St. Charles tax levy OK'd, but effect on taxes still in question

As St. Charles officials passed their new tax levy Monday night, the impact of a possible property tax increase by St. Charles Unit District 303 on homeowners became both more clear and more complex.

The taxing boundaries of the city of St. Charles and District 303 are not exactly the same, but the vast majority of the school district is in St. Charles. But when it comes to the prediction for how much the two taxing bodies are guessing equalized assessed value will grow, it's not even in the same area code.

Shortly before Thanksgiving, about 500 people told District 303 officials they'd be willing to pay $312 a year more in property taxes to the school district for renovating or rebuilding all 17 schools. That $312 is the estimated impact on a $300,000 home in the district. However, that amount assumes a 3 percent increase in equalized assessed value. On Monday, city officials passed their tax levy with an assumption of a 7 percent increase in equalized assessed value.

Neither taxing body will know what the true growth in equalized assessed value is until late winter or the spring, so both assumptions are best guesses to capture all new property growth.

The city will keep its tax rate flat next year, resulting in an estimated $51 increase on the property tax bill of a home currently valued at $300,000. That's only true if the equalized assessed value truly grows the way the city predicts it will. District 303's tax rate would grow, for a limited time, should voters approve a tax increase for the building improvements. The district can still adjust the tax rate increase it's asking for to compensate for a larger growth in equalized assessed value to keep that $312 impact the same.

Right now, if the $51 increase the city predicts stands true, and the $312 impact the school district predicts stands true, the $363 increase would make the property tax bill for that $300,000 home grow to at least $6,731. The new total does not include any tax increases not yet announced by the other seven taxing bodies funded by property taxes in St. Charles.

As a whole, about 64 percent of the property tax bill of each St. Charles resident goes to District 303. About 12 percent of the property tax bill funds the city. The remaining seven organizations all receive single-digit percentages of the taxes.

Tax: District still can adjust rate increase