Tax Levy And Extension
Each year the consumer pricing index, and the equalized assessed value minus the new construction assessed value is used to establish the limiting tax rate. The resulting rate is applied against the total equalized assessed value.
When determining the levy and budget, if the full limiting rate is not calculated and applied, new construction avoids full taxation. The inequity cannot be corrected in subsequent years, because the tax cap limits the increase.
However, new construction requires increases to services. If new construction is not fully taxed, an unfair tax burden is shifted upon the residents currently living in
General Assistance rate and use limit
Town Insurance use limit
Social Security use limit
IMRF use limit
Park Maintenance rate limit
General Road and Bridge rate limit
Road Insurance use limit
Permanent Road rate limit
Equipment and Building use limit
Because taxes are capped but construction is not capped, the maximum rates are not levied. Increase in property value combined with the increase in equalized assessed value due to new construction, results in a lower tax rate even though tax amounts increase.
Therefore as high as taxes are, they could be much higher. The maximum rates could be applied straight against the total equalized assessed value. The tax cap has protected against the soaring increases that would have resulted.