Here’s what DeKalb city residents might pay on 2023 property tax bill

DeKALB – DeKalb city residents likely won’t see an increase in the amount of money the city expects them to pay for its annual property tax collection this year.

Under the proposed 2023 property tax levy, the city of DeKalb plans to collect about $8.1 million in revenue, a little more than $1 million higher than what was collected in 2022. That’s because of significant economic development growth which came onto the tax rolls, city officials said.

Residents can weigh in on the city’s property tax plan at the DeKalb City Council’s regular meeting set for 6 p.m. Monday at the DeKalb Public Library, 309 Oak St.

The city’s estimated property value pool grew by 25%, from $794 million to $998 million since 2022, according to city documents. The proposed city tax rate is 0.81, 9.5% lower than the 2022 rate of 0.89, documents state.

City Manager Bill Nicklas said the average taxpayer has a chance to save money. While property values are on the rise, city staff said they plan to counteract that by keeping its levy down. The economic growth and lowered property tax rate won’t lose the city any money, however.

“On an average, prior to this, new growth might average say $20 or $30 million,” Nicklas said. “That’s a smattering of houses, some commercial activity, maybe a factory, maybe not. So, this is where we are today.”

Nicklas said the community’s rising wealth is primarily attributed to industrial development in the Gurler Road corridor such as Meta’s DeKalb Data Center, Ferrara Candy Company, Wehrli Custom Fabrication, Amazon and Kraft-Heinz, the latest to announce a facility in DeKalb.

Under the proposed levy, homeowners who’s properties are worth $375,000 would pay $970.13 on the city portion of their bill, according to city documents. That’s compared to the $970.30 paid last year at the same rate for the same homeowner.

As is the city’s trend for years, city staff said that all revenue collected by property taxes is expected to pay for the city’s police and fire pension obligations, documents show.

Nicklas noted that the mayor has convened two tax summit meetings joining elected and administrative officers from each DeKalb taxing body in recent months to jointly define targeted aggregate tax rates that would reduce the community aggregate tax rate.

“What we’re aiming to do is to get below $9.00 per $100 EAV, or 9% mark,” Nicklas said. “We’ve been as high as 11.5% just 3 to 4 years ago. A lot has happened in those last 4 years. Our city’s property tax has dropped 30% in the last 4 years.”

The levy is a collection tool used by governments to ensure that property owners pay their obligated share in real estate taxes.

Officials have argued that the decreasing tax rate provides a feasible path to lowering a taxpayer’s property tax bill.