News Flash Home
The original item was published from 12/2/2022 1:49:00 PM to 12/31/2022 4:35:00 PM.

News Flash

Website News

Posted on: December 1, 2022

[ARCHIVED] Truth in Taxation Information

TruthinTaxation graphic

City of Aledo’s Upcoming Tax Changes - Truth in Taxation

Due to the maturing of the Tax Increment Financing (TIF) District Redevelopment Area in Aledo, taxpayers should expect some changes to their 2022 tax bill. Depending on if you live in the TIF District or not, the changes you observe will be different. To help explain these changes, see below for an example of how these changes might affect you.

For our example values, we are using a home valued at $100,000 with a home-owners exemption of $6,000 resulting in a total tax bill of $2,602.76.

Changes in City of Aledo taxes for Property Owners within TIF:

For taxes paid in 2022, residents with a $100,000 home paid the City of Aledo $278.09 in city property taxes. Properties within the TIF district paid $210.16 directly to the City of Aledo and $67.93 to TIF Fund #1.

For 2023, those same residents will pay an estimated $254.01 in city property taxes to the City of Aledo, with 100% of that amount being paid directly to the City and $0 to the closed TIF fund.

This results in an actual savings of $24.08.

Investment property owners will see a slightly different effect on taxes as they will not qualify for homeowners exemptions.

Changes in City of Aledo taxes for Property Owners outside of TIF:

For taxes paid in 2022, residents with a $100,000 home paid the City of Aledo $278.09 in city property taxes. Properties outside the TIF paid 100% of that amount directly to the City and did not contribute to the TIF fund.

For 2023, those same residents will pay an estimated $254.01 in city property taxes to the City of Aledo, 100% of that amount paid directly to the City.

This results in an actual savings of $24.08.

*Please note, these changes only reflect City of Aledo taxes and contributions to the TIF district. Taxpayers may see changes in their 2022 property taxes from other taxing sources.

Frequently Asked Questions

Q. What is a TIF Fund? Why does Aledo have one?

A. TIF Fund is a Tax Increment Financing Fund that allows local governments to make infrastructure improvements using taxes raised from property value increases. The U.S. Department of Transportation offers a Facts Sheet with more detailed information.

Aledo opened a TIF district in 1986 to support the redevelopment of Historic Downtown Aledo. The TIF district covered all of Downtown Aledo as well as parts outside of downtown. Click here for a street view map of the district.

Q. Why is Aledo’s TIF ending now? 

A. Aledo’s TIF was planned to mature at the end of the year in 2022 and cannot be extended. The TIF fund performed as expected and estimated assessed values within the TIF district increased by 35% as of 2022.

Q. What is the benefit to making this change?

A. With the changes proposed for this year, the City of Aledo can better access available tax dollars to fund infrastructure and downtown improvements while also passing annual tax savings to the residents of Aledo. Residents can expect to save a net amount of $24.08 in city taxes per $100,000 in property value. 

Q. How Will Aledo Use The Increased Revenue from This Change?

A. These funds will better position Aledo to invest in infrastructure improvements, which is a growing need for the City. Many infrastructure projects which receive grant funding from the State of Illinois or other sources require Aledo to make an initial investment or match a certain percentage of the grant funding. These revenues give Aledo the flexibility to apply for such grants, like the Rebuild Illinois MainStreet Grant which awarded $3,000,000 to Aledo.

Truth in Taxation 

 

Facebook Twitter Email

Other News in Website News

Grow your Business Grant

Looking to Grow your Business?

Posted on: March 23, 2023
Merco Trails Update

MERCO Trails Update

Posted on: March 23, 2023
Extra Patrols

Vacation Watches and Patrol Requests

Posted on: September 8, 2022
News Placeholder

Alert Center

Posted on: December 9, 2021
Beautiful stream

Report a Concern

Posted on: December 9, 2021
News Placeholder

Create an Account

Posted on: December 9, 2021
Government Center

Stay Connected!

Posted on: December 9, 2021