Technically, there is no difference other than your real estate property tax is the largest portion of each school district’s annual revenue.  They also receive revenue from the state and federal governments.

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The city of O’Fallon, Illinois draws most of its tax revenues from the sales and use tax and the state income tax.  The real estate property tax levy is currently used within the city’s budget solely to fund the Public Library, Emergency Medical Services, Fire Department, and employee social security/pension funds.

 

As part of the city’s Property Tax Relief Program, the real estate property tax levy for the city’s General Fund and Park Fund was eliminated and replaced by a ½ percent sales tax levy.  Half of this ½ percent sales tax levy goes to the Park Fund and the other half to the Capital “Build O’Fallon Trust” Fund.  This change was implemented beginning with the 2021 real estate property tax year.

As of 2024, the sales tax rate for O’Fallon, Illinois is 9.35 percent on qualifying goods and services.  This is the sum of a 6.25 percent state sales tax, a 1 percent city sales tax, and a 2.1 percent “Special Tax”.  There is currently no St. Clair County sales tax.

 

The property tax levy amount calculated is based on the city’s previous year’s budget. The requested property tax levy must be filed (in dollars not tax rates or percentages) with the county every December for the next fiscal year.  For example, the city submits its property tax levy to the county in December 2023 for their fiscal year 2025.

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The city’s budget operates on a 01 April – 30 May fiscal year while the school districts operate on a 01 July – 30 June fiscal year.  For example, the city’s fiscal year 2025 budget begins April 1, 2024 and runs through May 30, 2025.

 

When you review your property tax bill you will note the City of O’Fallon, Illinois and the O’Fallon Public Library submit their real estate property tax levies separately.