Small City Tax Cut Likely In Elmhurst

ELMHURST, IL – Elmhurst is poised to keep next year's property tax levy – the total amount it collects – the same as this year's.

Because of new construction in the city, the flat levy would result in a lower tax bill for a median family home of $500,000. It would amount to $9 less, according to a city memo released last week.

As of this year, the city makes up 7 percent of the annual property tax bill. The local school district takes up about three-fourths of it.

In Illinois, school districts, particularly wealthy ones such as Elmhurst's, are heavily dependent on property taxes.

Cities, meanwhile, enjoy major sources of income such as sales taxes, a share of the state's income tax, fees and fines.

In the future, Elmhurst may increase the property tax levy to capture new construction and annexations, according to the memo. This would provide more income without increasing property taxes on existing taxpayers, the city said.

Last year, Elmhurst kept its property tax levy the same. That resulted in a similarly small tax cut.

Also, last year, Elmhurst School District 205 increased its property tax levy to the maximum allowed under state law, 5 percent. It scaled it back a little a couple of months later.

Like other school districts, Elmhurst may well increase its levy again by 5 percent. It can do this because of the level of inflation.