Truth in Taxation Deadlines Are Here

A Levy-Season Reminder for Public Bodies

With levy time approaching, public entities should be mindful of the deadlines and legislative requirements. The Truth in Taxation Law (35 ILCS 200/18-55 et seq.) requires taxing districts to estimate the amount of money needed from property taxes at least 20 days before it adopts its final annual levy. If that amount is more than 105% of the prior tax year’s extension, the district must give public notice and hold a public hearing on the levy.

Levy Timeline

1. Estimate the levy. Not less than 20 days before the adoption of the levy, estimate the amount of property taxes to be extended.

2. Give public notice, if Truth in Taxation applies. If the estimated levy is more than 105% of the prior tax year’s aggregate extension, the district must comply with the notice and hearing requirements.

First, a district that maintains a website must post the statutory notice of the hearing for at least 30 consecutive days, on or near the top of the website’s homepage or on a page accessible through a direct link from the homepage.

Second, the district must publish the statutory notice in a newspaper of general circulation in the district not more than 14 days and not less than 7 days before the date of the public hearing.

Note that districts must therefore track three periods: the 20-day levy estimate period, the 7 to 14-day newspaper notice period, and the 30-day website notice period.

3. Hold the public hearing and adopt the levy. If Truth in Taxation applies, the district must hold a public hearing on its intent to adopt a levy that is more than 105% of the prior year’s extension, allowing for public comment. After the hearing, the board can adopt the levy by appropriate resolution and include any certificate of compliance or certificate of inapplicability with Truth in Taxation.

4. File the levy with the county clerk. Once the board approves the levy, the district must file it with the applicable county clerk by the last Tuesday of December, which is December 29 this year.

Because most districts work back from the date of the board meeting at which the levy will be adopted, we recommend reviewing your timeline now to confirm it accommodates any required posting periods.

This Alert is intended as a reminder and does not summarize all of the law’s requirements. If your district has questions about this procedure or the required documentation, please contact your Robbins Schwartz attorney.