Oak Brook prides itself on not levying a municipal property tax, something residents in only 3 percent of Illinois towns can say.
While 1,250 municipalities do levy a property tax, Oak Brook is on a list of 42 towns that do not, according to 2014 information from the Illinois Department of Revenue. That information is from 2014, the most recent available, said Terry Horstman, the department’s spokesperson.
Karen Bushy, who served as Oak Brook’s village president from 1991 to 2003, said it was the idea of Oak Brook founder Paul Butler to not levy a municipal property tax.
“Paul Butler believed the village should be able to support itself with the sales tax from the local businesses,” Bushy said. “A lot of it is a personal point of pride for people, to be part of a town that runs as lean as we do and is able to make things work without a property tax. It’s because we have such a big commercial center and not a lot of residents compared to it.”
Oak Brook has been able to avoid levying a property tax because of its strong sales tax base. In 2015, the village collected a record $12.4 million in sales tax revenue, up from $12 million in 2014, said assistant village manager/finance director Sharon Dangles, who noted that sales tax revenue accounts for about 52 percent of the village’s general fund revenue.
Oak Brook’s General Fund pays for police services, fire protection, public works programs such as forestry, library services, building and code enforcement, planning, zoning, economic development, legal services, finance and general administration.
Of the 41 other Illinois municipalities that don’t levy a property tax, Countryside is the closest, geographically, to Oak Brook.
City administrator Gail Paul said in the city’s 50-year history, property taxes were levied once, for debt service, from 2010 to 2014.
“That was because of decreasing revenues due to the 2008 recession,” Paul said.
Paul said sales tax revenue accounts for more than 70 percent of general fund revenues in Countryside. The city collected $8.3 million in sales tax revenue in 2015 and $8 million in 2014, she said.
Since its incorporation in 1958, Oak Brook also once levied a property tax.
That occurred in 1977 after voters approved a referendum for the village to purchase 270 acres for $11 million from Butler to use for the Sports Core. The bonds were retired in the late 1980s.
Village President Gopal Lalmalani has promised no new taxes while he is in office and agreed with Bushy that Oak Brook residents take pride in not paying property taxes to the village.
“We pride ourselves that we are able to balance the books without an increase in taxes,” Lalmalani said. “It does make Oak Brook somewhat unique, being able to do this all without imposing a property tax.
“Obviously, people are happy whenever they don’t have to pay more taxes, and we feel very good about maintaining that in Oak Brook.”
cfieldman@pioneerlocal.com
Twitter: @chuckwriting
No municipal property tax
The following Illinois municipalities did not levy a property tax in 2014:
Allerton, Beach Park, Big Rock, Bismark, Braceville, Campton Hills, Cherry Valley, Countryside, Curran, Damiansville, Deer Park, Dupo, Eldred and Fairview Heights.
Green Oaks, Greenwood, Gurnee, Harristown, Homer Glen, Indian Creek, Kaneville, Kaskaskia, Lily Lake, Long Creek, Long Grove, Loves Park, Lynnville, Machesney Park, Media, Menominee and Millbrook.
New Millford, Oak Brook, Oakwood, Phillipstown, Plattvile, Russellville, St. Libory, Tilton, Trout Valley, Vernon Hills and Westville.
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