Department of Revenue Guidance Concludes PTAB Refund Recapture Applies to PTELL and Non-PTELL Districts


Department of Revenue Guidance Concludes PTAB Refund Recapture Applies to PTELL and Non-PTELL Districts

Dec 3, 2021

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The Illinois Department of Revenue recently issued a memorandum providing guidance regarding the newly enacted refund recapture legislation, Public Act 102-0519, which went into effect in time for the upcoming December 2021 property tax levies. Among other things, the new refund recapture law created Section 18-233 of the Property Tax Code, providing that taxing districts’ levies “shall be increased by a prior year adjustment” to make that taxing district whole for revenue lost as the result of property tax assessment appeal refunds. 

Section 18-233 automatically increases the property tax extension for taxing districts in an amount equal to the total tax dollars lost to Property Tax Appeal Board (“PTAB”) reductions, Circuit Court Orders in assessment cases, and Certificates of Errors resulting from assessment mistakes. Under the new law, the county treasurer must certify the aggregate refunds paid during the prior 12-month period, and this amount will be added to every applicable taxing district’s annual tax extension.

Section 18-233 falls within the portion of the Property Tax Code concerning the Property Tax Extension Limitation Law (“PTELL”).  Therefore, prior readings of the Act interpreted the new Section 18-233 to apply only to tax capped taxing districts. However, the Department of Revenue’s new guidance explains that, while the Act incorporates its new statutory language into the section of the Property Tax Code regarding PTELL, the Department does not read it narrowly to apply exclusively to PTELL counties. Instead, the Department guidance states explicitly that “Section 18-233 applies to all taxing districts, not just PTELL taxing districts.” 

Our early discussions with some Clerks in non-PTELL counties indicate that they will follow this guidance from the Department.  Thus, non-PTELL districts might receive these funds.  If you have any questions about your County’s practices, PTELL or the impact of this recapture legislation on your upcoming levy, please contact your Robbins, Schwartz attorney.