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TaxBuzz Top 5 - Chicago Property Tax Bills Explode By 225%, GA Gas Tax Freeze Expires, & More

by
Rebekah Barton
on
12/1/2023
TaxBuzz Top 5 - Chicago Property Tax Bills Explode By 225%, GA Gas Tax Freeze Expires, & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. Georgia Residents Brace For Rising Costs at the Gas Pump as Tax Freeze Lapses

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Credit: Boonchai Wedmakawand/Getty Images

Georgia Governor Brian Kemp (R) has signed a series of orders suspending The Peach State's gas tax, most recently in mid-September 2023. 

At the time, Kemp said, "While high prices continue to hit family budgets, hardworking Georgians deserve real relief and that's why I signed an executive order today to deliver it directly to them at the pump."

He previously put the tax on hold in March 2022 and extended the suspension for the following 10 months.

Now, however, the gas tax freeze is expiring and Georgians can expect prices at the pump to rise. The Atlanta Journal-Constitution noted that Kemp allowed his September order to expire on Wednesday, November 29. This means the state will resume its collection of 31.2 cents per gallon on unleaded gasoline and 35 cents per gallon for diesel fuel.

The resumption of the gas tax is likely to cause gas stations to raise their prices just as holiday travel ramps up.

2. Federal Government Lays Out EV Tax Credit Foreign Sourcing Details

The Biden Administration has laid out some ground rules regarding foreign sourcing and the new electric vehicle (EV) tax credit originally detailed in the Inflation Reduction Act. 

The Hill summarized the guidelines the federal government will be following moving forward:

“ The definition used by the Treasury Department will determine who is eligible for a $6 billion battery manufacturing and grant program under the Bipartisan Infrastructure Law, as well as the IRA’s $7,500 tax credit for the purchase of electric vehicles. Beginning in 2025, eligibility will be restricted if the battery contains either components or critical minerals from a foreign entity of concern (FEOC) under the language of the IRA. ”

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Deputy Energy Secretary David Turk told reporters that, per the current statute, FEOCs include North Korea, China, Russia and Iran.

Axios noted that some vehicles that currently qualify for the credit may no longer be eligible once these requirements take effect.

Automakers like Tesla have already made changes to their supply lines to ensure their vehicles still qualify. However, smaller startups and even some other established auto brands have not yet implemented the necessary changes -- this means it is essential for consumers to do the proper research before buying an EV.

3. Cook County, Illinois Residents See Property Assessments Rise By as Much as 225%

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Credit: JC Bonassin/Getty Images

Cook County, Illinois, which includes Chicago and its surrounding suburbs, has a population of 5.17 million as of the 2020 United States census. The county is home to over 40% of the state's residents.

Over the course of the past year or so, Cook County residents have faced a property tax nightmare. In December 2022, for example, one family found themselves dealing with a 440% property tax bill increase.  At the time, Michael Markellos, told ABC 7 Chicago, "This has put us in a tremendous financial bind, the building has gone negative in the bills." 

The news outlet shared that the prior year's tax bill for all 10 residences in the building totaled $23,674. In 2022, the Markellos family owed $128,282, an increase of 440%.

Now, the property tax saga continues with homeowners once again facing massive property tax assessment increases. A new report from ABC 7 shares that one Chicagoland resident, Lisa Markiewicz, has seen a jump of 210%. Another homeowner, Chuck Burke, saw his bill go up 225%. "I thought there was a mistake, they must have been blind when they assessed my house," he told reporters. 

Yet another impacted resident, Louise Markasovic, said, "I'm leaving, I'm gone and going to Indiana. Her assessment increased by 41%, which is a small amount in comparison to some of her peers.

ABC 7 spoke to current Cook County Assessor Fritz Kaegi's office. A spokesperson said, "The recent values sent out reflect the current market value of their home... Assessments are based on current market value, what they could sell their home for in today's market."

4. U.K. Cracks Down on Crypto Investors Who Have Unpaid Taxes

The United Kingdom is cracking down on cryptocurrency investors who have unpaid taxes. CoinDesk shared that government authorities this week requested that crypto users voluntarily disclose unpaid capital gains or income taxes to avoid hefty penalties.

Residents are required to disclose capital gains or income from digital currency like bitcoin, non-fungible tokens (NFTs), and utility tokens. All necessary tax payments must be made within 30 days of disclosure, per government guidelines.

For the past couple of years 2021, the Treasury has been clarifying its stance on crypto taxes. In March 2023, for example, the nation announced people would have to declare their crypto separately in tax forms.

The United States has also made regular changes to its cryptocurrency tax policies, including changing the standard crypto question on federal tax forms. Additionally, in September 2022, the IRS was granted a court order to help track down cryptocurrency tax evaders.

5. Oklahoma Delays Rollout of New Private School Tax Credit Program

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Credit: Jonathan Kirn/Getty Images

Oklahoma authorities have delayed the official rollout of the state's new private school tuition tax credit program, called the Parental Choice Tax Credit.

A notice on the official website for the program states:

“ With respect to the Oklahoma Tax Commission’s (OTC) implementation of the Parental Choice Tax Credit program, we have decided to delay the application start date from Friday, December 1 @ 8:30am to Wednesday, December 6 @ 2:00 pm. The 60-day priority period will now extend through Monday, February 5, 2024. ”

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The Oklahoman shared details from an email that was sent to families on the evening of Thursday, November 30. "We have experienced some obstacles in ensuring a seamless rollout of the Parental Choice Tax Credit program," the Oklahoma Tax Commission wrote.

"Although the majority of parents have received their Enrollment Verification Forms, and are ready to apply, we do have parents who have not received their form as of close of business Thursday, November 30. We continue to work diligently to resolve all unanticipated complications and will continue to do so," the email statement continued.

Those in charge of the program are anticipating an early application rush. Funding for the Parental Choice Tax Credit was capped at $150 million by the state Legislature. The cap will increase by $50 million each year for the next two years, topping out at $250 million total. If the $150 million cap is reached before all eligible applicants receive their credit, priority will go to those who applied first.

Which of this week's headlines is most interesting to you?

Feature Image Credit: Artas/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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