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Bloomington-Normal, Illinois
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| NewsTuesday, October 16, 2007 1:21 PM CDT |
Running town of Normal to be less taxing
NORMAL — Property owners could pay a smidgen less to help run town operations next year. Finance Director Ron Hill believes an increase in the number of property owners in Normal will help the town’s tax rate go down by about 1 cent per $100 assessed valuation even though the 2007 property tax levy is going up by nearly 5 percent. The City Council on Monday recommended preparing a tax levy of $8,175,000, up $377,009 from the 2006 levy. The state’s Truth in Taxation statute requires municipalities meet at least 20 days before approving the levy to determine the amount. The town’s tax rate is expected to go from the current 0.7582 cents per $100 assessed valuation to 0.7472 cents, based on a 5 percent increase in the town’s total assessed valuation. The tax rate for Normal Public Library is expected to go from 0.3292 cents per $100 assessed valuation to 0.3383 cents, taking the total rate for the town from the current $1.0874 to $1.0855. For example, the owner of a $200,000 house would save about $1.26 on their property tax bill, with the total amount paid to the town and library dropping to about $723.65. “Although it may not feel like it when we’re paying taxes, Normal has one of the lowest, if not the lowest, tax rates downstate,” said Councilman Jason Chambers. City Manager Mark Peterson said only 10 cents of each tax dollar goes to the town. Property tax bills also include taxes for other taxing bodies including Unit 5 school district, Bloomington-Normal Airport Authority and McLean County. Peterson said two-thirds of the property taxes collected by the town — $5,627,000 — are used to fund pensions mandated by the state: police and firefighters’ pensions, Illinois Municipal Retirement Fund and Social Security. “We don’t have a say, yet we’re required to pay,” said Mayor Chris Koos. Councilman Adam Nielsen suggested the town should talk to the new task force the governor plans to start to study property taxes in Illinois. “We should suggest the one thing that would help us is to stop the increases in pensions,” Nielsen said. The library will receive $2,548,000 of the amount levied, and the general fund, which finances day-to-day operations of the town, remains steady at $1,600,000. Falling taxes The tax rate for the town and Normal Public Library has gone down each year since 2003. The rate does not include other taxing bodies such as Bloomington-Normal Airport Authority, Unit 5 school district and McLean County, which also appear on a property owner’s tax bill. The tax rate is applied to each $100 of assessed valuation of a property. Assessed value is one-third of the home’s total value. 2003 1.1874 2004 1.1669 2005 1.1263 2006 1.0874 2007 1.0855 (proposed) |
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