One more month to go in 2015 and it doesn’t look as if the cost of living will have gone up even one percent.
Tax districts, such as schools, are limited to taking no more total dollars than the percentage increase in the Consumer Price Index.
Through November, the CPI is up only one-half of one percent, according to Brad Kramer of the Illinois Revenue Department.
Last year the inflation rate was only 8/10 of one percent.
That means no tax district which is not a Home Rule Unit will be able to increase its total tax take more than half a percent.. (There are probably some exceptions to this general rule for bond payments.)
From a political point of view, lots of local tax district officials have foregone an opportunity for good publicity by just passing levies that are flat.
After all it would be “hurting” them less than in any other year since 2008, when the CPI rose 1/10 of one percent.
Instead, many have asked for the moon again.
And they absolutely knew that they would get almost nothing.
Their excuse is that they want to capture all the new growth.
That’s what they “balloon levy,” reaching for the sky.
The tax districts will be disappointed when they receive virtually no more than last year.
This does not mean that individual tax bills won’t go up more than the CPI, because the limitation is on the total amount more that the tax district can collect, not what individuals are forced to pay.
The other variable–the assessed valuation–may shift who pays how much.