Who is responsible to pay the Special Service Area Tax?
A homeowner is responsible for the tax from the time they take possession of the home. Be aware that the Special Service Area Tax is NOT payable in arrears like general ad valorem taxes. For example, you are responsible for paying the 2010 tax levy in 2011 for the 2011 Special Service Area taxes, prorated for the period you lived in the home during 2011. The Special Service Area taxes are listed as a separate line item on your tax bill. All other Village of Huntley property tax line items listed on the tax bill you receive in 2011 are for property taxes due from the previous year.
When is the Special Service Area Tax due and who will notify me?
The Special Service Area Tax is normally due in June and September along with general ad valorem taxes. It will appear as a separate line item on your tax bill from McHenry County. Your mortgage lender may already be escrowing amounts to pay the Special Service Area Tax.
Why do we have to pay this additional tax?
The Special Service Area Tax is being collected to pay off bonds that were issued to fund the public improvements in your service area. Like a mortgage, the bond payments were spread over a thirty year period to keep the annual payment manageable.
What are Public Improvements?
Examples of public improvements include water, sewer, roads, sidewalks, stormwater drainage, and streetlights.
Aren't these Public Improvements included in the price of the home?
In developments that have not financed the public improvements with special service area bonds, the cost of the public improvements would be factored into the cost of the home. In developments with special service area bond financed public improvements, the price of the home has been reduced to account for the Special Service Area Tax.
Don't my regular real estate taxes pay for these Public Improvements?
No. The regular Village of Huntley real estate taxes are used to pay for Village services.
Can I prepay my Special Service Area Tax?
Each homeowner can elect to prepay its Special Service Area Tax at anytime, which will relieve the property of the lien. In order to determine the prepayment amount, contact Village Hall to get the name and number of your Special Service Area Administrator listed on the Maximum tax spreadsheet below.
How much will my tax be?
The annual special tax is limited to the "Maximum Tax" as set forth in the establishing ordinance, and if you are the original home purchaser, in the rider to your sales contract. Taxpayers typically pay approximately 90% of the Maximum Tax. The Maximum Tax is subject to a 2% increase per year. However, please be advised, if your special service area is not taxed at the Maximum Rate, the increase from year to year may be greater than 2%.
Why would Special Service Area increases not be consistent over the life of my payments?
The amount required each year is equal to the interest and principal on the bonds due plus administrative expenses less remaining funds in the Capitalized Interest Account and projected earnings. In addition, some homeowners have chosen to prepay the Special Service Area tax, thereby reducing the total amount needed each year. However, the amount due should not exceed the maximum tax amount due for each area.
For how many years is the tax owed?
The length of the typical tax varies between developments, but is typically 30 years from the start of the development.
How does the Special Service Area Tax affect my home's market value for real estate tax purposes?
The township assesses homes in groups with similar homes being valued alike. Therefore, your home will be valued at its market value regardless of its location in a Special Service Area.
Village of Huntley maximum tax by Special Service Area