Preparing the Annual Tax Levy
Preparing the Annual Tax Levy Presented by: Hillarie J. Siena, Asst Superintendent for Business/CSBO Glenbrook HSD 225 Sean P. Carney, Director of Business Services Adlai E. Stevenson HSD 125
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
What is a Levy? • Request made to the County Clerk for property tax revenue. • Without this request, a taxing body would receive NO local property tax revenue!
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
What is Tax Extension? • Amount of money approved by county clerk given Levy request, EAV, Tax Rate, and legal limitation. • Levy is the request, extension is the actual dollars distributed.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
What is PTELL? • PTELL is the Property Tax Extension Limitation Law, otherwise known as the “tax cap”. • Limits increases in property tax extensions to the lesser of 5% or the increase in the Consumer Price Index (CPI) for the year preceding the levy year.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Truth in Taxation Law • If a levy request is more than 5% higher than the prior year’s extension, a required notice must be published in a local newspaper and a public hearing conducted. • At the public hearing, the taxing district must explain the reasons behind the proposed increase. • The taxing district must certify to the county clerk compliance with the Truth in Taxation law.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Budget & Levy Cycle Overview
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
How to prepare a levy • The official levy is simply a certificate with dollar requests per fund. • However, you should really put forth a best guess to ensure that all available revenue is requested
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
What is a Balloon Levy? • A balloon levy is an over-estimated request to capture all assessed valuation within the tax base. • A levy request that is too low results in lost revenue under the tax cap.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Can you ever levy too much? • No, the county clerk will limit your extension to your applicable maximum rate. • Remember, the levy is merely a request. Make sure you ask for all you are entitled to receive!
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Data to collect • • • •
EAV Prior year extension New growth Tax rate maximums
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Levy Tools • PMA Financial has a free spreadsheet designed to help in the process. • Other financial projection spreadsheets can feed into a levy calculation worksheet.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Resources • http://tax.illinois.gov/Publications/LocalGovernment/PTAX1004.pdf • http://www.pmanetwork.com/financial-planning/financial-planningoverview
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
What is a Levy? • Request made to the County Clerk for property tax revenue. • Without this request, a taxing body would receive NO local property tax revenue!
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
What is Tax Extension? • Amount of money approved by county clerk given Levy request, EAV, Tax Rate, and legal limitation. • Levy is the request, extension is the actual dollars distributed.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
What is PTELL? • PTELL is the Property Tax Extension Limitation Law, otherwise known as the “tax cap”. • Limits increases in property tax extensions to the lesser of 5% or the increase in the Consumer Price Index (CPI) for the year preceding the levy year.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Truth in Taxation Law • If a levy request is more than 5% higher than the prior year’s extension, a required notice must be published in a local newspaper and a public hearing conducted. • At the public hearing, the taxing district must explain the reasons behind the proposed increase. • The taxing district must certify to the county clerk compliance with the Truth in Taxation law.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Budget & Levy Cycle Overview
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
How to prepare a levy • The official levy is simply a certificate with dollar requests per fund. • However, you should really put forth a best guess to ensure that all available revenue is requested
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
What is a Balloon Levy? • A balloon levy is an over-estimated request to capture all assessed valuation within the tax base. • A levy request that is too low results in lost revenue under the tax cap.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Can you ever levy too much? • No, the county clerk will limit your extension to your applicable maximum rate. • Remember, the levy is merely a request. Make sure you ask for all you are entitled to receive!
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Data to collect • • • •
EAV Prior year extension New growth Tax rate maximums
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Levy Tools • PMA Financial has a free spreadsheet designed to help in the process. • Other financial projection spreadsheets can feed into a levy calculation worksheet.
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
Resources • http://tax.illinois.gov/Publications/LocalGovernment/PTAX1004.pdf • http://www.pmanetwork.com/financial-planning/financial-planningoverview
65th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS May 4 – MAY 6, 2016 @IllinoisASBO #iasboAC16
