Property Tax Levy
Each year, the tax levy process begins in August. This process includes compiling historical data, polling townships for growth and reassessment rates, developing revenue projections, updating the City’s capital plans and updating the City’s long-term operational plans.
Annually, the City Council holds Financial Overview and Tax Levy workshops. Based upon Council’s direction and the analysis described, staff compiles tax levy information.
State law dictates the timing and process that must be followed in the levy and collection of property taxes. This necessitates the passage of a property tax levy well in advance of the budget year in which these funds are used. Consequently, the City Council has typically approved a property tax levy amount that satisfies the procedural requirements of law and gives the City Council a small margin of flexibility in terms of determining, at a later date, the final property tax rate. Typically, after the City Council reviews the operating budget and debt analysis, the amount of the approved levy is reduced by the series of property tax abatement ordinances, approved the following April. When considering the amount of the initial levy, the City Council has consistently set the expectation that the City Manager and staff to present a budget that will allow for abatements.
Below is a breakdown of resident property taxes and how they are used.
|Tax Levy Year||2013||2014||2015|
|City of Naperville||FY15||FY16||CY16|
|Average Home Value||$375,000||$375,000||$385,000|
|EAV or Home||$120,000||$120,000||$123,200|
|City Property Tax||0.7828||0.8081||0.7389|
|Property Tax Paid to the City of Naperville by Average Homeowner||$939.36||$969.72||$910.32