Understanding Your Taxes

Property Tax

• This local tax is distributed to nine different taxing bodies (see below). The assessed value of local property is taxed at a rate of $7.4618 per $100 Equalized Assessed Valuation (EAV). This rate corresponds with the 2007 tax year for taxes paid in 2008.

• In Illinois property is assessed at 1/3 its fair market value.
  • If you own a home worth $180,000, then your assessed value will be approximately $60,000 ($60,000 = $180,000 / 3).
  • Your property tax bill would be approximately $4,477 ($4,477 = $60,000/100 * $7.4618).
  • The $4,477 tax bill is then split between the nine local taxing bodies at the percentages listed above. Based on these percentages the Town of Normal only receives $447 of this tax bill ($447 = $4,477 * 10.0%).
• Property Tax Exemptions - For information regarding exemptions from property taxes, visit the Normal Township website.

Income Tax

• The State of Illinois collects a 3% flat tax residents’ income.
  • One eleventh of the total state income tax received is distributed to Illinois municipalities based on population.
  • For more information on Illinois income tax, see the Illinois Department of Revenue website
     
• The Federal Government charges an income tax to United State Citizens. Tax rates vary based on income levels.
  • To find your federal tax rate / bracket, search look to the IRS website:
    • www.irs.gov/formspubs/article/0,,id=133517,00.html for 2005
    • www.irs.gov/formspubs/article/0,,id=150856,00.html for 2006

Sales Tax

• The State of Illinois collects a sales tax at a rate of 7.5%, which is distributed as follows:
  • 5% to the State of Illinois
  • 0.25% to McLean County
  • 1.25% to the Town of Normal (excludes grocery items and vehicles)
  • 1.00% to the Town of Normal
     
• The 2.25% received by the Town of Normal is used primarily for support of General Fund operations with a small percentage being used to support the Uptown Renewal Program.

Use Tax

• The Town of Normal collects a .5% tax on titled items sold to residents. Examples of titled items include automobiles, motorcycles and boats. The tax supports General Fund operations.

Hotel / Motel Tax

• The Town of Normal collects a 6% tax on hotel and motel room rental. 2% of the tax is distributed to the Bloomington-Normal Area Convention and Visitors Bureau, while the remaining 4% is used to support the Uptown Renewal Program.

Food & Beverage Tax

• A local 2% tax is issued on the sale of all food, alcoholic and non-alcoholic beverages which are prepared for immediate consumption and which may be consumed on and /or off the premise. The tax supports General Fund operations.

Liquor Tax

• 4% tax rate collected by the Town of Normal on all packaged liquor sales. A portion of this tax supports specific Police operations.

Utility Tax

• 5% tax rate collected by the Town of Normal on electricity, cable, telephone and gas service.
• The utility tax is one of the Town’s largest revenue sources and is used to finance General Funded operations.

Motor Fuel Tax

• This tax is collected by the State of Illinois and used to finance street improvement projects throughout the State.
• The State of Illinois distributes the revenues from this tax to municipalities based on population.

This page last modified 07/31/08.