Kane County Reporter

The Village of Hampshire Board is considering an 8.5% increase in the property tax levy for 2022 to account for new construction funds, as well as the normal levy.

As discussed at the Nov. 17 board meeting, the board can request a maximum of either the consumer price index (CPI) from the year or 5%, whichever is lower, for the annual levy it gathers from the collected property taxes of residents. While the CPI is above 5% this year and caps the village at a 5% increase from the 2021 levy, the village can add taxes from new construction values on top of the request.

“Some of your homes will be assessed for more this period, some will be assessed for less,” finance director Lori Lyons said at the meeting. “So we can’t really say exactly how this is going to affect your individual tax bills, however the 8.5%, you will not see that. I actually expect, when the calculation is done, despite requesting the 5% or being able to capture the 5%, the village’s tax rate will go down.”

The 8.5% increase will amount to $1,294,500, although the village expects to only collect about $1,277,000. The village collects less than 6% of all the property taxes paid by residents, with the rest going to the county, school district, and other municipalities. This increase does not mean the tax rate is raised by 8.5%, rather it is projected it might even decrease in regards to the village. The village has not actively raised its tax rate in many years.

Due to the increase being greater than 5%, the village is required by truth-in-taxation laws to hold a public hearing on the levy before it is finalized and sent to the county by the end of December. The public hearing for the levy was Dec. 15 and the final needed to be submitted to the county by Dec. 28.