093_SB1049eng SB1049 Engrossed LRB093 10778 SJM 11192 b 1 AN ACT in relation to taxation. 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 SB1049 Engrossed -2- LRB093 10778 SJM 11192 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, SB1049 Engrossed -3- LRB093 10778 SJM 11192 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; and (l) made by a school district for 19 contributions to the Illinois Municipal Retirement Fund under 20 Section 7-171 of the Pension Code, and that part of any 21 extension made by a school district for coverage under both 22 Part A and B of Title XVIII of the federal Social Security 23 Act (Medicare) and made by a school district for coverage 24 under the Federal Insurance Contributions Act (FICA). 25 "Aggregate extension" for the taxing districts to which 26 this Law did not apply before the 1995 levy year (except 27 taxing districts subject to this Law in accordance with 28 Section 18-213) means the annual corporate extension for the 29 taxing district and those special purpose extensions that are 30 made annually for the taxing district, excluding special 31 purpose extensions: (a) made for the taxing district to pay 32 interest or principal on general obligation bonds that were 33 approved by referendum; (b) made for any taxing district to 34 pay interest or principal on general obligation bonds issued SB1049 Engrossed -4- LRB093 10778 SJM 11192 b 1 before March 1, 1995; (c) made for any taxing district to pay 2 interest or principal on bonds issued to refund or continue 3 to refund those bonds issued before March 1, 1995; (d) made 4 for any taxing district to pay interest or principal on bonds 5 issued to refund or continue to refund bonds issued after 6 March 1, 1995 that were approved by referendum; (e) made for 7 any taxing district to pay interest or principal on revenue 8 bonds issued before March 1, 1995 for payment of which a 9 property tax levy or the full faith and credit of the unit of 10 local government is pledged; however, a tax for the payment 11 of interest or principal on those bonds shall be made only 12 after the governing body of the unit of local government 13 finds that all other sources for payment are insufficient to 14 make those payments; (f) made for payments under a building 15 commission lease when the lease payments are for the 16 retirement of bonds issued by the commission before March 1, 17 1995 to pay for the building project; (g) made for payments 18 due under installment contracts entered into before March 1, 19 1995; (h) made for payments of principal and interest on 20 bonds issued under the Metropolitan Water Reclamation 21 District Act to finance construction projects initiated 22 before October 1, 1991; (i) made for payments of principal 23 and interest on limited bonds, as defined in Section 3 of the 24 Local Government Debt Reform Act, in an amount not to exceed 25 the debt service extension base less the amount in items (b), 26 (c), and (e) of this definition for non-referendum 27 obligations, except obligations initially issued pursuant to 28 referendum and bonds described in subsection (h) of this 29 definition; (j) made for payments of principal and interest 30 on bonds issued under Section 15 of the Local Government Debt 31 Reform Act; (k) made for payments of principal and interest 32 on bonds authorized by Public Act 88-503 and issued under 33 Section 20a of the Chicago Park District Act for aquarium or 34 museum projects; (l) made for payments of principal and SB1049 Engrossed -5- LRB093 10778 SJM 11192 b 1 interest on bonds authorized by Public Act 87-1191 and issued 2 under Section 42 of the Cook County Forest Preserve District 3 Act for zoological park projects;and(m) made pursuant to 4 Section 34-53.5 of the School Code, whether levied annually 5 or not; and (n) made by a school district for contributions 6 to the Illinois Municipal Retirement Fund under Section 7-171 7 of the Pension Code, and that part of any extension made by a 8 school district for coverage under both Part A and B of Title 9 XVIII of the federal Social Security Act (Medicare) and made 10 by a school district for coverage under the Federal Insurance 11 Contributions Act (FICA). 12 "Aggregate extension" for all taxing districts to which 13 this Law applies in accordance with Section 18-213, except 14 for those taxing districts subject to paragraph (2) of 15 subsection (e) of Section 18-213, means the annual corporate 16 extension for the taxing district and those special purpose 17 extensions that are made annually for the taxing district, 18 excluding special purpose extensions: (a) made for the taxing 19 district to pay interest or principal on general obligation 20 bonds that were approved by referendum; (b) made for any 21 taxing district to pay interest or principal on general 22 obligation bonds issued before the date on which the 23 referendum making this Law applicable to the taxing district 24 is held; (c) made for any taxing district to pay interest or 25 principal on bonds issued to refund or continue to refund 26 those bonds issued before the date on which the referendum 27 making this Law applicable to the taxing district is held; 28 (d) made for any taxing district to pay interest or principal 29 on bonds issued to refund or continue to refund bonds issued 30 after the date on which the referendum making this Law 31 applicable to the taxing district is held if the bonds were 32 approved by referendum after the date on which the referendum 33 making this Law applicable to the taxing district is held; 34 (e) made for any taxing district to pay interest or principal SB1049 Engrossed -6- LRB093 10778 SJM 11192 b 1 on revenue bonds issued before the date on which the 2 referendum making this Law applicable to the taxing district 3 is held for payment of which a property tax levy or the full 4 faith and credit of the unit of local government is pledged; 5 however, a tax for the payment of interest or principal on 6 those bonds shall be made only after the governing body of 7 the unit of local government finds that all other sources for 8 payment are insufficient to make those payments; (f) made for 9 payments under a building commission lease when the lease 10 payments are for the retirement of bonds issued by the 11 commission before the date on which the referendum making 12 this Law applicable to the taxing district is held to pay for 13 the building project; (g) made for payments due under 14 installment contracts entered into before the date on which 15 the referendum making this Law applicable to the taxing 16 district is held; (h) made for payments of principal and 17 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; (i) made for payments of principal and interest 23 on bonds issued under Section 15 of the Local Government Debt 24 Reform Act;and(j) made for a qualified airport authority to 25 pay interest or principal on general obligation bonds issued 26 for the purpose of paying obligations due under, or financing 27 airport facilities required to be acquired, constructed, 28 installed or equipped pursuant to, contracts entered into 29 before March 1, 1996 (but not including any amendments to 30 such a contract taking effect on or after that date); and (k) 31 made by a school district for contributions to the Illinois 32 Municipal Retirement Fund under Section 7-171 of the Pension 33 Code, and that part of any extension made by a school 34 district for coverage under both Part A and B of Title XVIII SB1049 Engrossed -7- LRB093 10778 SJM 11192 b 1 of the federal Social Security Act (Medicare) and made by a 2 school district for coverage under the Federal Insurance 3 Contributions Act (FICA). 4 "Aggregate extension" for all taxing districts to which 5 this Law applies in accordance with paragraph (2) of 6 subsection (e) of Section 18-213 means the annual corporate 7 extension for the taxing district and those special purpose 8 extensions that are made annually for the taxing district, 9 excluding special purpose extensions: (a) made for the taxing 10 district to pay interest or principal on general obligation 11 bonds that were approved by referendum; (b) made for any 12 taxing district to pay interest or principal on general 13 obligation bonds issued before the effective date of this 14 amendatory Act of 1997; (c) made for any taxing district to 15 pay interest or principal on bonds issued to refund or 16 continue to refund those bonds issued before the effective 17 date of this amendatory Act of 1997; (d) made for any taxing 18 district to pay interest or principal on bonds issued to 19 refund or continue to refund bonds issued after the effective 20 date of this amendatory Act of 1997 if the bonds were 21 approved by referendum after the effective date of this 22 amendatory Act of 1997; (e) made for any taxing district to 23 pay interest or principal on revenue bonds issued before the 24 effective date of this amendatory Act of 1997 for payment of 25 which a property tax levy or the full faith and credit of the 26 unit of local government is pledged; however, a tax for the 27 payment of interest or principal on those bonds shall be made 28 only after the governing body of the unit of local government 29 finds that all other sources for payment are insufficient to 30 make those payments; (f) made for payments under a building 31 commission lease when the lease payments are for the 32 retirement of bonds issued by the commission before the 33 effective date of this amendatory Act of 1997 to pay for the 34 building project; (g) made for payments due under installment SB1049 Engrossed -8- LRB093 10778 SJM 11192 b 1 contracts entered into before the effective date of this 2 amendatory Act of 1997; (h) made for payments of principal 3 and interest on limited bonds, as defined in Section 3 of the 4 Local Government Debt Reform Act, in an amount not to exceed 5 the debt service extension base less the amount in items (b), 6 (c), and (e) of this definition for non-referendum 7 obligations, except obligations initially issued pursuant to 8 referendum; (i) made for payments of principal and interest 9 on bonds issued under Section 15 of the Local Government Debt 10 Reform Act;and(j) made for a qualified airport authority to 11 pay interest or principal on general obligation bonds issued 12 for the purpose of paying obligations due under, or financing 13 airport facilities required to be acquired, constructed, 14 installed or equipped pursuant to, contracts entered into 15 before March 1, 1996 (but not including any amendments to 16 such a contract taking effect on or after that date); and (k) 17 made by a school district for contributions to the Illinois 18 Municipal Retirement Fund under Section 7-171 of the Pension 19 Code, and that part of any extension made by a school 20 district for coverage under both Part A and B of Title XVIII 21 of the federal Social Security Act (Medicare) and made by a 22 school district for coverage under the Federal Insurance 23 Contributions Act (FICA). 24 "Debt service extension base" means an amount equal to 25 that portion of the extension for a taxing district for the 26 1994 levy year, or for those taxing districts subject to this 27 Law in accordance with Section 18-213, except for those 28 subject to paragraph (2) of subsection (e) of Section 18-213, 29 for the levy year in which the referendum making this Law 30 applicable to the taxing district is held, or for those 31 taxing districts subject to this Law in accordance with 32 paragraph (2) of subsection (e) of Section 18-213 for the 33 1996 levy year, constituting an extension for payment of 34 principal and interest on bonds issued by the taxing district SB1049 Engrossed -9- LRB093 10778 SJM 11192 b 1 without referendum, but not including (i) bonds authorized by 2 Public Act 88-503 and issued under Section 20a of the Chicago 3 Park District Act for aquarium and museum projects; (ii) 4 bonds issued under Section 15 of the Local Government Debt 5 Reform Act; or (iii) refunding obligations issued to refund 6 or to continue to refund obligations initially issued 7 pursuant to referendum. The debt service extension base may 8 be established or increased as provided under Section 18-212. 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 13 to Section 6-601 of the Illinois Highway Code for a road 14 district's permanent road fund whether levied annually or 15 not. The extension for a special service area is not 16 included in the 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 24 improvements or additions to existing improvements on any 25 parcel of real property that increase the assessed value of 26 that real property during the levy year multiplied by the 27 equalization factor issued by the Department under Section 28 17-30 and (ii) the assessed value, after final board of 29 review or board of appeals action, of real property not 30 exempt from real estate taxation, which real property was 31 exempt from real estate taxation for any portion of the 32 immediately preceding levy year, multiplied by the 33 equalization factor issued by the Department under Section 34 17-30. In addition, the county clerk in a county containing a SB1049 Engrossed -10- LRB093 10778 SJM 11192 b 1 population of 3,000,000 or more shall include in the 1997 2 recovered tax increment value for any school district, any 3 recovered tax increment value that was applicable to the 1995 4 tax year calculations. 5 "Qualified airport authority" means an airport authority 6 organized under the Airport Authorities Act and located in a 7 county bordering on the State of Wisconsin and having a 8 population in excess of 200,000 and not greater than 500,000. 9 "Recovered tax increment value" means, except as 10 otherwise provided in this paragraph, the amount of the 11 current year's equalized assessed value, in the first year 12 after a municipality terminates the designation of an area as 13 a redevelopment project area previously established under the 14 Tax Increment Allocation Development Act in the Illinois 15 Municipal Code, previously established under the Industrial 16 Jobs Recovery Law in the Illinois Municipal Code, or 17 previously established under the Economic Development Area 18 Tax Increment Allocation Act, of each taxable lot, block, 19 tract, or parcel of real property in the redevelopment 20 project area over and above the initial equalized assessed 21 value of each property in the redevelopment project area. For 22 the taxes which are extended for the 1997 levy year, the 23 recovered tax increment value for a non-home rule taxing 24 district that first became subject to this Law for the 1995 25 levy year because a majority of its 1994 equalized assessed 26 value was in an affected county or counties shall be 27 increased if a municipality terminated the designation of an 28 area in 1993 as a redevelopment project area previously 29 established under the Tax Increment Allocation Development 30 Act in the Illinois Municipal Code, previously established 31 under the Industrial Jobs Recovery Law in the Illinois 32 Municipal Code, or previously established under the Economic 33 Development Area Tax Increment Allocation Act, by an amount 34 equal to the 1994 equalized assessed value of each taxable SB1049 Engrossed -11- LRB093 10778 SJM 11192 b 1 lot, block, tract, or parcel of real property in the 2 redevelopment project area over and above the initial 3 equalized assessed value of each property in the 4 redevelopment project area. In the first year after a 5 municipality removes a taxable lot, block, tract, or parcel 6 of real property from a redevelopment project area 7 established under the Tax Increment Allocation Development 8 Act in the Illinois Municipal Code, the Industrial Jobs 9 Recovery Law in the Illinois Municipal Code, or the Economic 10 Development Area Tax Increment Allocation Act, "recovered tax 11 increment value" means the amount of the current year's 12 equalized assessed value of each taxable lot, block, tract, 13 or parcel of real property removed from the redevelopment 14 project area over and above the initial equalized assessed 15 value of that real property before removal from the 16 redevelopment project area. 17 Except as otherwise provided in this Section, "limiting 18 rate" means a fraction the numerator of which is the last 19 preceding aggregate extension base times an amount equal to 20 one plus the extension limitation defined in this Section and 21 the denominator of which is the current year's equalized 22 assessed value of all real property in the territory under 23 the jurisdiction of the taxing district during the prior levy 24 year. For those taxing districts that reduced their 25 aggregate extension for the last preceding levy year, the 26 highest aggregate extension in any of the last 3 preceding 27 levy years shall be used for the purpose of computing the 28 limiting rate. The denominator shall not include new 29 property. The denominator shall not include the recovered 30 tax increment value. 31 (Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99; 32 92-547, eff. 6-13-02.)