Taxes & Fees
Property taxes are utilized by multiple units of local government for revenue. The City of DeKalb is one of approximately 10 units of local government that comprise the typical resident’s overall property tax bill. For property taxes due in 2017, the City of DeKalb accounted for approximately 9.5% of the overall property tax bill. As separate, independent units of government, the City has no control over the other components of a resident’s property tax bill.
One common question regarding property taxes concerns how are property taxes calculated? The calculation of property taxes is a multi-step process that involves four distinct areas:
The assessment determines the fair market value of the property. This determination is conducted by the township assessor.
From the assessment, the township assessor determines the equalized assessed value (EAV). The equalized assessed value should be approximately 33.33% of the total market value in a given area. In order to ensure that the equalized assessed value of all properties is equal to 33.33% of the market value, the Illinois Department of Revenue may apply an equalization factor to the EAV as determined by the assessor.
The levy is the official request from a unit of local government for the funds it determines it requires from the property tax.
The extension is a determination of the property tax rate. Once the County has received all levy requests, it determines the rate that must be applied in order for the unit of local government to receive its requested levy.
Once the rates have been applied, property tax bills are sent to each property owner. The taxes are remitted to the County Clerk or Treasurer and dispersed to the various units of local government who are listed on the property tax bill.
The sales tax rate for the City of DeKalb is 8.00%. The City receives 2.75% of the 8.00%. Below is a breakdown of the 8.00% sales tax rate:
- 5.00% State of Illinois
- 1.00% City Share Municipal Tax
- 1.75% City Share Home Rule Tax
- 0.25% DeKalb County
The City of DeKalb imposes a 7% tax on rent charged for the privilege and use of renting a hotel or motel room within the City of DeKalb for each twenty-four (24) hour period or any portion thereof for which a daily or other room charge is made. (Chapter 55)
The City of DeKalb imposes a 2% tax upon the privilege of purchasing food items prepared for immediate consumption and alcoholic liquor served or prepared at either a restaurant or bar in the City of DeKalb and upon the privilege of purchasing alcoholic liquor at retail at any package liquor store within the City, exclusive of any other tax charged for such food items and/or alcoholic beverage. (Chapter 60)
Local Motor Fuel Tax
The City of DeKalb imposes a tax upon the privilege of purchasing motor fuel at retail, within the City, at a rate of three and one half cents ($0.035) per gallon or fraction thereof. (Chapter 66)
On January 8, 2018, City Council approved a $0.02 per gallon increase to the Local Motor Fuel Tax for a total of $0.055 per gallon. The rate increase is effective March 1, 2018. All forms will be updated to reflect the change at that time.