101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4517

 

Introduced 2/4/2020, by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-163 new

    Amends the Property Tax Code. Provides that the aggregate tax rate extended against taxable real property by any taxing district may not exceed 105% of the aggregate tax rate extended by the taxing district in the previous levy year unless the increase is approved by referendum. Sets forth provisions concerning new taxing districts and taxing districts with an aggregate tax rate of zero in the previous levy year. Preempts home rule powers.


LRB101 15457 HLH 64790 b

FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4517LRB101 15457 HLH 64790 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by adding
5Section 18-163 as follows:
 
6    (35 ILCS 200/18-163 new)
7    Sec. 18-163. Rate cap.
8    (a) Notwithstanding any other provision of law, and except
9as provided in subsection (b), the aggregate tax rate extended
10against taxable real property by any taxing district may not
11exceed 105% of the aggregate tax rate extended by the taxing
12district in the previous levy year. In the case of a taxing
13district that is subject to the Property Tax Extension
14Limitation Law, the rate extended against taxable residential
15real property for the annual corporate extension and those
16special purpose extensions included in the taxing district's
17aggregate extension, as defined in Section 18-185, shall not
18exceed the lesser of (i) the maximum rate calculated under this
19Section for those extensions or (ii) the limiting rate under
20the Property Tax Extension Limitation Law.
21    (b) A new taxing district or a taxing district with an
22aggregate tax rate of zero in the previous levy year shall hold
23a referendum establishing a maximum tax rate for the levy year.

 

 

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1The maximum tax rate is established for the current levy year
2if a taxing district has held a referendum before the levy date
3at which the majority voting on the issue approves its
4adoption. The referendum under this Section may be held at the
5same time as the referendum on creating a new taxing district.
6The question shall be submitted to the voters at a regularly
7scheduled election in accordance with the Election Code. The
8question shall be submitted in substantially the following
9form:
10        May an aggregate tax rate not to exceed (aggregate tax
11    rate) be extended against taxable property in (taxing
12    district) for (levy year)?
13    Votes shall be recorded as "Yes" or "No". If a majority of
14voters voting on the issue approves the maximum tax rate, then
15the district may adopt a tax rate for the levy year specified
16that does not exceed that maximum tax rate.
17    (c) A taxing district may increase its maximum tax rate for
18one or more levy years if that taxing district holds a
19referendum before the levy date for the first levy year for
20which the increase shall apply. Referenda shall be conducted at
21a regularly scheduled election in accordance with the Election
22Code. The question shall be submitted in substantially the
23following form:
24        Shall the maximum aggregate tax rate for (taxing
25    district) be increased from (statutory maximum rate) to
26    (proposed maximum rate) for (levy year or years)?

 

 

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1    Votes shall be recorded as "Yes" or "No". If a majority of
2voters voting on the issue approves the maximum tax rate, then
3the district may adopt a tax rate for the levy year specified
4that does not exceed that maximum tax rate.
5    (d) This Section is a denial and limitation on home rule
6powers and functions under subsection (g) of Section 6 of
7Article VII of the Illinois Constitution.