93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6785

 

Introduced 02/09/04, by Robin Kelly

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Exempts from the extension limitation those extensions made for contributions to the Illinois Municipal Retirement Fund under the Illinois Pension Code or for contributions to any other pension fund under the Illinois Pension Code. Effective October 1, 2004.


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

 

 

A BILL FOR

 

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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 Section 18-185 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     "Extension limitation" means (a) the lesser of 5% or the
14 percentage increase in the Consumer Price Index during the
15 12-month calendar year preceding the levy year or (b) the rate
16 of increase approved by voters under Section 18-205.
17     "Affected county" means a county of 3,000,000 or more
18 inhabitants or a county contiguous to a county of 3,000,000 or
19 more inhabitants.
20     "Taxing district" has the same meaning provided in Section
21 1-150, except as otherwise provided in this Section. For the
22 1991 through 1994 levy years only, "taxing district" includes
23 only each non-home rule taxing district having the majority of
24 its 1990 equalized assessed value within any county or counties
25 contiguous to a county with 3,000,000 or more inhabitants.
26 Beginning with the 1995 levy year, "taxing district" includes
27 only each non-home rule taxing district subject to this Law
28 before the 1995 levy year and each non-home rule taxing
29 district not subject to this Law before the 1995 levy year
30 having the majority of its 1994 equalized assessed value in an
31 affected county or counties. Beginning with the levy year in
32 which this Law becomes applicable to a taxing district as

 

 

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1 provided in Section 18-213, "taxing district" also includes
2 those taxing districts made subject to this Law as provided in
3 Section 18-213.
4     "Aggregate extension" for taxing districts to which this
5 Law applied before the 1995 levy year means the annual
6 corporate extension for the taxing district and those special
7 purpose extensions that are made annually for the taxing
8 district, excluding special purpose extensions: (a) made for
9 the taxing district to pay interest or principal on general
10 obligation bonds that were approved by referendum; (b) made for
11 any taxing district to pay interest or principal on general
12 obligation bonds issued before October 1, 1991; (c) made for
13 any taxing district to pay interest or principal on bonds
14 issued to refund or continue to refund those bonds issued
15 before October 1, 1991; (d) made for any taxing district to pay
16 interest or principal on bonds issued to refund or continue to
17 refund bonds issued after October 1, 1991 that were approved by
18 referendum; (e) made for any taxing district to pay interest or
19 principal on revenue bonds issued before October 1, 1991 for
20 payment of which a property tax levy or the full faith and
21 credit of the unit of local government is pledged; however, a
22 tax for the payment of interest or principal on those bonds
23 shall be made only after the governing body of the unit of
24 local government finds that all other sources for payment are
25 insufficient to make those payments; (f) made for payments
26 under a building commission lease when the lease payments are
27 for the retirement of bonds issued by the commission before
28 October 1, 1991, to pay for the building project; (g) made for
29 payments due under installment contracts entered into before
30 October 1, 1991; (h) made for payments of principal and
31 interest on bonds issued under the Metropolitan Water
32 Reclamation District Act to finance construction projects
33 initiated before October 1, 1991; (i) made for payments of
34 principal and interest on limited bonds, as defined in Section
35 3 of the Local Government Debt Reform Act, in an amount not to
36 exceed the debt service extension base less the amount in items

 

 

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1 (b), (c), (e), and (h) of this definition for non-referendum
2 obligations, except obligations initially issued pursuant to
3 referendum; (j) made for payments of principal and interest on
4 bonds issued under Section 15 of the Local Government Debt
5 Reform Act; (k) made by a school district that participates in
6 the Special Education District of Lake County, created by
7 special education joint agreement under Section 10-22.31 of the
8 School Code, for payment of the school district's share of the
9 amounts required to be contributed by the Special Education
10 District of Lake County to the Illinois Municipal Retirement
11 Fund under Article 7 of the Illinois Pension Code; the amount
12 of any extension under this item (k) shall be certified by the
13 school district to the county clerk; and (l) made to fund
14 expenses of providing joint recreational programs for the
15 handicapped under Section 5-8 of the Park District Code or
16 Section 11-95-14 of the Illinois Municipal Code; and (m) made
17 for contributions to the Illinois Municipal Retirement Fund
18 under Section 7-171 of the Illinois Pension Code or for
19 contributions to any other pension fund under the Illinois
20 Pension Code.
21     "Aggregate extension" for the taxing districts to which
22 this Law did not apply before the 1995 levy year (except taxing
23 districts subject to this Law in accordance with Section
24 18-213) means the annual corporate extension for the taxing
25 district and those special purpose extensions that are made
26 annually for the taxing district, excluding special purpose
27 extensions: (a) made for the taxing district to pay interest or
28 principal on general obligation bonds that were approved by
29 referendum; (b) made for any taxing district to pay interest or
30 principal on general obligation bonds issued before March 1,
31 1995; (c) made for any taxing district to pay interest or
32 principal on bonds issued to refund or continue to refund those
33 bonds issued before March 1, 1995; (d) made for any taxing
34 district to pay interest or principal on bonds issued to refund
35 or continue to refund bonds issued after March 1, 1995 that
36 were approved by referendum; (e) made for any taxing district

 

 

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1 to pay interest or principal on revenue bonds issued before
2 March 1, 1995 for payment of which a property tax levy or the
3 full faith and credit of the unit of local government is
4 pledged; however, a tax for the payment of interest or
5 principal on those bonds shall be made only after the governing
6 body of the unit of local government finds that all other
7 sources for payment are insufficient to make those payments;
8 (f) made for payments under a building commission lease when
9 the lease payments are for the retirement of bonds issued by
10 the commission before March 1, 1995 to pay for the building
11 project; (g) made for payments due under installment contracts
12 entered into before March 1, 1995; (h) made for payments of
13 principal and interest on bonds issued under the Metropolitan
14 Water Reclamation District Act to finance construction
15 projects initiated before October 1, 1991; (i) made for
16 payments of principal and interest on limited bonds, as defined
17 in Section 3 of the Local Government Debt Reform Act, in an
18 amount not to exceed the debt service extension base less the
19 amount in items (b), (c), and (e) of this definition for
20 non-referendum obligations, except obligations initially
21 issued pursuant to referendum and bonds described in subsection
22 (h) of this definition; (j) made for payments of principal and
23 interest on bonds issued under Section 15 of the Local
24 Government Debt Reform Act; (k) made for payments of principal
25 and interest on bonds authorized by Public Act 88-503 and
26 issued under Section 20a of the Chicago Park District Act for
27 aquarium or museum projects; (l) made for payments of principal
28 and interest on bonds authorized by Public Act 87-1191 or
29 93-601 this amendatory Act of the 93rd General Assembly and (i)
30 issued pursuant to Section 21.2 of the Cook County Forest
31 Preserve District Act, (ii) issued under Section 42 of the Cook
32 County Forest Preserve District Act for zoological park
33 projects, or (iii) issued under Section 44.1 of the Cook County
34 Forest Preserve District Act for botanical gardens projects;
35 (m) made pursuant to Section 34-53.5 of the School Code,
36 whether levied annually or not; (n) made to fund expenses of

 

 

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1 providing joint recreational programs for the handicapped
2 under Section 5-8 of the Park District Code or Section 11-95-14
3 of the Illinois Municipal Code; and (o) made by the Chicago
4 Park District for recreational programs for the handicapped
5 under subsection (c) of Section 7.06 of the Chicago Park
6 District Act; and (p) made for contributions to the Illinois
7 Municipal Retirement Fund under Section 7-171 of the Illinois
8 Pension Code or for contributions to any other pension fund
9 under the Illinois Pension Code.
10     "Aggregate extension" for all taxing districts to which
11 this Law applies in accordance with Section 18-213, except for
12 those taxing districts subject to paragraph (2) of subsection
13 (e) of Section 18-213, means the annual corporate extension for
14 the taxing district and those special purpose extensions that
15 are made annually for the taxing district, excluding special
16 purpose extensions: (a) made for the taxing district to pay
17 interest or principal on general obligation bonds that were
18 approved by referendum; (b) made for any taxing district to pay
19 interest or principal on general obligation bonds issued before
20 the date on which the referendum making this Law applicable to
21 the taxing district is held; (c) made for any taxing district
22 to pay interest or principal on bonds issued to refund or
23 continue to refund those bonds issued before the date on which
24 the referendum making this Law applicable to the taxing
25 district is held; (d) made for any taxing district to pay
26 interest or principal on bonds issued to refund or continue to
27 refund bonds issued after the date on which the referendum
28 making this Law applicable to the taxing district is held if
29 the bonds were approved by referendum after the date on which
30 the referendum making this Law applicable to the taxing
31 district is held; (e) made for any taxing district to pay
32 interest or principal on revenue bonds issued before the date
33 on which the referendum making this Law applicable to the
34 taxing district is held for payment of which a property tax
35 levy or the full faith and credit of the unit of local
36 government is pledged; however, a tax for the payment of

 

 

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1 interest or principal on those bonds shall be made only after
2 the governing body of the unit of local government finds that
3 all other sources for payment are insufficient to make those
4 payments; (f) made for payments under a building commission
5 lease when the lease payments are for the retirement of bonds
6 issued by the commission before the date on which the
7 referendum making this Law applicable to the taxing district is
8 held to pay for the building project; (g) made for payments due
9 under installment contracts entered into before the date on
10 which the referendum making this Law applicable to the taxing
11 district is held; (h) made for payments of principal and
12 interest on limited bonds, as defined in Section 3 of the Local
13 Government Debt Reform Act, in an amount not to exceed the debt
14 service extension base less the amount in items (b), (c), and
15 (e) of this definition for non-referendum obligations, except
16 obligations initially issued pursuant to referendum; (i) made
17 for payments of principal and interest on bonds issued under
18 Section 15 of the Local Government Debt Reform Act; (j) made
19 for a qualified airport authority to pay interest or principal
20 on general obligation bonds issued for the purpose of paying
21 obligations due under, or financing airport facilities
22 required to be acquired, constructed, installed or equipped
23 pursuant to, contracts entered into before March 1, 1996 (but
24 not including any amendments to such a contract taking effect
25 on or after that date); and (k) made to fund expenses of
26 providing joint recreational programs for the handicapped
27 under Section 5-8 of the Park District Code or Section 11-95-14
28 of the Illinois Municipal Code; and (l) made for contributions
29 to the Illinois Municipal Retirement Fund under Section 7-171
30 of the Illinois Pension Code or for contributions to any other
31 pension fund under the Illinois Pension Code.
32     "Aggregate extension" for all taxing districts to which
33 this Law applies in accordance with paragraph (2) of subsection
34 (e) of Section 18-213 means the annual corporate extension for
35 the taxing district and those special purpose extensions that
36 are made annually for the taxing district, excluding special

 

 

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

 

 

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1 obligations due under, or financing airport facilities
2 required to be acquired, constructed, installed or equipped
3 pursuant to, contracts entered into before March 1, 1996 (but
4 not including any amendments to such a contract taking effect
5 on or after that date); and (k) made to fund expenses of
6 providing joint recreational programs for the handicapped
7 under Section 5-8 of the Park District Code or Section 11-95-14
8 of the Illinois Municipal Code; and (l) made for contributions
9 to the Illinois Municipal Retirement Fund under Section 7-171
10 of the Illinois Pension Code or for contributions to any other
11 pension fund under the Illinois Pension Code.
12     "Debt service extension base" means an amount equal to that
13 portion of the extension for a taxing district for the 1994
14 levy year, or for those taxing districts subject to this Law in
15 accordance with Section 18-213, except for those subject to
16 paragraph (2) of subsection (e) of Section 18-213, for the levy
17 year in which the referendum making this Law applicable to the
18 taxing district is held, or for those taxing districts subject
19 to this Law in accordance with paragraph (2) of subsection (e)
20 of Section 18-213 for the 1996 levy year, constituting an
21 extension for payment of principal and interest on bonds issued
22 by the taxing district without referendum, but not including
23 excluded non-referendum bonds. For park districts (i) that were
24 first subject to this Law in 1991 or 1995 and (ii) whose
25 extension for the 1994 levy year for the payment of principal
26 and interest on bonds issued by the park district without
27 referendum (but not including excluded non-referendum bonds)
28 was less than 51% of the amount for the 1991 levy year
29 constituting an extension for payment of principal and interest
30 on bonds issued by the park district without referendum (but
31 not including excluded non-referendum bonds), "debt service
32 extension base" means an amount equal to that portion of the
33 extension for the 1991 levy year constituting an extension for
34 payment of principal and interest on bonds issued by the park
35 district without referendum (but not including excluded
36 non-referendum bonds). The debt service extension base may be

 

 

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1 established or increased as provided under Section 18-212.
2 "Excluded non-referendum bonds" means (i) bonds authorized by
3 Public Act 88-503 and issued under Section 20a of the Chicago
4 Park District Act for aquarium and museum projects; (ii) bonds
5 issued under Section 15 of the Local Government Debt Reform
6 Act; or (iii) refunding obligations issued to refund or to
7 continue to refund obligations initially issued pursuant to
8 referendum.
9     "Special purpose extensions" include, but are not limited
10 to, extensions for levies made on an annual basis for
11 unemployment and workers' compensation, self-insurance,
12 contributions to pension plans, and extensions made pursuant to
13 Section 6-601 of the Illinois Highway Code for a road
14 district's permanent road fund whether levied annually or not.
15 The extension for a special service area is not included in the
16 aggregate extension.
17     "Aggregate extension base" means the taxing district's
18 last preceding aggregate extension as adjusted under Sections
19 18-215 through 18-230.
20     "Levy year" has the same meaning as "year" under Section
21 1-155.
22     "New property" means (i) the assessed value, after final
23 board of review or board of appeals action, of new improvements
24 or additions to existing improvements on any parcel of real
25 property that increase the assessed value of that real property
26 during the levy year multiplied by the equalization factor
27 issued by the Department under Section 17-30, (ii) the assessed
28 value, after final board of review or board of appeals action,
29 of real property not exempt from real estate taxation, which
30 real property was exempt from real estate taxation for any
31 portion of the immediately preceding levy year, multiplied by
32 the equalization factor issued by the Department under Section
33 17-30, and (iii) in counties that classify in accordance with
34 Section 4 of Article IX of the Illinois Constitution, an
35 incentive property's additional assessed value resulting from
36 a scheduled increase in the level of assessment as applied to

 

 

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

 

 

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1 area over and above the initial equalized assessed value of
2 each property in the redevelopment project area. In the first
3 year after a municipality removes a taxable lot, block, tract,
4 or parcel of real property from a redevelopment project area
5 established under the Tax Increment Allocation Development Act
6 in the Illinois Municipal Code, the Industrial Jobs Recovery
7 Law in the Illinois Municipal Code, or the Economic Development
8 Area Tax Increment Allocation Act, "recovered tax increment
9 value" means the amount of the current year's equalized
10 assessed value of each taxable lot, block, tract, or parcel of
11 real property removed from the redevelopment project area over
12 and above the initial equalized assessed value of that real
13 property before removal from the redevelopment project area.
14     Except as otherwise provided in this Section, "limiting
15 rate" means a fraction the numerator of which is the last
16 preceding aggregate extension base times an amount equal to one
17 plus the extension limitation defined in this Section and the
18 denominator of which is the current year's equalized assessed
19 value of all real property in the territory under the
20 jurisdiction of the taxing district during the prior levy year.
21 For those taxing districts that reduced their aggregate
22 extension for the last preceding levy year, the highest
23 aggregate extension in any of the last 3 preceding levy years
24 shall be used for the purpose of computing the limiting rate.
25 The denominator shall not include new property. The denominator
26 shall not include the recovered tax increment value.
27 (Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
28 93-606, eff. 11-18-03; 93-612, eff. 11-18-03; revised
29 12-10-03.)
 
30     Section 99. Effective date. This Act takes effect on
31 October 1, 2004.