Ad Valorem Taxes – Taxes based on property value used to fund general government operations.These taxes are included under the tax cap. Fees based on use of goods and services (such as water, charged by volume) are not included.

Allowable Levy Growth Factor – The amount local governments are permitted to increase their real property tax levies. Either two percent or inflation, whichever is less.

Available Carryover – See “Carryover”.

Carryover - Amount by which the tax levy for the prior fiscal year was below the tax levy limit for that year, but not more than 1.5% of that limit. (Starts in second year of limit.)

Coming Fiscal Year (CFY) - The fiscal year for which a tax levy limit will be determined.

Court Orders >5% - Tax levy to pay for court orders and judgments that cost more than 5% of prior year expenditures.

Inflation Factor - Determined by calculating the average Consumer Price Index for all Urban Consumers (CPI-U) for the 12-month time period 18 months prior to the coming fiscal year to 6 months prior to the coming fiscal year.

Levy Limit Override - A local government can override the levy limit by enacting a local law (by a 60 percent vote of the governing body, or in the case of school districts, 60 percent popular vote) allowing raising taxes more than the allowable levy growth factor.

Payments in Lieu of Taxation (PILOTs) - Often used by tax-exempt organizations like churches and hospitals as a mechanism for offsetting costs of local governments.

Prior Fiscal Year (PFY) - The fiscal year before the coming fiscal year.

Quantity Change Factor - Either (a.) an increase in assessed value from the prior roll resulting from new construction, property annexed from another assessing unit, and the addition of property omitted from the prior roll, or (b.) a decrease in assessed value from the prior roll, resulting from fire, demolition, and the deletion of duplicate parcels from the roll. A physical or quantity change does not result from the splitting or merging of parcels. Calculated by Taxation and Finance.

Retirement Contributions >2% - Levy necessary to pay for increases to the average actuarial contribution rate of pension funds over 2 percentage points from PFY's contribution rate. (For example, if ERS rate goes from 10% to 13% of salary, the levy required to pay for 1% would be excluded.) Applies to State and local employee retirement system (ERS), police and fire retirement system (PFRS) and teachers' retirement system (TRS).

School Capital Levy - The tax levy necessary to support capital local expenditures, if any.

Special Assessments - Taxes based on property value levied against parcels in a specific geographic area receiving a direct and unique benefit from a public project. These taxes are included under the tax cap. Fees based on use of goods and services (such as water, charged by volume) are not included.

Tax Base Growth Factor - Based on Taxation and Finance determination of “quantity change.” Never negative.