CENTRAL ILLINOIS–Thousands of homeowners are seeing their property fall in value.
This week, Property Assessment Notices arrived in mailboxes.
Less property value means less property taxes going to our local municipalities and school districts.
Pekin Mayor Mark Luft says keeping property value at the right spot is a priority for Pekin, and the city has been fortunate this year.
“We have stayed steady. As far as population and with property values. Just to give you an example, I personally watched it myself, in the subdivision behind where I live, in the last 18 months we’ve had 5 homes being built,” said Pekin Mayor Mark Luft.
Many of the services our Central Illinois schools rely on property taxes.
In 2018, Peoria County taxpayers paid out over $325 million, half of which is spent in the district.
The Peoria County Coroner says sometimes when the EAV decreases, tax rates increase.
Superintendent of Dunlap School District Dr. Scott Dearman says he hopes this trend reverses, and if it doesn’t problems will arise.
“Hopefully we can weather this storm and hope the Peoria area rebounds and we see that trend go upward soon,” Dr. Dearman said.
“We haven’t seen a significant decline in EAV in quite some time, so it’s a very legitimate concern and a worry. Again, whether it’s going to be something that’s sustained and continue over time, if that trend continues, that’s going to be even more problematic as time comes,” said Dr. Dearman.
Re/Max Realtor Ryan Cannon says homeowners have been reporting assessed value decreases from as low as just half a percent all the way up to 15 percent.
He believes the reason for this decrease is because in past years many Peoria County homes have been assessed at values higher than they’re actually worth.
“The taxable value is normalizing to what the properties are selling for. I think over the last few years they’ve inched up past the point of what a buyer is willing to pay for them,” Cannon said.
The amount of property taxes our local municipalities see can also affect the construction and services they provide.
Pekin Mayor Mark Luft says when property values are higher, it’s welcoming to businesses and city projects.
“It allows you to draw in new people. When those reports come out, you can show growth, it automatically sparks interest with other people to bring them in. It helps the growth of businesses that wanna come in,” Luft said.
Luft says although Pekin has seen a decrease in EAV, many construction plans are in the works as well as new houses being built.