What is the difference between levies and bonds?
The tax levy is the amount of property tax dollars the board annually asks the County Clerk to charge the property owners in the district. Property taxes usually account for approximately 80 percent of all the district’s revenue each year. The levy is restricted by voter approved tax rates, the equalized assessed valuation of property in the district, and the tax cap law. Bonds provide the district revenue to build a building. However, bonds are debt for the district to pay back over a period of time. Bonds are like a mortgage in that one gets the money to purchase a house, but also has to pay off the debt over a specified period of time. The County Clerk also levies the predetermined amount each year in order to pay the debt service on the bonds.
