093_SB0606enr SB606 Enrolled LRB093 07520 SJM 07693 b 1 AN ACT regarding 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 8 may be cited as the Property Tax Extension Limitation Law. 9 As used 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 16 rate 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 19 or more inhabitants. 20 "Taxing district" has the same meaning provided in 21 Section 1-150, except as otherwise provided in this Section. 22 For the 1991 through 1994 levy years only, "taxing district" 23 includes only each non-home rule taxing district having the 24 majority of its 1990 equalized assessed value within any 25 county or counties contiguous to a county with 3,000,000 or 26 more inhabitants. Beginning with the 1995 levy year, "taxing 27 district" includes only each non-home rule taxing district 28 subject to this Law before the 1995 levy year and each 29 non-home rule taxing district not subject to this Law before 30 the 1995 levy year having the majority of its 1994 equalized 31 assessed value in an affected county or counties. Beginning SB606 Enrolled -2- LRB093 07520 SJM 07693 b 1 with the levy year in which this Law becomes applicable to a 2 taxing district as provided in Section 18-213, "taxing 3 district" also includes those taxing districts made subject 4 to this Law as provided in Section 18-213. 5 "Aggregate extension" for taxing districts to which this 6 Law applied before the 1995 levy year means the annual 7 corporate extension for the taxing district and those special 8 purpose extensions that are made annually for the taxing 9 district, excluding special purpose extensions: (a) made for 10 the taxing district to pay interest or principal on general 11 obligation bonds that were approved by referendum; (b) made 12 for any taxing district to pay interest or principal on 13 general obligation bonds issued before October 1, 1991; (c) 14 made for any taxing district to pay interest or principal on 15 bonds issued to refund or continue to refund those bonds 16 issued before October 1, 1991; (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 October 1, 19 1991 that were approved by referendum; (e) made for any 20 taxing district to pay interest or principal on revenue bonds 21 issued before October 1, 1991 for payment of which a property 22 tax levy or the full faith and credit of the unit of local 23 government is pledged; however, a tax for the payment of 24 interest or principal on those bonds shall be made only after 25 the governing body of the unit of local government finds that 26 all other sources for payment are insufficient to make those 27 payments; (f) made for payments under a building commission 28 lease when the lease payments are for the retirement of bonds 29 issued by the commission before October 1, 1991, to pay for 30 the building project; (g) made for payments due under 31 installment contracts entered into before October 1, 1991; 32 (h) made for payments of principal and interest on bonds 33 issued under the Metropolitan Water Reclamation District Act 34 to finance construction projects initiated before October 1, SB606 Enrolled -3- LRB093 07520 SJM 07693 b 1 1991; (i) made for payments of principal and interest on 2 limited bonds, as defined in Section 3 of the Local 3 Government Debt Reform Act, in an amount not to exceed the 4 debt service extension base less the amount in items (b), 5 (c), (e), and (h) of this definition for non-referendum 6 obligations, except obligations initially issued pursuant to 7 referendum; (j) made for payments of principal and interest 8 on bonds issued under Section 15 of the Local Government Debt 9 Reform Act; and (k) made by a school district that 10 participates in the Special Education District of Lake 11 County, created by special education joint agreement under 12 Section 10-22.31 of the School Code, for payment of the 13 school district's share of the amounts required to be 14 contributed by the Special Education District of Lake County 15 to the Illinois Municipal Retirement Fund under Article 7 of 16 the Illinois Pension Code; the amount of any extension under 17 this item (k) shall be certified by the school district to 18 the county clerk. 19 "Aggregate extension" for the taxing districts to which 20 this Law did not apply before the 1995 levy year (except 21 taxing districts subject to this Law in accordance with 22 Section 18-213) means the annual corporate extension for the 23 taxing district and those special purpose extensions that are 24 made annually for the taxing district, excluding special 25 purpose extensions: (a) made for the taxing district to pay 26 interest or principal on general obligation bonds that were 27 approved by referendum; (b) made for any taxing district to 28 pay interest or principal on general obligation bonds issued 29 before March 1, 1995; (c) made for any taxing district to pay 30 interest or principal on bonds issued to refund or continue 31 to refund those bonds issued before March 1, 1995; (d) made 32 for any taxing district to pay interest or principal on bonds 33 issued to refund or continue to refund bonds issued after 34 March 1, 1995 that were approved by referendum; (e) made for SB606 Enrolled -4- LRB093 07520 SJM 07693 b 1 any taxing district to pay interest or principal on revenue 2 bonds issued before March 1, 1995 for payment of which a 3 property tax levy or the full faith and credit of the unit of 4 local government is pledged; however, a tax for the payment 5 of interest or principal on those bonds shall be made only 6 after the governing body of the unit of local government 7 finds that all other sources for payment are insufficient to 8 make those payments; (f) made for payments under a building 9 commission lease when the lease payments are for the 10 retirement of bonds issued by the commission before March 1, 11 1995 to pay for the building project; (g) made for payments 12 due under installment contracts entered into before March 1, 13 1995; (h) made for payments of principal and interest on 14 bonds issued under the Metropolitan Water Reclamation 15 District Act to finance construction projects initiated 16 before October 1, 1991; (i) made for payments of principal 17 and interest on limited bonds, as defined in Section 3 of the 18 Local Government Debt Reform Act, in an amount not to exceed 19 the debt service extension base less the amount in items (b), 20 (c), and (e) of this definition for non-referendum 21 obligations, except obligations initially issued pursuant to 22 referendum and bonds described in subsection (h) of this 23 definition; (j) made for payments of principal and interest 24 on bonds issued under Section 15 of the Local Government Debt 25 Reform Act; (k) made for payments of principal and interest 26 on bonds authorized by Public Act 88-503 and issued under 27 Section 20a of the Chicago Park District Act for aquarium or 28 museum projects; (l) made for payments of principal and 29 interest on bonds authorized by Public Act 87-1191 and issued 30 under Section 42 of the Cook County Forest Preserve District 31 Act for zoological park projects; and (m) made pursuant to 32 Section 34-53.5 of the School Code, whether levied annually 33 or not. 34 "Aggregate extension" for all taxing districts to which SB606 Enrolled -5- LRB093 07520 SJM 07693 b 1 this Law applies in accordance with Section 18-213, except 2 for those taxing districts subject to paragraph (2) of 3 subsection (e) of Section 18-213, means the annual corporate 4 extension for the taxing district and those special purpose 5 extensions that are made annually for the taxing district, 6 excluding special purpose extensions: (a) made for the taxing 7 district to pay interest or principal on general obligation 8 bonds that were approved by referendum; (b) made for any 9 taxing district to pay interest or principal on general 10 obligation bonds issued before the date on which the 11 referendum making this Law applicable to the taxing district 12 is held; (c) made for any taxing district to pay interest or 13 principal on bonds issued to refund or continue to refund 14 those bonds issued before the date on which the referendum 15 making this Law applicable to the taxing district is held; 16 (d) made for any taxing district to pay interest or principal 17 on bonds issued to refund or continue to refund bonds issued 18 after the date on which the referendum making this Law 19 applicable to the taxing district is held if the bonds were 20 approved by referendum after the date on which the referendum 21 making this Law applicable to the taxing district is held; 22 (e) made for any taxing district to pay interest or principal 23 on revenue bonds issued before the date on which the 24 referendum making this Law applicable to the taxing district 25 is held for payment of which a property tax levy or the full 26 faith and credit of the unit of local government is pledged; 27 however, a tax for the payment of interest or principal on 28 those bonds shall be made only after the governing body of 29 the unit of local government finds that all other sources for 30 payment are insufficient to make those payments; (f) made for 31 payments under a building commission lease when the lease 32 payments are for the retirement of bonds issued by the 33 commission before the date on which the referendum making 34 this Law applicable to the taxing district is held to pay for SB606 Enrolled -6- LRB093 07520 SJM 07693 b 1 the building project; (g) made for payments due under 2 installment contracts entered into before the date on which 3 the referendum making this Law applicable to the taxing 4 district is held; (h) made for payments of principal and 5 interest on limited bonds, as defined in Section 3 of the 6 Local Government Debt Reform Act, in an amount not to exceed 7 the debt service extension base less the amount in items (b), 8 (c), and (e) of this definition for non-referendum 9 obligations, except obligations initially issued pursuant to 10 referendum; (i) made for payments of principal and interest 11 on bonds issued under Section 15 of the Local Government Debt 12 Reform Act; and (j) made for a qualified airport authority to 13 pay interest or principal on general obligation bonds issued 14 for the purpose of paying obligations due under, or financing 15 airport facilities required to be acquired, constructed, 16 installed or equipped pursuant to, contracts entered into 17 before March 1, 1996 (but not including any amendments to 18 such a contract taking effect on or after that date). 19 "Aggregate extension" for all taxing districts to which 20 this Law applies in accordance with paragraph (2) of 21 subsection (e) of Section 18-213 means the annual corporate 22 extension for the taxing district and those special purpose 23 extensions that are made annually for the taxing district, 24 excluding special purpose extensions: (a) made for the taxing 25 district to pay interest or principal on general obligation 26 bonds that were approved by referendum; (b) made for any 27 taxing district to pay interest or principal on general 28 obligation bonds issued before the effective date of this 29 amendatory Act of 1997; (c) made for any taxing district to 30 pay interest or principal on bonds issued to refund or 31 continue to refund those bonds issued before the effective 32 date of this amendatory Act of 1997; (d) made for any taxing 33 district to pay interest or principal on bonds issued to 34 refund or continue to refund bonds issued after the effective SB606 Enrolled -7- LRB093 07520 SJM 07693 b 1 date of this amendatory Act of 1997 if the bonds were 2 approved by referendum after the effective date of this 3 amendatory Act of 1997; (e) made for any taxing district to 4 pay interest or principal on revenue bonds issued before the 5 effective date of this amendatory Act of 1997 for payment of 6 which a property tax levy or the full faith and credit of the 7 unit of local government is pledged; however, a tax for the 8 payment of interest or principal on those bonds shall be made 9 only after the governing body of the unit of local government 10 finds that all other sources for payment are insufficient to 11 make those payments; (f) made for payments under a building 12 commission lease when the lease payments are for the 13 retirement of bonds issued by the commission before the 14 effective date of this amendatory Act of 1997 to pay for the 15 building project; (g) made for payments due under installment 16 contracts entered into before the effective date of this 17 amendatory Act of 1997; (h) made for payments of principal 18 and interest on limited bonds, as defined in Section 3 of the 19 Local Government Debt Reform Act, in an amount not to exceed 20 the debt service extension base less the amount in items (b), 21 (c), and (e) of this definition for non-referendum 22 obligations, except obligations initially issued pursuant to 23 referendum; (i) made for payments of principal and interest 24 on bonds issued under Section 15 of the Local Government Debt 25 Reform Act; and (j) made for a qualified airport authority to 26 pay interest or principal on general obligation bonds issued 27 for the purpose of paying obligations due under, or financing 28 airport facilities required to be acquired, constructed, 29 installed or equipped pursuant to, contracts entered into 30 before March 1, 1996 (but not including any amendments to 31 such a contract taking effect on or after that date). 32 "Debt service extension base" means an amount equal to 33 that portion of the extension for a taxing district for the 34 1994 levy year, or for those taxing districts subject to this SB606 Enrolled -8- LRB093 07520 SJM 07693 b 1 Law in accordance with Section 18-213, except for those 2 subject to paragraph (2) of subsection (e) of Section 18-213, 3 for the levy year in which the referendum making this Law 4 applicable to the taxing district is held, or for those 5 taxing districts subject to this Law in accordance with 6 paragraph (2) of subsection (e) of Section 18-213 for the 7 1996 levy year, constituting an extension for payment of 8 principal and interest on bonds issued by the taxing district 9 without referendum, but not including (i) bonds authorized by 10 Public Act 88-503 and issued under Section 20a of the Chicago 11 Park District Act for aquarium and museum projects; (ii) 12 bonds issued under Section 15 of the Local Government Debt 13 Reform Act; or (iii) refunding obligations issued to refund 14 or to continue to refund obligations initially issued 15 pursuant to referendum. The debt service extension base may 16 be established or increased as provided under Section 18-212. 17 "Special purpose extensions" include, but are not limited 18 to, extensions for levies made on an annual basis for 19 unemployment and workers' compensation, self-insurance, 20 contributions to pension plans, and extensions made pursuant 21 to Section 6-601 of the Illinois Highway Code for a road 22 district's permanent road fund whether levied annually or 23 not. The extension for a special service area is not 24 included in the aggregate extension. 25 "Aggregate extension base" means the taxing district's 26 last preceding aggregate extension as adjusted under Sections 27 18-215 through 18-230. 28 "Levy year" has the same meaning as "year" under Section 29 1-155. 30 "New property" means (i) the assessed value, after final 31 board of review or board of appeals action, of new 32 improvements or additions to existing improvements on any 33 parcel of real property that increase the assessed value of 34 that real property during the levy year multiplied by the SB606 Enrolled -9- LRB093 07520 SJM 07693 b 1 equalization factor issued by the Department under Section 2 17-30,and(ii) the assessed value, after final board of 3 review or board of appeals action, of real property not 4 exempt from real estate taxation, which real property was 5 exempt from real estate taxation for any portion of the 6 immediately preceding levy year, multiplied by the 7 equalization factor issued by the Department under Section 8 17-30, and (iii) in counties that classify in accordance with 9 Section 4 of Article IX of the Illinois Constitution, an 10 incentive property's additional assessed value resulting from 11 a scheduled increase in the level of assessment as applied to 12 the first year final board of review market value. In 13 addition, the county clerk in a county containing a 14 population of 3,000,000 or more shall include in the 1997 15 recovered tax increment value for any school district, any 16 recovered tax increment value that was applicable to the 1995 17 tax year calculations. 18 "Qualified airport authority" means an airport authority 19 organized under the Airport Authorities Act and located in a 20 county bordering on the State of Wisconsin and having a 21 population in excess of 200,000 and not greater than 500,000. 22 "Recovered tax increment value" means, except as 23 otherwise provided in this paragraph, the amount of the 24 current year's equalized assessed value, in the first year 25 after a municipality terminates the designation of an area as 26 a redevelopment project area previously established under the 27 Tax Increment Allocation Development Act in the Illinois 28 Municipal Code, previously established under the Industrial 29 Jobs Recovery Law in the Illinois Municipal Code, or 30 previously established under the Economic Development Area 31 Tax Increment Allocation Act, of each taxable lot, block, 32 tract, or parcel of real property in the redevelopment 33 project area over and above the initial equalized assessed 34 value of each property in the redevelopment project area. For SB606 Enrolled -10- LRB093 07520 SJM 07693 b 1 the taxes which are extended for the 1997 levy year, the 2 recovered tax increment value for a non-home rule taxing 3 district that first became subject to this Law for the 1995 4 levy year because a majority of its 1994 equalized assessed 5 value was in an affected county or counties shall be 6 increased if a municipality terminated the designation of an 7 area in 1993 as a redevelopment project area previously 8 established under the Tax Increment Allocation Development 9 Act in the Illinois Municipal Code, previously established 10 under the Industrial Jobs Recovery Law in the Illinois 11 Municipal Code, or previously established under the Economic 12 Development Area Tax Increment Allocation Act, by an amount 13 equal to the 1994 equalized assessed value of each taxable 14 lot, block, tract, or parcel of real property in the 15 redevelopment project area over and above the initial 16 equalized assessed value of each property in the 17 redevelopment project area. In the first year after a 18 municipality removes a taxable lot, block, tract, or parcel 19 of real property from a redevelopment project area 20 established under the Tax Increment Allocation Development 21 Act in the Illinois Municipal Code, the Industrial Jobs 22 Recovery Law in the Illinois Municipal Code, or the Economic 23 Development Area Tax Increment Allocation Act, "recovered tax 24 increment value" means the amount of the current year's 25 equalized assessed value of each taxable lot, block, tract, 26 or parcel of real property removed from the redevelopment 27 project area over and above the initial equalized assessed 28 value of that real property before removal from the 29 redevelopment project area. 30 Except as otherwise provided in this Section, "limiting 31 rate" means a fraction the numerator of which is the last 32 preceding aggregate extension base times an amount equal to 33 one plus the extension limitation defined in this Section and 34 the denominator of which is the current year's equalized SB606 Enrolled -11- LRB093 07520 SJM 07693 b 1 assessed value of all real property in the territory under 2 the jurisdiction of the taxing district during the prior levy 3 year. For those taxing districts that reduced their 4 aggregate extension for the last preceding levy year, the 5 highest aggregate extension in any of the last 3 preceding 6 levy years shall be used for the purpose of computing the 7 limiting rate. The denominator shall not include new 8 property. The denominator shall not include the recovered 9 tax increment value. 10 (Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99; 11 92-547, eff. 6-13-02.) 12 Section 99. Effective date. This Act takes effect upon 13 becoming law.