As values go up, so do tax bills

Average DuPage County homeowner to pay 5.8% more

By Robert Sanchez
Daily Herald Staff Writer
Posted Wednesday, March 30, 2005

DuPage County homeowners can expect to see a 5.8 percent average increase in their property tax bills next month, fueled largely by rising property values, officials said.

County Clerk Gary King on Tuesday released tentative tax rates for 349 local units of government. The rates help determine the amount of property taxes residents will pay.

While the average tax rate dropped 2.1 percent from last year, the average assessed property value — the other half of the tax equation — increased 7.9 percent.

The net result: an average 5.8 percent countywide property tax increase.

“Your home is your best investment,” King said. “It’s been going up (in value) almost 10 percent a year for quite a few years. Unfortunately, it’s also part of the tax process.”

Assessed values in DuPage increased on average from 7 percent in Winfield and Naperville townships to 10 percent in Wayne, Bloomingdale, York and Downers Grove townships.

DuPage leaders last year rejected an optional state law that would have put a 7 percent cap on annual residential property assessments, in part because too few homeowners would see a significant tax break.

But county officials did support legislation increasing exemptions for homeowners and seniors.

Gov. Rod Blagojevich last year signed into law a statewide plan that increased homestead exemptions to $5,000. In DuPage County, that represented a $1,500 increase.

In addition, state legislation increased to $3,000 the senior homestead exemption, which is available to any homeowner 65 or older.

Still, King said the higher exemptions merely shift the tax burden to others who don’t get them, mostly businesses.

“So where my tax bill might have gone up $500, maybe it’s only going up $450,” King said. “That extra 50 bucks is being picked up by some industrial property somewhere.”

The number of developed land parcels in DuPage increased slightly last year, from 322,190 to 323,645.

“So there’s still some new building going on, but it has slowed down,” King said.

While most homeowners will pay thousands of dollars in property taxes, King sang the praises of the state-imposed tax cap that helped rein in double-digit percentage increases that were common in the 1980s.

Since 1991, the cap has limited the amount many taxing bodies can increase their levies to the rate of inflation or 5 percent, whichever is lower. The inflation rate dropped from 2.4 percent in 2003 to 1.9 percent in 2004. It’s expected to climb to 3.3 percent this year, county officials said.

“The taxing districts hate it (the cap) because they don’t think it’s a big enough increase every year with various union demands on salaries and that sort of nature,” King said.

“But if there wasn’t a tax cap, most people wouldn’t be able to afford to live in DuPage County.”

Local governmental entities have a week to lower their rates by abating taxes, but county officials are expecting minimal changes to the tentative numbers released Tuesday.

Residents can expect their property tax bills to arrive during the first week in May. Payments are due June 1 and Sept. 1.