Finance Department frequently asked questions
On this document, we have compiled some of the questions that CCSD 89 Finance Department employees regularly receive. Hopefully, these responses will help answer some questions you might have about school district finances.
Why did my property taxes increase?
There could be several factors influencing your tax bill. First, the tax bill you receive combines payments to several taxing bodies including: cities, park districts, community college districts, libraries, airport, forest preserves, fire protection, and school districts. Changes in any of those taxing bodies could affect your overall bill.
There are many other factors that could affect your tax bill. Some of those factors include:
- An increase in the assessed value of your property
- A decrease in the taxing district's overall equalized assesssed value
- A change in the equalized assessed valuation of all the properties in the district
- An increase in taxes levied by local government in accordance with the Property-Tax Extension Limitation Law (Learn more about PTELL here: https://www2.illinois.gov/rev/questionsandanswers/Pages/331.aspx)
- An increase in the assessed value of your property that is higher than the overall increase in assessed value for the taxing body
- A change in your homeowners’ exemption
Property values have gone down. Why did my tax bill go up?
The percent change in your property tax bill is not a one-to-one relationship with the percent change in your property value. Other factors also impact your tax bill. For instance:
- Did your homeowner’s exemption amount change from the prior year?
- Are you receiving all the 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 equalized assessed valuation (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. So, you would be responsible for a larger portion of the taxes than you previously had been. With hundreds of taxable properties making up the district's total EAV, it is impossible to predict your tax bill based on what happens with your property.
- Consider this example:
- Year 1: The school district needs taxes of $10,000 to provide services to your children. Suppose there are only two 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 percent of the total EAV, so your share of the tax bill is 12.5 percent of $10,000, or $1,250.
- Year 2: The school district is limited by the Consumer Price Index (CPI) to an increase in property taxes of 2.7 percent, or $270, for a total tax of $10,270. At the same time, your EAV decreases by 15 percent to $85,000 and the bank EAV decreases by 30 percent to $490,000. Your home now represents 14.8 percent of the total EAV, so your share of the tax bill is 14.8 percent of $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.
What is the Property Tax Extension Limitation Law?
The Property Tax Extension Limitation Law - sometimes referred to as the "tax cap” or “PTELL” - limits the increase in property tax extensions from one year to the next to 5 percent, or the Consumer Price Index (CPI), whichever is less, not counting new construction or bond-repayment obligations.
What is a levy?
The levy is the amount of money a school district and/or local government body certifies to be raised from property tax.
What is an extension?
The maximum allowed extension is the product of the taxing body’s equalized assessed valuation (EAV), as determined by the DuPage County Assessor, multiplied by its calculated tax rate. It 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. The EAV is calculated by averaging the home value over the past three years and then dividing by three. EAV usually amounts to approximately one-third or 33 percent of the home’s value.
How does the district determine its levy?
The law allows taxing districts to make a prediction to levy (ask for) 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 from the County Clerk.
Where does my property-tax money go?
- Community Consolidated School District 89
- Glenbard High School District 87
- Villages of Glen Ellyn, Lombard, or Wheaton
- Fire Protection District
- Public Library District
- College of DuPage
- County of DuPage
- Forest Preserve District
- DuPage Airport Authority
- DuPage County Health Department
- DuPage Water Commission
- Milton or York townships
- Glen Ellyn Mosquito District
(Not all of these apply to every property.)
If you have further questions, please contact:
Maureen A. Jones, CSBO
CCSD 89 Assistant Superintendent for Finance & Operations
(630) 469-8900, ext. 3508