Angry Over Taxes? Burr Ridge Official Points To Schools

BURR RIDGE, IL – Every year, Burr Ridge notes its low property taxes when passing the annual budget. But officials leave out context.

Most of the time, Mayor Gary Grasso takes that role, pointing out the village's small percentage of a resident's property tax bill – about 1.5 percent.

This year, Trustee Guy Franzese touted the number.

At Monday's Village Board meeting, he said the small amount gets residents around-the-clock police protection, road maintenance and "a myriad of other things."

"All for 1.5 percent," Franzese said. "If you're upset about your tax bill, contact your school district."

"That's actually pretty accurate," Grasso said in response.

But there is more to the story.

All over Illinois, schools make up the large majority of tax bills. Burr Ridge is the rule in that regard, not the exception.

Municipalities typically make up only a fraction of a tax bill. While 1.5 percent is unusually low, Darien is not far behind at 3.5 percent.

A major reason that Burr Ridge's property tax is so low is that the village contains so much retail, which means more sales taxes. That's why retail-heavy Oak Brook charges no property tax at all.

In Burr Ridge, nearly a third of the village's income for its main account comes from sales taxes, with property taxes making up about 15 percent.

Demographically similar Western Springs, on the other hand, has little retail. Property taxes account for 44 percent of its income in its main account, while retail is only 15 percent.

Towns have more ways to raise money than do schools. In addition to sales taxes, municipalities get a share of state income tax money, although it's declining. They can also assess fines and levy many license and permit fees.

By contrast, schools, particularly wealthy ones, are heavily reliant on local property taxes.