Total Dollars needed (taxed) by each tax district (levy) = Total amount of dollars collected by property owners in each district
The tax rate = the percent each property owner must pay to get the money needed by each District (Based on State formulas used by the assessor called assessed value)
Not increasing the levy, = saying no to increased spending (need). Yet new dollars (New Growth) added to the amount paid by those in each district will decrease taxes in a about a year.
Boards are told by not capturing new growth, the tax money they are due is lost. They vote to raise the Levy, not lose this revenue. The problem is tax creep, the consequence of “Raise my tax itis” which keeps taxes going up each year. New Growth (additional tax dollars) are not lost forever as our elected boards think. Rather taxes are collected and the additional money goes to the district in 1 to 1 ½ years because the system is 1 year behind. By living within their means, not increasing the Levy, Elected Board Members postpone getting this new money for a short time. Boards however, prefer to give the tax district a raise by increasing the amount of tax money immediately.
As Homer Township Trustee for 8 years, I voted to increase the Levy in order to capture “New Growth”. I did not understand the levy process until 2009 when I attended training from the tea party. Understand, increasing levy dollars increases the tax on everyone. I’ve been Homer Township Clerk since 2009. This is an administrative position. I don’t vote. Homer Township and Homer Road District have not increased Levy for 3 years. Will County did not raise the Levy. City of Lockport did not raise the Levy.