Public Notice of Adopted Levy Required by the Truth in Taxation Law May Now Include Reference to Tax Cap Limitations

Effective August 14, 2009, taxing districts that file property tax levies are now allowed to include optional language in one of the public notices required by the Truth in Taxation Law (35 ILCS 200/18-55 et. seq.) when an increase in the adopted levy is more than 105% of the prior year’s aggregate levy. As a result of Public Act 96-504 the notice of an adopted levy may now include discretionary language stating that the taxing district is limited in the amount of revenue it can collect by the Property Tax Extension Limitation Law (PTELL). The ability to include this language allows taxing districts to inform taxpayers that despite the increase in the adopted levy, the increase in tax rates – and ultimately in tax bills – may not be as great as the increase in the levy amount. 

            The Truth in Taxation Law limits a taxing district from levying a property tax in excess of 105% of the prior year aggregate levy until it has complied with public notice and public hearing requirements. Where a proposed or adopted property tax levy is more than 105% of the prior year’s levy, public notice must be provided. The notice must be in the form specified by the statute and must be published in an English language newspaper of general circulation published in either the taxing district or the county. Failure to comply with these requirements may result in either a refusal by the County Clerk to extend the levy or objections to the property tax rate by taxpayers.

            The new language, which can be included if a taxing district so chooses, applies only to the public notice required when the adopted levy exceeds 105% of the prior year’s levy. It acknowledges that levying more than 105% of the prior year’s levy is limited by PTELL. A taxing district may now include the following language as part of its Truth in Taxation Law notice of an adopted levy: 

V. The taxing district has estimated its equalized assessed valuation to secure new growth revenue and must adhere to the Property Tax Extension Limitation Law (PTELL or “tax cap” law). PTELL limits the increase over the prior year in the property tax extension of this taxing district to the lesser of 5% or the percentage increase in the Consumer Price Index (CPI), which is (insert applicable CPI percentage increase).