Property Taxes and the Tax Levy

1. Property Taxes and the Tax Levy Washington GSD 52 November 9, 2009

2. Revenue SourcesOperating Funds

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

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

6. 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!!!!!

7. 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 Property—New 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.

9. Washington GSD 52 Levy Important Factors • EAV • New Growth

11. EAV Historical

13. New Growth

17. Estimated Levy

18. Washington GSD 52 • Approve Estimated Levy - November • Truth in Taxation – December • Public Hearing - December BOE • Adopt Resolution – December BOE

19. Working Together / Achieving Excellence