A 'Slight' Tax Increase, Cue Monty Python on Sarcasm

The Arlington Heights Village Board voted to increase their share of  property tax by a 'slight' 1.2%. The Village is asking for $30.1 MM next year from the Cook County tax collectors. How this translates into your final tax bill is the function of several moving parts that even a seasoned analyst would find difficult to predict.

History may give us some indication. The Village of Arlington Heights portion of your total property tax bill has risen from 7.68% in 1992 to 11.47% in 2011, for an average increase of about 0.30% per year. So next year residents can expect to pay about 11.77% of their total tax bill to the Village of Arlington Heights.

There are three reasons for a steady rise of the tax burden to the homeowner in Arlington Heights:

1.) A continual property tax shift from commercial/industrial to residential property. During 2010, 70% of all assessment appeals were for commercial/industrial property. As a result of an excessive number of successful commercial appeals, the Cook County Estimated Assessed Value (EAV) of residential property has increased from 60% to 70% of total EAV from 2008 to 2011. This demonstrates how the property tax burden has shifted to homeowners.

2.) The Cook County temporary 7% residential freeze program, homeowners exemption, is being phased out. As a result there will be a further shift in the tax burden back to residential property owners.

3.) Failed economic policies of the current Arlington Heights Village Board. Through TIF districts, zoning changes and catering to campaign donors excessive capacity was built in Arlington Heights during the 1990's. Therefore even in good economic times there is a structural vacancy rate in Arlington Heights which has been a drain on General Fund balances.

A 'slight' increase is a matter of perspective. But from the viewpoint of the local Arlington Heights homeowner it is a continual march upward of the property tax burden.