Tax levy faqs
District 47 Board of Education Approves 2023 Tax Levy
After a public hearing at the District 47 board of education meeting on November 20, 2023, the board voted 7-0 to adopt the 2023 tax levy. The requested aggregate amount of total property taxes to be levied for 2023 is $89,476,000. The district’s 2022 tax levy request was $84.67 million. The amount received (tax levy extension) was $82,090,941.
Tax levy requests are based on projected operating expenses, estimated property values (Equalized Assessed Value or EAV, which is determined by the county) and local projected revenue from new construction. The 2023 tax levy request reflects current rising costs due to inflation, an estimated EAV increase of approximately 4.5 percent, and estimated new construction valued at $14 million.
For the past five years, the tax rate has declined (from $3.95 in 2018 to $3.74 in 2022). Based upon the levy assumptions of an EAV increase of approximately 4.5 percent the tax rate may increase by $0.02. However, if the increase in property values is greater than 5 percent, the tax rate may decline. A lower tax rate represents a cost savings for homeowners as it reduces the overall amount of the tax bill.
Based on the 2023 tax levy request original estimates, the owner of a home valued at $300,000 with no increase in property value (EAV) could see a tax increase of approximately $18. The owner of a home valued at $300,000 with a 3 percent increase in property value (EAV) could see a tax increase of approximately $19. If the tax rate continues to decline, homeowners may not see an increase or may even see a potential decrease in their tax bill based on the value of their home.
The amount of money the school district asks for (tax levy request) and receive (tax levy extension) will differ as EAV and new construction estimates are not finalized until the spring. In addition, under the Illinois Property Tax Extension Limitation Law (PTELL), increases in property tax extensions are limited to the lesser of 5 percent or the increase in the consumer price index for the previous year (6.5 percent in December 2022).
To offset property taxes for homeowners, District 47 has applied for (but has not received) the property tax relief grant each year from the Illinois State Board of Education since it became available. The district will reapply for the grant this year.
District 47 receives approximately 74 percent of its revenue from local tax dollars. Levies enable a school district to meet current financial obligations and plan for future needs. The money District 47 receives from annual property tax levies fund salaries and benefits per collective bargaining agreements; routine maintenance and improvements to aging facilities; educational programming and strategic planning initiatives; and overall operational costs.
In the summer of 2022 District 47 made significant HVAC improvements by adding air conditioning at Husmann Elementary School and Lundahl Middle School. These and other HVAC projects were partially paid for through federal ESSER funds provided to public schools during the pandemic.
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