In my last episode of “Riding Shotgun With Steve”, I said I’d be in favor of getting rid of PTELL for education. Before the torches and pitchforks show up on my front lawn, I want to explain the reasons why. The following is from a post I published back in September of 2015:
“The Property Tax Extension Limitation Law (PTELL) is designed to limit the increases in property tax extensions (total taxes billed) for non-home rule taxing districts. Although the law is commonly called “tax caps,” the PTELL does not cap either individual property tax bills or individual property tax assessments, it only slows the growth of revenues to taxing districts when property values and assessments are increasing faster than the rate of inflation.
As a result, property owners have some protection from tax bills that increase only because the market value of their property is rising rapidly. Increases in property tax extensions are limited to the lesser of 5% or the increase in the national Consumer Price Index (CPI) for the year preceding the levy year. The limitation can be increased for a taxing body with voter approval.”
The problem is that while PTELL makes sense for local taxing districts such as municipalities and the like, much of what you’re required to pay for education is determined in Springfield (mandates, pensions, etc.). Therefore, if Springfield is telling local taxpayers that they have to pay for all this extra stuff, local taxpayers shouldn’t be hamstrung as to how they pay for it. That’s not to say that the State doesn’t need to stand up and pay it’s share. Here’s my latest “Riding Shotgun With Steve” which discusses this matter: