District 33 challenging airport's tax exemption

By Harry Hitzeman Daily Herald Staff Writer
Posted Monday, July 19, 2004


The DuPage Airport recently won a round in court when a judge decided it should have been exempt from paying some $550,000 in taxes since 2000. Now, West Chicago Elementary District 33 and other taxing bodies will continue the fight.

School leaders recently agreed to appeal the late-June ruling by DuPage County Circuit Court Judge Edward Duncan that overturned a summer 2003 position by the Illinois Department of Revenue.

The department had rejected an airport request that more than 1,000 acres, including the 10-year-old Prairie Landing Golf Course and land that is being developed into a high-tech park, be free from property taxes.

District 33 Superintendent Ed Leman said if the latest ruling stands, the district will lose $125,000 per year and could be forced to repay the more than $350,000 in taxes it collected from the airport since 2000.

"It would be a serious, serious problem," Leman said. "We don't have reserves to fall back on."

Officials at the airport in West Chicago have argued that any property used for airport purposes is exempt from paying taxes under Illinois law.

"Our position remains the same," said Pamela Meek, airport spokeswoman. "In order to achieve our goal to be a self-sustaining airport, free of receiving property taxes, we must be free from paying property taxes. Otherwise, it is a self-defeating circle."

District 33 board member Robert Lemon acknowledged the airport's desire to get off the tax rolls, but said it is unacceptable for the airport to reduce its costs at the expense of kids.

"For them to argue it should be tax-free is to say it's not part of the community," he said.

West Chicago High School District 94 Superintendent Lee Rieck said that school system will join in District 33's appeal. The airport has paid District 94 about $260,000 in taxes over the last three years, Rieck said.

"We did agree to be a participant in any legal proceeding," Rieck said. "We're fairly confident the appeal would be successful."

Unlike municipalities, which get a share of sales taxes, state income taxes and a host of other fees, school districts receive nearly all their funding from local property taxes.

West Chicago City Administrator Michael Guttman said the city initially had joined several taxing bodies - the two school districts, the park district, the library district and the fire protection district - in opposing the airport's request to be exempt from taxes.

Guttman said city officials are worried the future development of the high-tech research park on airport land would be exempt from taxes.

"We're very disappointed with the ruling," Guttman said. "The city council has some serious concerns. They'll be discussing it in the near future."