Lincoln property to see slight increase in taxes         

City treasurer estimates impact on bills

[JAN. 9, 2006]  Lincoln property owners will see a 2.139 percent increase on the city portion of their next tax bill. The total tax levy for 2004 was $1,452,752.13. The estimated total taxes levied by the city for 2005 are $1,483,836.

With the city under a tax cap, the "Truth in Taxation" law stipulates that a hearing take place when corporate and special purposes property taxes exceed 105 percent of the previous year. Truth is not all taxes go up every year, as you can see by the 2003 figure below.

Corporate and special purpose taxes

The corporate and special purpose tax figures below were used to calculate the amount the city could levy for this tax year.

The highest tax extension over the last three years is multiplied by the annual consumer price index.

The index changes from year to year. The index used in 2004 was 1.9 percent. The index for 2005 is 3.3 percent.

• 2002 -- $1,203,027.98

• 2003 -- $1,250,100.04
  (highest in three years

• 2004 -- $1,214,917.36

To get the proposed 2005 tax levy: 1,250,100.04 x 1.033 (2005 consumer price index) = $1,291,351.00.

The 2004 taxes were: $1,214,917.36.
$1,214,917.36 x 105 percent = $1,257,663.23 calculated limit.

The corporate and special purpose taxes to be levied for 2005 are $1,291,351.00. This factor turned out as 106.29 percent. They exceeded the calculated limit, requiring the public hearing.

There were no objections at the hearing, and the 2005 tax levy was approved on Dec. 19.

When the general obligation bond levy (debt service) of $173,485 and firemen's pension (non-capped) at $19,000 are added to the $1,291,351.00 corporate and special purpose taxes, the total property taxes to be levied for the city in 2005 are $1,483,836.00.

Corporate and special purposes for 2005:

General corporate, $50,000
Streets and bridges, $100
Police protection, $59,000
Fire protection, $125,000

Subtotal: $234,100

Audit, $14,000
ESDA, $4,000
Forestry, $48,000
Crossing guards, $15,000
Liability insurance, $245,251
Social Security, $245,251
Public benefits, $47,000
Fireman's pension, $365,000
Police pension, $365,000

Subtotal: $1,057,251

Debt service, $173,485

Firemen's pension (non-capped), $19,000

Total taxes levied: $1,483,836

The city treasurer, Les Plotner, said that when property owners look at their bill they will see where the percentages of their taxes go. Last year the city received 12 percent to 12.5 percent. Bigger than the city are the District 27 schools, at about 34 percent, and the high school, at 22.5 percent. The Lincoln Park District was 9 percent, and the county received 8 percent, he said.

Last year's rate was 1.107, which means a dollar and fraction on every $100 of assessment on the house, Plotner said. This year's rate will be 1.17626.

How will this figure on the average property owner's tax bill?

The assessment value used for taxes is one-third market value of the property. After exemptions a multiplier is applied. “This makes it so if you own more, you pay more. If you own less, you pay less,” Plotner said.

Plotner said he qualifies for a couple of homestead exemptions, one for living in his home and one as a senior. He noted that seniors might have noticed more of a drop in 2004 because the senior exemption increased from $3,500 to $5,000. Using his own tax bill he estimates that his taxes this year would go up only $22 for the city portion.

Property taxes are based on the assessed value of the property. The Supervisor of Assessment Office and the township assessor set property values, and those are reviewed every four years. Illinois law places assessment at one-third of market value, except for farm acreage and farm buildings. Property owners may qualify for exemptions that will lower the taxable values before multiplying by the tax rate.

The Illinois Homestead Exemption Program offers a number of ways that a property owner may qualify for an exemption. The first is an automatic and the others are on request and application.

In summary:

1. First, and for all of the homestead exemptions, you must own and live in the property. This is an automatic exemption that gives the property owner a $5,000 exemption.
2. Improvements that raise the value of your property can be deferred for four years. It tops at a maximum of $25,000 assessed value.
3. Seniors who turn 65 during the tax year and have lived on the property on or before Jan. 1 may claim an additional $3,000.
4. Qualifying seniors may also have the assessed value of their property frozen. The tax rate does not freeze. There is a maximum $45,000 household income allowed on this exemption.
5. Seniors can also defer part or all tax payment on their home. An annual interest rate is charged just like a loan. The deferred taxes come due when the home is sold or upon death of the taxpayer.
6. Seniors and totally disabled individuals 16 years of age or older may qualify for a Circuit Breaker grant based on taxes and income. Contact the Illinois Department of Revenue, 1 [phone].
7. Disabled veterans or their spouse may qualify for up to a $50,000 exemption on the equalized assessed value of their home. Application is through the Illinois Department of Veterans' Affairs.

You can get more details about the process of assessment and details of exemptions in "A Taxpayers Guide to Real Estate Assessments and Exemptions." It is available at the Logan County Supervisor of Assessments Office, located in the Dr. John Logan Building, 122 N. McLean St. in Lincoln.

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