The tax levy formula is established by State law and is codified in the Illinois School Code. It is created by a calculation that considers the previous year’s tax rate and the current Consumer Price Index (CPI). The calculation results in a property tax limiting rate which gets applied to the equalized assessed value (EAV) of the properties within the district’s boundaries to determine the total levy amount.
The annual maximum increase to the levy is restricted by the Property Tax Extension Limitation Law, often referred to as the tax cap law, which limits any increase in property tax extensions to 5% or the Consumer Price Index, whichever is lower.
The only exception to the tax cap limiting rate is new construction. Taxes for any new construction in the Barrington 220 boundary area can be added to the levy. This ensures that new property tax owners contribute fairly to the overall operations of the school district. Typically, the exact amount of new construction is not known at the time the levy is adopted (December), so the tax levy increase is larger than the expected amount based on the limiting rate, to ensure that the taxes associated with new construction are collected.