PTELL-AGGREGATE EXTENSION
The amendment introduces a dual criterion for setting the extension limitation: it cannot exceed the lesser of 5% or the average percentage increase in the Consumer Price Index (CPI) over the past decade preceding the levy year. Alternatively, a higher rate of increase can be set if approved by the voters of the taxing district. This structure seeks to balance fiscal constraints with the need for necessary funding while providing voters more influence over local tax policies.
SB0196, introduced by Senator Dan McConchie, proposes amendments to the Property Tax Extension Limitation Law in the Property Tax Code of Illinois. The bill seeks to establish a more structured approach to property tax extension limitations by allowing taxing districts to lower their limiting rate through a referendum. Specifically, it permits a district to request a reduction in its aggregate extension base, which will impact the limiting rate available for future tax levies should the voters approve the change.
There are notable points of contention regarding SB0196. Critics may argue that tying property tax increases to CPI could undermine local government flexibility in funding essential services, especially during periods of economic downturn when tax revenue may decline. Furthermore, requiring voter approval for tax increases may lead to funding instability, particularly in districts where voter turnout is low. Nevertheless, proponents of the bill assert that it empowers voters and implements fiscal discipline, preventing arbitrary tax increases without public consent.