Understanding Your Property Taxes

“Why are my property taxes so high?” Many Park Forest residents ask, but the answer is not simple. In fact, to understand why the Village relies so heavily on property taxes, we must look back 50 years to explain how the current property tax bill in Park Forest has been shaped.

In 1973, Lincoln Mall in Matteson opened. Indoor malls were all the rage from the 1970s to the early 2000s. However, Park Forest had an outdoor mall that was built in the early 1950s and, for more than 20 years, was an incredible generator of sales taxes for the Village with anchor stores Sears, Marshall Fields & Co., and Goldblatt's. Called “Park Forest Plaza,” the Park Forest mall attracted shoppers from all over Chicagoland. Unfortunately, when Lincoln Mall opened, Park Forest Plaza began its decline, which would take 20 years to reach its bottom.

The following table shows the sales taxes collected by the Village for each year going back to 1990.

As you can see, sales tax revenues have decreased substantially over the last 35 years, coinciding with the loss of the Park Forest Plaza. However, during this same time frame, Village costs increased, and the only revenue source that the Village could rely on to cover what had been lost in sales taxes was property taxes.

There is a widespread misconception among individuals who pay a property tax bill: all property taxes go to the Village. Finance staff regularly talk to residents who have this belief. When it is explained that there are several types of governments, schools, and even a library on their property tax bill, there is quite a revelation to the taxpayer. Yes, the Village receives property taxes, but, on average, about 38 percent of the total property taxes paid go to the Village. The remaining 62 percent goes to various entities that receive most of their funding via property taxes.

The following dollar bill graphic shows where the property tax dollars go for a current taxpayer who lives in the 163 school district:

School Districts
District 163 - 32.7% 
Prairie State - 1.7% 
District 227 - 20.5% 

So, as you can see, the majority of property taxes in Park Forest—almost 55 percent—go to schools. These details on where the property tax dollars go often surprise many people, as the facts of where the money goes are often very different from what most people believed prior to seeing this information.

One final issue the Village often hears is why the Village needs so much in yearly property taxes. Quite simply, the Village of Park Forest provides many services to residents, and in many other communities, these services are separate taxing districts. This means that when you look at a property tax bill, you will see a separate amount for the Village, the fire protection district, and the recreation and parks district. However, on a Park Forest property tax bill, these services are paid for from the village portion of the tax bill.

The chart below shows how expenditures are divided among the various Village departments:

Based on the information above, 35 percent of the operating costs for the Village are for services that many other communities offer via a separate taxing district.  

Based on the loss of sales taxes coupled with the large amount of services provided by the Village or Park Forest, it becomes a little easier to understand the large need for property taxes in the Village. However, the last chart shows that the Village has been working to keep property taxes as low as possible for its residents. The graphic to the right shows the increase in the tax levy passed by the Village Board each year.

Based on the above chart, in five of the last ten years, the Village Board did not increase the tax levy from the previous year. The total increase in the tax levy over the last ten years has been 9.15 percent, which is an average of 0.915 percent per year or less than 1 percent per year for each of the last ten years on average.  This is less than the cost of inflation.

The Village Board and staff understand that no one wants to pay property taxes, but these valuable dollars provide the needed resources to pay for the services so many residents have come to depend on in everyday life. Being the best stewards of these dollars is a role taken very seriously by all those who work for the Village's residents.

What is the Village doing to combat property taxes? 

Village officials are committed to advocating for all residents and business owners to ensure a fair and sustainable tax system. 

Current efforts include:
•Ensuring exemptions only apply to those who qualify.
•Monitoring state legislative proposals to prevent further exemption increases.
•Submitting all new building permit information to account for property improvements accurately.
•Supporting property values through proactive policies and opposing drastic valuation appeals.
•Advocating for a property tax floor to limit the number of properties with zero-dollar tax bills.
•Delivering quality public services within residents’ means.

Park Forest deserves an equitable property tax system where everyone contributes fairly to fund public services that benefit us all. With these ongoing initiatives, Park Forest is working to ensure a balanced approach to taxation that preserves the Village’s value and quality of life.

What can you do to combat property taxes?

 File an appeal by clicking here.

Make sure you've applied for all exemptions by clicking here.