On an annual basis, the Village Board conducts a tax levy hearing then approves a tax levy for the Village. The Village’s tax levy is a crucial funding mechanism for maintaining and improving the quality of life for Riverside residents. It ensures that necessary services are funded, contributing to the safety, well-being, and overall development of Riverside.
Since the Village is a non-home rule community, it must adhere to the Property Tax Extension Limitation Law (PTELL), also known as tax caps. PTELL limits the annual property tax increase by the Consumer Price Index (CPI) or 5%, whichever is less. This increase does not include new Equalized Assess Value (EAV) such as new homes or commercial buildings being built or major renovations. Two recent examples of new EAV include the Sherwin Williams building and the renovations at Star Buds. New EAV is outside of the tax caps. The 2022 levy was the first since PTELL’s inception in 1994 that the levy was capped at 5% due to high inflation. The 2023 levy will be the second time in which this has occurred. The tax levy increase of 6.07% includes 5% CPI increase and the remaining 1.07% is new EAV. The Village overestimates new EAV; however, Cook County will reduce the Village’s final tax levy next year after the County’s final review of EAV is completed.
The Fiscal Year 2024 Budget reflects the constrained revenue stream of a non-home rule community. The Village receives approximately 15% of your property tax bill, whereas over 70% goes towards local schools. If your annual tax bill is $15,000, approximately $2,250 is paid to the Village. These taxes will pay for many services, including: police, paramedic and fire protection, code enforcement, streets and street maintenance, parks and recreation, maintenance of public spaces and buildings, and general administration. Based on a $15,000 tax bill, you could be paying an additional $112.50 (5% increase) to $136.58 (6.07% increase) to the Village next year.