The levy limit
The levy limitTaxing districts are able to increase their highest lawful levy by up to one percent (the “limit factor”), depending on the population of the taxing district and the resolutions/ordinances they adopt.
Taxing districts with a population less than 10,000
Taxing districts with a population less than 10,000 must adopt a resolution/ordinance to increase their highest lawful levy since 1985 by one percent, for a limit factor of 101 percent. Each year a majority of the governing board of the district must approve a resolution/ordinance to increase their highest lawful levy.
Taxing districts with a population of 10,000 or more
Taxing districts with a population of 10,000 or more must adopt a resolution/ordinance to increase their highest lawful levy since 1985 by 100 percent plus the Implicit Price Deflator (IPD) or 101 percent, whichever is less. Each year a majority of the governing board of the district must approve a resolution/ordinance to increase their highest lawful levy.
If a taxing district with a population of 10,000 or more adopts a second resolution stating a substantial need for additional funds, the district’s limit factor can be a maximum of 101 percent. The substantial need resolution/ordinance requires approval by a supermajority of the governing board of the district.