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Tax Abatements
Tax levy abatements save residents money

The Tinley Park Village Board recently adopted a property tax levy request for Tax Year 2014 in the amount of $25,541,964, an amount which is unchanged from last year and represents a zero percent increase over the previous year’s total dollars.

“While it’s rare for a taxing body not to increase their tax levy from one year to the next, the Village Board made a commitment to hold down levy increases for five years when we adopted the Home Rule Sales Tax in February of this year,” said Trustee Dave Seaman, who also is Chairman of the Village’s Finance and Economic Development Committee. “We’re dedicated to seeing that promise through.”

The Village Board also approved tax levy abatements for the coming tax year, a practice that has been followed for 33 years. Officials said these abatements continue to save residents hundreds of dollars on an average property tax bill.

While most of the area communities that had previously offered tax rebate programs have either drastically reduced or eliminated their programs, Tinley Park’s abatement program is continuing at levels comparable with prior years. The Village’s required levies to pay outstanding bonds and interest are being reduced by approximately $5.3 million, which translates into reduced property taxes. 
“Earmarking certain revenues each year to pay our bonds helps keep property taxes lower, and it’s a much better practice than raising taxes and then giving rebates,” Tinley Park Mayor Edward J. Zabrocki said. “That money should stay where it belongs from the beginning — with our residents.”

Over the past 10 years, the annual average residential tax savings generated by abatements on homes with a market value between $150,000 and $350,000 is between $127 and $303. During this same period, homeowners have received and benefited from cumulative savings of between $1,270 and $3,031 on the Village portion of their tax bill because of the abatements, which have totaled over $40.1 million for the past 10 years.

“One of the main reasons why the Village can continue to abate taxes in this way is because we’ve been able to finance long-lived capital improvements by matching them with future revenue streams, thereby completing major projects in town without having to raise taxes,” Seaman said. “The upcoming purchase and development of the Tinley Park Mental Health Center property is a prime example of this – we’ll be able to buy and facilitate its development without increasing the tax burden on residents.”

Due to the reduction of the required tax levy for debt, the Village’s tax levy is $5.3 million lower than if abatements were not approved, reducing the Village tax rate by an estimated 0.371 per $100 of Equalized Assessed Value, and by an estimated 0.010 to the library rate.

The total Village tax levy required to pay principal and interest on the bonds was reduced or eliminated by the amounts paid from other sources of money, helping to eliminate the need to place additional tax burden on the property tax. The bonds were issued to build the new train stations, the Tinley Park Convention Center and a number of water, sewer and flood control projects.

“These abatements are a benefit to all taxpayers of the Village, both business and homeowner,” said Trustee David Seaman, who also is Chairman of the Village Board’s Finance and Economic Development Committee. “Abatements are more beneficial to all taxpayers and more efficient than typical municipal rebate programs as there are virtually no administrative costs.”

“We are committed to managing our finances in a manner that keeps our taxes as low as possible while providing our residents with the excellent level of municipal services they deserve,” he added.

Tax Savings of Abatement for House Valued at:

Market               $150,000     $200,000     $275,000     $300,000    $350,000
Assessed            $34,000       $50,000       $66,000       $77,000     $90,000
2005                            67                99              130              152            177
2006                            56                82              108              126            148
2007                            52                77              101              118            138
2008                            47                69                90              105            123
2009                          123              165              226              247            288
2010                          123              164              225              246            286
2011                          185              246              338              369            431
2012                          185              246              338              369            431
2013                          212              283              389              425            495
2014                          220              294              404              441            514
Total                     $1,270         $1,725         $2,349         $2,598       $3,031
Average                  $127            $173            $235            $260          $303

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