HB1883 97TH GENERAL ASSEMBLY

LRB097 08685 HLH 48814 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1883

Introduced , by Rep. Robert Rita

SYNOPSIS AS INTRODUCED:

35 ILCS 200/27-25
35 ILCS 200/27-30

Amends the Property Tax Code. Provides that the notice of the first levy of taxes by a municipality or county in a special service area shall include the proposed tax levy, the tax rates for the year preceding the levy year of other taxing districts in the special service area, the proposed budget, and a tax impact statement. Provides that the tax impact statement shall contain estimates of the tax required for the proposed special service area and estimates of the tax increase for taxpayers in the special service area. Provides factors on which the estimates of the tax rates shall be based. Provides that the public hearing required for the proposal of a special service area shall be held within the boundaries of the proposed special service area. Effective January 1, 2012.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Sections 27-25 and 27-30 as follows:

(35 ILCS 200/27-25)

Sec. 27-25. Form of hearing notice. Taxes may be levied or imposed by the municipality or county in the special service area at a rate or amount of tax sufficient to produce revenues required to provide the special services. Prior to the first levy of taxes in the special service area, notice shall be given and a hearing shall be held under the provisions of Sections 27-30 and 27-35. For purposes of this Section the notice shall include:

(a) The time and place of hearing;

(b) The boundaries of the area by legal description and, where possible, by street location;

(c) The permanent tax index number of each parcel located within the area;

(d) The nature of the proposed special services to be provided within the special service area and a statement as to whether the proposed special services are for new construction, maintenance, or other purposes;

(e) A notification that all interested persons, including all persons owning taxable real property located within the special service area, will be given an opportunity to be heard at the hearing regarding the tax levy and an opportunity to file objections to the amount of the tax levy if the tax is a tax upon property; and

(f) The maximum rate of taxes to be extended within the special service area in any year and the maximum number of years taxes will be levied if a maximum number of years is to be established;

(g) The proposed tax levy;

(h) The tax rates for the year preceding the levy year of other taxing districts located within the proposed special service area;

(i) The proposed budget; and

(j) A tax impact statement containing estimates of the tax rate required for the proposed special service area and estimates of the tax increase for taxpayers within the proposed special service. Tax rates shall be estimated based on the following factors: (i) the levy of the proposed special service area and the equalized assessed valuation of all property within the proposed special service area for the year preceding the levy year; (ii) the levy of the proposed special service area and the equalized assessed value of all property within the proposed special service area for the year preceding the levy year increased by 5%; (iii) the levy of the proposed special service area and the equalized assessed value of all property within the proposed special service area for the year preceding the levy year increased by 10%; (iv) the levy of the proposed special service area and the equalized assessed value of all property within the proposed special service area for the year preceding the levy year decreased by 5%; (v) the levy of the proposed special service area and the last known equalized assessed value of all property within the special service area for the year preceding the levy year decreased by 10%. Tax increases shall be estimated from the computation of the foregoing rates. The rates shall be applied to the median equalized assessed value of residential property within the proposed special service area for the year preceding the levy year and the median equalized assessed value of all other property within the proposed special service area for the year preceding the levy year. For purposes of this Section, "residential property" means property for which at least one of the homestead exemptions enumerated in Article 15 of this Code has been applied in the year preceding the levy year.

After the first levy of taxes within the special service area, taxes may continue to be levied in subsequent years without the requirement of an additional public hearing if the tax rate does not exceed the rate specified in the notice for the original public hearing and the taxes are not extended for a longer period than the number of years specified in the notice if a number of years is specified. Tax rates may be increased and the period specified may be extended, if notice is given and new public hearings are held in accordance with Sections 27-30 and 27-35. A levy that includes an increase greater than the lesser of 5% of the initial extension of taxes for the special service area or the percentage increase in the Consumer Price Index during the 12-month calendar year preceding the levy year may be extended only if notice is given and a public hearing is held in accordance with Sections 27-30 and 27-35. For purposes of this Section "Consumer Price Index" means the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor.

(Source: P.A. 93-1013, eff. 8-24-04.)

(35 ILCS 200/27-30)

Sec. 27-30. Manner of notice. Prior to or within 60 days after the adoption of the ordinance proposing the establishment of a special service area the municipality or county shall fix a time and a place for a public hearing. To the extent feasible the hearing shall be held within the boundaries of the proposed special service area. Notice of the hearing shall be given by publication and mailing, except that notice of a public hearing to propose the establishment of a special service area for weather modification purposes may be given by publication only. Notice by publication shall be given by publication at least once not less than 15 days prior to the hearing in a newspaper of general circulation within the municipality or county. Notice by mailing shall be given by depositing the notice in the United States mails addressed to the person or persons in whose name the general taxes for the last preceding year were paid on each property lying within the special service area. A notice shall be mailed not less than 10 days prior to the time set for the public hearing. In the event taxes for the last preceding year were not paid, the notice shall be sent to the person last listed on the tax rolls prior to that year as the owner of the property.

(Source: P.A. 82-282; 88-455.)

Section 99. Effective date. This Act takes effect January 1, 2012.