Frequently Asked Questions

The special tax will be a predetermined amount for each class of property (i.e. single family, town home, duplex, etc.). The amount will be based on the benefits derived by the property owner as determined by a consultant or engineer. The annual special tax can be structured to increase over the life of the bonds; however, the maximum annual tax is predetermined for each year and will be disclosed by the builder using a purchase contract rider.

Kendall County bills and collects the tax in conjunction with the regular semiannual real-estate bill.

Please consult with your tax advisor on this issue. Generally, because the special tax is a lien against the property, the interest portion of the special tax is deductible for federal income tax purposes.

The property owner of record is responsible for the payment of special 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 2002 tax levy in 2003 for the 2003 Special Service Area taxes, prorated for the year you lived in the home during 2003.

Failure of the developer or any other property owner to pay the special tax has no impact on the maximum special tax for any other homeowner.

Each homeowner can make the decision independently whether to pay the special tax semi-annually or prepay it and include it in their mortgage. Remember the special tax is pre-payable at any time, which will relieve the property of the lien. In order to determine the prepayment amount you can contact David Taussig and Associates, a Special Service Area Administrator, at 800-969-4382.

Each homeowner will be required to sign a rider of which a rider may only be used by the builder explaining the special tax that also discloses their maximum tax. In addition, a lien will be filed with the County so that the special tax will show up on the title report.

The Special Service Area Tax is normally due in June and September along with general property taxes. It will appear as a separate line item on your tax bill from Kendall County. Your mortgage lender may be able to escrow amounts to pay the Special Service Area Tax.

In communities 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 communities with special service area bond financed public improvements, the price of the home should be reduced to account for the Special Service Area Tax.

No. The regular real estate taxes are used to pay for City services.

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 1.5% 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 1.5%. You can contact David Taussig and Associates for additional information.

The amount required each year is equal to the interest and principal on the bonds are due plus administrative expenses less 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 will not exceed the maximum tax amount due for each area.

Under the federal tax law, the term of the bonds cannot exceed 120% of the life of the improvements. Typically, the term of the bonds is 30 years, similar to the homeowner's mortgage.

The bonds are secured from the special tax and all funds and accounts established under the Trust Indenture including a debt service reserve fund equal to 10% of the par amount of bonds.