Schaumburg Village Board Planning to Lower Tax Levy and Drop Garbage and Vehicle Sticker Fees

Tax reduction by Schaumburg officials is the plan — ever since November 2009 Schaumburg officials warned that a property tax was needed to counter a deficit of over $17.5 million. When the property tax was instated, Schaumburg officials promised to reverse the property tax when officials first established it last year to brace against the sagging economy. Thanks to Woodfield Shopping Mall and other business that foot most of the tax bill, Schaumburg didn’t have a property tax before last year.

Fast forward to today. Schaumburg officials say revenues from hotels (up 6.2 percent) and sales (up 3 percent) taxes were large enough to cover expenses, so they don’t need the property tax to make ends meet. The village of Schaumburg contrasted the national trend of raising taxes and fees to cover rising expenses. The Schaumburg village board unanimously approved a 4.4 percent reduction to the 2010 property tax levy. Village officials also eliminated vehicle sticker fees and garbage removal fees.

The proposed tax levy for 2009 was $23.7 million. In 2010 it dropped to $22.7 million. A homeowner with a $250,000 home will pay about $12 less than last year. Couple that with $190 savings from the garbage fee and $20 a year for village stickers due coming on May 1, 2011. During the first year of the property tax (last year), a homeowner of a $250,000 house and owner two vehicles would have paid about $289. So $289-$12 equals $277. Eliminate another $210 from resident’s expenses, and the homeowners will realize a property tax of only $67.

The financial plans still need to be discussed in two more municipal meetings before a final vote on the decrease on November 9, 2010.