The value of my house went down, why didn’t my property taxes?
A common misconception is to think of property taxes like income taxes. Income taxes are based on a set rate schedule and will vary based on income. For example if you are in the 25% income tax bracket and you make more money than the previous year you will pay more in taxes.
Property taxes work differently. Taxing districts levy in dollars. Then the total dollars levied is spread over the value of all the property within the taxing district to arrive at a tax rate.
The simplified formula is listed below:
Dollars Levied / Total Value of Property = Tax Rate
What is Assessed Valuation?
Assessed Valuation is 1/3 of the market value of a given property. So if a home is valued at $200,000 its Assessed Valuation would be $66,666. The Total Equalized Assessed Valuation for all property within a taxing district would be 1/3 the total market value for all the property located within that taxing district.
Who determines EAV?
This is handled by the Addison Township Assessor’s office. The Assessor’s office is mandated by law to value all property at 1/3 of its fair market value as of January 1st each year. The County and State monitor the Townships values using a 3 year sale study. This insures that in years of rapid real estate growth or rapid decline, the assessments remain stable. For more information on the assessment process click here.
What does the Village do with my property taxes?
Property taxes are one source of Village revenues and are held in the Village’s General Fund and help fund all the various services the Village has to offer including Maintenance of Village Streets and Sidewalks, Snow Plowing, Economic Development, Code Enforcement and minor Capital Improvements. In addition, the Village levies directly for Police Protection, Police Pension, Liability Insurance, Workers Compensation, Illinois Municipal Retirement Fund and Social Security.
Property Taxes do NOT go towards funding water and sewer operations, refuse collection and commuter parking. These areas are operated as Enterprise funds meaning they are self-sufficient and rely on user charges to fund operations.
Where can I go for more financial information about the Village?
The Village’s website contains a great amount of detailed financial information including audited financial statements as well as the budget document.
Click here for a direct link to more financial documents