Property Tax Revenue Benefits From Growth

Annual Tax Request Factors Inflation, Property Growth
Posted on 12/17/2018
2018 Tax Revenues

The biggest source of revenue for the school district comes from local property taxes. Every year in December the district files its property tax request, or levy, with Cook County.

The district makes a sum total request, which is tied to two factors. The total levy by state law can increase 5 percent or the rate of the Consumer Price Index, whichever is less, plus new development.

This year’s CPI is 2.1 percent for the second year in a row.

The actual amount of new property development for the year is not known at the time the levy is prepared. Chief School Business Official Jessica Donato said the historical average of new development is just over 1 percent. The district has one opportunity to capture new property development, so the levy generally overestimates growth to maximize revenue.

The 2018 levy of $36.3 million represents a total increase of 4.99 percent, though Donato estimates the district will receive about $35.7 million, which is a 3.18 percent increase. The Board approved the levy at the Dec. 11 meeting. 

Property taxes make up 87 percent of the district’s revenue. It’s important to maximize the levy to be prepared for future unknown funding issues such as rising insurance costs, unfunded mandates, reduced state funding, and student services needs.

Exactly how much each property owner pays is determined by the township assessor based on individual property value.