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Property Tax Extension Limitation Law (PTELL)
Posted by Bluangel
on July 6, 2022, 4:15 pm
The Property Tax Extension Limitation Law (PTELL) limits the amount of tax extensions (total taxes billed) for non-home rule taxing districts. Although the law is commonly referred to as “tax caps,” use of this phrase can be misleading. The PTELL does not “cap” either individual property tax bills or individual property assessments. Instead, the PTELL allows a taxing district to receive a limited inflationary increase in tax extensions on existing property, plus an additional amount for new construction, and voter-approved rate increases. The limitation slows the growth of property tax revenues to taxing districts when property values and assessments are increasing faster than the rate of inflation. As a whole, property owners have some protection from tax bills that increase only because the market value of their property is rising rapidly. Increases in property tax extensions are limited to the lesser of 5 percent or the increase in the consumer price index for the year preceding the levy year. The limitation for a taxing district can be increased with voter approval. Will the referendum to increase the PTELL limitation affect future levy years?
The increased limitation is in effect only for the levy year specified on the ballot. Future levy years will be affected, however, because the base on which future increases are calculated will have been increased by the additional aggregate extensions allowed by the increase.
Does the aggregate extension base value under the PTELL change from year to year? The aggregate extension base is generally the prior year’s extension as defined in 35 ILCS 200/18-185. This base changes from year to year.
Property Tax Extension Limitation Law
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