Justia Tax Law Opinion SummariesArticles Posted in Illinois Supreme Court
Bd. of Educ. of Auburn Cmty Unit Sch. Dist. No. 10 v. IL Dept. of Revenue
The regional board of school trustees dissolved a school district, partially located in Montgomery County, and annexed it to a district previously located entirely in Sangamon County. About 99.7 percent of the reconstituted district is in Sangamon County and the voters of that county had approved a referendum under the Property Tax Extension Limitation Law (PTELL)(35 ILCS 200/18â185); the voters in Montgomery County had not. A taxing district subject to PTELL may not ordinarily extend taxes at a rate that exceeds the previous yearâs extension by more than 5%, or the percentage increase in the Consumer Price Index, whichever is less, without referendum approval. The district, wanting to issue bonds to finance improvements, sought a declaration that PTELL did not apply. Reversing the trial and appellate courts, the supreme court held that the entire district remains subject to the PTELL.