Does the law limit the amount property taxes can increase from one year to the next?
The law does not limit the increase in the property taxes on an individual property but does limit the amount taxing districts (local governmental units) can increase the generally nonvoter approved revenue to be received from property taxes. Each taxing district can increase the generally nonvoter approved property tax revenue it will receive by 3 percent plus a growth factor for new construction and annexation. If the rate of increase in property tax revenue is less than the rate of increase in total taxable value of all property within the taxing district, the property tax rate will decrease. However, property taxes may increase on individual properties if the rate of change in value of that specific property exceeds the rate of change in value of all properties. Additionally, voter-approved issues like bonds and overrides may exceed the limitation. Contact us if you need more information.
