HB4224 Engrossed LRB093 16564 SJM 42211 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 changing
5 Sections 18-185 and 18-205 as follows:
 
6     (35 ILCS 200/18-185)
7     Sec. 18-185. Short title; definitions. This Division 5 may
8 be cited as the Property Tax Extension Limitation Law. As used
9 in this Division 5:
10     "Consumer Price Index" means the Consumer Price Index for
11 All Urban Consumers for all items published by the United
12 States Department of Labor.
13     "Employment Cost Index" means the average between (i) the
14 Employment Cost Index for total compensation for civilian
15 workers and (ii) the Employment Cost Index for total
16 compensation for state and local government workers, both of
17 which are published by the United States Department of Labor.
18     "Extension limitation" means (a) the lesser of 5% or the
19 percentage increase in the Employment Cost Consumer Price Index
20 during the 12-month calendar year preceding the levy year or
21 (b) the rate of increase approved by voters under Section
22 18-205.
23     "Affected county" means a county of 3,000,000 or more
24 inhabitants or a county contiguous to a county of 3,000,000 or
25 more inhabitants.
26     "Taxing district" has the same meaning provided in Section
27 1-150, except as otherwise provided in this Section. For the
28 1991 through 1994 levy years only, "taxing district" includes
29 only each non-home rule taxing district having the majority of
30 its 1990 equalized assessed value within any county or counties
31 contiguous to a county with 3,000,000 or more inhabitants.
32 Beginning with the 1995 levy year, "taxing district" includes

 

 

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1 only each non-home rule taxing district subject to this Law
2 before the 1995 levy year and each non-home rule taxing
3 district not subject to this Law before the 1995 levy year
4 having the majority of its 1994 equalized assessed value in an
5 affected county or counties. Beginning with the levy year in
6 which this Law becomes applicable to a taxing district as
7 provided in Section 18-213, "taxing district" also includes
8 those taxing districts made subject to this Law as provided in
9 Section 18-213.
10     "Aggregate extension" for taxing districts to which this
11 Law applied before the 1995 levy year means the annual
12 corporate extension for the taxing district and those special
13 purpose extensions that are made annually for the taxing
14 district, excluding special purpose extensions: (a) made for
15 the taxing district to pay interest or principal on general
16 obligation bonds that were approved by referendum; (b) made for
17 any taxing district to pay interest or principal on general
18 obligation bonds issued before October 1, 1991; (c) made for
19 any taxing district to pay interest or principal on bonds
20 issued to refund or continue to refund those bonds issued
21 before October 1, 1991; (d) made for any taxing district to pay
22 interest or principal on bonds issued to refund or continue to
23 refund bonds issued after October 1, 1991 that were approved by
24 referendum; (e) made for any taxing district to pay interest or
25 principal on revenue bonds issued before October 1, 1991 for
26 payment of which a property tax levy or the full faith and
27 credit of the unit of local government is pledged; however, a
28 tax for the payment of interest or principal on those bonds
29 shall be made only after the governing body of the unit of
30 local government finds that all other sources for payment are
31 insufficient to make those payments; (f) made for payments
32 under a building commission lease when the lease payments are
33 for the retirement of bonds issued by the commission before
34 October 1, 1991, to pay for the building project; (g) made for
35 payments due under installment contracts entered into before
36 October 1, 1991; (h) made for payments of principal and

 

 

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1 interest on bonds issued under the Metropolitan Water
2 Reclamation District Act to finance construction projects
3 initiated before October 1, 1991; (i) made for payments of
4 principal and interest on limited bonds, as defined in Section
5 3 of the Local Government Debt Reform Act, in an amount not to
6 exceed the debt service extension base less the amount in items
7 (b), (c), (e), and (h) of this definition for non-referendum
8 obligations, except obligations initially issued pursuant to
9 referendum; (j) made for payments of principal and interest on
10 bonds issued under Section 15 of the Local Government Debt
11 Reform Act; (k) made by a school district that participates in
12 the Special Education District of Lake County, created by
13 special education joint agreement under Section 10-22.31 of the
14 School Code, for payment of the school district's share of the
15 amounts required to be contributed by the Special Education
16 District of Lake County to the Illinois Municipal Retirement
17 Fund under Article 7 of the Illinois Pension Code; the amount
18 of any extension under this item (k) shall be certified by the
19 school district to the county clerk; and (l) made to fund
20 expenses of providing joint recreational programs for the
21 handicapped under Section 5-8 of the Park District Code or
22 Section 11-95-14 of the Illinois Municipal Code.
23     "Aggregate extension" for the taxing districts to which
24 this Law did not apply before the 1995 levy year (except taxing
25 districts subject to this Law in accordance with Section
26 18-213) means the annual corporate extension for the taxing
27 district and those special purpose extensions that are made
28 annually for the taxing district, excluding special purpose
29 extensions: (a) made for the taxing district to pay interest or
30 principal on general obligation bonds that were approved by
31 referendum; (b) made for any taxing district to pay interest or
32 principal on general obligation bonds issued before March 1,
33 1995; (c) made for any taxing district to pay interest or
34 principal on bonds issued to refund or continue to refund those
35 bonds issued before March 1, 1995; (d) made for any taxing
36 district to pay interest or principal on bonds issued to refund

 

 

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1 or continue to refund bonds issued after March 1, 1995 that
2 were approved by referendum; (e) made for any taxing district
3 to pay interest or principal on revenue bonds issued before
4 March 1, 1995 for payment of which a property tax levy or the
5 full faith and credit of the unit of local government is
6 pledged; however, a tax for the payment of interest or
7 principal on those bonds shall be made only after the governing
8 body of the unit of local government finds that all other
9 sources for payment are insufficient to make those payments;
10 (f) made for payments under a building commission lease when
11 the lease payments are for the retirement of bonds issued by
12 the commission before March 1, 1995 to pay for the building
13 project; (g) made for payments due under installment contracts
14 entered into before March 1, 1995; (h) made for payments of
15 principal and interest on bonds issued under the Metropolitan
16 Water Reclamation District Act to finance construction
17 projects initiated before October 1, 1991; (i) made for
18 payments of principal and interest on limited bonds, as defined
19 in Section 3 of the Local Government Debt Reform Act, in an
20 amount not to exceed the debt service extension base less the
21 amount in items (b), (c), and (e) of this definition for
22 non-referendum obligations, except obligations initially
23 issued pursuant to referendum and bonds described in subsection
24 (h) of this definition; (j) made for payments of principal and
25 interest on bonds issued under Section 15 of the Local
26 Government Debt Reform Act; (k) made for payments of principal
27 and interest on bonds authorized by Public Act 88-503 and
28 issued under Section 20a of the Chicago Park District Act for
29 aquarium or museum projects; (l) made for payments of principal
30 and interest on bonds authorized by Public Act 87-1191 or
31 93-601 this amendatory Act of the 93rd General Assembly and (i)
32 issued pursuant to Section 21.2 of the Cook County Forest
33 Preserve District Act, (ii) issued under Section 42 of the Cook
34 County Forest Preserve District Act for zoological park
35 projects, or (iii) issued under Section 44.1 of the Cook County
36 Forest Preserve District Act for botanical gardens projects;

 

 

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1 (m) made pursuant to Section 34-53.5 of the School Code,
2 whether levied annually or not; (n) made to fund expenses of
3 providing joint recreational programs for the handicapped
4 under Section 5-8 of the Park District Code or Section 11-95-14
5 of the Illinois Municipal Code; and (o) made by the Chicago
6 Park District for recreational programs for the handicapped
7 under subsection (c) of Section 7.06 of the Chicago Park
8 District Act.
9     "Aggregate extension" for all taxing districts to which
10 this Law applies in accordance with Section 18-213, except for
11 those taxing districts subject to paragraph (2) of subsection
12 (e) of Section 18-213, means the annual corporate extension for
13 the taxing district and those special purpose extensions that
14 are made annually for the taxing district, excluding special
15 purpose extensions: (a) made for the taxing district to pay
16 interest or principal on general obligation bonds that were
17 approved by referendum; (b) made for any taxing district to pay
18 interest or principal on general obligation bonds issued before
19 the date on which the referendum making this Law applicable to
20 the taxing district is held; (c) made for any taxing district
21 to pay interest or principal on bonds issued to refund or
22 continue to refund those bonds issued before the date on which
23 the referendum making this Law applicable to the taxing
24 district is held; (d) made for any taxing district to pay
25 interest or principal on bonds issued to refund or continue to
26 refund bonds issued after the date on which the referendum
27 making this Law applicable to the taxing district is held if
28 the bonds were approved by referendum after the date on which
29 the referendum making this Law applicable to the taxing
30 district is held; (e) made for any taxing district to pay
31 interest or principal on revenue bonds issued before the date
32 on which the referendum making this Law applicable to the
33 taxing district is held for payment of which a property tax
34 levy or the full faith and credit of the unit of local
35 government is pledged; however, a tax for the payment of
36 interest or principal on those bonds shall be made only after

 

 

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1 the governing body of the unit of local government finds that
2 all other sources for payment are insufficient to make those
3 payments; (f) made for payments under a building commission
4 lease when the lease payments are for the retirement of bonds
5 issued by the commission before the date on which the
6 referendum making this Law applicable to the taxing district is
7 held to pay for the building project; (g) made for payments due
8 under installment contracts entered into before the date on
9 which the referendum making this Law applicable to the taxing
10 district is held; (h) made for payments of principal and
11 interest on limited bonds, as defined in Section 3 of the Local
12 Government Debt Reform Act, in an amount not to exceed the debt
13 service extension base less the amount in items (b), (c), and
14 (e) of this definition for non-referendum obligations, except
15 obligations initially issued pursuant to referendum; (i) made
16 for payments of principal and interest on bonds issued under
17 Section 15 of the Local Government Debt Reform Act; (j) made
18 for a qualified airport authority to pay interest or principal
19 on general obligation bonds issued for the purpose of paying
20 obligations due under, or financing airport facilities
21 required to be acquired, constructed, installed or equipped
22 pursuant to, contracts entered into before March 1, 1996 (but
23 not including any amendments to such a contract taking effect
24 on or after that date); and (k) made to fund expenses of
25 providing joint recreational programs for the handicapped
26 under Section 5-8 of the Park District Code or Section 11-95-14
27 of the Illinois Municipal Code.
28     "Aggregate extension" for all taxing districts to which
29 this Law applies in accordance with paragraph (2) of subsection
30 (e) of Section 18-213 means the annual corporate extension for
31 the taxing district and those special purpose extensions that
32 are made annually for the taxing district, excluding special
33 purpose extensions: (a) made for the taxing district to pay
34 interest or principal on general obligation bonds that were
35 approved by referendum; (b) made for any taxing district to pay
36 interest or principal on general obligation bonds issued before

 

 

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1 the effective date of this amendatory Act of 1997; (c) made for
2 any taxing district to pay interest or principal on bonds
3 issued to refund or continue to refund those bonds issued
4 before the effective date of this amendatory Act of 1997; (d)
5 made for any taxing district to pay interest or principal on
6 bonds issued to refund or continue to refund bonds issued after
7 the effective date of this amendatory Act of 1997 if the bonds
8 were approved by referendum after the effective date of this
9 amendatory Act of 1997; (e) made for any taxing district to pay
10 interest or principal on revenue bonds issued before the
11 effective date of this amendatory Act of 1997 for payment of
12 which a property tax levy or the full faith and credit of the
13 unit of local government is pledged; however, a tax for the
14 payment of interest or principal on those bonds shall be made
15 only after the governing body of the unit of local government
16 finds that all other sources for payment are insufficient to
17 make those payments; (f) made for payments under a building
18 commission lease when the lease payments are for the retirement
19 of bonds issued by the commission before the effective date of
20 this amendatory Act of 1997 to pay for the building project;
21 (g) made for payments due under installment contracts entered
22 into before the effective date of this amendatory Act of 1997;
23 (h) made for payments of principal and interest on limited
24 bonds, as defined in Section 3 of the Local Government Debt
25 Reform Act, in an amount not to exceed the debt service
26 extension base less the amount in items (b), (c), and (e) of
27 this definition for non-referendum obligations, except
28 obligations initially issued pursuant to referendum; (i) made
29 for payments of principal and interest on bonds issued under
30 Section 15 of the Local Government Debt Reform Act; (j) made
31 for a qualified airport authority to pay interest or principal
32 on general obligation bonds issued for the purpose of paying
33 obligations due under, or financing airport facilities
34 required to be acquired, constructed, installed or equipped
35 pursuant to, contracts entered into before March 1, 1996 (but
36 not including any amendments to such a contract taking effect

 

 

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1 on or after that date); and (k) made to fund expenses of
2 providing joint recreational programs for the handicapped
3 under Section 5-8 of the Park District Code or Section 11-95-14
4 of the Illinois Municipal Code.
5     "Debt service extension base" means an amount equal to that
6 portion of the extension for a taxing district for the 1994
7 levy year, or for those taxing districts subject to this Law in
8 accordance with Section 18-213, except for those subject to
9 paragraph (2) of subsection (e) of Section 18-213, for the levy
10 year in which the referendum making this Law applicable to the
11 taxing district is held, or for those taxing districts subject
12 to this Law in accordance with paragraph (2) of subsection (e)
13 of Section 18-213 for the 1996 levy year, constituting an
14 extension for payment of principal and interest on bonds issued
15 by the taxing district without referendum, but not including
16 excluded non-referendum bonds. For park districts (i) that were
17 first subject to this Law in 1991 or 1995 and (ii) whose
18 extension for the 1994 levy year for the payment of principal
19 and interest on bonds issued by the park district without
20 referendum (but not including excluded non-referendum bonds)
21 was less than 51% of the amount for the 1991 levy year
22 constituting an extension for payment of principal and interest
23 on bonds issued by the park district without referendum (but
24 not including excluded non-referendum bonds), "debt service
25 extension base" means an amount equal to that portion of the
26 extension for the 1991 levy year constituting an extension for
27 payment of principal and interest on bonds issued by the park
28 district without referendum (but not including excluded
29 non-referendum bonds). The debt service extension base may be
30 established or increased as provided under Section 18-212.
31 "Excluded non-referendum bonds" means (i) bonds authorized by
32 Public Act 88-503 and issued under Section 20a of the Chicago
33 Park District Act for aquarium and museum projects; (ii) bonds
34 issued under Section 15 of the Local Government Debt Reform
35 Act; or (iii) refunding obligations issued to refund or to
36 continue to refund obligations initially issued pursuant to

 

 

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1 referendum.
2     "Special purpose extensions" include, but are not limited
3 to, extensions for levies made on an annual basis for
4 unemployment and workers' compensation, self-insurance,
5 contributions to pension plans, and extensions made pursuant to
6 Section 6-601 of the Illinois Highway Code for a road
7 district's permanent road fund whether levied annually or not.
8 The extension for a special service area is not included in the
9 aggregate extension.
10     "Aggregate extension base" means the taxing district's
11 last preceding aggregate extension as adjusted under Sections
12 18-215 through 18-230.
13     "Levy year" has the same meaning as "year" under Section
14 1-155.
15     "New property" means (i) the assessed value, after final
16 board of review or board of appeals action, of new improvements
17 or additions to existing improvements on any parcel of real
18 property that increase the assessed value of that real property
19 during the levy year multiplied by the equalization factor
20 issued by the Department under Section 17-30, (ii) the assessed
21 value, after final board of review or board of appeals action,
22 of real property not exempt from real estate taxation, which
23 real property was exempt from real estate taxation for any
24 portion of the immediately preceding levy year, multiplied by
25 the equalization factor issued by the Department under Section
26 17-30, and (iii) in counties that classify in accordance with
27 Section 4 of Article IX of the Illinois Constitution, an
28 incentive property's additional assessed value resulting from
29 a scheduled increase in the level of assessment as applied to
30 the first year final board of review market value. In addition,
31 the county clerk in a county containing a population of
32 3,000,000 or more shall include in the 1997 recovered tax
33 increment value for any school district, any recovered tax
34 increment value that was applicable to the 1995 tax year
35 calculations.
36     "Qualified airport authority" means an airport authority

 

 

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1 organized under the Airport Authorities Act and located in a
2 county bordering on the State of Wisconsin and having a
3 population in excess of 200,000 and not greater than 500,000.
4     "Recovered tax increment value" means, except as otherwise
5 provided in this paragraph, the amount of the current year's
6 equalized assessed value, in the first year after a
7 municipality terminates the designation of an area as a
8 redevelopment project area previously established under the
9 Tax Increment Allocation Development Act in the Illinois
10 Municipal Code, previously established under the Industrial
11 Jobs Recovery Law in the Illinois Municipal Code, or previously
12 established under the Economic Development Area Tax Increment
13 Allocation Act, of each taxable lot, block, tract, or parcel of
14 real property in the redevelopment project area over and above
15 the initial equalized assessed value of each property in the
16 redevelopment project area. For the taxes which are extended
17 for the 1997 levy year, the recovered tax increment value for a
18 non-home rule taxing district that first became subject to this
19 Law for the 1995 levy year because a majority of its 1994
20 equalized assessed value was in an affected county or counties
21 shall be increased if a municipality terminated the designation
22 of an area in 1993 as a redevelopment project area previously
23 established under the Tax Increment Allocation Development Act
24 in the Illinois Municipal Code, previously established under
25 the Industrial Jobs Recovery Law in the Illinois Municipal
26 Code, or previously established under the Economic Development
27 Area Tax Increment Allocation Act, by an amount equal to the
28 1994 equalized assessed value of each taxable lot, block,
29 tract, or parcel of real property in the redevelopment project
30 area over and above the initial equalized assessed value of
31 each property in the redevelopment project area. In the first
32 year after a municipality removes a taxable lot, block, tract,
33 or parcel of real property from a redevelopment project area
34 established under the Tax Increment Allocation Development Act
35 in the Illinois Municipal Code, the Industrial Jobs Recovery
36 Law in the Illinois Municipal Code, or the Economic Development

 

 

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1 Area Tax Increment Allocation Act, "recovered tax increment
2 value" means the amount of the current year's equalized
3 assessed value of each taxable lot, block, tract, or parcel of
4 real property removed from the redevelopment project area over
5 and above the initial equalized assessed value of that real
6 property before removal from the redevelopment project area.
7     Except as otherwise provided in this Section, "limiting
8 rate" means a fraction the numerator of which is the last
9 preceding aggregate extension base times an amount equal to one
10 plus the extension limitation defined in this Section and the
11 denominator of which is the current year's equalized assessed
12 value of all real property in the territory under the
13 jurisdiction of the taxing district during the prior levy year.
14 For those taxing districts that reduced their aggregate
15 extension for the last preceding levy year, the highest
16 aggregate extension in any of the last 3 preceding levy years
17 shall be used for the purpose of computing the limiting rate.
18 The denominator shall not include new property. The denominator
19 shall not include the recovered tax increment value.
20 (Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
21 93-606, eff. 11-18-03; 93-612, eff. 11-18-03; revised
22 12-10-03.)
 
23     (35 ILCS 200/18-205)
24     Sec. 18-205. Referendum to increase the extension
25 limitation. A taxing district is limited to an extension
26 increase of 5% or the percentage increase in the Employment
27 Cost Consumer Price Index during the 12-month calendar year
28 preceding the levy year, whichever is less. A taxing district
29 may increase its extension limitation for a current levy year
30 if that taxing district holds a referendum before the levy date
31 at which a majority of voters voting on the issue approves
32 adoption of a higher extension limitation. Referenda shall be
33 conducted at a regularly scheduled election in accordance with
34 the Election Code provided that notice of the referendum, if
35 held before July 1, 1999, has been given in accordance with the

 

 

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1 provisions of Section 12-5 of the Election Code in effect at
2 the time of the bond referendum, at least 10 and not more than
3 45 days before the date of the election, notwithstanding the
4 time for publication otherwise imposed by Section 12-5. Notices
5 required in connection with the submission of public questions
6 on or after July 1, 1999 shall be as set forth in Section 12-5
7 of the Election Code. The question shall be presented in
8 substantially the following manner:
9 -------------------------------------------------------------
10     Shall the extension limitation
11 under the Property Tax Extension
12 Limitation Law for ...(taxing                    YES
13 district name)... be increased from
14 ...(the lesser of 5% or the increase       ------------------
15 in the Employment Cost
16 Consumer Price
17 Index over the prior levy year)...%              NO
18 to ...(percentage of proposed
19 increase)...% for the
20 ...(levy year)... levy year?
21 -------------------------------------------------------------
22 If a majority of voters voting on the issue approves the
23 adoption of the increase, the increase shall be applicable for
24 the levy year specified.
25 (Source: P.A. 90-812, eff. 1-26-99; 91-57, eff. 6-30-99.)
 
26     Section 99. Effective date. This Act takes effect upon
27 becoming law.