On Monday, December 2 at 7:00 pm, the Village will hold at public hearing to approve the proposed property tax levey increase for 2024. In preparation, the Village would like to offer some clarity on the terminology required to be used, as it may be a bit confusing. /DocumentCenter/View/3733/2024-Truth-in-Taxation-PH_20241202.
The Village of Pingree Grove would like to clarify the increase in percentage fluctuations year-over-year on its tax levy. First, it is important to note and understand that Illinois State Statute requires taxing districts to comparatively show “property taxes levied” versus “property taxes extended.” The difference being: property taxes levied represent the amount of revenue a public taxing body, e.g., the Village of Pingree Grove, may request to be collected from property taxes; property taxes extended represent the actual amount of revenue that the taxing body receives from property taxes that have been billed and collected (based on total assessed property value).
At the time that the Village needs to establish a property tax levy, the final assessed value of properties is not yet known; therefore, an estimated amount of property tax revenue is requested to be collected, this is the property tax levy. The property taxes extended, the actual amount of revenue received through billed and collected property taxes, are based on several variables including the amount of property tax levied and the Property Tax Extension Limitation Law (PTELL). PTELL limits the percentage amount of tax extension that a non-home rule taxing body, such as the Village of Pingree Grove, may collect. The County is the governing body that manages the property tax billing process.
Due to the state statute reporting requirements, the numbers shown in sec. II of this Notice of Proposed Property Tax show that the 2024 tax levy of $1,720,894.21 is 68.06% higher than 2023 $1,023,951.79; however, the 68.06% increase is comparing the 2024 tax levied (estimated tax revenue requested) to the 2023 property tax extended (actual revenue received). In 2023, the Village’s corporate tax levy extended (actual revenue received) was $727,376 (corporate property taxes do not include SSAs). Due to PTELL limitations, the Village is able to estimate that in 2024, the tax levy to be extended (actual revenue received) will be $758,539, which represents an increase of 3.4% or $31,163.00. This 3.4% increase is a cap set by PTELL.
The Village’s revenue portion of a property’s tax bill is between 2%-3% of the entire bill, which is considerably less than most comparable municipalities, translating to $0.18495/$100 of the equalized assessed value (partial value of the property) or $154.13 for a $250,000 property. With the rapid growth of the Village and the way that property taxes are levied per state law, the effect of the rapid growth actually suppresses the tax rate of property taxpayers in the Village, because the amount of taxes that may be collected (including the increase of $31,163) is divided between all property taxpayers. It is important for the Village to levy (revenue requested) enough tax dollars to ensure that the value of newly constructed properties is sufficiently included in the taxes extended (revenue received). For this reason, the Village levies more in property taxes than the tax that will actually be extended. As growth continues, the suppression of the tax rate will as well.