103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3438

 

Introduced 2/8/2024, by Sen. Craig Wilcox

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 805/6  from Ch. 85, par. 2206
30 ILCS 805/8  from Ch. 85, par. 2208
30 ILCS 805/9.2 new
35 ILCS 5/901
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-207 new
35 ILCS 200/18-212

    Amends the State Mandates Act. Provides that any State mandate regarding any subject matter enacted on or after the effective date of the amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations and reimbursements to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations and reimbursements shall relieve the local government of the obligation to implement any State mandate. Makes conforming changes. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district shall reduce its aggregate extension base for the purpose of lowering its limiting rate for future years upon referendum approval initiated by the submission of a petition by the voters of the district. Provides that the extension limitation shall be: (a) the lesser of 5% or the average percentage increase in the Consumer Price Index for the immediately preceding 10 years; or (b) the rate of increase approved by the voters. Amends the Illinois Income Tax Act. Increases distributions into the Local Government Distributive Fund on and after August 1, 2024. Effective immediately.


LRB103 37836 HLH 67966 b

 

 

A BILL FOR

 

SB3438LRB103 37836 HLH 67966 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 State Mandates Act is amended by changing
5Sections 6 and 8 and by adding Section 9.2 as follows:
 
6    (30 ILCS 805/6)  (from Ch. 85, par. 2206)
7    Sec. 6. State Reimbursement to Local Government For
8Increased Costs Arising From Certain Mandates. (a) Any
9increased costs accruing to local governments as a direct
10result of mandates dealing with the organization and structure
11of local government or due process mandates, as defined in
12subsections (c) and (d), respectively, of Section 3 above, are
13not reimbursable by the State.
14    (b) At least 50%, but not more than 100% of the increase in
15costs of a local government directly attributable to a service
16mandate as defined in subsection (f) of Section 3 enacted by
17the General Assembly or established administratively after the
18effective date of this Act shall be reimbursed by the State
19unless there is in existence at the time of such enactment a
20program of State aid for the service affected by the mandate
21whereunder the non-local share for any participating local
22government is 50% or greater and where the increased costs
23arising under the mandate constitute allowable expenditures

 

 

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1under the aid program. Where all or part of the increased costs
2are met through federal or other external aid, only the net
3increase to the local government shall be included in the base
4against which the amount of State reimbursement is to be
5computed.
6    (c) 100% of the loss in revenue of a local government
7directly attributable to a mandated classification or
8exemption of property for purposes of ad valorem real property
9taxation enacted after the effective date of this Act shall be
10reimbursed by the State. The loss of revenue does not include
11potential revenue from property of a type which was not being
12assessed and taxed on January 1, 1980.
13    (d) Except for a State mandate that affects personnel
14qualifications for local employees, the salaries and wages of
15which are financed under a State program, and except as
16provided in subsection (e) below, any personnel mandate as
17defined in subsection (h) of Section 3 above enacted by the
18General Assembly or established administratively after the
19effective date of this Act shall be reimbursed by the State to
20the extent of increased costs incurred by local governments
21directly attributable to such mandate.
22    (e) All of the increased costs of a local government
23directly attributable to a mandated increase in public
24employee retirement benefits which is enacted after the
25effective date of this Act and which has the effect of
26elevating retirement benefits of local government employees

 

 

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1shall be reimbursed by the State; except that any increased
2costs of a local government attributable to Public Act 83-152,
383-374, 83-375, 83-528, 83-558, 83-661, 83-664, 83-737,
483-772, 83-773, 83-780, 83-792, 83-793, 83-802, 83-810,
583-812, 83-823, 83-827 or 83-869 are not reimbursable by the
6State.
7    (f) After the effective date of this Act, any bill filed
8and any amended bill that creates or enlarges a State mandate
9of the type specified in subsections (f), (g) and (h) of
10Section 3, shall have provided and identified for it an
11appropriation of an amount necessary to provide the
12reimbursement specified above unless a statement, stating the
13specific reasons for such exclusion is set out in the bill or
14amendment as provided in subsection (a) of Section 8.
15    (g) If a local government or combination of local
16governments has been providing a service at its option which
17is subsequently mandated by the State, the State shall pay
18them for the subsequent costs of such program and the local
19government or governments shall proportionately reduce its or
20their property tax extensions by the amount that the State
21payment replaces property tax revenues which were being
22expended on such service. However, for purposes of calculating
23a school district's State aid, no district's operating tax
24rate shall be decreased as a result of reimbursement under
25this Act.
26    (h) Any increased costs accruing to a local government as

 

 

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1a direct result of the requirements of the Steel Products
2Procurement Act are not reimbursable by the State.
3    (i) The provisions of subsections (a) through (h) shall
4apply to State mandates enacted prior to the effective date of
5this amendatory Act of the 103rd General Assembly. On and
6after the effective date of this amendatory Act of the 103rd
7General Assembly, any State mandate enacted regarding any
8subject matter that necessitates additional expenditures from
9local government revenues shall be appropriated for and
10reimbursed as provided under Section 9.2.
11(Source: P.A. 83-1362.)
 
12    (30 ILCS 805/8)  (from Ch. 85, par. 2208)
13    Sec. 8. Exclusions, reimbursement application, review,
14appeals, and adjudication.
15    (a) Exclusions: Any of the following circumstances
16inherent to, or associated with, a mandate shall exclude the
17State from reimbursement liability under this Act. If the
18mandate (1) accommodates a request from local governments or
19organizations thereof; (2) imposes additional duties of a
20nature which can be carried out by existing staff and
21procedures at no appreciable net cost increase; (3) creates
22additional costs but also provides offsetting savings
23resulting in no aggregate increase in net costs; (4) imposes a
24cost that is wholly or largely recovered from Federal, State
25or other external financial aid; (5) imposes additional annual

 

 

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1net costs of less than $1,000 for each of the several local
2governments affected or less than $50,000, in the aggregate,
3for all local governments affected.
4    The failure of the General Assembly to make necessary
5appropriations shall relieve the local government of the
6obligation to implement any service mandates, tax exemption
7mandates, and personnel mandates, as specified in Section 6,
8subsections (b), (c), (d) and (e), unless the exclusion
9provided for in this Section are explicitly stated in the Act
10establishing the mandate. In the event that funding is not
11provided for a State-mandated program by the General Assembly,
12the local government may implement or continue the program
13upon approval of its governing body. If the local government
14approves the program and funding is subsequently provided, the
15State shall reimburse the local governments only for costs
16incurred subsequent to the funding.
17    (a-5) The provisions of subsection (a) excluding the State
18from reimbursement liability under this Act shall not apply to
19any State mandate enacted on or after the effective date of
20this amendatory Act of the 103rd General Assembly, and all
21subsequent State mandates enacted shall be appropriated for
22and reimbursed as provided under Section 9.2.
23    (b) Reimbursement Estimation and Appropriation Procedure.
24        (1) When a bill is introduced in the General Assembly,
25    the Legislative Reference Bureau, hereafter referred to as
26    the Bureau, shall determine whether such bill may require

 

 

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1    reimbursement to local governments pursuant to this Act.
2    The Bureau shall make such determination known in the
3    Legislative Synopsis and Digest.
4        In making the determination required by this
5    subsection (b) the Bureau shall disregard any provision in
6    a bill which would make inoperative the reimbursement
7    requirements of Section 6 above, including an express
8    exclusion of the applicability of this Act, and shall make
9    the determination irrespective of any such provision.
10        (2) Any bill or amended bill which creates or expands
11    a State mandate shall be subject to the provisions of "An
12    Act requiring fiscal notes in relation to certain bills",
13    approved June 4, 1965, as amended. The fiscal notes for
14    such bills or amended bills shall include estimates of the
15    costs to local government and the costs of any
16    reimbursement required under this Act. In the case of
17    bills having a potential fiscal impact on units of local
18    government, the fiscal note shall be prepared by the
19    Department. In the case of bills having a potential fiscal
20    impact on school districts, the fiscal note shall be
21    prepared by the State Superintendent of Education. In the
22    case of bills having a potential fiscal impact on
23    community college districts, the fiscal note shall be
24    prepared by the Illinois Community College Board. Such
25    fiscal note shall accompany the bill that requires State
26    reimbursement and shall be prepared prior to any final

 

 

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1    action on such a bill by the assigned committee. However,
2    if a fiscal note is not filed by the appropriate agency
3    within 30 days of introduction of a bill, the bill can be
4    heard in committee and advanced to the order of second
5    reading. The bill shall then remain on second reading
6    until a fiscal note is filed. A bill discharged from
7    committee shall also remain on second reading until a
8    fiscal note is provided by the appropriate agency.
9        (3) The estimate required by paragraph (2) above,
10    shall include the amount estimated to be required during
11    the first fiscal year of a bill's operation in order to
12    reimburse local governments pursuant to Section 6, for
13    costs mandated by such bill. In the event that the
14    effective date of such a bill is not the first day of the
15    fiscal year the estimate shall also include the amount
16    estimated to be required for reimbursement for the next
17    following full fiscal year.
18        (4) For the initial fiscal year, reimbursement funds
19    shall be provided as follows: (i) any statute mandating
20    such costs shall have a companion appropriation bill, and
21    (ii) any executive order mandating such costs shall be
22    accompanied by a bill to appropriate the funds therefor,
23    or, alternatively an appropriation for such funds shall be
24    included in the executive budget for the next following
25    fiscal year.
26        In subsequent fiscal years appropriations for such

 

 

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1    costs shall be included in the Governor's budget or
2    supplemental appropriation bills.
3    (c) Reimbursement Application and Disbursement Procedure.
4        (1) For the initial fiscal year during which
5    reimbursement is authorized, each local government, or
6    more than one local government wishing to join in filing a
7    single claim, believing itself to be entitled to
8    reimbursement under this Act shall submit to the
9    Department, State Superintendent of Education or Illinois
10    Community College Board within 60 days of the effective
11    date of the mandate a claim for reimbursement accompanied
12    by its estimate of the increased costs required by the
13    mandate for the balance of the fiscal year. The
14    Department, State Superintendent of Education or Illinois
15    Community College Board shall review such claim and
16    estimate, shall apportion the claim into 3 equal
17    installments and shall direct the Comptroller to pay the
18    installments at equal intervals throughout the remainder
19    of the fiscal year from the funds appropriated for such
20    purposes, provided that the Department, State
21    Superintendent of Education or Illinois Community College
22    Board may (i) audit the records of any local government to
23    verify the actual amount of the mandated cost, and (ii)
24    reduce any claim determined to be excessive or
25    unreasonable.
26        (2) For the subsequent fiscal years, local governments

 

 

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1    shall submit claims as specified above on or before
2    October 1 of each year. The Department, State
3    Superintendent of Education or Illinois Community College
4    Board shall apportion the claims into 3 equal installments
5    and shall direct the Comptroller to pay the first
6    installment upon approval of the claims, with subsequent
7    installments to follow on January 1 and March 1, such
8    claims to be paid from funds appropriated therefor,
9    provided that the Department, State Superintendent of
10    Education or Illinois Community College Board (i) may
11    audit the records of any local governments to verify the
12    actual amount of the mandated cost, (ii) may reduce any
13    claim, determined to be excessive or unreasonable, and
14    (iii) shall adjust the payment to correct for any
15    underpayments or overpayments which occurred in the
16    previous fiscal year.
17        (3) Any funds received by a local government pursuant
18    to this Act may be used for any public purpose.
19        If the funds appropriated for reimbursement of the
20    costs of local government resulting from the creation or
21    expansion of a State mandate are less than the total of the
22    approved claims, the amount appropriated shall be prorated
23    among the local governments having approved claims.
24    (d) Appeals and Adjudication.
25        (1) Local governments may appeal determinations made
26    by State agencies acting pursuant to subsection (c) above.

 

 

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1    The appeal must be submitted to the State Mandates Board
2    of Review created by Section 9.1 of this Act within 60 days
3    following the date of receipt of the determination being
4    appealed. The appeal must include evidence as to the
5    extent to which the mandate has been carried out in an
6    effective manner and executed without recourse to
7    standards of staffing or expenditure higher than specified
8    in the mandatory statute, if such standards are specified
9    in the statute. The State Mandates Board of Review, after
10    reviewing the evidence submitted to it, may increase or
11    reduce the amount of a reimbursement claim. The decision
12    of the State Mandates Board of Review shall be final
13    subject to judicial review. However, if sufficient funds
14    have not been appropriated, the Department shall notify
15    the General Assembly of such cost, and appropriations for
16    such costs shall be included in a supplemental
17    appropriation bill.
18        (2) A local government may also appeal directly to the
19    State Mandates Board of Review in those situations in
20    which the Department of Commerce and Economic Opportunity
21    does not act upon the local government's application for
22    reimbursement or request for mandate determination
23    submitted under this Act. The appeal must include evidence
24    that the application for reimbursement or request for
25    mandate determination was properly filed and should have
26    been reviewed by the Department.

 

 

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1        An appeal may be made to the Board if the Department
2    does not respond to a local government's application for
3    reimbursement or request for mandate determination within
4    120 days after filing the application or request. In no
5    case, however, may an appeal be brought more than one year
6    after the application or request is filed with the
7    Department.
8(Source: P.A. 94-793, eff. 5-19-06.)
 
9    (30 ILCS 805/9.2 new)
10    Sec. 9.2. Unfunded State mandates prohibited.
11Notwithstanding any provision of law to the contrary, any
12State mandate regarding any subject matter enacted on or after
13the effective date of this amendatory Act of the 103rd General
14Assembly that necessitates additional expenditures from local
15government revenues shall be void and unenforceable unless the
16General Assembly makes necessary appropriations and
17reimbursements to implement that mandate. The failure of the
18General Assembly to make necessary appropriations and
19reimbursements shall relieve the local government of the
20obligation to implement any State mandate.
 
21    Section 10. The Illinois Income Tax Act is amended by
22changing Section 901 as follows:
 
23    (35 ILCS 5/901)

 

 

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1    Sec. 901. Collection authority.
2    (a) In general. The Department shall collect the taxes
3imposed by this Act. The Department shall collect certified
4past due child support amounts under Section 2505-650 of the
5Department of Revenue Law of the Civil Administrative Code of
6Illinois. Except as provided in subsections (b), (c), (e),
7(f), (g), and (h) of this Section, money collected pursuant to
8subsections (a) and (b) of Section 201 of this Act shall be
9paid into the General Revenue Fund in the State treasury;
10money collected pursuant to subsections (c) and (d) of Section
11201 of this Act shall be paid into the Personal Property Tax
12Replacement Fund, a special fund in the State Treasury; and
13money collected under Section 2505-650 of the Department of
14Revenue Law of the Civil Administrative Code of Illinois shall
15be paid into the Child Support Enforcement Trust Fund, a
16special fund outside the State Treasury, or to the State
17Disbursement Unit established under Section 10-26 of the
18Illinois Public Aid Code, as directed by the Department of
19Healthcare and Family Services.
20    (b) Local Government Distributive Fund. Beginning August
211, 2017 and continuing through July 31, 2022, the Treasurer
22shall transfer each month from the General Revenue Fund to the
23Local Government Distributive Fund an amount equal to the sum
24of: (i) 6.06% (10% of the ratio of the 3% individual income tax
25rate prior to 2011 to the 4.95% individual income tax rate
26after July 1, 2017) of the net revenue realized from the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 of this Act
2upon individuals, trusts, and estates during the preceding
3month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
4income tax rate prior to 2011 to the 7% corporate income tax
5rate after July 1, 2017) of the net revenue realized from the
6tax imposed by subsections (a) and (b) of Section 201 of this
7Act upon corporations during the preceding month; and (iii)
8beginning February 1, 2022, 6.06% of the net revenue realized
9from the tax imposed by subsection (p) of Section 201 of this
10Act upon electing pass-through entities. From Beginning August
111, 2022 and continuing through July 31, 2024 2023, the
12Treasurer shall transfer each month from the General Revenue
13Fund to the Local Government Distributive Fund an amount equal
14to the sum of: (i) 6.16% of the net revenue realized from the
15tax imposed by subsections (a) and (b) of Section 201 of this
16Act upon individuals, trusts, and estates during the preceding
17month; (ii) 6.85% of the net revenue realized from the tax
18imposed by subsections (a) and (b) of Section 201 of this Act
19upon corporations during the preceding month; and (iii) 6.16%
20of the net revenue realized from the tax imposed by subsection
21(p) of Section 201 of this Act upon electing pass-through
22entities. From August 1, 2024 through July 31, 2025, the
23Treasurer shall transfer each month from the General Revenue
24Fund to the Local Government Distributive Fund an amount equal
25to the sum of: (i) 7% of the net revenue realized from the tax
26imposed by subsections (a) and (b) of Section 201 of this Act

 

 

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1upon individuals, trusts, and estates during the preceding
2month; (ii) 8.11% of the net revenue realized from the tax
3imposed by subsections (a) and (b) of Section 201 of this Act
4upon corporations during the preceding month; and (iii) 7% of
5the net revenue realized from the tax imposed by subsection
6(p) of Section 201 of this Act upon electing pass-through
7entities. Beginning on August 1, 2025, the Treasurer shall
8transfer each month from the General Revenue Fund to the Local
9Government Distributive Fund an amount equal to the sum of:
10(i) 8% of the net revenue realized from the tax imposed by
11subsections (a) and (b) of Section 201 of this Act upon
12individuals, trusts, and estates during the preceding month;
13(ii) 9.11% of the net revenue realized from the tax imposed by
14subsections (a) and (b) of Section 201 of this Act upon
15corporations during the preceding month; and (iii) 8% of the
16net revenue realized from the tax imposed by subsection (p) of
17Section 201 of this Act upon electing pass-through entities.
18Beginning August 1, 2023, the Treasurer shall transfer each
19month from the General Revenue Fund to the Local Government
20Distributive Fund an amount equal to the sum of: (i) 6.47% of
21the net revenue realized from the tax imposed by subsections
22(a) and (b) of Section 201 of this Act upon individuals,
23trusts, and estates during the preceding month; (ii) 6.85% of
24the net revenue realized from the tax imposed by subsections
25(a) and (b) of Section 201 of this Act upon corporations during
26the preceding month; and (iii) 6.47% of the net revenue

 

 

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1realized from the tax imposed by subsection (p) of Section 201
2of this Act upon electing pass-through entities. Net revenue
3realized for a month shall be defined as the revenue from the
4tax imposed by subsections (a) and (b) of Section 201 of this
5Act which is deposited into the General Revenue Fund, the
6Education Assistance Fund, the Income Tax Surcharge Local
7Government Distributive Fund, the Fund for the Advancement of
8Education, and the Commitment to Human Services Fund during
9the month minus the amount paid out of the General Revenue Fund
10in State warrants during that same month as refunds to
11taxpayers for overpayment of liability under the tax imposed
12by subsections (a) and (b) of Section 201 of this Act.
13    Notwithstanding any provision of law to the contrary,
14beginning on July 6, 2017 (the effective date of Public Act
15100-23), those amounts required under this subsection (b) to
16be transferred by the Treasurer into the Local Government
17Distributive Fund from the General Revenue Fund shall be
18directly deposited into the Local Government Distributive Fund
19as the revenue is realized from the tax imposed by subsections
20(a) and (b) of Section 201 of this Act.
21    (c) Deposits Into Income Tax Refund Fund.
22        (1) Beginning on January 1, 1989 and thereafter, the
23    Department shall deposit a percentage of the amounts
24    collected pursuant to subsections (a) and (b)(1), (2), and
25    (3) of Section 201 of this Act into a fund in the State
26    treasury known as the Income Tax Refund Fund. Beginning

 

 

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1    with State fiscal year 1990 and for each fiscal year
2    thereafter, the percentage deposited into the Income Tax
3    Refund Fund during a fiscal year shall be the Annual
4    Percentage. For fiscal year 2011, the Annual Percentage
5    shall be 8.75%. For fiscal year 2012, the Annual
6    Percentage shall be 8.75%. For fiscal year 2013, the
7    Annual Percentage shall be 9.75%. For fiscal year 2014,
8    the Annual Percentage shall be 9.5%. For fiscal year 2015,
9    the Annual Percentage shall be 10%. For fiscal year 2018,
10    the Annual Percentage shall be 9.8%. For fiscal year 2019,
11    the Annual Percentage shall be 9.7%. For fiscal year 2020,
12    the Annual Percentage shall be 9.5%. For fiscal year 2021,
13    the Annual Percentage shall be 9%. For fiscal year 2022,
14    the Annual Percentage shall be 9.25%. For fiscal year
15    2023, the Annual Percentage shall be 9.25%. For fiscal
16    year 2024, the Annual Percentage shall be 9.15%. For all
17    other fiscal years, the Annual Percentage shall be
18    calculated as a fraction, the numerator of which shall be
19    the amount of refunds approved for payment by the
20    Department during the preceding fiscal year as a result of
21    overpayment of tax liability under subsections (a) and
22    (b)(1), (2), and (3) of Section 201 of this Act plus the
23    amount of such refunds remaining approved but unpaid at
24    the end of the preceding fiscal year, minus the amounts
25    transferred into the Income Tax Refund Fund from the
26    Tobacco Settlement Recovery Fund, and the denominator of

 

 

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1    which shall be the amounts which will be collected
2    pursuant to subsections (a) and (b)(1), (2), and (3) of
3    Section 201 of this Act during the preceding fiscal year;
4    except that in State fiscal year 2002, the Annual
5    Percentage shall in no event exceed 7.6%. The Director of
6    Revenue shall certify the Annual Percentage to the
7    Comptroller on the last business day of the fiscal year
8    immediately preceding the fiscal year for which it is to
9    be effective.
10        (2) Beginning on January 1, 1989 and thereafter, the
11    Department shall deposit a percentage of the amounts
12    collected pursuant to subsections (a) and (b)(6), (7), and
13    (8), (c) and (d) of Section 201 of this Act into a fund in
14    the State treasury known as the Income Tax Refund Fund.
15    Beginning with State fiscal year 1990 and for each fiscal
16    year thereafter, the percentage deposited into the Income
17    Tax Refund Fund during a fiscal year shall be the Annual
18    Percentage. For fiscal year 2011, the Annual Percentage
19    shall be 17.5%. For fiscal year 2012, the Annual
20    Percentage shall be 17.5%. For fiscal year 2013, the
21    Annual Percentage shall be 14%. For fiscal year 2014, the
22    Annual Percentage shall be 13.4%. For fiscal year 2015,
23    the Annual Percentage shall be 14%. For fiscal year 2018,
24    the Annual Percentage shall be 17.5%. For fiscal year
25    2019, the Annual Percentage shall be 15.5%. For fiscal
26    year 2020, the Annual Percentage shall be 14.25%. For

 

 

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1    fiscal year 2021, the Annual Percentage shall be 14%. For
2    fiscal year 2022, the Annual Percentage shall be 15%. For
3    fiscal year 2023, the Annual Percentage shall be 14.5%.
4    For fiscal year 2024, the Annual Percentage shall be 14%.
5    For all other fiscal years, the Annual Percentage shall be
6    calculated as a fraction, the numerator of which shall be
7    the amount of refunds approved for payment by the
8    Department during the preceding fiscal year as a result of
9    overpayment of tax liability under subsections (a) and
10    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
11    Act plus the amount of such refunds remaining approved but
12    unpaid at the end of the preceding fiscal year, and the
13    denominator of which shall be the amounts which will be
14    collected pursuant to subsections (a) and (b)(6), (7), and
15    (8), (c) and (d) of Section 201 of this Act during the
16    preceding fiscal year; except that in State fiscal year
17    2002, the Annual Percentage shall in no event exceed 23%.
18    The Director of Revenue shall certify the Annual
19    Percentage to the Comptroller on the last business day of
20    the fiscal year immediately preceding the fiscal year for
21    which it is to be effective.
22        (3) The Comptroller shall order transferred and the
23    Treasurer shall transfer from the Tobacco Settlement
24    Recovery Fund to the Income Tax Refund Fund (i)
25    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
26    2002, and (iii) $35,000,000 in January, 2003.

 

 

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1    (d) Expenditures from Income Tax Refund Fund.
2        (1) Beginning January 1, 1989, money in the Income Tax
3    Refund Fund shall be expended exclusively for the purpose
4    of paying refunds resulting from overpayment of tax
5    liability under Section 201 of this Act and for making
6    transfers pursuant to this subsection (d), except that in
7    State fiscal years 2022 and 2023, moneys in the Income Tax
8    Refund Fund shall also be used to pay one-time rebate
9    payments as provided under Sections 208.5 and 212.1.
10        (2) The Director shall order payment of refunds
11    resulting from overpayment of tax liability under Section
12    201 of this Act from the Income Tax Refund Fund only to the
13    extent that amounts collected pursuant to Section 201 of
14    this Act and transfers pursuant to this subsection (d) and
15    item (3) of subsection (c) have been deposited and
16    retained in the Fund.
17        (3) As soon as possible after the end of each fiscal
18    year, the Director shall order transferred and the State
19    Treasurer and State Comptroller shall transfer from the
20    Income Tax Refund Fund to the Personal Property Tax
21    Replacement Fund an amount, certified by the Director to
22    the Comptroller, equal to the excess of the amount
23    collected pursuant to subsections (c) and (d) of Section
24    201 of this Act deposited into the Income Tax Refund Fund
25    during the fiscal year over the amount of refunds
26    resulting from overpayment of tax liability under

 

 

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1    subsections (c) and (d) of Section 201 of this Act paid
2    from the Income Tax Refund Fund during the fiscal year.
3        (4) As soon as possible after the end of each fiscal
4    year, the Director shall order transferred and the State
5    Treasurer and State Comptroller shall transfer from the
6    Personal Property Tax Replacement Fund to the Income Tax
7    Refund Fund an amount, certified by the Director to the
8    Comptroller, equal to the excess of the amount of refunds
9    resulting from overpayment of tax liability under
10    subsections (c) and (d) of Section 201 of this Act paid
11    from the Income Tax Refund Fund during the fiscal year
12    over the amount collected pursuant to subsections (c) and
13    (d) of Section 201 of this Act deposited into the Income
14    Tax Refund Fund during the fiscal year.
15        (4.5) As soon as possible after the end of fiscal year
16    1999 and of each fiscal year thereafter, the Director
17    shall order transferred and the State Treasurer and State
18    Comptroller shall transfer from the Income Tax Refund Fund
19    to the General Revenue Fund any surplus remaining in the
20    Income Tax Refund Fund as of the end of such fiscal year;
21    excluding for fiscal years 2000, 2001, and 2002 amounts
22    attributable to transfers under item (3) of subsection (c)
23    less refunds resulting from the earned income tax credit,
24    and excluding for fiscal year 2022 amounts attributable to
25    transfers from the General Revenue Fund authorized by
26    Public Act 102-700.

 

 

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1        (5) This Act shall constitute an irrevocable and
2    continuing appropriation from the Income Tax Refund Fund
3    for the purposes of (i) paying refunds upon the order of
4    the Director in accordance with the provisions of this
5    Section and (ii) paying one-time rebate payments under
6    Sections 208.5 and 212.1.
7    (e) Deposits into the Education Assistance Fund and the
8Income Tax Surcharge Local Government Distributive Fund. On
9July 1, 1991, and thereafter, of the amounts collected
10pursuant to subsections (a) and (b) of Section 201 of this Act,
11minus deposits into the Income Tax Refund Fund, the Department
12shall deposit 7.3% into the Education Assistance Fund in the
13State Treasury. Beginning July 1, 1991, and continuing through
14January 31, 1993, of the amounts collected pursuant to
15subsections (a) and (b) of Section 201 of the Illinois Income
16Tax Act, minus deposits into the Income Tax Refund Fund, the
17Department shall deposit 3.0% into the Income Tax Surcharge
18Local Government Distributive Fund in the State Treasury.
19Beginning February 1, 1993 and continuing through June 30,
201993, of the amounts collected pursuant to subsections (a) and
21(b) of Section 201 of the Illinois Income Tax Act, minus
22deposits into the Income Tax Refund Fund, the Department shall
23deposit 4.4% into the Income Tax Surcharge Local Government
24Distributive Fund in the State Treasury. Beginning July 1,
251993, and continuing through June 30, 1994, of the amounts
26collected under subsections (a) and (b) of Section 201 of this

 

 

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1Act, minus deposits into the Income Tax Refund Fund, the
2Department shall deposit 1.475% into the Income Tax Surcharge
3Local Government Distributive Fund in the State Treasury.
4    (f) Deposits into the Fund for the Advancement of
5Education. Beginning February 1, 2015, the Department shall
6deposit the following portions of the revenue realized from
7the tax imposed upon individuals, trusts, and estates by
8subsections (a) and (b) of Section 201 of this Act, minus
9deposits into the Income Tax Refund Fund, into the Fund for the
10Advancement of Education:
11        (1) beginning February 1, 2015, and prior to February
12    1, 2025, 1/30; and
13        (2) beginning February 1, 2025, 1/26.
14    If the rate of tax imposed by subsection (a) and (b) of
15Section 201 is reduced pursuant to Section 201.5 of this Act,
16the Department shall not make the deposits required by this
17subsection (f) on or after the effective date of the
18reduction.
19    (g) Deposits into the Commitment to Human Services Fund.
20Beginning February 1, 2015, the Department shall deposit the
21following portions of the revenue realized from the tax
22imposed upon individuals, trusts, and estates by subsections
23(a) and (b) of Section 201 of this Act, minus deposits into the
24Income Tax Refund Fund, into the Commitment to Human Services
25Fund:
26        (1) beginning February 1, 2015, and prior to February

 

 

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1    1, 2025, 1/30; and
2        (2) beginning February 1, 2025, 1/26.
3    If the rate of tax imposed by subsection (a) and (b) of
4Section 201 is reduced pursuant to Section 201.5 of this Act,
5the Department shall not make the deposits required by this
6subsection (g) on or after the effective date of the
7reduction.
8    (h) Deposits into the Tax Compliance and Administration
9Fund. Beginning on the first day of the first calendar month to
10occur on or after August 26, 2014 (the effective date of Public
11Act 98-1098), each month the Department shall pay into the Tax
12Compliance and Administration Fund, to be used, subject to
13appropriation, to fund additional auditors and compliance
14personnel at the Department, an amount equal to 1/12 of 5% of
15the cash receipts collected during the preceding fiscal year
16by the Audit Bureau of the Department from the tax imposed by
17subsections (a), (b), (c), and (d) of Section 201 of this Act,
18net of deposits into the Income Tax Refund Fund made from those
19cash receipts.
20(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
21102-658, eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff.
224-19-22; 102-813, eff. 5-13-22; 103-8, eff. 6-7-23; 103-154,
23eff. 6-30-23.)
 
24    Section 15. The Property Tax Code is amended by changing
25Sections 18-185, 18-205, and 18-212 and by adding Section

 

 

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118-207 as follows:
 
2    (35 ILCS 200/18-185)
3    Sec. 18-185. Short title; definitions. This Division 5
4may be cited as the Property Tax Extension Limitation Law. As
5used in this Division 5:
6    "Consumer Price Index" means the Consumer Price Index for
7All Urban Consumers for all items published by the United
8States Department of Labor.
9    "Extension limitation" means, for taxable years prior to
102025: (a) the lesser of 5% or the percentage increase in the
11Consumer Price Index during the 12-month calendar year
12preceding the levy year; or (b) the rate of increase approved
13by voters under Section 18-205.
14    "Extension limitation" means, for taxable year 2025 and
15thereafter: (a) the lesser of 5% or the average percentage
16increase in the Consumer Price Index for the 10 years
17immediately preceding the levy year for which the extension
18limitation is being calculated; or (b) the rate of increase
19approved by voters under Section 18-205.
20    "Affected county" means a county of 3,000,000 or more
21inhabitants or a county contiguous to a county of 3,000,000 or
22more inhabitants.
23    "Taxing district" has the same meaning provided in Section
241-150, except as otherwise provided in this Section. For the
251991 through 1994 levy years only, "taxing district" includes

 

 

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1only each non-home rule taxing district having the majority of
2its 1990 equalized assessed value within any county or
3counties contiguous to a county with 3,000,000 or more
4inhabitants. Beginning with the 1995 levy year, "taxing
5district" includes only each non-home rule taxing district
6subject to this Law before the 1995 levy year and each non-home
7rule taxing district not subject to this Law before the 1995
8levy year having the majority of its 1994 equalized assessed
9value in an affected county or counties. Beginning with the
10levy year in which this Law becomes applicable to a taxing
11district as provided in Section 18-213, "taxing district" also
12includes those taxing districts made subject to this Law as
13provided in Section 18-213.
14    "Aggregate extension" for taxing districts to which this
15Law applied before the 1995 levy year means the annual
16corporate extension for the taxing district and those special
17purpose extensions that are made annually for the taxing
18district, excluding special purpose extensions: (a) made for
19the taxing district to pay interest or principal on general
20obligation bonds that were approved by referendum; (b) made
21for any taxing district to pay interest or principal on
22general obligation bonds issued before October 1, 1991; (c)
23made for any taxing district to pay interest or principal on
24bonds issued to refund or continue to refund those bonds
25issued before October 1, 1991; (d) made for any taxing
26district to pay interest or principal on bonds issued to

 

 

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1refund or continue to refund bonds issued after October 1,
21991 that were approved by referendum; (e) made for any taxing
3district to pay interest or principal on revenue bonds issued
4before October 1, 1991 for payment of which a property tax levy
5or the full faith and credit of the unit of local government is
6pledged; however, a tax for the payment of interest or
7principal on those bonds shall be made only after the
8governing body of the unit of local government finds that all
9other sources for payment are insufficient to make those
10payments; (f) made for payments under a building commission
11lease when the lease payments are for the retirement of bonds
12issued by the commission before October 1, 1991, to pay for the
13building project; (g) made for payments due under installment
14contracts entered into before October 1, 1991; (h) made for
15payments of principal and interest on bonds issued under the
16Metropolitan Water Reclamation District Act to finance
17construction projects initiated before October 1, 1991; (i)
18made for payments of principal and interest on limited bonds,
19as defined in Section 3 of the Local Government Debt Reform
20Act, in an amount not to exceed the debt service extension base
21less the amount in items (b), (c), (e), and (h) of this
22definition for non-referendum obligations, except obligations
23initially issued pursuant to referendum; (j) made for payments
24of principal and interest on bonds issued under Section 15 of
25the Local Government Debt Reform Act; (k) made by a school
26district that participates in the Special Education District

 

 

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1of Lake County, created by special education joint agreement
2under Section 10-22.31 of the School Code, for payment of the
3school district's share of the amounts required to be
4contributed by the Special Education District of Lake County
5to the Illinois Municipal Retirement Fund under Article 7 of
6the Illinois Pension Code; the amount of any extension under
7this item (k) shall be certified by the school district to the
8county clerk; (l) made to fund expenses of providing joint
9recreational programs for persons with disabilities under
10Section 5-8 of the Park District Code or Section 11-95-14 of
11the Illinois Municipal Code; (m) made for temporary relocation
12loan repayment purposes pursuant to Sections 2-3.77 and
1317-2.2d of the School Code; (n) made for payment of principal
14and interest on any bonds issued under the authority of
15Section 17-2.2d of the School Code; (o) made for contributions
16to a firefighter's pension fund created under Article 4 of the
17Illinois Pension Code, to the extent of the amount certified
18under item (5) of Section 4-134 of the Illinois Pension Code;
19and (p) made for road purposes in the first year after a
20township assumes the rights, powers, duties, assets, property,
21liabilities, obligations, and responsibilities of a road
22district abolished under the provisions of Section 6-133 of
23the Illinois Highway Code.
24    "Aggregate extension" for the taxing districts to which
25this Law did not apply before the 1995 levy year (except taxing
26districts subject to this Law in accordance with Section

 

 

SB3438- 28 -LRB103 37836 HLH 67966 b

118-213) means the annual corporate extension for the taxing
2district and those special purpose extensions that are made
3annually for the taxing district, excluding special purpose
4extensions: (a) made for the taxing district to pay interest
5or principal on general obligation bonds that were approved by
6referendum; (b) made for any taxing district to pay interest
7or principal on general obligation bonds issued before March
81, 1995; (c) made for any taxing district to pay interest or
9principal on bonds issued to refund or continue to refund
10those bonds issued before March 1, 1995; (d) made for any
11taxing district to pay interest or principal on bonds issued
12to refund or continue to refund bonds issued after March 1,
131995 that were approved by referendum; (e) made for any taxing
14district to pay interest or principal on revenue bonds issued
15before March 1, 1995 for payment of which a property tax levy
16or the full faith and credit of the unit of local government is
17pledged; however, a tax for the payment of interest or
18principal on those bonds shall be made only after the
19governing body of the unit of local government finds that all
20other sources for payment are insufficient to make those
21payments; (f) made for payments under a building commission
22lease when the lease payments are for the retirement of bonds
23issued by the commission before March 1, 1995 to pay for the
24building project; (g) made for payments due under installment
25contracts entered into before March 1, 1995; (h) made for
26payments of principal and interest on bonds issued under the

 

 

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1Metropolitan Water Reclamation District Act to finance
2construction projects initiated before October 1, 1991; (h-4)
3made for stormwater management purposes by the Metropolitan
4Water Reclamation District of Greater Chicago under Section 12
5of the Metropolitan Water Reclamation District Act; (h-8) made
6for payments of principal and interest on bonds issued under
7Section 9.6a of the Metropolitan Water Reclamation District
8Act to make contributions to the pension fund established
9under Article 13 of the Illinois Pension Code; (i) made for
10payments of principal and interest on limited bonds, as
11defined in Section 3 of the Local Government Debt Reform Act,
12in an amount not to exceed the debt service extension base less
13the amount in items (b), (c), and (e) of this definition for
14non-referendum obligations, except obligations initially
15issued pursuant to referendum and bonds described in
16subsections (h) and (h-8) of this definition; (j) made for
17payments of principal and interest on bonds issued under
18Section 15 of the Local Government Debt Reform Act; (k) made
19for payments of principal and interest on bonds authorized by
20Public Act 88-503 and issued under Section 20a of the Chicago
21Park District Act for aquarium or museum projects and bonds
22issued under Section 20a of the Chicago Park District Act for
23the purpose of making contributions to the pension fund
24established under Article 12 of the Illinois Pension Code; (l)
25made for payments of principal and interest on bonds
26authorized by Public Act 87-1191 or 93-601 and (i) issued

 

 

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1pursuant to Section 21.2 of the Cook County Forest Preserve
2District Act, (ii) issued under Section 42 of the Cook County
3Forest Preserve District Act for zoological park projects, or
4(iii) issued under Section 44.1 of the Cook County Forest
5Preserve District Act for botanical gardens projects; (m) made
6pursuant to Section 34-53.5 of the School Code, whether levied
7annually or not; (n) made to fund expenses of providing joint
8recreational programs for persons with disabilities under
9Section 5-8 of the Park District Code or Section 11-95-14 of
10the Illinois Municipal Code; (o) made by the Chicago Park
11District for recreational programs for persons with
12disabilities under subsection (c) of Section 7.06 of the
13Chicago Park District Act; (p) made for contributions to a
14firefighter's pension fund created under Article 4 of the
15Illinois Pension Code, to the extent of the amount certified
16under item (5) of Section 4-134 of the Illinois Pension Code;
17(q) made by Ford Heights School District 169 under Section
1817-9.02 of the School Code; and (r) made for the purpose of
19making employer contributions to the Public School Teachers'
20Pension and Retirement Fund of Chicago under Section 34-53 of
21the School Code.
22    "Aggregate extension" for all taxing districts to which
23this Law applies in accordance with Section 18-213, except for
24those taxing districts subject to paragraph (2) of subsection
25(e) of Section 18-213, means the annual corporate extension
26for the taxing district and those special purpose extensions

 

 

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1that are made annually for the taxing district, excluding
2special purpose extensions: (a) made for the taxing district
3to pay interest or principal on general obligation bonds that
4were approved by referendum; (b) made for any taxing district
5to pay interest or principal on general obligation bonds
6issued before the date on which the referendum making this Law
7applicable to the taxing district is held; (c) made for any
8taxing district to pay interest or principal on bonds issued
9to refund or continue to refund those bonds issued before the
10date on which the referendum making this Law applicable to the
11taxing district is held; (d) made for any taxing district to
12pay interest or principal on bonds issued to refund or
13continue to refund bonds issued after the date on which the
14referendum making this Law applicable to the taxing district
15is held if the bonds were approved by referendum after the date
16on which the referendum making this Law applicable to the
17taxing district is held; (e) made for any taxing district to
18pay interest or principal on revenue bonds issued before the
19date on which the referendum making this Law applicable to the
20taxing district is held for payment of which a property tax
21levy or the full faith and credit of the unit of local
22government is pledged; however, a tax for the payment of
23interest or principal on those bonds shall be made only after
24the governing body of the unit of local government finds that
25all other sources for payment are insufficient to make those
26payments; (f) made for payments under a building commission

 

 

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1lease when the lease payments are for the retirement of bonds
2issued by the commission before the date on which the
3referendum making this Law applicable to the taxing district
4is held to pay for the building project; (g) made for payments
5due under installment contracts entered into before the date
6on which the referendum making this Law applicable to the
7taxing district is held; (h) made for payments of principal
8and interest on limited bonds, as defined in Section 3 of the
9Local Government Debt Reform Act, in an amount not to exceed
10the debt service extension base less the amount in items (b),
11(c), and (e) of this definition for non-referendum
12obligations, except obligations initially issued pursuant to
13referendum; (i) made for payments of principal and interest on
14bonds issued under Section 15 of the Local Government Debt
15Reform Act; (j) made for a qualified airport authority to pay
16interest or principal on general obligation bonds issued for
17the purpose of paying obligations due under, or financing
18airport facilities required to be acquired, constructed,
19installed or equipped pursuant to, contracts entered into
20before March 1, 1996 (but not including any amendments to such
21a contract taking effect on or after that date); (k) made to
22fund expenses of providing joint recreational programs for
23persons with disabilities under Section 5-8 of the Park
24District Code or Section 11-95-14 of the Illinois Municipal
25Code; (l) made for contributions to a firefighter's pension
26fund created under Article 4 of the Illinois Pension Code, to

 

 

SB3438- 33 -LRB103 37836 HLH 67966 b

1the extent of the amount certified under item (5) of Section
24-134 of the Illinois Pension Code; and (m) made for the taxing
3district to pay interest or principal on general obligation
4bonds issued pursuant to Section 19-3.10 of the School Code.
5    "Aggregate extension" for all taxing districts to which
6this Law applies in accordance with paragraph (2) of
7subsection (e) of Section 18-213 means the annual corporate
8extension for the taxing district and those special purpose
9extensions that are made annually for the taxing district,
10excluding special purpose extensions: (a) made for the taxing
11district to pay interest or principal on general obligation
12bonds that were approved by referendum; (b) made for any
13taxing district to pay interest or principal on general
14obligation bonds issued before March 7, 1997 (the effective
15date of Public Act 89-718); (c) made for any taxing district to
16pay interest or principal on bonds issued to refund or
17continue to refund those bonds issued before March 7, 1997
18(the effective date of Public Act 89-718); (d) made for any
19taxing district to pay interest or principal on bonds issued
20to refund or continue to refund bonds issued after March 7,
211997 (the effective date of Public Act 89-718) if the bonds
22were approved by referendum after March 7, 1997 (the effective
23date of Public Act 89-718); (e) made for any taxing district to
24pay interest or principal on revenue bonds issued before March
257, 1997 (the effective date of Public Act 89-718) for payment
26of which a property tax levy or the full faith and credit of

 

 

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1the unit of local government is pledged; however, a tax for the
2payment of interest or principal on those bonds shall be made
3only after the governing body of the unit of local government
4finds that all other sources for payment are insufficient to
5make those payments; (f) made for payments under a building
6commission lease when the lease payments are for the
7retirement of bonds issued by the commission before March 7,
81997 (the effective date of Public Act 89-718) to pay for the
9building project; (g) made for payments due under installment
10contracts entered into before March 7, 1997 (the effective
11date of Public Act 89-718); (h) made for payments of principal
12and interest on limited bonds, as defined in Section 3 of the
13Local Government Debt Reform Act, in an amount not to exceed
14the debt service extension base less the amount in items (b),
15(c), and (e) of this definition for non-referendum
16obligations, except obligations initially issued pursuant to
17referendum; (i) made for payments of principal and interest on
18bonds issued under Section 15 of the Local Government Debt
19Reform Act; (j) made for a qualified airport authority to pay
20interest or principal on general obligation bonds issued for
21the purpose of paying obligations due under, or financing
22airport facilities required to be acquired, constructed,
23installed or equipped pursuant to, contracts entered into
24before March 1, 1996 (but not including any amendments to such
25a contract taking effect on or after that date); (k) made to
26fund expenses of providing joint recreational programs for

 

 

SB3438- 35 -LRB103 37836 HLH 67966 b

1persons with disabilities under Section 5-8 of the Park
2District Code or Section 11-95-14 of the Illinois Municipal
3Code; and (l) made for contributions to a firefighter's
4pension fund created under Article 4 of the Illinois Pension
5Code, to the extent of the amount certified under item (5) of
6Section 4-134 of the Illinois Pension Code.
7    "Debt service extension base" means an amount equal to
8that portion of the extension for a taxing district for the
91994 levy year, or for those taxing districts subject to this
10Law in accordance with Section 18-213, except for those
11subject to paragraph (2) of subsection (e) of Section 18-213,
12for the levy year in which the referendum making this Law
13applicable to the taxing district is held, or for those taxing
14districts subject to this Law in accordance with paragraph (2)
15of subsection (e) of Section 18-213 for the 1996 levy year,
16constituting an extension for payment of principal and
17interest on bonds issued by the taxing district without
18referendum, but not including excluded non-referendum bonds.
19For park districts (i) that were first subject to this Law in
201991 or 1995 and (ii) whose extension for the 1994 levy year
21for the payment of principal and interest on bonds issued by
22the park district without referendum (but not including
23excluded non-referendum bonds) was less than 51% of the amount
24for the 1991 levy year constituting an extension for payment
25of principal and interest on bonds issued by the park district
26without referendum (but not including excluded non-referendum

 

 

SB3438- 36 -LRB103 37836 HLH 67966 b

1bonds), "debt service extension base" means an amount equal to
2that portion of the extension for the 1991 levy year
3constituting an extension for payment of principal and
4interest on bonds issued by the park district without
5referendum (but not including excluded non-referendum bonds).
6A debt service extension base established or increased at any
7time pursuant to any provision of this Law, except Section
818-212, shall be increased each year commencing with the later
9of (i) the 2009 levy year or (ii) the first levy year in which
10this Law becomes applicable to the taxing district, by the
11extension limitation lesser of 5% or the percentage increase
12in the Consumer Price Index during the 12-month calendar year
13preceding the levy year. The debt service extension base may
14be established or increased as provided under Section 18-212.
15"Excluded non-referendum bonds" means (i) bonds authorized by
16Public Act 88-503 and issued under Section 20a of the Chicago
17Park District Act for aquarium and museum projects; (ii) bonds
18issued under Section 15 of the Local Government Debt Reform
19Act; or (iii) refunding obligations issued to refund or to
20continue to refund obligations initially issued pursuant to
21referendum.
22    "Special purpose extensions" include, but are not limited
23to, extensions for levies made on an annual basis for
24unemployment and workers' compensation, self-insurance,
25contributions to pension plans, and extensions made pursuant
26to Section 6-601 of the Illinois Highway Code for a road

 

 

SB3438- 37 -LRB103 37836 HLH 67966 b

1district's permanent road fund whether levied annually or not.
2The extension for a special service area is not included in the
3aggregate extension.
4    "Aggregate extension base" means the taxing district's
5last preceding aggregate extension as adjusted under Sections
618-135, 18-215, 18-230, 18-206, and 18-233. Beginning with
7levy year 2022, for taxing districts that are specified in
8Section 18-190.7, the taxing district's aggregate extension
9base shall be calculated as provided in Section 18-190.7. An
10adjustment under Section 18-135 shall be made for the 2007
11levy year and all subsequent levy years whenever one or more
12counties within which a taxing district is located (i) used
13estimated valuations or rates when extending taxes in the
14taxing district for the last preceding levy year that resulted
15in the over or under extension of taxes, or (ii) increased or
16decreased the tax extension for the last preceding levy year
17as required by Section 18-135(c). Whenever an adjustment is
18required under Section 18-135, the aggregate extension base of
19the taxing district shall be equal to the amount that the
20aggregate extension of the taxing district would have been for
21the last preceding levy year if either or both (i) actual,
22rather than estimated, valuations or rates had been used to
23calculate the extension of taxes for the last levy year, or
24(ii) the tax extension for the last preceding levy year had not
25been adjusted as required by subsection (c) of Section 18-135.
26    Notwithstanding any other provision of law, for levy year

 

 

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12012, the aggregate extension base for West Northfield School
2District No. 31 in Cook County shall be $12,654,592.
3    Notwithstanding any other provision of law, for levy year
42022, the aggregate extension base of a home equity assurance
5program that levied at least $1,000,000 in property taxes in
6levy year 2019 or 2020 under the Home Equity Assurance Act
7shall be the amount that the program's aggregate extension
8base for levy year 2021 would have been if the program had
9levied a property tax for levy year 2021.
10    "Levy year" has the same meaning as "year" under Section
111-155.
12    "New property" means (i) the assessed value, after final
13board of review or board of appeals action, of new
14improvements or additions to existing improvements on any
15parcel of real property that increase the assessed value of
16that real property during the levy year multiplied by the
17equalization factor issued by the Department under Section
1817-30, (ii) the assessed value, after final board of review or
19board of appeals action, of real property not exempt from real
20estate taxation, which real property was exempt from real
21estate taxation for any portion of the immediately preceding
22levy year, multiplied by the equalization factor issued by the
23Department under Section 17-30, including the assessed value,
24upon final stabilization of occupancy after new construction
25is complete, of any real property located within the
26boundaries of an otherwise or previously exempt military

 

 

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1reservation that is intended for residential use and owned by
2or leased to a private corporation or other entity, (iii) in
3counties that classify in accordance with Section 4 of Article
4IX of the Illinois Constitution, an incentive property's
5additional assessed value resulting from a scheduled increase
6in the level of assessment as applied to the first year final
7board of review market value, and (iv) any increase in
8assessed value due to oil or gas production from an oil or gas
9well required to be permitted under the Hydraulic Fracturing
10Regulatory Act that was not produced in or accounted for
11during the previous levy year. In addition, the county clerk
12in a county containing a population of 3,000,000 or more shall
13include in the 1997 recovered tax increment value for any
14school district, any recovered tax increment value that was
15applicable to the 1995 tax year calculations.
16    "Qualified airport authority" means an airport authority
17organized under the Airport Authorities Act and located in a
18county bordering on the State of Wisconsin and having a
19population in excess of 200,000 and not greater than 500,000.
20    "Recovered tax increment value" means, except as otherwise
21provided in this paragraph, the amount of the current year's
22equalized assessed value, in the first year after a
23municipality terminates the designation of an area as a
24redevelopment project area previously established under the
25Tax Increment Allocation Redevelopment Act in the Illinois
26Municipal Code, previously established under the Industrial

 

 

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1Jobs Recovery Law in the Illinois Municipal Code, previously
2established under the Economic Development Project Area Tax
3Increment Act of 1995, or previously established under the
4Economic Development Area Tax Increment Allocation Act, of
5each taxable lot, block, tract, or parcel of real property in
6the redevelopment project area over and above the initial
7equalized assessed value of each property in the redevelopment
8project area. For the taxes which are extended for the 1997
9levy year, the recovered tax increment value for a non-home
10rule taxing district that first became subject to this Law for
11the 1995 levy year because a majority of its 1994 equalized
12assessed value was in an affected county or counties shall be
13increased if a municipality terminated the designation of an
14area in 1993 as a redevelopment project area previously
15established under the Tax Increment Allocation Redevelopment
16Act in the Illinois Municipal Code, previously established
17under the Industrial Jobs Recovery Law in the Illinois
18Municipal Code, or previously established under the Economic
19Development Area Tax Increment Allocation Act, by an amount
20equal to the 1994 equalized assessed value of each taxable
21lot, block, tract, or parcel of real property in the
22redevelopment project area over and above the initial
23equalized assessed value of each property in the redevelopment
24project area. In the first year after a municipality removes a
25taxable lot, block, tract, or parcel of real property from a
26redevelopment project area established under the Tax Increment

 

 

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1Allocation Redevelopment Act in the Illinois Municipal Code,
2the Industrial Jobs Recovery Law in the Illinois Municipal
3Code, or the Economic Development Area Tax Increment
4Allocation Act, "recovered tax increment value" means the
5amount of the current year's equalized assessed value of each
6taxable lot, block, tract, or parcel of real property removed
7from the redevelopment project area over and above the initial
8equalized assessed value of that real property before removal
9from the redevelopment project area.
10    Except as otherwise provided in this Section, "limiting
11rate" means a fraction the numerator of which is the last
12preceding aggregate extension base (as reduced by Section
1318-207, if applicable) times an amount equal to one plus the
14extension limitation defined in this Section and the
15denominator of which is the current year's equalized assessed
16value of all real property in the territory under the
17jurisdiction of the taxing district during the prior levy
18year. For those taxing districts that reduced their aggregate
19extension for the last preceding levy year, except for school
20districts that reduced their extension for educational
21purposes pursuant to Section 18-206 and taxing districts that
22reduced their aggregate extension pursuant to Section 18-207,
23the highest aggregate extension in any of the last 3 preceding
24levy years shall be used for the purpose of computing the
25limiting rate. The denominator shall not include new property
26or the recovered tax increment value. If a new rate, a rate

 

 

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1decrease, or a limiting rate increase has been approved at an
2election held after March 21, 2006, then (i) the otherwise
3applicable limiting rate shall be increased by the amount of
4the new rate or shall be reduced by the amount of the rate
5decrease, as the case may be, or (ii) in the case of a limiting
6rate increase, the limiting rate shall be equal to the rate set
7forth in the proposition approved by the voters for each of the
8years specified in the proposition, after which the limiting
9rate of the taxing district shall be calculated as otherwise
10provided. In the case of a taxing district that obtained
11referendum approval for an increased limiting rate on March
1220, 2012, the limiting rate for tax year 2012 shall be the rate
13that generates the approximate total amount of taxes
14extendable for that tax year, as set forth in the proposition
15approved by the voters; this rate shall be the final rate
16applied by the county clerk for the aggregate of all capped
17funds of the district for tax year 2012.
18(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
19102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff.
204-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22;
21103-154, eff. 6-30-23.)
 
22    (35 ILCS 200/18-205)
23    Sec. 18-205. Referendum to increase the extension
24limitation. A taxing district is limited to an extension
25limitation as defined in Section 18-185 of 5% or the

 

 

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1percentage increase in the Consumer Price Index during the
212-month calendar year preceding the levy year, whichever is
3less. A taxing district may increase its extension limitation
4for one or more levy years if that taxing district holds a
5referendum before the levy date for the first levy year at
6which a majority of voters voting on the issue approves
7adoption of a higher extension limitation. Referenda shall be
8conducted at a regularly scheduled election in accordance with
9the Election Code. The question shall be presented in
10substantially the following manner for all elections held
11after March 21, 2006:
12        Shall the extension limitation under the Property Tax
13    Extension Limitation Law for (insert the legal name,
14    number, if any, and county or counties of the taxing
15    district and geographic or other common name by which a
16    school or community college district is known and referred
17    to), Illinois, be increased from (the extension limitation
18    under item (a) of the definition of extension limitation
19    in Section 18-185) the lesser of 5% or the percentage
20    increase in the Consumer Price Index over the prior levy
21    year to (insert the percentage of the proposed increase)%
22    per year for (insert each levy year for which the
23    increased extension limitation will apply)?
24The votes must be recorded as "Yes" or "No".
25If a majority of voters voting on the issue approves the
26adoption of the increase, the increase shall be applicable for

 

 

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1each levy year specified.
2    The ballot for any question submitted pursuant to this
3Section shall have printed thereon, but not as a part of the
4question submitted, only the following supplemental
5information (which shall be supplied to the election authority
6by the taxing district) in substantially the following form:
7        (1) For the (insert the first levy year for which the
8    increased extension limitation will be applicable) levy
9    year the approximate amount of the additional tax
10    extendable against property containing a single family
11    residence and having a fair market value at the time of the
12    referendum of $100,000 is estimated to be $....
13        (2) Based upon an average annual percentage increase
14    (or decrease) in the market value of such property of ...%
15    (insert percentage equal to the average annual percentage
16    increase or decrease for the prior 3 levy years, at the
17    time the submission of the question is initiated by the
18    taxing district, in the amount of (A) the equalized
19    assessed value of the taxable property in the taxing
20    district less (B) the new property included in the
21    equalized assessed value), the approximate amount of the
22    additional tax extendable against such property for the
23    ... levy year is estimated to be $... and for the ... levy
24    year is estimated to be $....
25    Paragraph (2) shall be included only if the increased
26extension limitation will be applicable for more than one year

 

 

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1and shall list each levy year for which the increased
2extension limitation will be applicable. The additional tax
3shown for each levy year shall be the approximate dollar
4amount of the increase over the amount of the most recently
5completed extension at the time the submission of the question
6is initiated by the taxing district. The approximate amount of
7the additional tax extendable shown in paragraphs (1) and (2)
8shall be calculated by multiplying $100,000 (the fair market
9value of the property without regard to any property tax
10exemptions) by (i) the percentage level of assessment
11prescribed for that property by statute, or by ordinance of
12the county board in counties that classify property for
13purposes of taxation in accordance with Section 4 of Article
14IX of the Illinois Constitution; (ii) the most recent final
15equalization factor certified to the county clerk by the
16Department of Revenue at the time the taxing district
17initiates the submission of the proposition to the electors;
18(iii) the last known aggregate extension base of the taxing
19district at the time the submission of the question is
20initiated by the taxing district; and (iv) the difference
21between the percentage increase proposed in the question and
22the otherwise applicable extension limitation lesser of 5% or
23the percentage increase in the Consumer Price Index for the
24prior levy year (or an estimate of the percentage increase for
25the prior levy year if the increase is unavailable at the time
26the submission of the question is initiated by the taxing

 

 

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1district); and dividing the result by the last known equalized
2assessed value of the taxing district at the time the
3submission of the question is initiated by the taxing
4district. This amendatory Act of the 97th General Assembly is
5intended to clarify the existing requirements of this Section,
6and shall not be construed to validate any prior non-compliant
7referendum language. Any notice required to be published in
8connection with the submission of the question shall also
9contain this supplemental information and shall not contain
10any other supplemental information. Any error, miscalculation,
11or inaccuracy in computing any amount set forth on the ballot
12or in the notice that is not deliberate shall not invalidate or
13affect the validity of any proposition approved. Notice of the
14referendum shall be published and posted as otherwise required
15by law, and the submission of the question shall be initiated
16as provided by law.
17(Source: P.A. 97-1087, eff. 8-24-12.)
 
18    (35 ILCS 200/18-207 new)
19    Sec. 18-207. Reduced aggregate extension base.
20    (a) Upon submission of a petition signed by a number of
21voters of the taxing district that is not less than 10% of the
22votes cast in the taxing district at the immediately preceding
23gubernatorial election, the question of whether a taxing
24district shall reduce its aggregate extension base for the
25purpose of lowering its limiting rate for future years shall

 

 

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1be submitted to the voters of the taxing district at the next
2general or consolidated election. The petition shall set forth
3the amount of the reduction and the levy years for which the
4reduction shall be applicable.
5    (b) The petition shall be filed with the applicable
6election authority, as defined in Section 1-3 of the Election
7Code, or, in the case of multiple election authorities, with
8the State Board of Elections, not more than 10 months nor less
9than 6 months prior to the election at which the question is to
10be submitted to the voters, and its validity shall be
11determined as provided by Article 28 of the Election Code and
12general election law. The election authority or Board, as
13applicable, shall certify the question and the proper election
14authority or authorities shall submit the question to the
15voters. Except as otherwise provided in this Section, this
16referendum shall be subject to all other general election law
17requirements.
18    (c) The proposition seeking to reduce the aggregate
19extension base shall be in substantially the following form:
20        Shall the aggregate extension base used to calculate
21    the limiting rate for (taxing district) under the Property
22    Tax Extension Limitation Law be reduced by (amount of
23    money expressed in U.S. dollars) for (levy year or years)?
24    Votes shall be recorded as "Yes" or "No".
25    If a majority of all votes cast on the proposition are in
26favor of the proposition, then the aggregate extension base

 

 

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1shall be reduced as provided in the referendum.
 
2    (35 ILCS 200/18-212)
3    Sec. 18-212. Referendum on debt service extension base. A
4taxing district may establish or increase its debt service
5extension base if (i) that taxing district holds a referendum
6before the date on which the levy must be filed with the county
7clerk of the county or counties in which the taxing district is
8situated and (ii) a majority of voters voting on the issue
9approves the establishment of or increase in the debt service
10extension base. A debt service extension base established or
11increased by a referendum held pursuant to this Section after
12February 2, 2010, shall be increased each year, commencing
13with the first levy year beginning after the date of the
14referendum, by the extension limitation lesser of 5% or the
15percentage increase in the Consumer Price Index during the
1612-month calendar year preceding the levy year if the optional
17language concerning the annual increase is included in the
18question submitted to the electors of the taxing district.
19Referenda under this Section shall be conducted at a regularly
20scheduled election in accordance with the Election Code. The
21governing body of the taxing district shall certify the
22question to the proper election authorities who shall submit
23the question to the electors of the taxing district in
24substantially the following form:
25    "Shall the debt service extension base under the Property

 

 

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1    Tax Extension Limitation Law for ... (taxing district
2    name) ... for payment of principal and interest on limited
3    bonds be .... ((established at $ ....) . (or) (increased
4    from $ .... to $ ....)) .. for the ..... levy year and all
5    subsequent levy years (optional language: , such debt
6    service extension base to be increased each year by
7    (extension limitation amount) the lesser of 5% or the
8    percentage increase in the Consumer Price Index during the
9    12-month calendar year preceding the levy year)?"
10    Votes on the question shall be recorded as "Yes" or "No".
11    If a majority of voters voting on the issue approves the
12establishment of or increase in the debt service extension
13base, the establishment of or increase in the debt service
14extension base shall be applicable for the levy years
15specified.
16(Source: P.A. 96-1202, eff. 7-22-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.