Tuesday, November 24, 2009 East Central Illinois
The Answer Book 2005
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Where the taxes are: Rantoul property rate is the highest BY MIKE MONSON © 2009 THE NEWS-GAZETTE RANTOUL - The village of Rantoul has the highest overall property tax rate in Champaign County, for the third year in a row. The tax rate title is one that Rantoul Mayor Neal Williams wishes the village didn't hold. But he's philosophical about it. Williams blames the loss of federal assistance that came with the closure of the Chanute Air Force Base in the early 1990s, a development that eventually forced the Rantoul school districts to ask voters, successfully, for higher tax rates.
But Williams also says that the alternative, having poorer quality schools, is probably more distasteful than having the county's highest tax rate, $9.22 per $100 of assessed valuation for Rantoul residents who reside in Ludlow Township and $9.17 for those village residents who live in Rantoul Township. "It would be tough to sit there and say 'Move to Rantoul,' if your school systems aren't good," he said. Property tax rates can make a significant difference in the cost of owning a home. For example, a $150,000 home in Rantoul (in Rantoul Township) would have an assessed valuation of $45,000, which represents one-third of the home's actual value. That figure also includes the standard $5,000 homestead exemption. Based on the overall tax rate of $9.22, the owner of that home would pay a property tax bill of $4,149. In comparison, the owner of a $200,000 home in Savoy (in Champaign Township) would pay a property tax bill of $2,848. The lower bill is because the tax rate in that part of Savoy is $6.33 per $100 of assessed valuation. Rantoul village Comptroller Scot Brandon said the Rantoul Village Board did its part to try to reduce the overall rate, cutting the village rate by 17 cents, to $1.24 this year. But other taxing bodies more than made up the difference, he said. The village's overall rate was $8.87 last year. "I think it's mostly due to schools they're 62 percent of that rate," he said. Brandon said he believes the village's high overall rate is hurting Rantoul, particularly in new housing starts. He noted that Rantoul does not have any new subdivisions under development, and saw only five new houses in 2004. "I'm sure it probably is somewhat of a liability," he said. "I don't like to use the word stigma, but we're not seeing many new homes built. We've had no major new subdivisions develop in several years." Brandon noted that with the air base's closure, 1,300 additional housing units came on the market in Rantoul. Most of those are now occupied. The influx probably accounts for some of the lack of new housing activity, he said. Rantoul is now considering whether to include property on the village's west side as part of a proposed new tax increment financing district for downtown. Rantoul developer Joe Warner wants to build up to 400 new homes on the west side on 136 acres. Under his proposal, a $36,000 lot would sell for $10,000, with tax district income compensating Warner for the remaining $26,000. The village board was still considering the proposal in late June. The village of Homer has the next highest property tax rate, at $9.05 per $100 of assessed valuation. Homer Mayor Dave Lucas was surprised to learn his southeast Champaign County community has risen to second place. "It's terrible news," Lucas said. "We fight to keep our tax rate low." The city of Urbana, up until three years ago, had long held the title of the municipality with the highest overall property tax rate. But Urbana now ranks eighth in the county with a rate of $8.47 per $100 of assessed valuation, with Rantoul, Homer, Longview ($8.98), Ivesdale ($8.89), Philo ($8.65), Gifford ($8.61) and Sadorus ($8.55) having higher overall rates. Newly elected Urbana Mayor Laurel Prussing said she finds it interesting that Champaign and Urbana now have significantly lower overall tax rates than many rural communities, despite a high level of city services. "We're certainly happy not to be leading," she said. "It's interesting because people sort of assume if they live outside of the city, their taxes will be lower. That's not necessarily true. "It's good Urbana isn't the top one, but when we were the top one, it was because people voted for schools and park districts," Prussing said. Prussing said she personally chose to live in Urbana because she wanted city services, such as professional police and fire departments. That decision paid off a decade ago, she said, when her house had a fire that was quickly extinguished by Urbana firefighters. Prussing said there are other factors to consider besides property tax rates. She said she spoke recently to an Urbana resident who moved there from St. Joseph because he was spending too much on gasoline commuting. "And it's not only gasoline costs, it's your time," she said. The village of Savoy had the lowest overall property tax rate among 21 municipalities in Champaign County, with a rate of $6.33 per $100 of assessed valuation for parts of the village in Champaign Township and a rate of $6.59 for the part of the village in Tolono Township. "That's a very good thing for us," said Savoy Mayor Bob McCleary. "The goal of our community has always been to provide the best public services at the lowest tax rate." McCleary said Savoy has tried to be "business friendly" and has been helped by excellent sales tax revenues from a Wal-Mart Supercenter, two car dealers and other retail businesses. |
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