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1. What is tax extension?

The term tax extension refers to the process of calculating tax rates. It has nothing to do with getting an extension on the due dates for property tax bills.

2. How are my property taxes calculated?

Each taxing district (schools, municipalities, library districts, etc.) submits their levy to the County Clerk’s Office. That levy is divided evenly over the assessed value of all property in the district to produce an initial rate. That rate is reduced based on state statutory limits. The resulting rate is then applied to the assessed value of your particular property to come up with your tax bill.

It is important to remember that although the County Clerk’s Office is tasked with calculating property tax rates, we have no discretionary power over them. The rates are based strictly on (a) the levies submitted by the taxing districts; (b) the assessed value minus exemptions determined by the Chief County Assessment Office; and (c) the statutory limits established by the state legislature and the governor.

3. Are there any limits on how much tax I am getting charged?

There are three ways that State statutes cap tax rates:
- Fund Limits: Some funds within district levies have a maximum rate. For instance, in elementary school districts, the Special Education fund has a maximum rate of 0.400 (0.400% of the taxable value of all property in that district). If an elementary school district levies for an amount exceeding the maximum rate, the County Clerk’s Office is required to reduce their levy rate to the maximum allowed.
- PTELL (“Tax Cap”) Limit: The Property Tax Extension Limitation Law (“PTELL”), a/k/a the “tax cap,” limits the average increase in tax bills to the rate of inflation. Your bill may be above or below that average, depending on how your property’s assessed value has changed relative to the average assessed value in the district. Also, some levy funds (e.g., bonds) are not capped by PTELL.
- Special Limits: A few levy funds have special limits, in addition to the ones above. For instance, if a municipality levies for Emergency Services/Disaster Operations (often called “Civil Defense”), there is a fund limit of 0.050 and a limit of 25 cents per capita. That fund cannot exceed either limit.

4. How can I reduce my tax bill?

There are three components that determine the size of your “slice” of the property tax “pie,” and each can be changed if you plan ahead and get involved. For more information, please view the Reducing Tax Bill page.