ILGOP Chairman Tim Schneider Statement On Governor J.B. Pritzker’s Inaugural Address

Schneider calls out Pritzker for false promises, pledges to hold Democrats accountable during upcoming policy debates

Illinois Republican Party Chairman Tim Schneider released the following statement in response to Governor J.B. Pritzker’s inaugural address:

“It’s clear that Governor Pritzker’s agenda will be the same agenda that has dragged our state down for decades – borrow, tax, spend, repeat. Over the course of the election and again today, Pritzker promised billions of dollars in new spending, programs, and regulations, all of which our state cannot afford.

“And just a few short months ago, Pritzker broke with his party boss, Mike Madigan, when he promised to support legislative leadership term limits and an independent redistricting commission – two initiatives supported by the Illinois Republican Party – but we didn’t hear anything about them today. Why? Because they were only a ploy to win votes. Pritzker never intended to end the status quo in Springfield. Rather, he’s reinforcing it.

“Over the coming weeks and months, we will hold Pritzker, Madigan, Cullerton, and all Democrats accountable for their false promises because we know that they are the main culprits behind Illinois’ fiscal demise. We won’t be afraid to speak out against the latest policy disasters Illinois Democrats are embracing.

“The numbers prove it – Illinois taxpayers are fleeing our state in droves. We must change course before it’s too late or else there won’t be any taxpayers left. As the next debates begin in Springfield, Illinois taxpayers will know that the Illinois Republican Party is on their side.”

###

Crain’s Calls On Pritzker To Support Outlawing Property Tax Appeals Work For Lawyer-Lawmakers

“[Pritzker and Chicago’s mayor] first ought to tackle the ethics issues and conflicts of interest highlighted in the Burke case once and for all.”
“We know the practice of lawmakers at any level of government serving as property tax appeals lawyers is a conflict of interest, and it must end. Governor-elect Pritzker should call on lawmakers to immediately take up legislation outlawing the practice. With our state’s terribly high property taxes, the people of Illinois deserve elected officials who are wholly committed to reforming our government and tax system for everyone, instead of using their position for self gain.” – Illinois Republican Party Chairman Tim Schneider
Today, Crain’s Chicago Business published an editorial calling on Governor-elect J.B. Pritzker and Chicago’s next mayor to outlaw the “indefensible” practice of “[representing] businesses on their property tax appeals and hold immensely powerful political offices.” Crain’s also called it a “no-brainer” for Pritzker.

From Crain’s Chicago Business editorial:

This is why outgoing Gov. Bruce Rauner, for all his faults, wasn’t wrong to advocate for term limits and to suggest that House Speaker Michael Madigan’s day job, like Burke’s, presents such a clear conflict of interest to his role as a public servant that it defies logic. In fact, it is well past time for it to be illegal to do what Burke and Madigan have done for decades—handling property tax appeals for businesses standing to benefit from or be harmed by government actions.

If the city or state were on autopilot, with finances in good shape, it might not matter so much. But with job one for both the newly elected governor and soon-to-be-elected mayor being to fix the city and state’s fiscal house—which likely involves overhauling state and city tax frameworks—they first ought to tackle the ethics issues and conflicts of interest highlighted in the Burke case once and for all.

If our elected leaders are going to go for the type of grand bargain that seems required—more taxes, fewer services—they should offer taxpayers something in return, like good government, or at least better government.

Incoming Gov. J.B. Pritzker would earn goodwill from both parties if he targeted what has now been shown in the starkest manner possible to be indefensible: the ability to represent businesses on their property tax appeals and hold immensely powerful political offices. Start there. It’s a no-brainer.

###

Illinois Republican Party Chairman Tim Schneider Calls For An End To Politicians Serving As Property Tax Appeals Lawyers Following Burke Corruption Charges

Chairman Schneider also calls for comprehensive reform of Cook County’s property tax system

Today, Federal officials announced corruption charges against Chicago Alderman Ed Burke for attempting to extort a fast food business in a scheme to steer business to Burke’s law firm. The Chicago Tribune is also reporting that campaign cash that was a part of Burke’s extortion scheme was intended for Cook County Board President and Cook County Democratic Party Chair Toni Preckwinkle. Illinois Republican Party Chairman Tim Schneider released the following statement in response:
“Illinois’ broken and corrupt property tax system enabled Chicago Alderman Ed Burke to extort a fast food restaurant in an attempt to solicit business for his lucrative property tax appeals law firm and line the campaign coffers of Democratic elected officials in Cook County. The practice of lawmakers at any level of government serving as property tax appeals lawyers is unethical, and it must end. Today, the Illinois Republican Party is calling for comprehensive reform of Cook County’s property tax system to protect taxpayers.”

###

JB Pritzker Cornered By Reporters Over His Potentially Criminal “Scheme To Defraud” Taxpayers

JB Pritzker has come under intense fire in recent days after a watchdog report by the Cook County Inspector General detailed how the billionaire engaged in a “scheme to defraud” taxpayers by ripping toilets out of his mansion in order to get $330,000 in tax breaks.

Pressed by reporters yesterday, Pritzker squirmed and dodged, refusing to answer even the most basic questions. Capitol Faxcalled the exchange “brutal” for Pritzker. It’s clear – Pritzker has no answer to the charges made by the watchdog report.

Read the transcript below and listen for yourself:

Pritzker: So, let me be clear about this, we followed the rules.

Question: And the rules are to get a break when you can?

Pritzker: We followed the rules.

Question: What are the rules? What are the rules?

Pritzker: I can’t relay them to you, I’m not a real estate lawyer. What I can tell you is…

Question: There are rules that let you take the toilets out of your home?

Pritzker: We’re in the process of that paying that back. But the fact is, the reason we’re paying it, for the last 34 days of this campaign we should be talking about the real issues. The real issues…

Question: But why are you taking so long?

Pritzker: 14 people died. There are people who are seriously, negligence is causing…

Question: You’re deflecting, the question is about your home.

Pritzker: Negligence is causing, negligence is causing the the deaths of our veterans. That is what were here to talk about.

Question: People want to know, who would also love to have a property tax break, what are those rules?

Pritzker: I’m not a real estate lawyer, I couldn’t elaborate.

Question: You said that this is nothing new, that there was nothing new, and yet the inspector general’s report or presentation of the affidavit, the presentation of the inspector, there were things that were new in that, and there were things in there that alleged that your wife wanted the toilets pulled before the inspector.

Question: And you received a proactive tax break.

Pritzker: There were a lot of mistakes in that report, but let me…

Question: What are they?

Pritzker: We are talking today about a criminal probe…

Question: Talking about one for you as well.

Pritzker: Just like…but there isn’t one.

Pritzker: Bruce Rauner is now under investigation, with his administration, there is a criminal probe into that administration to see what it is that caused the deaths of these family members, truly criminal negligence is what seems to be at stake here.

Question: Cook County States Attorney Kim Foxx is also reviewing whether or not laws have been broken in your property tax appeal. So there is also…

Question: A criminal investigation.

Pritzker: I’m pointing out there is a criminal probe into the Rauner administration.

Question: Well their office also says there is a review.

Pritzker: You should focus on the fact that people died here, the criminal probe could lead to, like we talked about in the Flint case, there are people who have been charged, there are people who have been, now even, involuntary manslaughter, this is very serious.

Question: Do you wish that you had not asked for that property tax break?

Pritzker: The veterans in Illinois, the veterans in Illinois, their lives are at stake when you have an administration that has ignored them, that has mistreated them, that does not understand how to care for them.

Question: Why does a billionaire need to rip out toilets to save $330,000?

Pritzker: Well, that was not obviously what happened. We renovated the home, renovated the home, I stopped that renovation, we restarted it, we paid the taxes that were assessed on that property.

Question: You took action to make the house look like it wasn’t worth as much, so you could take a cut, correct?

Pritzker: No. No.

Question: Then what was it? Then explain what it was? [crosstalk]

Pritzker: A renovation project.

Campaign: Final question, last question.

Question: Who rips out 5 toilets?

Pritzker: When you’re renovating, and literally gutting, when you’re renovating a home…look, let me remind all of you that this gradual situation that occurred at the Quincy veterans home…

Question: Wait a second, we’re talking about the house, why are you…

Pritzker: Because we’re talking today about the Quincy veterans home and I want to remind you that gradual situation which could have been dealt with all along. Someone should have stood up for those veterans, someone in the Rauner administration. But they didn’t, and people died as a result. That’s the fact, those are the things that happened to the service men and women at the Quincy veterans home that Bruce Rauner should have stood up for and he didn’t and people died. It’s criminal.

Question: You told us last night at the debate that parts of the IG report are not accurate, can you tell us what’s not accurate?

Pritzker: I’ve said all along, I said this last night, that we followed the rules. And I’m telling you now what’s important to recognize is that this was a renovation project that literally didn’t know, and the reason it was halted was because as we said, we didn’t know whether the home would be sold, didn’t know whether the home would be rented out, the project was restarted.

###

House Republicans Introduce Legislation to Stop J.B. Pritzker’s Vacancy Fraud

CHICAGO — House Republican Leader Jim Durkin (R-Western Springs) and State Representative and Grant Wehrli (R-Naperville) introduced legislation to make property tax vacancy fraud a Class 4 felony in Illinois after a Cook County Inspector General found that J.B. Pritzker knowingly committed fraud to avoid paying $330,000 in taxes.

“The Cook County Inspector General’s report made it very clear that J.B. Pritzker has defrauded all the taxpayers of Cook County.” said Durkin. “The General Assembly needs to address this issue to make sure those who commit fraud are held accountable.”

The report found that Pritzker knowingly removed all the toilets from his mansion to deem it uninhabitable in order to evade hundreds of thousands of dollars in taxes. This new legislation will bring forth serious criminal charges to those who think they deserve more of a tax break than the hard-working citizens of Illinois.

“Why should Mr. Pritzker, an inherited billionaire who hasn’t worked a day in his life, get to save hundreds of thousands in taxes when the people of Illinois are working tirelessly just to make ends meet?” asked Wehrli. “It is clear Mr. Pritzker will only put his own self-interests above the taxpayers, and now more than ever we don’t need another Democrat who manipulates the system to benefit his own pockets.”

###

Republican Congressional Delegation Letter to U.S. Attorney’s Office on Pritzker’s Toilet Fraud

Today, the Illinois Republican Congressional Delegation sent the following letter to the U.S. Attorney’s Office for the Northern District of Illinois. The letter calls for a full investigation into JB Pritzker’s “scheme to defraud” Illinois taxpayers by ripping toilets out of his mansion to claim the property as uninhabitable.

See the letter signed by all seven members of Illinois’ Republican Congressional delegation below:

October 3, 2018

The Honorable John R. Lausch, Jr.
United States Attorney’s Office
Northern District of Illinois, Eastern Division
219 S. Dearborn St., 5th Floor
Chicago, IL 60604

Mr. Lausch:

We write to call your attention to a recent Cook County Inspector General investigation which concluded that Jay Robert (J.B.) Pritzker engaged in a “scheme to defraud” Cook County of over $300,000 in improper property tax reductions and refunds.

As reported by the Chicago Sun-Times, the Cook County Assessor’s Office in 2015 reduced the assessed valuation of a mansion owned by Mr. Pritzker from $6.25 million to just under $1.1 million. These reductions allowed Mr. Pritzker to claim $132,747.18 in refunds for property taxes paid in 2012, 2013 and 2014, and reduced his property taxes for 2015 and 2016 by $198,684.85.

The Inspector General’s report concluded that the assessment reductions were reduced due to fraudulent affidavits submitted by Tom Muenster, Mr. Pritzker’s brother-in-law, and Christine Lovely, Mary Kathryn (M.K.) Pritzker’s assistant. These affidavits falsely claimed that the mansion had been “vacant and uninhabitable,” with no working toilets, since January 1, 2012. The Inspector General report found that, contrary to the affidavits, the toilets had been removed on October 6, 2015, just ten days before a scheduled appraisal of the property, at the direction of M.K. Pritzker. According to an email obtained by the Inspector General, Ms. Pritzker directed that the toilets be removed for the express purpose of allowing the house to be declared uninhabitable.

The facts described in the Inspector General’s report appear to constitute fraud and perjury. Since the improperly-obtained refund checks were sent to Mr. Pritzker through the U.S. Mail, a violation of 18 USC 1341 (the Federal Mail Fraud Statute) may have occurred.

Illinois, perhaps more than any other state, has suffered greatly due to public corruption. Four of Illinois’ last nine governors have gone to prison. It is important to send a strong signal to the people of Illinois that no one is above the law, not even billionaires running for Governor. For that reason, we urge you to fully investigate this matter with all due speed.

Sincerely,

U.S. Representative Peter Roskam (IL-6)
U.S. Representative Mike Bost (IL-12)
U.S. Representative Rodney Davis (IL-13)
U.S. Representative Randy Hultgren (IL-14)
U.S. Representative John Shimkus (IL-15)
U.S. Representative Adam Kinzinger (IL-16)
U.S. Representative Darin LaHood (IL-18)

###

ILGOP Leadership Announcement

ILGOP Chairman Tim Schneider and Lake Co. GOP Chairman Mark Shaw announce a reorganization plan that focuses on grassroots organizing dedicated to reelecting Gov. Rauner and Republicans statewide

“Chairman Mark Shaw is a great asset to the Illinois Republican Party, and I’m very pleased to announce a new joint effort with him to refocus our party’s efforts on grassroots and county-level organizing. This year’s election might be the most consequential one in our state’s history, so we must be more organized than ever before. That is why I wholeheartedly endorse Mark Shaw to lead the Illinois Republican County Chairmen’s Association as President. Mark will also serve as co-Chairman of the Illinois Republican Party and lead conservative and grassroots outreach for the party. With Mark joining me at the helm, the state party and Republican organizations across Illinois will coordinate new efforts to reelect Gov. Bruce Rauner and our Republican ticket statewide.” – Illinois Republican Party Chairman Tim Schneider

“Many conservatives sent Governor Rauner a message in the primary. On the night of the primary, Governor Rauner said he heard them, and I heard them – loud and clear. But Republicans must focus on the issues that unite us and the election ahead of us. Conservatives in Illinois must come together to reelect Governor Rauner, or we won’t have a voice in state government for the next decade.

“That is why I’ve decided to join together with Chairman Tim Schneider in a unity effort to lead Republicans in Illinois. I’m asking the State Central Committee to reelect Tim Schneider to another term as our party chairman, and I am honored to serve as co-Chairman of the party. The joint unity effort will make our conservative voice louder and ultimately make our party stronger. I look forward to working with Tim in my new role to focus our party’s attention on the grassroots and do the important organizing work to reelect Gov. Rauner, elect more Republicans statewide, and build our party at the statewide and local level.” – Lake County Republican Party Chairman Mark Shaw

Today, Illinois Republican Party Chairman Tim Schneider and Lake County Republican Party Chairman Mark Shaw announced an agreed reorganization plan that restructures party leadership and refocuses party efforts on grassroots and county-level organizing dedicated to reelecting Governor Rauner and the statewide Republican ticket.

With the full support of Chairman Shaw, Chairman Schneider will continue to serve as Chairman of the Illinois Republican Party, and Chairman Shaw will serve as Co-Chairman of the Illinois Republican Party and lead conservative and grassroots outreach. Additionally, with the full support of Governor Bruce Rauner and Chairman Schneider, Chairman Shaw will run for President of the Illinois Republican County Chairmen’s Association. Both leadership positions will be elected this Saturday, May 19, at organizational meetings in Springfield.

Chairman Schneider and Chairman Shaw look forward to working together over the next six months to unify Republicans in Illinois, reelect Gov. Rauner, and defeat Mike Madigan.

###

ILGOP Chairman Tim Schneider Responds to Governor Bruce Rauner’s State Of The State Address

Illinois Republican Party Chairman Tim Schneider issued the following statement after Governor Bruce Rauner delivered his State of the State Address:
“Today, Governor Rauner showed why he’s the right person to lead Illinois to a better future. He clearly and compellingly articulated the need to work together to find real solutions to our state’s challenges. His commitment to grow good-paying jobs, cut taxes for small businesses and hardworking families, and end the corruption in state politics is exactly what we need to unlock Illinois’ potential.”

###