AI-Generated image through ChatGPT
Interestingly, I queried ChatGPT to create the image above, simply asking for a graphic that showed Rivian’s parking lot with a sign saying they have a property tax bill of $13.8 million.
I did not include in my query anything about “PAID BY YOU, NOT BY RIVIAN”; ChatGPT added that point in. It makes you wonder why that was included, since it is a point I was going to make when commenting on this WGLT article explaining Rivian’s property tax appeal. Maybe the AI world knows that Rivian has received large sums from the taxpayers.
Rivian was given an $827 million tax incentive package from Pritzker in 2024, of which it has already received over $107 million. Effectively, taxpayers are footing the bill for operations, and that includes their property tax payment.
That’s just a side point, however, that I wanted to make in pulling this article apart. The article brings out other interesting items that taxpayers need to be reminded of when big companies, or owners of expensive homes, want to cut their tax bill by appealing the assessment.
From the article:
“Rivian said the government’s assessed value was way off — and that the true assessed value should be just $71.7 million, or a 59% reduction, county records show. That would set market value around $215 million.
McLean County government hired an outside appraiser, Thomas Y. Pickett, which concluded the initial assessed values were essentially correct, records show. They determined market value to be around $518 million.
The dispute is now at the Property Tax Appeals Board level. The school district, though, is spreading misleading information about the topic by saying that if Rivian gets the lower assessed value, then their school district would lose $6.8 million dollars in revenue.
This is NOT TRUE. Assessor Warren Dixon explained it this way:
The school district is either completely ignorant or lying. They will not lose a dime because of Public Act 102-0519 (Senate Bill 508), which created Section 18-233 of the Illinois Property Tax Code. This law provides an automatic “refund recapture” levy that allows Illinois school districts and other taxing bodies to recoup property tax revenues lost to prior-year assessment reductions.
So not a dime of property tax revenue loss. But it will increase the property tax rate and property tax on all other properties in the district, residential and commercial. It’s just a shift in who pays because the levies don’t change and they can recapture.“
Dixon went on to say that, “My guess is the value is incorrect and too high. The Assessors Office in McLean doesn’t have a qualified appraiser to value a property like that.”
He further explained that:
“This type of special use property is complex appraisal which would be combination approach of Cost and Income rely heavily on depreciated cost approach reconciled by Discounted Cash Flow method of the Income Approach. Relying primarily on cost.“
Dixon noted again that “It wouldn’t be correct to say they are losing any revenue, they are actually gaining revenue. What would be fair to say is that it reduces the commercial tax base and shifts a heavier burden on residential property owners and small business owners.”
People in the school district should ask why the leadership is putting out false information.
Another important item the article pointed out is that Rivian entered into a property tax agreement in 2022 that they are now trying to get out of:
“Superintendent Kristen Weikle and her Chief financial officer Marty Hickman “contend that Rivian already was saving money from a 2022 round of tax incentives. Weikle said they entered into that agreement at the behest of the Bloomington-Normal Economic Development Council and its then-leader, Patrick Hoban.”
“During that agreement, we thought that Rivian would not be appealing any taxes. However, they have,” said Weikle. “So it’s certainly giving us reason to pause, and to consider whether or not we would be willing to enter into any future agreements. We would probably have to look at each one individually and look to see what would the potential impact be to Unit 5, as well as the benefit of the community. In this case, we entered in good faith and unfortunately and some property tax appeals have now occurred.”
Bottomline – regular taxpayers are the ones who should be protesting their tax bills and you cannot trust what your school district says or the deals it cuts behind your back.