Annually, December is the month that the Board of Education adopts the tax levy. This is the mechanism by which public schools in Illinois “gather” local property tax revenue. How does the levy work? There are months of preparation prior to the levy being formally voted upon in December of each year.
In the summer months, the school district receives the estimated Equalized Assessed Valuation (EAV) from the county assessor’s office. What exactly is the EAV? It is the collective value of all property within the boundaries of the school district. The Mahomet-Seymour School District is fortunate in that each year the EAV grows — meaning the value of all of the properties within the boundaries of the school district is increasing. Since property is often an investment that people make, this is good news. (No one likes an investment that is declining in value!) When you see new developments and construction around town, this also contributes to a growing EAV.
When the levy is adopted by the board of education, the estimated total property tax extension is determined. This is the total amount of dollars the school district will receive in the following calendar year from property taxes. While the board of education adopts the tax levy in December of each year, it is not finalized by the county until the final EAV is determined in the springtime. Within this process, tax appeals are considered and may alter the total tax extension.
Now, let’s explain the tax rate. The total tax rate is comprised of tax rates in 11 different funds. Some of these tax rates are capped by law. Other funds’ tax rates are not capped and could, if needed, be adjusted based upon need. It all adds up to the school district’s total tax rate. These tax rates in each fund are multiplied by the estimated total EAV to determine our property tax extension (revenue). The tax rate is PER EVERY $100 of assessed value of property, with that assessed value being divided by 3. For example, if your home is valued at $210,000, the tax rate is applied to one-third of that amount, or $70,000. Since the tax rate for the schools in 2019 was $4.5752 for everyone $100 of valuation, this home would pay $3,202 in property taxes for the school district.
Here is the equation:
$70,000/100=$700 (remember, the tax rate is per every $100 in value)
$700 X $4.5752= $3202
It is important to keep in mind that the school district is not the only taxing body — the Village of Mahomet, Library, Corn Belt Fire District, Mahomet Township, Parkland College and Champaign County also make up the total tax rate. The Mahomet-Seymour Schools make up approximately 56% of your property tax bill.
It has been a priority of the school district to keep the overall tax rate very steady, as it has been for almost 30 years. Our proposed tax extension for 2019, with taxes payable in 2020, would result in a tax rate estimated to be $4.58.
Clear as mud? That’s OK! This is a complicated process with timelines that cross over calendar years. If you’re interested to learn more and hear our board discuss the levy, you’re invited to attend the Levy Hearing at 6:30 p.m. on Monday, December 16th. You are also welcome to call or email Mr. Trent Nuxoll, our Chief School Business Officer. School finance is Mr. Nuxoll’s passion and he’d love to field your questions. He can be reached at 217-586-2161 or firstname.lastname@example.org