KTJ attorneys have consulted with the Cook County Clerk’s office and have confirmed how the Tax Extension Department will interpret Section 190.7 of the Property Tax Code (35 ILCS 200/18-190.7). The Cook County Clerk confirms that the 2022 tax levy year is the first year in which a taxing district can certify that the extension is not the maximum permissible extension under PTELL. If an eligible taxing district files a Recapture Certificate, pursuant to Section 190.7 of the Property Tax Code, within 60 days of filing its tax levy and the extension for said tax levy is not the maximum permissible under PTELL, in the following levy year the County Clerk will calculate an alternative aggregate extension base pursuant to Section 190.7 of the Property Tax Code.
Note that if a taxing district files the Recapture Certificate within 60 day of filing its 2022 tax levy and the taxing district’s 2022 tax levy does not produce the maximum permissible extension under PTELL, then the calculation of the “aggregate extension limit” in 2023 will utilize a revised maximum extension for the 2022 levy year, but will not calculate a revised extension for either levy years 2020 or 2021 (even if the extensions for said levy years was not equal to the maximum permissible under PTELL). The Cook County Clerk is taking the position that it cannot recalculate the extensions for levy years 2020 or 2021, because of the limitations within Section 190.7 of the Property Tax Code. As such, the recapture permitted under Section 190.7 is only forward looking.
An oddity of how this statute is being interpreted, taxing districts will be required to issue a certificate that their levy will not produce the maximum extension under PTELL before knowing whether this is actually the case. We are recommending our eligible taxing district clients consider filing protective Recapture Certificates on a routine basis to allow for recapture should their levies not produce the maximum extension under PTELL.