Frequently Asked Questions
business and finance
Q: WHY DID MY PROPERTY TAXES INCREASE?
There are several reasons why property taxes may increase year over year. An increase in property taxes within your particular taxing district may increase due to the following:
- A decrease in the taxing district’s overall equalized assessed value can increase the tax rate.An increase in taxes levied by the local government & school district in accordance with the Property Tax Extension Limitation Law
- An increase in the assessed value of your property.
- A decrease in assessed value that is lower/smaller than the overall decrease in assessed value for the taxing body.
- Public voting for bond issues such as new construction of schools, jails, etc.
Q: Property values have gone down. Why did my tax bill go up?
The percent change in your property tax bill is not a 1:1 relationship with the percent change in your property value. Other factors also impact your tax bill:
- Did your homeowner’s exemption amount change from the prior year?
- Are you receiving all the money saving exemptions to which you are entitled? Exemptions may save you hundreds of dollars on your tax bill. To view descriptions of exemptions available in DuPage County go to “https://www.dupageco.org/Treasurer/1849/"
- What was the change in your EAV as compared to other taxable properties in the community?
- Reductions and increases in EAV of individual properties cause a shift in the tax burden to other properties. If other property EAVs decreased by a larger percent than yours, your resulting EAV would represent a larger portion of the total EAV than it previously did. Thus, you would be responsible for a larger portion of the taxes than you previously were. With thousands of taxable properties making up the total EAV, it is impossible to predict your tax bill simply based on what happens with your individual property’s EAV.
Consider this example:
The school district needs taxes of $10,000 to provide services to your children. Suppose there are only 2 taxable properties in the community, your home and a commercial bank. The taxable value (EAV) of your home is $100,000 and the EAV of the bank property is $700,000.
Your home represents 12.5% of the total EAV ($100,000/$800,000), so your share of the tax bill is 12.5% * $10,000 or $1,250.
Year 2 declining EAV
The school district is limited by the Consumer Price Index (CPI) to an increase in property taxes of 2.7%, or $270, for a total tax of $10,270. At the same time, your EAV decreases by 15% to $85,000 and the bank EAV decreases by 30% to $490,000.
Your home now represents 14.8% of the total EAV ($85,000/$575,000), so your share of the tax bill is 14.8% * $10,270 or $1,520.
Even though your EAV decreased, the bank’s EAV decreased more, so your property now represents a larger proportion of the total tax base, and thus, a larger proportion of the tax burden.
Year 2 increasing EAV
The school district is still limited by the Consumer Price Index (CPI) to an increase in property taxes of 2.7%, or $270, for a total tax of $10,270. However, had your EAV increased by 20% to $120,000 and the bank’s EAV by 30% to $910,000, you would not have seen a 20% increased in your taxes.
Your home now represents 11.7% of the total EAV ($120,000/$1,030,000), so your share of the tax bill would be 11.7% * $10,270 or $1,201.
Even though your EAV increased, the bank’s EAV increased more, so your property now represents smaller proportion of the total tax base, and thus, a smaller proportion of the tax burden.
Q: What is the Property Tax Extension Limitation Law?
The Property Tax Extension Limitation Law, commonly referred to as “TAX CAP” or “PTELL” limits the increase in property tax extensions to 5% or the Consumer Price Index (CPI), whichever is less, not counting new construction or bond interest obligations.
Q: What is a levy?
The amount of money a school district and/or local government (taxing district) certifies to be raised from property tax.
Q: What is an extension?
The process in which the County clerk calculates the tax rate needed to raise the revenue (Levy) allowable by law and certified by each taxing body in the county. The total extension is the product of the taxing body’s equalized assessed valuation (EAV) multiplied by its calculated tax rate and is equal to the property tax billings on the district’s behalf.
In most counties in Illinois, tax levy amounts are based on home values or EAV and the Consumer Price Index (CPI). The EAV is calculated by averaging the home value over the past three years and then dividing by three (3). EAV usually amounts to approximately 1/3 or 33% of the home’s value.
Q: How does the district/local government determine its levy?
The law allows the taxing districts to make a prediction to ask for (levy) more taxes than they expect to collect, because at the time of the levy, the new property EAV is unknown. In early April, taxing bodies receive notification of the actual amount they will receive (extension) from the County Clerk.
Q: Where does my property tax money go?
Marquardt Elementary School District 15
Glenbard High School District 87
Village of Glendale Heights
Glenside Fire Protection District
Glenside Public Library District
College of DuPage
County of DuPage
*If after reviewing the questions below, further questions exist, please feel free to contact:
Assistant Superintendent of Business and Finance, CSBO
(630) 469-7615 ext. 1091