We’ve been told that District 97’s two referenda would increase our property taxes by $74 per $1,000 of assessed home value. For many Oak Park homeowners who itemize income tax deductions the net amount is far less — about a $52 increase, not $74.
Some examples:
1. A married couple with taxable income (line 43 of Form 1040) between $75,000 and $152,000, and a current Oak Park property tax bill of $10,000: After deducting an additional $740 in property taxes, they would save 25% on their federal tax and an additional 3.75% on their Illinois tax, a total savings of almost 30%, so the $740 increase becomes, in effect, only about $520.
2. For a married couple with income of $18,551 to $75,300, the total tax savings would be about 19%, so the $740 increase becomes about $600.
Obviously everybody’s situation is a bit different, but the principle is clear — if you itemize income tax deductions, your net increase in taxes (property tax plus federal and state income taxes) is likely to be 19-30% less.
A big increase, to be sure, but not as huge as it would first appear.
Alan Fox
Oak Park
