No Property Tax? Burr Ridge Eyes Joining Small Club

BURR RIDGE, IL – Eliminating property taxes is the type of accomplishment that would grab voters' attention in a political campaign.

A few Illinois towns, including Oak Brook, have done it. Burr Ridge is considering joining them.

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Burr Ridge's part of the local property tax is small even by municipal standards – typically about 1.5 percent.

In Illinois, schools make up the vast majority of property tax bills.

Burr Ridge is well-positioned to do away with its tax.

Like other towns that have done so, Burr Ridge has many sales tax-generating businesses. They are not just the stores in Burr Ridge Village Center and County Line Square. They are also the companies in industrial and office zones that sell products, which are some of the town's biggest sales tax-generators, the village says.

At Monday's Village Board meeting, Village Administrator Evan Walter said Burr Ridge could raise its sales tax by three-fourths of a percent to offset the loss in property taxes, plus bring another $1 million to the village's coffers annually. That portion of the sales tax exempts groceries and car purchases.

Mayor Gary Grasso said zeroing out the property tax would make it easier to persuade residents in unincorporated areas to voluntarily annex to Burr Ridge. As it is, he said, the small tax serves as a deterrent.

Trustee Russell Smith said he liked eliminating the property tax, but feared a sales tax hike may drive some businesses to leave.

Grasso said that was a good point and that the village should ask local sales tax-generating businesses for their views. He said the sales tax increase would put Burr Ridge in the middle of the suburban pack.

"We don't need to rush this thing," he said. "Right now, we're not all comfortable, so let's get some more information."

Smith said reducing taxes is a good idea, particularly in light of the Illinois Tollway's recent big toll increase.

"We're lowering them or eliminating them while the state is killing us," he said.

Grasso agreed.

"To have a debt-free community with no property taxes makes us a very special place," he said.