Why are taxes so high?

There are a number of factors that combine to ultimately influence tax bills:

  • Lack of Commercial Tax Base – The limited amount of Commercial and Industrial property in the area providing tax revenue causes more of the burden to shift to the homeowners
  • Tax Abatements Granted to Businesses – The already low Commercial and Industrial tax base is being abated for some new businesses to encourage them to come to the area and for some existing businesses to encourage them to stay. This is partially due to the state income tax rates and policies affecting businesses and discouraging operations in Illinois. Again, fewer tax dollars from businesses means more of the burden lies with homeowners.
  • A Community that Grew Quickly – Our area experienced rapid growth prior to the economic downturn. Our community planned for continued growth, and implemented the infrastructure to support it. The abrupt stop in growth and new construction tax dollars left us with a burdensome infrastructure.
  • Lack of New Residential Construction – In the years where our area experienced growth, much of the increased budgetary needs of our local taxing bodies was met by the increased tax dollars being provided by new tax revenue from new homes being built. The construction of new residential homes in our area has now slowed to a crawl. This again shifts the increased tax burden to the existing homeowners.
  • Devaluation of High-End Property – When the economy was flourishing, high dollar homes and properties shared a significant portion of the tax burden. However, the housing market crash hit these types of properties extremely hard, more so than your typical single-family homes. As a result, these homes do not share as high a proportion of the tax burden as they once did, again shifting more of the responsibility to other homeowners. 
  • Extreme Devaluation of Vacant Land – Similar to the issue with High-End Properties, prior to the economic downturn vacant land was at a premium, and was taxed as such. Now, that same land sells for substantially less, especially individual lots that have already been subdivided and now sit empty in half-finished neighborhoods. Once again, less tax burden on the vacant land means more on the homeowners.
  • Increased Levies from Some Taxing Bodies – A higher tax burden overall is generally the result of the local taxing bodies requiring more money to operate year over year. If the total pool of tax dollars levied for increases, tax bills as a whole go up.
  • State Budget Shortfalls – One of the reasons that local taxing bodies may have to increase their levies is due to expected contributions from the State of Illinois coming up short. If a taxing body is counting on money coming from the State, and it is not delivered, then those dollars need to be made up for, generally in the form of an increased levy.
  • Inflation – Simply put, the cost of everything goes up over time. Local taxing bodies are not exempt from this. Operating costs for those taxing bodies, whether for utilities, supplies, or any number of other expenses, are all subject to inflationary increases. These increases are then accounted for in the taxing bodies’ levies.

 

Weight: 
-18

Assessor's Office Disclaimer

The information contained on this site was compiled from data available at the Plainfield Township Assessor's Office solely for the governmental purpose of property assessment. This information should not be relied upon by anyone as the final determination of ownership of property, market value and/or for any other purpose without verification of the information with official records on file. No warranties, either expressed or implied whatsoever are provided for the accuracy of data contained herein, its use, or its interpretation. Although information is updated periodically, the information contained herein may not accurately reflect the most current data available. The assessed values and other information may not be certified and may be subject to change before being finalized for ad valorem tax purposes without notice. The Plainfield Township Assessor assumes no responsibility, nor liability for any unauthorized dissemination of the information and/or damages arising from the use of the property data contained herein.