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Fox River Grove taxpayers should pay slightly less in taxes during calendar year 2023. The Village Board adopted an $84,544 (8.63%) increase to the amount of property taxes collected for the Village portion of the property tax bill. However, given that new property from the closure of TIF District #1 accounts for $35,024 of the projected increase, residents will experience a 5% increase to the Village portion of their property taxes. Under tax cap law, non-home rule municipalities are allowed to increase the tax levy up to an amount equal to the consumer price index (CPI) for the previous year (CPI for the 2022 levy is 7.0%, but taxing bodies cannot exceed 5% by state law) to pay for increasing costs. Levying anything less than the maximum allowed under state law would mean the loss of that revenue permanently on an annual basis.  

The Village Board also took action to reduce the municipal electrical surcharge tax by 40% (roughly $53,000), more than offsetting the CPI portion of the property tax levy adjustment ($48,998). The net result is an estimated decrease (about $4,000) between the two taxes. Village President Marc McLaughlin stated, “We know that our residents and businesses are facing some of the same impacts of inflation that the Village is experiencing across its operation. Our Board was committed to finding a way for the Village taxes to remain flat, even though many costs out of the Village’s control continue to rise.”

The Village’s tax rate represents 6.1% of the total property tax bill (McHenry County).  A home valued at $250,000 pays $8,052 in total property taxes to all the taxing districts. The Village receives $494 of that amount, which funds police protection, street maintenance, insurance, pension and retirement costs, and other municipal purposes. The CPI adjustment of 5% for this year equates to $24.72 in additional property taxes for a home valued at $250,000.

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