A stealth tax on Glen Ellyn residents

A stealth tax on Glen Ellyn residents

The proposed tax increment financing district for the 85 acres comprising downtown Glen Ellyn is a stealth tax for property owners.

The way the property tax works, each unit of government annually levies an amount for that government unit. These levies are then divided proportionally among the property owners according to the assessed valuation of the their property.

When the TIF area’s assessed value is frozen to these taxing bodies, the property owners outside the TIF area will have to make up the difference for the levy. Those living outside the TIF district may not realize it, but their property taxes will have to be raised to make up the difference for the TIF area’s frozen valuation.

For 23 years, while the property valuation is frozen to the taxing bodies, the properties within the TIF will continue to pay taxes that reflect the actual assessed value.

However, the money difference between the frozen valuation and the actual increase in property values will be given to the village to spend in the TIF district for proposed expenditures such as parking garages, a new train station, developer and business incentives, and property assembly for redevelopment. The proposed TIF budget shows approximately $162 million coming from property owners within the TIF district over the next 23 years.

It is inadvisable for Glen Ellyn to establish this TIF district. Because of the assessment freeze to the taxing bodies, some tax payments that ordinarily would have come from those within the TIF area will be shifted to those outside the TIF district.

Meanwhile, those properties inside the TIF will continue to be assessed normally, but the difference between the frozen assessment to the taxing bodies and the actual assessment will be given to the village. This is truly a stealth tax on Glen Ellyn property owners.

Phyllis Scanlan

Glen Ellyn