Governor Pritzker recently signed Public Act 102-0895 into law, which created a new Section 190.7 within the Illinois Property Tax Code. Under new Section 190.7 of the Illinois Property Tax Code (35 ILCS 200/18-190.7), school districts with a designation of “recognition” or “review” from ISBE, park districts, library districts, and community college districts, beginning with levy year 2022, may ”recapture” certain levy amounts as a result of not levying for the maximum amount in a previous levy year. The aggregate extension base for the taxing district will be the greater of the “aggregate extension limit” as defined under 190.7 or the last preceding aggregate extension as adjusted under Sections 18-135, 18-215, 18-230, 18-206 and 18-233 under the Property Tax Code.
The “aggregate extension limit” under Section 190.7 means the taxing district’s last preceding aggregate extension if the district had utilized the maximum limiting rate permitted without referendum for each of the 3 immediately preceding levy years as adjusted by Sections 18-135, 18-215, 18-230, 18-206 and 18-233 under the Property Tax Code. The “aggregate extension limit” may not exceed 5% of the taxing district’s aggregate extension for the immediately preceding levy year, unless approved by voters of the taxing district under Section 18-205 of the Property Tax Code. If a taxing district cannot recapture the entire unrealized levy amount in a single levy year, the taxing district may increase its aggregate extension in each immediately succeeding levy year until the entire levy amount is recaptured, except that the increase in each succeeding levy year again may not exceed the greater of 5% of the immediately preceding aggregate extension or as approved by the voters under Section 18-205 of the Property Tax Code.
To avail itself of being able to utilize the “aggregate extension limit” under Section 190.7, rather than its regularly calculated aggregate extension base, the taxing district must certify to the county clerk that the taxing district did not extend the maximum amount permitted by PTELL for a particular levy year. The certification must be made not more than 60 days after the tax district files its levy ordinance or resolution with the county clerk for the levy year in question. We recommend submitting the certification with the levy ordinance or resolution, much like taxing districts already do with truth in taxation certificates.