Recent budget decisions in Lake County and local municipalities have brought property tax increases to the forefront for North Shore homeowners. The Lake County Board approved a $659 million budget for its next fiscal year, which includes $19 million in additional spending compared to last year and a property tax levy increase of over 2%. On average, Illinois homeowners have seen property taxes rise by $756 in the last five years.
Highland Park, specifically, proposed an 8.1% property tax hike in its 2025 budget. For a household with a property valued at $500,000, this means an increase of about $125 annually. Much of this hike is attributed to infrastructure investments, including improvements to streets, sewers, water mains, stormwater management systems, and sidewalks.
While property taxes fund vital community services and projects, rising costs can be frustrating for homeowners. Here are some of the main drivers behind these increases:
1. School District Funding
Education is a key priority in these communities, which are home to some of the highest-rated schools in Illinois. For example, Deerfield’s Township High School District 113 recently completed renovations that included upgraded science labs, athletic facilities, and security systems. These improvements, along with rising teacher salaries and pension contributions, require significant funding, much of which comes from property taxes.
2. Municipal and Infrastructure Needs
Local governments rely on property taxes to maintain and improve infrastructure. Highland Park’s budget allocates substantial funds for road repairs, stormwater management, and sewer updates, while Northbrook has prioritized flood mitigation projects. These essential initiatives often lead to increased budgets that are partially funded through property tax hikes.
3. Statewide Pension Obligations
Illinois’ pension system faces significant challenges, and local governments are required to contribute to these obligations. For example, a large portion of Deerfield’s annual budget is allocated to pensions for municipal employees such as police officers and firefighters. Rising pension costs leave municipalities with limited options, often necessitating tax increases.
4. Property Valuations and Reassessments
Property values in Lake and Cook Counties are reassessed regularly to align tax contributions with market values. Highland Park, Northbrook, and Deerfield have seen rising home values, driven by high demand for suburban living. If your home’s assessed value increases, your tax bill will rise even if the tax rate stays the same.
5. Voter-Approved Referenda
Local referenda can also drive tax increases. For example, in 2018, Northbrook voters approved a $110 million referendum for School District 30 to build and renovate schools. These community investments often result in higher taxes, either temporarily or permanently.
6. Inflation and Rising Costs
Inflation affects the cost of public services, from materials to labor. For instance, Highland Park’s budget reflects rising expenses for public works and public safety, which translates to higher taxes to maintain service levels.
7. Statewide Tax Policy Changes
Changes in state tax policies often have local repercussions. Reduced state funding for municipalities or schools forces local governments to fill budget gaps through property tax adjustments. Deerfield, for example, has experienced reduced state revenue-sharing in recent years.
What Can Homeowners Do?
Rising property taxes are challenging, but homeowners have options to better manage their financial impact:
- Review Your Tax Bill: Understand where your money is going. Contact your local assessor’s office for a breakdown of your tax contributions.
- Appeal Your Assessment: If you believe your property has been over-assessed, file an appeal with your county’s Board of Review. Gather evidence such as recent home appraisals or comparable property sales. We can connect you with specialized attorneys who only charge a percentage of the savings from your successful appeal.
- Stay Informed: Attend local government meetings to stay updated on budgets, referenda, and upcoming projects.
- Advocate for Transparency: Engage with local officials to ensure clarity and accountability in tax decisions.
While rising property taxes may be frustrating, they reflect investments that enhance community infrastructure and services, ultimately improving the quality of life. By understanding the reasons behind these increases, homeowners can make informed decisions and actively contribute to the future of their neighborhoods.
