While this is certainly one of my least favorite subjects to touch on, the time has come for the various taxing bodies (districts) to adopt their annual property tax levy. In Illinois, the property tax levy is the total amount of revenue that the local taxing bodies request to be collected on their behalf through property taxes to fund their operations and services. The levy is an exact dollar amount as determined by the taxing body, not a tax rate or property value. 

The East Peoria City Council openly discusses this subject on the Council floor during the first Tuesday meeting of each December. We always note that property taxes are collected on behalf of either ten or eleven different taxing bodies (districts) depending on the location of your private residence and/or business. In Illinois, thousands of local government units, including school districts, municipalities, park districts, library districts, counties, townships, fire protection districts, mass transit districts, community college districts, sanitary districts, and road and bridge districts, have the authority to levy property taxes. Each taxing district’s governing board determines its operating budget for the coming fiscal year and calculates the amount of that budget that must be raised from property taxes. This dollar amount is known as the property tax levy.

The tax levy is a set dollar amount that all taxpayers within a specific district will pay collectively. An individual property owner’s property tax bill is their share of the total levy and is determined by their property’s equalized assessed value. By law, the taxing districts must certify their levy amount to the County Clerk by the last Tuesday in December. The County Clerk then calculates the specific tax rate needed to generate that revenue based on the total EAV of all properties within that district, less any state equalization factors and exemptions. 

Illinois law requires all taxing bodies to hold public hearings and publish notices if they plan to request a levy that is more than 105% of the prior year’s extension (total property tax dollars collected). Not only does this process ensure transparency, this allows taxpayers an opportunity to voice any concerns. Property Tax Extension Limitation Law (PTELL) limits the annual increase in property tax extensions for non-home rule municipalities and counties to 5% or the rate of the Consumer Price Index (CPI), whichever is less. This does not include new construction. I am sharing this information because the vast majority of taxpayers do not see the published notices given by those taxing bodies that choose to request a levy that is more than 105% of the prior year’s extension as required by law and thus miss any opportunity to voice their concerns to those taxing bodies prior to the formal adoption of their respective property tax levy. 

An individual property owner’s share of the property taxes that have been levied by City of East Peoria in any given year is listed as East Peoria Corporate on their property tax bill and represents approximately 11.5% of their total property tax. The City has done an excellent job of keeping its share of property taxes at rate equivalent for nearly twenty-five years and as gone as far as levying the exact same dollar amount for two years running, which has led to a reduction in its tax rate. We encourage all residents to become familiar with the various taxing bodies and governing boards that levy property taxes on an annual basis, pay attention to all public notices, and attend the respective governing body meetings to rightfully voice their concerns. 

Always grateful,
John