What is the levy limit?

The levy limit is the maximum amount a community can raise through property taxes in any given year. The levy limit is based on the previous year’s limit plus allowable increases. These allowable increases include the annual 21Ž2 percent increase, new growth and overrides. The levy limit will always be below or at most equal to, the levy ceiling of 21Ž2 percent of the total full and fair cash value of the community’s taxable real and personal property. A community may also levy above the levy limit or ceiling through an exclusion.