Clarifying Tax Hike In Elmhurst D205

ELMHURST, IL – Elmhurst School District 205's property tax levy is going up at the highest rate in a long time.

This year, the district is increasing its tax levy by about 5 percent, which is the state-imposed cap.

On Tuesday night, though, two residents suggested at a school board meeting that the tax levy will go even higher than 5 percent.

They are right – in a way. The total levy is 7.3 percent, according to a district memo in December.

But the remainder above 5 percent is attributed to new construction over the last year, not existing property. That part of the tax levy has no effect on existing property owners who have had no new construction.

According to the district's calculation in December, the owner of a $500,000 house with no new construction would see a 4.8 percent increase in property taxes – or an extra $344.

Many school districts are hiking their tax levies to the state cap of 5 percent. That's because they can increase their levies by the consumer price index, up to 5 percent. For the purpose of this year's levy, the index was measured at 7 percent, which was higher than the state cap.

Residents' property taxes depend, in part, on their latest property assessments. These assessments determine each taxpayer's percentage of the tax burden.