HB4517 101ST GENERAL ASSEMBLY

LRB101 15457 HLH 64790 b

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.

FISCAL NOTE ACT MAY APPLY

HOME RULE NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by adding Section 18-163 as follows:

(35 ILCS 200/18-163 new)

Sec. 18-163. Rate cap.

(a) Notwithstanding any other provision of law, and except as provided in subsection (b), 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. In the case of a taxing district that is subject to the Property Tax Extension Limitation Law, the rate extended against taxable residential real property for the annual corporate extension and those special purpose extensions included in the taxing district's aggregate extension, as defined in Section 18-185, shall not exceed the lesser of (i) the maximum rate calculated under this Section for those extensions or (ii) the limiting rate under the Property Tax Extension Limitation Law.

(b) A new taxing district or a taxing district with an aggregate tax rate of zero in the previous levy year shall hold a referendum establishing a maximum tax rate for the levy year. The maximum tax rate is established for the current levy year if a taxing district has held a referendum before the levy date at which the majority voting on the issue approves its adoption. The referendum under this Section may be held at the same time as the referendum on creating a new taxing district. The question shall be submitted to the voters at a regularly scheduled election in accordance with the Election Code. The question shall be submitted in substantially the following form:

May an aggregate tax rate not to exceed (aggregate tax rate) be extended against taxable property in (taxing district) for (levy year)?

Votes shall be recorded as "Yes" or "No". If a majority of voters voting on the issue approves the maximum tax rate, then the district may adopt a tax rate for the levy year specified that does not exceed that maximum tax rate.

(c) A taxing district may increase its maximum tax rate for one or more levy years if that taxing district holds a referendum before the levy date for the first levy year for which the increase shall apply. Referenda shall be conducted at a regularly scheduled election in accordance with the Election Code. The question shall be submitted in substantially the following form:

Shall the maximum aggregate tax rate for (taxing district) be increased from (statutory maximum rate) to (proposed maximum rate) for (levy year or years)?

Votes shall be recorded as "Yes" or "No". If a majority of voters voting on the issue approves the maximum tax rate, then the district may adopt a tax rate for the levy year specified that does not exceed that maximum tax rate.

(d) This Section is a denial and limitation on home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.