Property Taxes and the Tax Levy

1. Property Taxes and the Tax Levy Washington GSD 52 November 12, 2012

2. Projected FY 13 Revenue

4. Proposed FY13 Expenditures

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

7. 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

8. 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!!!!!

9. 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.

10. Washington GSD 52 Levy Important Factors • CPI • EAV • New Growth

12. EAV Historical

13. New Growth

14. Tax Rate

15. Estimated Levy

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

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