FOX LAKE – The Village Board on Tuesday approved its annual levy, which is estimated to bring in about $74,700 more in property taxes next year.
The village requested $3.385 million in property taxes, which is 5 percent more in property taxes than was received this year. However, because of the tax cap law, the village expects to receive $3.298 million, or about $74,700 more in property taxes.
Property tax money goes into the village’s general fund, said Walter Korpan, the village’s acting treasurer.
Under the Property Tax Extension Law Limit, tax-capped communities and taxing bodies can increase their annual levies by 5 percent or the rate of inflation, whichever is less. The Consumer Price Index for this year is 1.5 percent.
Taxing bodies generally balloon their levy to ensure that they capture as much of the new property growth that has taken place.
“If you don’t do anything this year, you play off of a smaller number next year,” Korpan said.
He said the village anticipates there to be less than 1 percent in new property growth. At the same time, the assessed value in the village is expected to drop 4.28 percent.
A taxing body’s tax rate depends on the overall equalized assessed property value in the district or municipality. Once property values are set in the spring, then the tax rate is set.
Korpan said how much more a homeowner would have to pay in property taxes would depend on how much their property value changes, and he declined to give an estimate.