093_HB2647

 
                                     LRB093 08334 SJM 08553 b

 1        AN ACT concerning taxes.

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

 4        Section  5.   The  Property Tax Code is amended by adding
 5    Section 18-53 and by changing Sections 18-55  and  18-185  as
 6    follows:

 7        (35 ILCS 200/18-53 new)
 8        Sec. 18-53.  Recovery of revenue lost due to tax refunds.
 9    When a taxing district is required to refund a portion of the
10    property  tax  revenue  distributed  to  that taxing district
11    because of a decision of the Property  Tax  Appeal  Board,  a
12    decision  of  the Department of Revenue, a court order issued
13    under Article 23, or an administrative decision  of  a  local
14    assessing  official reducing the assessed value of a property
15    within  the  district,  that  taxing  district  may,  without
16    referendum,  adopt  a  supplemental  levy  to  recapture  the
17    revenue lost by the refund or refunds. The supplemental  levy
18    must not exceed an amount equal to the aggregate refunds paid
19    by  the district for the prior fiscal year. Within 45 days of
20    a request by a taxing district,  the  county  treasurer  must
21    certify  the  aggregate refunds paid by a taxing district for
22    purposes of this Section. For purposes of  the  Property  Tax
23    Extension  Limitation  Law, the taxing district's most recent
24    aggregate extension base shall not include  the  supplemental
25    levy authorized under this Section.

26        (35 ILCS 200/18-55)
27        Sec.  18-55.  Short title and definitions.  This Division
28    2 may be cited as the Truth in Taxation Law.  As used in this
29    Division 2:
30        (a)  "Taxing  district"  has  the  meaning  specified  in
 
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 1    Section 1-150 and includes home rule units, but from  January
 2    1,  2000  through  December  31, 2002 does not include taxing
 3    districts that have territory in Cook County.
 4        (b)  "Aggregate levy" means the annual corporate levy  of
 5    the  taxing  district  and those special purpose levies which
 6    are made annually (other than debt service levies and  levies
 7    made  for  the  purpose  of  paying  amounts due under public
 8    building commission leases).
 9        (c)  "Special  purpose  levies"  include,  but  are   not
10    limited  to, levies made on an annual basis for contributions
11    to pension plans, unemployment and worker's compensation,  or
12    self-insurance.  "Special  purpose levies" do not include any
13    levy made under Section 18-53.
14        (d)  "Debt service"  means  levies  made  by  any  taxing
15    district   pursuant   to   home   rule   authority,  statute,
16    referendum, ordinance, resolution, indenture,  agreement,  or
17    contract  to  retire  the principal or pay interest on bonds,
18    notes,  debentures  or  other  financial  instruments   which
19    evidence indebtedness.
20    (Source: P.A. 91-357, eff. 7-29-99; 91-523, eff. 1-1-00.)

21        (35 ILCS 200/18-185)
22        Sec.  18-185.  Short title; definitions.  This Division 5
23    may be cited as the Property Tax  Extension  Limitation  Law.
24    As used in this Division 5:
25        "Consumer Price Index" means the Consumer Price Index for
26    All  Urban  Consumers  for  all items published by the United
27    States Department of Labor.
28        "Extension limitation" means (a) the lesser of 5% or  the
29    percentage  increase  in  the Consumer Price Index during the
30    12-month calendar year preceding the levy  year  or  (b)  the
31    rate of increase approved by voters under Section 18-205.
32        "Affected  county"  means  a  county of 3,000,000 or more
33    inhabitants or a county contiguous to a county  of  3,000,000
 
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 1    or more inhabitants.
 2        "Taxing  district"  has  the  same  meaning  provided  in
 3    Section  1-150, except as otherwise provided in this Section.
 4    For the 1991 through 1994 levy years only, "taxing  district"
 5    includes  only  each non-home rule taxing district having the
 6    majority of its 1990  equalized  assessed  value  within  any
 7    county  or  counties contiguous to a county with 3,000,000 or
 8    more inhabitants.  Beginning with the 1995 levy year, "taxing
 9    district" includes only each non-home  rule  taxing  district
10    subject  to  this  Law  before  the  1995  levy year and each
11    non-home rule taxing district not subject to this Law  before
12    the  1995 levy year having the majority of its 1994 equalized
13    assessed value in an affected county or counties.   Beginning
14    with  the levy year in which this Law becomes applicable to a
15    taxing  district  as  provided  in  Section  18-213,  "taxing
16    district" also includes those taxing districts  made  subject
17    to this Law as provided in Section 18-213.
18        "Aggregate  extension" for taxing districts to which this
19    Law applied before  the  1995  levy  year  means  the  annual
20    corporate extension for the taxing district and those special
21    purpose  extensions  that  are  made  annually for the taxing
22    district, excluding special purpose extensions: (a) made  for
23    the  taxing  district to pay interest or principal on general
24    obligation bonds that were approved by referendum;  (b)  made
25    for  any  taxing  district  to  pay  interest or principal on
26    general obligation bonds issued before October 1,  1991;  (c)
27    made  for any taxing district to pay interest or principal on
28    bonds issued to refund or  continue  to  refund  those  bonds
29    issued  before  October  1,  1991;  (d)  made  for any taxing
30    district to pay interest or  principal  on  bonds  issued  to
31    refund  or  continue  to refund bonds issued after October 1,
32    1991 that were approved  by  referendum;  (e)  made  for  any
33    taxing district to pay interest or principal on revenue bonds
34    issued before October 1, 1991 for payment of which a property
 
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 1    tax  levy  or  the full faith and credit of the unit of local
 2    government is pledged; however, a  tax  for  the  payment  of
 3    interest or principal on those bonds shall be made only after
 4    the governing body of the unit of local government finds that
 5    all  other sources for payment are insufficient to make those
 6    payments; (f) made for payments under a  building  commission
 7    lease when the lease payments are for the retirement of bonds
 8    issued  by  the commission before October 1, 1991, to pay for
 9    the  building  project;  (g)  made  for  payments  due  under
10    installment contracts entered into before  October  1,  1991;
11    (h)  made  for  payments  of  principal and interest on bonds
12    issued under the Metropolitan Water Reclamation District  Act
13    to  finance construction projects initiated before October 1,
14    1991; (i) made for payments  of  principal  and  interest  on
15    limited   bonds,  as  defined  in  Section  3  of  the  Local
16    Government Debt Reform Act, in an amount not  to  exceed  the
17    debt  service  extension  base  less the amount in items (b),
18    (c), (e), and  (h)  of  this  definition  for  non-referendum
19    obligations,  except obligations initially issued pursuant to
20    referendum; (j) made for payments of principal  and  interest
21    on bonds issued under Section 15 of the Local Government Debt
22    Reform   Act;   and  (k)  made  by  a  school  district  that
23    participates  in  the  Special  Education  District  of  Lake
24    County, created by special education  joint  agreement  under
25    Section  10-22.31  of  the  School  Code,  for payment of the
26    school  district's  share  of  the  amounts  required  to  be
27    contributed by the Special Education District of Lake  County
28    to  the Illinois Municipal Retirement Fund under Article 7 of
29    the Illinois Pension Code; the amount of any extension  under
30    this  item  (k)  shall be certified by the school district to
31    the county clerk; and (l)  made  under  Section  18-53  by  a
32    taxing  district  to recover revenue lost due to refunded tax
33    distributions.
34        "Aggregate extension" for the taxing districts  to  which
 
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 1    this  Law  did  not  apply  before the 1995 levy year (except
 2    taxing districts subject  to  this  Law  in  accordance  with
 3    Section  18-213) means the annual corporate extension for the
 4    taxing district and those special purpose extensions that are
 5    made annually for  the  taxing  district,  excluding  special
 6    purpose  extensions:  (a) made for the taxing district to pay
 7    interest or principal on general obligation bonds  that  were
 8    approved  by  referendum; (b) made for any taxing district to
 9    pay interest or principal on general obligation bonds  issued
10    before March 1, 1995; (c) made for any taxing district to pay
11    interest  or  principal on bonds issued to refund or continue
12    to refund those bonds issued before March 1, 1995;  (d)  made
13    for any taxing district to pay interest or principal on bonds
14    issued  to  refund  or  continue to refund bonds issued after
15    March 1, 1995 that were approved by referendum; (e) made  for
16    any  taxing  district to pay interest or principal on revenue
17    bonds issued before March 1, 1995  for  payment  of  which  a
18    property tax levy or the full faith and credit of the unit of
19    local  government  is pledged; however, a tax for the payment
20    of interest or principal on those bonds shall  be  made  only
21    after  the  governing  body  of  the unit of local government
22    finds that all other sources for payment are insufficient  to
23    make  those  payments; (f) made for payments under a building
24    commission  lease  when  the  lease  payments  are  for   the
25    retirement  of bonds issued by the commission before March 1,
26    1995 to pay for the building project; (g) made  for  payments
27    due  under installment contracts entered into before March 1,
28    1995; (h) made for payments  of  principal  and  interest  on
29    bonds   issued   under  the  Metropolitan  Water  Reclamation
30    District  Act  to  finance  construction  projects  initiated
31    before October 1, 1991; (i) made for  payments  of  principal
32    and interest on limited bonds, as defined in Section 3 of the
33    Local  Government Debt Reform Act, in an amount not to exceed
34    the debt service extension base less the amount in items (b),
 
                            -6-      LRB093 08334 SJM 08553 b
 1    (c),  and  (e)  of   this   definition   for   non-referendum
 2    obligations,  except obligations initially issued pursuant to
 3    referendum and bonds described  in  subsection  (h)  of  this
 4    definition;  (j)  made for payments of principal and interest
 5    on bonds issued under Section 15 of the Local Government Debt
 6    Reform Act; (k) made for payments of principal  and  interest
 7    on  bonds  authorized  by  Public Act 88-503 and issued under
 8    Section 20a of the Chicago Park District Act for aquarium  or
 9    museum  projects;  (l)  made  for  payments  of principal and
10    interest on bonds authorized by Public Act 87-1191 and issued
11    under Section 42 of the Cook County Forest Preserve  District
12    Act  for  zoological  park projects; and (m) made pursuant to
13    Section 34-53.5 of the School Code, whether  levied  annually
14    or not; and (n) made under Section 18-53 by a taxing district
15    to recover revenue lost to refunded tax distributions.
16        "Aggregate  extension"  for all taxing districts to which
17    this Law applies in accordance with  Section  18-213,  except
18    for  those  taxing  districts  subject  to  paragraph  (2) of
19    subsection (e) of Section 18-213, means the annual  corporate
20    extension  for  the taxing district and those special purpose
21    extensions that are made annually for  the  taxing  district,
22    excluding special purpose extensions: (a) made for the taxing
23    district  to  pay interest or principal on general obligation
24    bonds that were approved by  referendum;  (b)  made  for  any
25    taxing  district  to  pay  interest  or  principal on general
26    obligation  bonds  issued  before  the  date  on  which   the
27    referendum  making this Law applicable to the taxing district
28    is held; (c) made for any taxing district to pay interest  or
29    principal  on  bonds  issued  to refund or continue to refund
30    those bonds issued before the date on  which  the  referendum
31    making  this  Law  applicable to the taxing district is held;
32    (d) made for any taxing district to pay interest or principal
33    on bonds issued to refund or continue to refund bonds  issued
34    after  the  date  on  which  the  referendum  making this Law
 
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 1    applicable to the taxing district is held if the  bonds  were
 2    approved by referendum after the date on which the referendum
 3    making  this  Law  applicable to the taxing district is held;
 4    (e) made for any taxing district to pay interest or principal
 5    on  revenue  bonds  issued  before  the  date  on  which  the
 6    referendum making this Law applicable to the taxing  district
 7    is  held for payment of which a property tax levy or the full
 8    faith and credit of the unit of local government is  pledged;
 9    however,  a  tax  for the payment of interest or principal on
10    those bonds shall be made only after the  governing  body  of
11    the unit of local government finds that all other sources for
12    payment are insufficient to make those payments; (f) made for
13    payments  under  a  building  commission lease when the lease
14    payments are for  the  retirement  of  bonds  issued  by  the
15    commission  before  the  date  on which the referendum making
16    this Law applicable to the taxing district is held to pay for
17    the  building  project;  (g)  made  for  payments  due  under
18    installment contracts entered into before the date  on  which
19    the  referendum  making  this  Law  applicable  to the taxing
20    district is held; (h) made  for  payments  of  principal  and
21    interest  on  limited  bonds,  as defined in Section 3 of the
22    Local Government Debt Reform Act, in an amount not to  exceed
23    the debt service extension base less the amount in items (b),
24    (c),   and   (e)   of   this  definition  for  non-referendum
25    obligations, except obligations initially issued pursuant  to
26    referendum;  (i)  made for payments of principal and interest
27    on bonds issued under Section 15 of the Local Government Debt
28    Reform Act; and (j) made for a qualified airport authority to
29    pay interest or principal on general obligation bonds  issued
30    for the purpose of paying obligations due under, or financing
31    airport  facilities  required  to  be  acquired, constructed,
32    installed or equipped pursuant  to,  contracts  entered  into
33    before  March  1,  1996  (but not including any amendments to
34    such a contract taking effect on or after that date); and (k)
 
                            -8-      LRB093 08334 SJM 08553 b
 1    made under Section 18-53 by  a  taxing  district  to  recover
 2    revenue lost to refunded tax distributions.
 3        "Aggregate  extension"  for all taxing districts to which
 4    this  Law  applies  in  accordance  with  paragraph  (2)   of
 5    subsection  (e)  of Section 18-213 means the annual corporate
 6    extension for the taxing district and those  special  purpose
 7    extensions  that  are  made annually for the taxing district,
 8    excluding special purpose extensions: (a) made for the taxing
 9    district to pay interest or principal on  general  obligation
10    bonds  that  were  approved  by  referendum; (b) made for any
11    taxing district to  pay  interest  or  principal  on  general
12    obligation  bonds  issued  before  the effective date of this
13    amendatory Act of 1997; (c) made for any taxing  district  to
14    pay  interest  or  principal  on  bonds  issued  to refund or
15    continue to refund those bonds issued  before  the  effective
16    date  of this amendatory Act of 1997; (d) made for any taxing
17    district to pay interest or  principal  on  bonds  issued  to
18    refund or continue to refund bonds issued after the effective
19    date  of  this  amendatory  Act  of  1997  if  the bonds were
20    approved by referendum  after  the  effective  date  of  this
21    amendatory  Act  of 1997; (e) made for any taxing district to
22    pay interest or principal on revenue bonds issued before  the
23    effective  date of this amendatory Act of 1997 for payment of
24    which a property tax levy or the full faith and credit of the
25    unit of local government is pledged; however, a tax  for  the
26    payment of interest or principal on those bonds shall be made
27    only after the governing body of the unit of local government
28    finds  that all other sources for payment are insufficient to
29    make those payments; (f) made for payments under  a  building
30    commission   lease  when  the  lease  payments  are  for  the
31    retirement of bonds  issued  by  the  commission  before  the
32    effective  date of this amendatory Act of 1997 to pay for the
33    building project; (g) made for payments due under installment
34    contracts entered into before  the  effective  date  of  this
 
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 1    amendatory  Act  of  1997; (h) made for payments of principal
 2    and interest on limited bonds, as defined in Section 3 of the
 3    Local Government Debt Reform Act, in an amount not to  exceed
 4    the debt service extension base less the amount in items (b),
 5    (c),   and   (e)   of   this  definition  for  non-referendum
 6    obligations, except obligations initially issued pursuant  to
 7    referendum;  (i)  made for payments of principal and interest
 8    on bonds issued under Section 15 of the Local Government Debt
 9    Reform Act; and (j) made for a qualified airport authority to
10    pay interest or principal on general obligation bonds  issued
11    for the purpose of paying obligations due under, or financing
12    airport  facilities  required  to  be  acquired, constructed,
13    installed or equipped pursuant  to,  contracts  entered  into
14    before  March  1,  1996  (but not including any amendments to
15    such a contract taking effect on or after that date); and (k)
16    made under Section 18-53 by  a  taxing  district  to  recover
17    revenue lost to refunded tax distributions.
18        "Debt  service  extension  base" means an amount equal to
19    that portion of the extension for a taxing district  for  the
20    1994 levy year, or for those taxing districts subject to this
21    Law  in  accordance  with  Section  18-213,  except for those
22    subject to paragraph (2) of subsection (e) of Section 18-213,
23    for the levy year in which the  referendum  making  this  Law
24    applicable  to  the  taxing  district  is  held, or for those
25    taxing districts subject  to  this  Law  in  accordance  with
26    paragraph  (2)  of  subsection  (e) of Section 18-213 for the
27    1996 levy year, constituting  an  extension  for  payment  of
28    principal and interest on bonds issued by the taxing district
29    without referendum, but not including (i) bonds authorized by
30    Public Act 88-503 and issued under Section 20a of the Chicago
31    Park  District  Act  for  aquarium  and museum projects; (ii)
32    bonds issued under Section 15 of the  Local  Government  Debt
33    Reform  Act;  or (iii) refunding obligations issued to refund
34    or  to  continue  to  refund  obligations  initially   issued
 
                            -10-     LRB093 08334 SJM 08553 b
 1    pursuant  to  referendum. The debt service extension base may
 2    be established or increased as provided under Section 18-212.
 3        "Special purpose extensions" include, but are not limited
 4    to, extensions  for  levies  made  on  an  annual  basis  for
 5    unemployment   and   workers'  compensation,  self-insurance,
 6    contributions to pension plans, and extensions made  pursuant
 7    to  Section  6-601  of  the  Illinois Highway Code for a road
 8    district's permanent road fund  whether  levied  annually  or
 9    not.   The  extension  for  a  special  service  area  is not
10    included in the aggregate extension.
11        "Aggregate extension base" means  the  taxing  district's
12    last preceding aggregate extension as adjusted under Sections
13    18-215 through 18-230.
14        "Levy  year" has the same meaning as "year" under Section
15    1-155.
16        "New property" means (i) the assessed value, after  final
17    board   of   review  or  board  of  appeals  action,  of  new
18    improvements or additions to  existing  improvements  on  any
19    parcel  of  real property that increase the assessed value of
20    that real property during the levy  year  multiplied  by  the
21    equalization  factor  issued  by the Department under Section
22    17-30 and (ii) the  assessed  value,  after  final  board  of
23    review  or  board  of  appeals  action,  of real property not
24    exempt from real estate taxation,  which  real  property  was
25    exempt  from  real  estate  taxation  for  any portion of the
26    immediately  preceding   levy   year,   multiplied   by   the
27    equalization  factor  issued  by the Department under Section
28    17-30. In addition, the county clerk in a county containing a
29    population of 3,000,000 or more shall  include  in  the  1997
30    recovered  tax  increment  value for any school district, any
31    recovered tax increment value that was applicable to the 1995
32    tax year calculations.
33        "Qualified airport authority" means an airport  authority
34    organized  under the Airport Authorities Act and located in a
 
                            -11-     LRB093 08334 SJM 08553 b
 1    county bordering on the  State  of  Wisconsin  and  having  a
 2    population in excess of 200,000 and not greater than 500,000.
 3        "Recovered   tax   increment   value"  means,  except  as
 4    otherwise provided in  this  paragraph,  the  amount  of  the
 5    current  year's  equalized  assessed value, in the first year
 6    after a municipality terminates the designation of an area as
 7    a redevelopment project area previously established under the
 8    Tax Increment Allocation  Development  Act  in  the  Illinois
 9    Municipal  Code,  previously established under the Industrial
10    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
11    previously  established  under  the Economic Development Area
12    Tax Increment Allocation Act, of  each  taxable  lot,  block,
13    tract,  or  parcel  of  real  property  in  the redevelopment
14    project area over and above the  initial  equalized  assessed
15    value of each property in the redevelopment project area. For
16    the  taxes  which  are  extended  for the 1997 levy year, the
17    recovered tax increment value  for  a  non-home  rule  taxing
18    district  that  first became subject to this Law for the 1995
19    levy year because a majority of its 1994  equalized  assessed
20    value  was  in  an  affected  county  or  counties  shall  be
21    increased  if a municipality terminated the designation of an
22    area in 1993  as  a  redevelopment  project  area  previously
23    established  under  the  Tax Increment Allocation Development
24    Act in the Illinois Municipal  Code,  previously  established
25    under  the  Industrial  Jobs  Recovery  Law  in  the Illinois
26    Municipal Code, or previously established under the  Economic
27    Development  Area  Tax Increment Allocation Act, by an amount
28    equal to the 1994 equalized assessed value  of  each  taxable
29    lot,  block,  tract,  or  parcel  of  real  property  in  the
30    redevelopment   project  area  over  and  above  the  initial
31    equalized  assessed   value   of   each   property   in   the
32    redevelopment  project  area.  In  the  first  year  after  a
33    municipality  removes  a taxable lot, block, tract, or parcel
34    of  real  property  from   a   redevelopment   project   area
 
                            -12-     LRB093 08334 SJM 08553 b
 1    established  under  the  Tax Increment Allocation Development
 2    Act in the  Illinois  Municipal  Code,  the  Industrial  Jobs
 3    Recovery  Law in the Illinois Municipal Code, or the Economic
 4    Development Area Tax Increment Allocation Act, "recovered tax
 5    increment value" means  the  amount  of  the  current  year's
 6    equalized  assessed  value of each taxable lot, block, tract,
 7    or parcel of real property  removed  from  the  redevelopment
 8    project  area  over  and above the initial equalized assessed
 9    value  of  that  real  property  before  removal   from   the
10    redevelopment project area.
11        Except  as  otherwise provided in this Section, "limiting
12    rate" means a fraction the numerator of  which  is  the  last
13    preceding  aggregate  extension base times an amount equal to
14    one plus the extension limitation defined in this Section and
15    the denominator of which  is  the  current  year's  equalized
16    assessed  value  of  all real property in the territory under
17    the jurisdiction of the taxing district during the prior levy
18    year.   For  those  taxing  districts  that   reduced   their
19    aggregate  extension  for  the  last preceding levy year, the
20    highest aggregate extension in any of the  last  3  preceding
21    levy  years  shall  be  used for the purpose of computing the
22    limiting  rate.   The  denominator  shall  not  include   new
23    property.   The  denominator  shall not include the recovered
24    tax increment value.
25    (Source: P.A. 91-357, eff.  7-29-99;  91-478,  eff.  11-1-99;
26    92-547, eff. 6-13-02.)

27        Section  99.  Effective date.  This Act takes effect upon
28    becoming law.