Understanding your Property Tax Bill
The 2011 property tax bills (payable on June 1 and September 1 of 2012) have been released by DuPage County. If you have not received your property tax bill you can click here
to print a duplicate. The following is a list of frequently asked questions in regards to property taxes, should you have any additional questions please feel free to contact the Village’s Finance Department at 630-766-8200.
How much do I pay the Village in Property Taxes?
For the 2011 tax year (payable in 2012) a typical Bensenville homeowner with a $200,000 home will pay around $504 to the Village of Bensenville in property taxes.
How does that compare to last year?
The Equalized Assessed Valuation for all property within the Village was down 10.63% this year versus last year. Additionally, residential property decreased at a greater rate than commercial / industrial. This means that a typical Bensenville homeowner whose home had a fair market value of approximately $230,000 last year would have a fair market value of about $200,000 this year. They would have paid $525 to the Village of Bensenville last year and $504 this year. The total decrease in taxes paid to the Village for a typical Bensenville resident with a $200,000 home is $21.
I don’t understand I have a $200,000 home and believe me I pay more than $510 in Property Taxes?
That’s true. A typical Bensenville homeowner with a $200,000 home will have an approximate total tax bill of $4,945 dollars. But of that total bill only a little over 10% or $504 would go to the Village. The remainder is divided into several other taxing districts including the County, Forest Preserve, Airport Authority, Township, Park District, Fire Protection, Library and Schools. The breakdown is as follows:
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
So a reduction in the value of property will result in an increased tax rate and not a decrease in tax dollars. An exception would be if the value of your property decreased significantly more than that of the average property.
I think I get it but in looking at my bill I see that my total tax rate for all taxing districts combined jumped from 7.2293 to 8.1517… a whopping 12.76% increase!
Again it is important to remember that taxing districts levy in dollars. As such even though the rate jumped from 7.2293 to 8.1517 an average resident with a $200,000 home should on average see a slight decrease in property taxes paid. The large rate increase is largely a result of the 10.63% drop in the total Equalized Assessed Value (EAV).
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.
The Village recently won the Government Finance Officers Association Distinguished Budget Presentation Award for its 2011 Annual Budget. The GFOA established the Distinguished Budget Presentation Awards Program (Budget Awards Program) in 1984 to encourage and assist state and local governments to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s best practices on budgeting and then to recognize individual governments that succeed in achieving that goal
Click here for a direct link to more financial documents including the award winning 2011 Annual Budget.