Rep. Jim Sacia

Filed: 5/26/2004

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1592

2     AMENDMENT NO. ______. Amend Senate Bill 1592 by replacing
3 everything after the enacting clause with the following:
 
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

 

 

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1 contiguous to a county with 3,000,000 or more inhabitants.
2 Beginning with the 1995 levy year, "taxing district" includes
3 only each non-home rule taxing district subject to this Law
4 before the 1995 levy year and each non-home rule taxing
5 district not subject to this Law before the 1995 levy year
6 having the majority of its 1994 equalized assessed value in an
7 affected county or counties. Beginning with the levy year in
8 which this Law becomes applicable to a taxing district as
9 provided in Section 18-213, "taxing district" also includes
10 those taxing districts made subject to this Law as provided in
11 Section 18-213.
12     "Aggregate extension" for taxing districts to which this
13 Law applied before the 1995 levy year means the annual
14 corporate extension for the taxing district and those special
15 purpose extensions that are made annually for the taxing
16 district, excluding special purpose extensions: (a) made for
17 the taxing district to pay interest or principal on general
18 obligation bonds that were approved by referendum; (b) made for
19 any taxing district to pay interest or principal on general
20 obligation bonds issued before October 1, 1991; (c) made for
21 any taxing district to pay interest or principal on bonds
22 issued to refund or continue to refund those bonds issued
23 before October 1, 1991; (d) made for any taxing district to pay
24 interest or principal on bonds issued to refund or continue to
25 refund bonds issued after October 1, 1991 that were approved by
26 referendum; (e) made for any taxing district to pay interest or
27 principal on revenue bonds issued before October 1, 1991 for
28 payment of which a property tax levy or the full faith and
29 credit of the unit of local government is pledged; however, a
30 tax for the payment of interest or principal on those bonds
31 shall be made only after the governing body of the unit of
32 local government finds that all other sources for payment are
33 insufficient to make those payments; (f) made for payments
34 under a building commission lease when the lease payments are

 

 

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

 

 

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

 

 

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1 aquarium or museum projects; (l) made for payments of principal
2 and interest on bonds authorized by Public Act 87-1191 or
3 93-601 this amendatory Act of the 93rd General Assembly and (i)
4 issued pursuant to Section 21.2 of the Cook County Forest
5 Preserve District Act, (ii) issued under Section 42 of the Cook
6 County Forest Preserve District Act for zoological park
7 projects, or (iii) issued under Section 44.1 of the Cook County
8 Forest Preserve District Act for botanical gardens projects;
9 (m) made pursuant to Section 34-53.5 of the School Code,
10 whether levied annually or not; (n) made to fund expenses of
11 providing joint recreational programs for the handicapped
12 under Section 5-8 of the Park District Code or Section 11-95-14
13 of the Illinois Municipal Code; and (o) made by the Chicago
14 Park District for recreational programs for the handicapped
15 under subsection (c) of Section 7.06 of the Chicago Park
16 District Act.
17     "Aggregate extension" for all taxing districts to which
18 this Law applies in accordance with Section 18-213, except for
19 those taxing districts subject to paragraph (2) of subsection
20 (e) of Section 18-213, means the annual corporate extension for
21 the taxing district and those special purpose extensions that
22 are made annually for the taxing district, excluding special
23 purpose extensions: (a) made for the taxing district to pay
24 interest or principal on general obligation bonds that were
25 approved by referendum; (b) made for any taxing district to pay
26 interest or principal on general obligation bonds issued before
27 the date on which the referendum making this Law applicable to
28 the taxing district is held; (c) made for any taxing district
29 to pay interest or principal on bonds issued to refund or
30 continue to refund those bonds issued before the date on which
31 the referendum making this Law applicable to the taxing
32 district is held; (d) made for any taxing district to pay
33 interest or principal on bonds issued to refund or continue to
34 refund bonds issued after the date on which the referendum

 

 

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1 making this Law applicable to the taxing district is held if
2 the bonds were approved by referendum after the date on which
3 the referendum making this Law applicable to the taxing
4 district is held; (e) made for any taxing district to pay
5 interest or principal on revenue bonds issued before the date
6 on which the referendum making this Law applicable to the
7 taxing district is held for payment of which a property tax
8 levy or the full faith and credit of the unit of local
9 government is pledged; however, a tax for the payment of
10 interest or principal on those bonds shall be made only after
11 the governing body of the unit of local government finds that
12 all other sources for payment are insufficient to make those
13 payments; (f) made for payments under a building commission
14 lease when the lease payments are for the retirement of bonds
15 issued by the commission before the date on which the
16 referendum making this Law applicable to the taxing district is
17 held to pay for the building project; (g) made for payments due
18 under installment contracts entered into before the date on
19 which the referendum making this Law applicable to the taxing
20 district is held; (h) made for payments of principal and
21 interest on limited bonds, as defined in Section 3 of the Local
22 Government Debt Reform Act, in an amount not to exceed the debt
23 service extension base less the amount in items (b), (c), and
24 (e) of this definition for non-referendum obligations, except
25 obligations initially issued pursuant to referendum; (i) made
26 for payments of principal and interest on bonds issued under
27 Section 15 of the Local Government Debt Reform Act; (j) made
28 for a qualified airport authority to pay interest or principal
29 on general obligation bonds issued for the purpose of paying
30 obligations due under, or financing airport facilities
31 required to be acquired, constructed, installed or equipped
32 pursuant to, contracts entered into before March 1, 1996 (but
33 not including any amendments to such a contract taking effect
34 on or after that date); and (k) 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 (l) made for payments of
4 principal and interest on bonds issued before July 1, 2005 by
5 any school district on the State Board of Education's Financial
6 Warning List for the purpose of financing a retrofit program to
7 replace steam pipes.
8     "Aggregate extension" for all taxing districts to which
9 this Law applies in accordance with paragraph (2) of subsection
10 (e) of Section 18-213 means the annual corporate extension for
11 the taxing district and those special purpose extensions that
12 are made annually for the taxing district, excluding special
13 purpose extensions: (a) made for the taxing district to pay
14 interest or principal on general obligation bonds that were
15 approved by referendum; (b) made for any taxing district to pay
16 interest or principal on general obligation bonds issued before
17 the effective date of this amendatory Act of 1997; (c) made for
18 any taxing district to pay interest or principal on bonds
19 issued to refund or continue to refund those bonds issued
20 before the effective date of this amendatory Act of 1997; (d)
21 made for any taxing district to pay interest or principal on
22 bonds issued to refund or continue to refund bonds issued after
23 the effective date of this amendatory Act of 1997 if the bonds
24 were approved by referendum after the effective date of this
25 amendatory Act of 1997; (e) made for any taxing district to pay
26 interest or principal on revenue bonds issued before the
27 effective date of this amendatory Act of 1997 for payment of
28 which a property tax levy or the full faith and credit of the
29 unit of local government is pledged; however, a tax for the
30 payment of interest or principal on those bonds shall be made
31 only after the governing body of the unit of local government
32 finds that all other sources for payment are insufficient to
33 make those payments; (f) made for payments under a building
34 commission lease when the lease payments are for the retirement

 

 

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1 of bonds issued by the commission before the effective date of
2 this amendatory Act of 1997 to pay for the building project;
3 (g) made for payments due under installment contracts entered
4 into before the effective date of this amendatory Act of 1997;
5 (h) made for payments of principal and interest on limited
6 bonds, as defined in Section 3 of the Local Government Debt
7 Reform Act, in an amount not to exceed the debt service
8 extension base less the amount in items (b), (c), and (e) of
9 this definition for non-referendum obligations, except
10 obligations initially issued pursuant to referendum; (i) made
11 for payments of principal and interest on bonds issued under
12 Section 15 of the Local Government Debt Reform Act; (j) made
13 for a qualified airport authority to pay interest or principal
14 on general obligation bonds issued for the purpose of paying
15 obligations due under, or financing airport facilities
16 required to be acquired, constructed, installed or equipped
17 pursuant to, contracts entered into before March 1, 1996 (but
18 not including any amendments to such a contract taking effect
19 on or after that date); and (k) made to fund expenses of
20 providing joint recreational programs for the handicapped
21 under Section 5-8 of the Park District Code or Section 11-95-14
22 of the Illinois Municipal Code.
23     "Debt service extension base" means an amount equal to that
24 portion of the extension for a taxing district for the 1994
25 levy year, or for those taxing districts subject to this Law in
26 accordance with Section 18-213, except for those subject to
27 paragraph (2) of subsection (e) of Section 18-213, for the levy
28 year in which the referendum making this Law applicable to the
29 taxing district is held, or for those taxing districts subject
30 to this Law in accordance with paragraph (2) of subsection (e)
31 of Section 18-213 for the 1996 levy year, constituting an
32 extension for payment of principal and interest on bonds issued
33 by the taxing district without referendum, but not including
34 excluded non-referendum bonds. For park districts (i) that were

 

 

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1 first subject to this Law in 1991 or 1995 and (ii) whose
2 extension for the 1994 levy year for the payment of principal
3 and interest on bonds issued by the park district without
4 referendum (but not including excluded non-referendum bonds)
5 was less than 51% of the amount for the 1991 levy year
6 constituting an extension for payment of principal and interest
7 on bonds issued by the park district without referendum (but
8 not including excluded non-referendum bonds), "debt service
9 extension base" means an amount equal to that portion of the
10 extension for the 1991 levy year constituting an extension for
11 payment of principal and interest on bonds issued by the park
12 district without referendum (but not including excluded
13 non-referendum bonds). The debt service extension base may be
14 established or increased as provided under Section 18-212.
15 "Excluded non-referendum bonds" means (i) bonds authorized by
16 Public Act 88-503 and issued under Section 20a of the Chicago
17 Park District Act for aquarium and museum projects; (ii) bonds
18 issued under Section 15 of the Local Government Debt Reform
19 Act; or (iii) refunding obligations issued to refund or to
20 continue to refund obligations initially issued pursuant to
21 referendum.
22     "Special purpose extensions" include, but are not limited
23 to, extensions for levies made on an annual basis for
24 unemployment and workers' compensation, self-insurance,
25 contributions to pension plans, and extensions made pursuant to
26 Section 6-601 of the Illinois Highway Code for a road
27 district's permanent road fund whether levied annually or not.
28 The extension for a special service area is not included in the
29 aggregate extension.
30     "Aggregate extension base" means the taxing district's
31 last preceding aggregate extension as adjusted under Sections
32 18-215 through 18-230.
33     "Levy year" has the same meaning as "year" under Section
34 1-155.

 

 

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1     "New property" means (i) the assessed value, after final
2 board of review or board of appeals action, of new improvements
3 or additions to existing improvements on any parcel of real
4 property that increase the assessed value of that real property
5 during the levy year multiplied by the equalization factor
6 issued by the Department under Section 17-30, (ii) the assessed
7 value, after final board of review or board of appeals action,
8 of real property not exempt from real estate taxation, which
9 real property was exempt from real estate taxation for any
10 portion of the immediately preceding levy year, multiplied by
11 the equalization factor issued by the Department under Section
12 17-30, and (iii) in counties that classify in accordance with
13 Section 4 of Article IX of the Illinois Constitution, an
14 incentive property's additional assessed value resulting from
15 a scheduled increase in the level of assessment as applied to
16 the first year final board of review market value. In addition,
17 the county clerk in a county containing a population of
18 3,000,000 or more shall include in the 1997 recovered tax
19 increment value for any school district, any recovered tax
20 increment value that was applicable to the 1995 tax year
21 calculations.
22     "Qualified airport authority" means an airport authority
23 organized under the Airport Authorities Act and located in a
24 county bordering on the State of Wisconsin and having a
25 population in excess of 200,000 and not greater than 500,000.
26     "Recovered tax increment value" means, except as otherwise
27 provided in this paragraph, the amount of the current year's
28 equalized assessed value, in the first year after a
29 municipality terminates the designation of an area as a
30 redevelopment project area previously established under the
31 Tax Increment Allocation Development Act in the Illinois
32 Municipal Code, previously established under the Industrial
33 Jobs Recovery Law in the Illinois Municipal Code, or previously
34 established under the Economic Development Area Tax Increment

 

 

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1 Allocation Act, of each taxable lot, block, tract, or parcel of
2 real property in the redevelopment project area over and above
3 the initial equalized assessed value of each property in the
4 redevelopment project area. For the taxes which are extended
5 for the 1997 levy year, the recovered tax increment value for a
6 non-home rule taxing district that first became subject to this
7 Law for the 1995 levy year because a majority of its 1994
8 equalized assessed value was in an affected county or counties
9 shall be increased if a municipality terminated the designation
10 of an area in 1993 as a redevelopment project area previously
11 established under the Tax Increment Allocation Development Act
12 in the Illinois Municipal Code, previously established under
13 the Industrial Jobs Recovery Law in the Illinois Municipal
14 Code, or previously established under the Economic Development
15 Area Tax Increment Allocation Act, by an amount equal to the
16 1994 equalized assessed value of each taxable lot, block,
17 tract, or parcel of real property in the redevelopment project
18 area over and above the initial equalized assessed value of
19 each property in the redevelopment project area. In the first
20 year after a municipality removes a taxable lot, block, tract,
21 or parcel of real property from a redevelopment project area
22 established under the Tax Increment Allocation Development Act
23 in the Illinois Municipal Code, the Industrial Jobs Recovery
24 Law in the Illinois Municipal Code, or the Economic Development
25 Area Tax Increment Allocation Act, "recovered tax increment
26 value" means the amount of the current year's equalized
27 assessed value of each taxable lot, block, tract, or parcel of
28 real property removed from the redevelopment project area over
29 and above the initial equalized assessed value of that real
30 property before removal from the redevelopment project area.
31     Except as otherwise provided in this Section, "limiting
32 rate" means a fraction the numerator of which is the last
33 preceding aggregate extension base times an amount equal to one
34 plus the extension limitation defined in this Section and the

 

 

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1 denominator of which is the current year's equalized assessed
2 value of all real property in the territory under the
3 jurisdiction of the taxing district during the prior levy year.
4 For those taxing districts that reduced their aggregate
5 extension for the last preceding levy year, the highest
6 aggregate extension in any of the last 3 preceding levy years
7 shall be used for the purpose of computing the limiting rate.
8 The denominator shall not include new property. The denominator
9 shall not include the recovered tax increment value.
10 (Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
11 93-606, eff. 11-18-03; 93-612, eff. 11-18-03; revised
12 12-10-03.)
 
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.".