What is the penalty for exceeding the levy limit?
The penalty for exceeding the levy limit is a loss of shared revenue. This is a dollar for dollar penalty. If a municipality exceeded its levy limit by $1,000.00, its state shared revenue payment will be reduced by $1,000.00. If the amount of the penalty is greater than the state shared revenue amount for that year, the remaining penalty amount is deducted from subsequent state shared revenue payments until the penalty is satisfied.
