Property Taxes and the Tax Levy

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Property Taxes and the Tax Levy

• Washington GSD 52
• November 9, 2009

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Revenue SourcesOperating Funds
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LOCAL PROPERTY TAXES

• Assessment Process
• Review Process
• Equalization Process
• Levy Process
• Truth in Taxation
• Extension
• Property Tax Extension Limitation Law (PTELL)
• Collection and Distribution

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LEVY PROCESS

• School district passes budget
• Determine levy amount
• Board adopts Levy
• Truth In Taxation (if required)
• If current years request (excluding bond and
  interest) is more than 5 greater than prior
  years extension
• A notice must be published in a newspaper
• A public hearing must be held

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Levy Process

• County Clerk can only give a taxing body up to
  the Actual Extension
• If a taxing body asks for more County Clerk can
  only extend the Actual Extension
• If a taxing body asks for less County Clerk
  will extend LESS!
• Balloon Estimate is necessary.
• There is a Compounding Effect!!!!!

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PROPERTY TAX EXTENSION LIMITATION LAW (Tax Cap)

• Enacted in suburban Collar Counties in 1991 and
  Cook County in 1995
• 1996 Amendments. PTELL enacted for remaining
  Illinois counties if approved at county-wide
  referendum. If law is approved in referendum,
  then it becomes effective in the next levy year.
• Limits the increases in property tax extension to
  5 or the increase in the Consumer Price Index
  (CPI), whichever is less.
• New PropertyNew improvements or additions to
  existing property on any parcel of real property
  that increased the assessed value of that real
  property.
• Any TIF coming due will be treated as new
  property.

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Washington GSD 52 Levy

• Important Factors
• EAV
• New Growth

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EAV Historical
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New Growth
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Estimated Levy
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Washington GSD 52

• Approve Estimated Levy - November
• Truth in Taxation December
• Public Hearing - December BOE
• Adopt Resolution December BOE

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Working Together / Achieving Excellence