103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2203

 

Introduced 2/10/2023, by Sen. Craig Wilcox

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 805/6  from Ch. 85, par. 2206
30 ILCS 805/8  from Ch. 85, par. 2208
30 ILCS 805/9.2 new
35 ILCS 5/901
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-207 new
35 ILCS 200/18-212

    Amends the State Mandates Act. Provides that any State mandate regarding any subject matter enacted on or after the effective date of the amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations and reimbursements to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations and reimbursements shall relieve the local government of the obligation to implement any State mandate. Makes conforming changes. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district shall reduce its aggregate extension base for the purpose of lowering its limiting rate for future years upon referendum approval initiated by the submission of a petition by the voters of the district. Provides that the extension limitation shall be: (a) the lesser of 5% or the average percentage increase in the Consumer Price Index for the immediately preceding 10 years; or (b) the rate of increase approved by the voters. Amends the Illinois Income Tax Act. Increases distributions into the Local Government Distributive Fund on and after August 1, 2022. Effective immediately.


LRB103 25126 HLH 51463 b

 

 

A BILL FOR

 

SB2203LRB103 25126 HLH 51463 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Mandates Act is amended by changing
5Sections 6 and 8 and by adding Section 9.2 as follows:
 
6    (30 ILCS 805/6)  (from Ch. 85, par. 2206)
7    Sec. 6. State Reimbursement to Local Government For
8Increased Costs Arising From Certain Mandates. (a) Any
9increased costs accruing to local governments as a direct
10result of mandates dealing with the organization and structure
11of local government or due process mandates, as defined in
12subsections (c) and (d), respectively, of Section 3 above, are
13not reimbursable by the State.
14    (b) At least 50%, but not more than 100% of the increase in
15costs of a local government directly attributable to a service
16mandate as defined in subsection (f) of Section 3 enacted by
17the General Assembly or established administratively after the
18effective date of this Act shall be reimbursed by the State
19unless there is in existence at the time of such enactment a
20program of State aid for the service affected by the mandate
21whereunder the non-local share for any participating local
22government is 50% or greater and where the increased costs
23arising under the mandate constitute allowable expenditures

 

 

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1under the aid program. Where all or part of the increased costs
2are met through federal or other external aid, only the net
3increase to the local government shall be included in the base
4against which the amount of State reimbursement is to be
5computed.
6    (c) 100% of the loss in revenue of a local government
7directly attributable to a mandated classification or
8exemption of property for purposes of ad valorem real property
9taxation enacted after the effective date of this Act shall be
10reimbursed by the State. The loss of revenue does not include
11potential revenue from property of a type which was not being
12assessed and taxed on January 1, 1980.
13    (d) Except for a State mandate that affects personnel
14qualifications for local employees, the salaries and wages of
15which are financed under a State program, and except as
16provided in subsection (e) below, any personnel mandate as
17defined in subsection (h) of Section 3 above enacted by the
18General Assembly or established administratively after the
19effective date of this Act shall be reimbursed by the State to
20the extent of increased costs incurred by local governments
21directly attributable to such mandate.
22    (e) All of the increased costs of a local government
23directly attributable to a mandated increase in public
24employee retirement benefits which is enacted after the
25effective date of this Act and which has the effect of
26elevating retirement benefits of local government employees

 

 

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1shall be reimbursed by the State; except that any increased
2costs of a local government attributable to Public Act 83-152,
383-374, 83-375, 83-528, 83-558, 83-661, 83-664, 83-737,
483-772, 83-773, 83-780, 83-792, 83-793, 83-802, 83-810,
583-812, 83-823, 83-827 or 83-869 are not reimbursable by the
6State.
7    (f) After the effective date of this Act, any bill filed
8and any amended bill that creates or enlarges a State mandate
9of the type specified in subsections (f), (g) and (h) of
10Section 3, shall have provided and identified for it an
11appropriation of an amount necessary to provide the
12reimbursement specified above unless a statement, stating the
13specific reasons for such exclusion is set out in the bill or
14amendment as provided in subsection (a) of Section 8.
15    (g) If a local government or combination of local
16governments has been providing a service at its option which
17is subsequently mandated by the State, the State shall pay
18them for the subsequent costs of such program and the local
19government or governments shall proportionately reduce its or
20their property tax extensions by the amount that the State
21payment replaces property tax revenues which were being
22expended on such service. However, for purposes of calculating
23a school district's State aid, no district's operating tax
24rate shall be decreased as a result of reimbursement under
25this Act.
26    (h) Any increased costs accruing to a local government as

 

 

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1a direct result of the requirements of the Steel Products
2Procurement Act are not reimbursable by the State.
3    (i) The provisions of subsections (a) through (h) shall
4apply to State mandates enacted prior to the effective date of
5this amendatory Act of the 103rd General Assembly. On and
6after the effective date of this amendatory Act of the 103rd
7General Assembly, any State mandate enacted regarding any
8subject matter that necessitates additional expenditures from
9local government revenues shall be appropriated for and
10reimbursed as provided under Section 9.2.
11(Source: P.A. 83-1362.)
 
12    (30 ILCS 805/8)  (from Ch. 85, par. 2208)
13    Sec. 8. Exclusions, reimbursement application, review,
14appeals, and adjudication.
15    (a) Exclusions: Any of the following circumstances
16inherent to, or associated with, a mandate shall exclude the
17State from reimbursement liability under this Act. If the
18mandate (1) accommodates a request from local governments or
19organizations thereof; (2) imposes additional duties of a
20nature which can be carried out by existing staff and
21procedures at no appreciable net cost increase; (3) creates
22additional costs but also provides offsetting savings
23resulting in no aggregate increase in net costs; (4) imposes a
24cost that is wholly or largely recovered from Federal, State
25or other external financial aid; (5) imposes additional annual

 

 

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1net costs of less than $1,000 for each of the several local
2governments affected or less than $50,000, in the aggregate,
3for all local governments affected.
4    The failure of the General Assembly to make necessary
5appropriations shall relieve the local government of the
6obligation to implement any service mandates, tax exemption
7mandates, and personnel mandates, as specified in Section 6,
8subsections (b), (c), (d) and (e), unless the exclusion
9provided for in this Section are explicitly stated in the Act
10establishing the mandate. In the event that funding is not
11provided for a State-mandated program by the General Assembly,
12the local government may implement or continue the program
13upon approval of its governing body. If the local government
14approves the program and funding is subsequently provided, the
15State shall reimburse the local governments only for costs
16incurred subsequent to the funding.
17    (a-5) The provisions of subsection (a) excluding the State
18from reimbursement liability under this Act shall not apply to
19any State mandate enacted on or after the effective date of
20this amendatory Act of the 103rd General Assembly, and all
21subsequent State mandates enacted shall be appropriated for
22and reimbursed as provided under Section 9.2.
23    (b) Reimbursement Estimation and Appropriation Procedure.
24        (1) When a bill is introduced in the General Assembly,
25    the Legislative Reference Bureau, hereafter referred to as
26    the Bureau, shall determine whether such bill may require

 

 

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1    reimbursement to local governments pursuant to this Act.
2    The Bureau shall make such determination known in the
3    Legislative Synopsis and Digest.
4        In making the determination required by this
5    subsection (b) the Bureau shall disregard any provision in
6    a bill which would make inoperative the reimbursement
7    requirements of Section 6 above, including an express
8    exclusion of the applicability of this Act, and shall make
9    the determination irrespective of any such provision.
10        (2) Any bill or amended bill which creates or expands
11    a State mandate shall be subject to the provisions of "An
12    Act requiring fiscal notes in relation to certain bills",
13    approved June 4, 1965, as amended. The fiscal notes for
14    such bills or amended bills shall include estimates of the
15    costs to local government and the costs of any
16    reimbursement required under this Act. In the case of
17    bills having a potential fiscal impact on units of local
18    government, the fiscal note shall be prepared by the
19    Department. In the case of bills having a potential fiscal
20    impact on school districts, the fiscal note shall be
21    prepared by the State Superintendent of Education. In the
22    case of bills having a potential fiscal impact on
23    community college districts, the fiscal note shall be
24    prepared by the Illinois Community College Board. Such
25    fiscal note shall accompany the bill that requires State
26    reimbursement and shall be prepared prior to any final

 

 

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1    action on such a bill by the assigned committee. However,
2    if a fiscal note is not filed by the appropriate agency
3    within 30 days of introduction of a bill, the bill can be
4    heard in committee and advanced to the order of second
5    reading. The bill shall then remain on second reading
6    until a fiscal note is filed. A bill discharged from
7    committee shall also remain on second reading until a
8    fiscal note is provided by the appropriate agency.
9        (3) The estimate required by paragraph (2) above,
10    shall include the amount estimated to be required during
11    the first fiscal year of a bill's operation in order to
12    reimburse local governments pursuant to Section 6, for
13    costs mandated by such bill. In the event that the
14    effective date of such a bill is not the first day of the
15    fiscal year the estimate shall also include the amount
16    estimated to be required for reimbursement for the next
17    following full fiscal year.
18        (4) For the initial fiscal year, reimbursement funds
19    shall be provided as follows: (i) any statute mandating
20    such costs shall have a companion appropriation bill, and
21    (ii) any executive order mandating such costs shall be
22    accompanied by a bill to appropriate the funds therefor,
23    or, alternatively an appropriation for such funds shall be
24    included in the executive budget for the next following
25    fiscal year.
26        In subsequent fiscal years appropriations for such

 

 

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1    costs shall be included in the Governor's budget or
2    supplemental appropriation bills.
3    (c) Reimbursement Application and Disbursement Procedure.
4        (1) For the initial fiscal year during which
5    reimbursement is authorized, each local government, or
6    more than one local government wishing to join in filing a
7    single claim, believing itself to be entitled to
8    reimbursement under this Act shall submit to the
9    Department, State Superintendent of Education or Illinois
10    Community College Board within 60 days of the effective
11    date of the mandate a claim for reimbursement accompanied
12    by its estimate of the increased costs required by the
13    mandate for the balance of the fiscal year. The
14    Department, State Superintendent of Education or Illinois
15    Community College Board shall review such claim and
16    estimate, shall apportion the claim into 3 equal
17    installments and shall direct the Comptroller to pay the
18    installments at equal intervals throughout the remainder
19    of the fiscal year from the funds appropriated for such
20    purposes, provided that the Department, State
21    Superintendent of Education or Illinois Community College
22    Board may (i) audit the records of any local government to
23    verify the actual amount of the mandated cost, and (ii)
24    reduce any claim determined to be excessive or
25    unreasonable.
26        (2) For the subsequent fiscal years, local governments

 

 

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1    shall submit claims as specified above on or before
2    October 1 of each year. The Department, State
3    Superintendent of Education or Illinois Community College
4    Board shall apportion the claims into 3 equal installments
5    and shall direct the Comptroller to pay the first
6    installment upon approval of the claims, with subsequent
7    installments to follow on January 1 and March 1, such
8    claims to be paid from funds appropriated therefor,
9    provided that the Department, State Superintendent of
10    Education or Illinois Community College Board (i) may
11    audit the records of any local governments to verify the
12    actual amount of the mandated cost, (ii) may reduce any
13    claim, determined to be excessive or unreasonable, and
14    (iii) shall adjust the payment to correct for any
15    underpayments or overpayments which occurred in the
16    previous fiscal year.
17        (3) Any funds received by a local government pursuant
18    to this Act may be used for any public purpose.
19        If the funds appropriated for reimbursement of the
20    costs of local government resulting from the creation or
21    expansion of a State mandate are less than the total of the
22    approved claims, the amount appropriated shall be prorated
23    among the local governments having approved claims.
24    (d) Appeals and Adjudication.
25        (1) Local governments may appeal determinations made
26    by State agencies acting pursuant to subsection (c) above.

 

 

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1    The appeal must be submitted to the State Mandates Board
2    of Review created by Section 9.1 of this Act within 60 days
3    following the date of receipt of the determination being
4    appealed. The appeal must include evidence as to the
5    extent to which the mandate has been carried out in an
6    effective manner and executed without recourse to
7    standards of staffing or expenditure higher than specified
8    in the mandatory statute, if such standards are specified
9    in the statute. The State Mandates Board of Review, after
10    reviewing the evidence submitted to it, may increase or
11    reduce the amount of a reimbursement claim. The decision
12    of the State Mandates Board of Review shall be final
13    subject to judicial review. However, if sufficient funds
14    have not been appropriated, the Department shall notify
15    the General Assembly of such cost, and appropriations for
16    such costs shall be included in a supplemental
17    appropriation bill.
18        (2) A local government may also appeal directly to the
19    State Mandates Board of Review in those situations in
20    which the Department of Commerce and Economic Opportunity
21    does not act upon the local government's application for
22    reimbursement or request for mandate determination
23    submitted under this Act. The appeal must include evidence
24    that the application for reimbursement or request for
25    mandate determination was properly filed and should have
26    been reviewed by the Department.

 

 

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1        An appeal may be made to the Board if the Department
2    does not respond to a local government's application for
3    reimbursement or request for mandate determination within
4    120 days after filing the application or request. In no
5    case, however, may an appeal be brought more than one year
6    after the application or request is filed with the
7    Department.
8(Source: P.A. 94-793, eff. 5-19-06.)
 
9    (30 ILCS 805/9.2 new)
10    Sec. 9.2. Unfunded State mandates prohibited.
11Notwithstanding any provision of law to the contrary, any
12State mandate regarding any subject matter enacted on or after
13the effective date of this amendatory Act of the 103rd General
14Assembly that necessitates additional expenditures from local
15government revenues shall be void and unenforceable unless the
16General Assembly makes necessary appropriations and
17reimbursements to implement that mandate. The failure of the
18General Assembly to make necessary appropriations and
19reimbursements shall relieve the local government of the
20obligation to implement any State mandate.
 
21    Section 10. The Illinois Income Tax Act is amended by
22changing Section 901 as follows:
 
23    (35 ILCS 5/901)

 

 

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1    Sec. 901. Collection authority.
2    (a) In general. The Department shall collect the taxes
3imposed by this Act. The Department shall collect certified
4past due child support amounts under Section 2505-650 of the
5Department of Revenue Law of the Civil Administrative Code of
6Illinois. Except as provided in subsections (b), (c), (e),
7(f), (g), and (h) of this Section, money collected pursuant to
8subsections (a) and (b) of Section 201 of this Act shall be
9paid into the General Revenue Fund in the State treasury;
10money collected pursuant to subsections (c) and (d) of Section
11201 of this Act shall be paid into the Personal Property Tax
12Replacement Fund, a special fund in the State Treasury; and
13money collected under Section 2505-650 of the Department of
14Revenue Law of the Civil Administrative Code of Illinois shall
15be paid into the Child Support Enforcement Trust Fund, a
16special fund outside the State Treasury, or to the State
17Disbursement Unit established under Section 10-26 of the
18Illinois Public Aid Code, as directed by the Department of
19Healthcare and Family Services.
20    (b) Local Government Distributive Fund. Beginning August
211, 2017 and continuing through July 31, 2022, the Treasurer
22shall transfer each month from the General Revenue Fund to the
23Local Government Distributive Fund an amount equal to the sum
24of: (i) 6.06% (10% of the ratio of the 3% individual income tax
25rate prior to 2011 to the 4.95% individual income tax rate
26after July 1, 2017) of the net revenue realized from the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 of this Act
2upon individuals, trusts, and estates during the preceding
3month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
4income tax rate prior to 2011 to the 7% corporate income tax
5rate after July 1, 2017) of the net revenue realized from the
6tax imposed by subsections (a) and (b) of Section 201 of this
7Act upon corporations during the preceding month; and (iii)
8beginning February 1, 2022, 6.06% of the net revenue realized
9from the tax imposed by subsection (p) of Section 201 of this
10Act upon electing pass-through entities. From Beginning August
111, 2022 through July 31, 2023, the Treasurer shall transfer
12each month from the General Revenue Fund to the Local
13Government Distributive Fund an amount equal to the sum of:
14(i) 6.16% of the net revenue realized from the tax imposed by
15subsections (a) and (b) of Section 201 of this Act upon
16individuals, trusts, and estates during the preceding month;
17(ii) 6.85% of the net revenue realized from the tax imposed by
18subsections (a) and (b) of Section 201 of this Act upon
19corporations during the preceding month; and (iii) 6.16% of
20the net revenue realized from the tax imposed by subsection
21(p) of Section 201 of this Act upon electing pass-through
22entities. From August 1, 2023 through July 31, 2024, the
23Treasurer shall transfer each month from the General Revenue
24Fund to the Local Government Distributive Fund an amount equal
25to the sum of: (i) 7% of the net revenue realized from the tax
26imposed by subsections (a) and (b) of Section 201 of this Act

 

 

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1upon individuals, trusts, and estates during the preceding
2month; (ii) 8.11% of the net revenue realized from the tax
3imposed by subsections (a) and (b) of Section 201 of this Act
4upon corporations during the preceding month; and (iii) 7% of
5the net revenue realized from the tax imposed by subsection
6(p) of Section 201 of this Act upon electing pass-through
7entities. Beginning on August 1, 2024, the Treasurer shall
8transfer each month from the General Revenue Fund to the Local
9Government Distributive Fund an amount equal to the sum of:
10(i) 8% of the net revenue realized from the tax imposed by
11subsections (a) and (b) of Section 201 of this Act upon
12individuals, trusts, and estates during the preceding month;
13(ii) 9.11% of the net revenue realized from the tax imposed by
14subsections (a) and (b) of Section 201 of this Act upon
15corporations during the preceding month; and (iii) 8% of the
16net revenue realized from the tax imposed by subsection (p) of
17Section 201 of this Act upon electing pass-through entities.
18Net revenue realized for a month shall be defined as the
19revenue from the tax imposed by subsections (a) and (b) of
20Section 201 of this Act which is deposited in the General
21Revenue Fund, the Education Assistance Fund, the Income Tax
22Surcharge Local Government Distributive Fund, the Fund for the
23Advancement of Education, and the Commitment to Human Services
24Fund during the month minus the amount paid out of the General
25Revenue Fund in State warrants during that same month as
26refunds to taxpayers for overpayment of liability under the

 

 

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1tax imposed by subsections (a) and (b) of Section 201 of this
2Act.
3    Notwithstanding any provision of law to the contrary,
4beginning on July 6, 2017 (the effective date of Public Act
5100-23), those amounts required under this subsection (b) to
6be transferred by the Treasurer into the Local Government
7Distributive Fund from the General Revenue Fund shall be
8directly deposited into the Local Government Distributive Fund
9as the revenue is realized from the tax imposed by subsections
10(a) and (b) of Section 201 of this Act.
11    (c) Deposits Into Income Tax Refund Fund.
12        (1) Beginning on January 1, 1989 and thereafter, the
13    Department shall deposit a percentage of the amounts
14    collected pursuant to subsections (a) and (b)(1), (2), and
15    (3) of Section 201 of this Act into a fund in the State
16    treasury known as the Income Tax Refund Fund. Beginning
17    with State fiscal year 1990 and for each fiscal year
18    thereafter, the percentage deposited into the Income Tax
19    Refund Fund during a fiscal year shall be the Annual
20    Percentage. For fiscal year 2011, the Annual Percentage
21    shall be 8.75%. For fiscal year 2012, the Annual
22    Percentage shall be 8.75%. For fiscal year 2013, the
23    Annual Percentage shall be 9.75%. For fiscal year 2014,
24    the Annual Percentage shall be 9.5%. For fiscal year 2015,
25    the Annual Percentage shall be 10%. For fiscal year 2018,
26    the Annual Percentage shall be 9.8%. For fiscal year 2019,

 

 

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1    the Annual Percentage shall be 9.7%. For fiscal year 2020,
2    the Annual Percentage shall be 9.5%. For fiscal year 2021,
3    the Annual Percentage shall be 9%. For fiscal year 2022,
4    the Annual Percentage shall be 9.25%. For fiscal year
5    2023, the Annual Percentage shall be 9.25%. For all other
6    fiscal years, the Annual Percentage shall be calculated as
7    a fraction, the numerator of which shall be the amount of
8    refunds approved for payment by the Department during the
9    preceding fiscal year as a result of overpayment of tax
10    liability under subsections (a) and (b)(1), (2), and (3)
11    of Section 201 of this Act plus the amount of such refunds
12    remaining approved but unpaid at the end of the preceding
13    fiscal year, minus the amounts transferred into the Income
14    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
15    and the denominator of which shall be the amounts which
16    will be collected pursuant to subsections (a) and (b)(1),
17    (2), and (3) of Section 201 of this Act during the
18    preceding fiscal year; except that in State fiscal year
19    2002, the Annual Percentage shall in no event exceed 7.6%.
20    The Director of Revenue shall certify the Annual
21    Percentage to the Comptroller on the last business day of
22    the fiscal year immediately preceding the fiscal year for
23    which it is to be effective.
24        (2) Beginning on January 1, 1989 and thereafter, the
25    Department shall deposit a percentage of the amounts
26    collected pursuant to subsections (a) and (b)(6), (7), and

 

 

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1    (8), (c) and (d) of Section 201 of this Act into a fund in
2    the State treasury known as the Income Tax Refund Fund.
3    Beginning with State fiscal year 1990 and for each fiscal
4    year thereafter, the percentage deposited into the Income
5    Tax Refund Fund during a fiscal year shall be the Annual
6    Percentage. For fiscal year 2011, the Annual Percentage
7    shall be 17.5%. For fiscal year 2012, the Annual
8    Percentage shall be 17.5%. For fiscal year 2013, the
9    Annual Percentage shall be 14%. For fiscal year 2014, the
10    Annual Percentage shall be 13.4%. For fiscal year 2015,
11    the Annual Percentage shall be 14%. For fiscal year 2018,
12    the Annual Percentage shall be 17.5%. For fiscal year
13    2019, the Annual Percentage shall be 15.5%. For fiscal
14    year 2020, the Annual Percentage shall be 14.25%. For
15    fiscal year 2021, the Annual Percentage shall be 14%. For
16    fiscal year 2022, the Annual Percentage shall be 15%. For
17    fiscal year 2023, the Annual Percentage shall be 14.5%.
18    For all other fiscal years, the Annual Percentage shall be
19    calculated as a fraction, the numerator of which shall be
20    the amount of refunds approved for payment by the
21    Department during the preceding fiscal year as a result of
22    overpayment of tax liability under subsections (a) and
23    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
24    Act plus the amount of such refunds remaining approved but
25    unpaid at the end of the preceding fiscal year, and the
26    denominator of which shall be the amounts which will be

 

 

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1    collected pursuant to subsections (a) and (b)(6), (7), and
2    (8), (c) and (d) of Section 201 of this Act during the
3    preceding fiscal year; except that in State fiscal year
4    2002, the Annual Percentage shall in no event exceed 23%.
5    The Director of Revenue shall certify the Annual
6    Percentage to the Comptroller on the last business day of
7    the fiscal year immediately preceding the fiscal year for
8    which it is to be effective.
9        (3) The Comptroller shall order transferred and the
10    Treasurer shall transfer from the Tobacco Settlement
11    Recovery Fund to the Income Tax Refund Fund (i)
12    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
13    2002, and (iii) $35,000,000 in January, 2003.
14    (d) Expenditures from Income Tax Refund Fund.
15        (1) Beginning January 1, 1989, money in the Income Tax
16    Refund Fund shall be expended exclusively for the purpose
17    of paying refunds resulting from overpayment of tax
18    liability under Section 201 of this Act and for making
19    transfers pursuant to this subsection (d), except that in
20    State fiscal years 2022 and 2023, moneys in the Income Tax
21    Refund Fund shall also be used to pay one-time rebate
22    payments as provided under Sections 208.5 and 212.1.
23        (2) The Director shall order payment of refunds
24    resulting from overpayment of tax liability under Section
25    201 of this Act from the Income Tax Refund Fund only to the
26    extent that amounts collected pursuant to Section 201 of

 

 

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1    this Act and transfers pursuant to this subsection (d) and
2    item (3) of subsection (c) have been deposited and
3    retained in the Fund.
4        (3) As soon as possible after the end of each fiscal
5    year, the Director shall order transferred and the State
6    Treasurer and State Comptroller shall transfer from the
7    Income Tax Refund Fund to the Personal Property Tax
8    Replacement Fund an amount, certified by the Director to
9    the Comptroller, equal to the excess of the amount
10    collected pursuant to subsections (c) and (d) of Section
11    201 of this Act deposited into the Income Tax Refund Fund
12    during the fiscal year over the amount of refunds
13    resulting from overpayment of tax liability under
14    subsections (c) and (d) of Section 201 of this Act paid
15    from the Income Tax Refund Fund during the fiscal year.
16        (4) As soon as possible after the end of each fiscal
17    year, the Director shall order transferred and the State
18    Treasurer and State Comptroller shall transfer from the
19    Personal Property Tax Replacement Fund to the Income Tax
20    Refund Fund an amount, certified by the Director to the
21    Comptroller, equal to the excess of the amount of refunds
22    resulting from overpayment of tax liability under
23    subsections (c) and (d) of Section 201 of this Act paid
24    from the Income Tax Refund Fund during the fiscal year
25    over the amount collected pursuant to subsections (c) and
26    (d) of Section 201 of this Act deposited into the Income

 

 

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1    Tax Refund Fund during the fiscal year.
2        (4.5) As soon as possible after the end of fiscal year
3    1999 and of each fiscal year thereafter, the Director
4    shall order transferred and the State Treasurer and State
5    Comptroller shall transfer from the Income Tax Refund Fund
6    to the General Revenue Fund any surplus remaining in the
7    Income Tax Refund Fund as of the end of such fiscal year;
8    excluding for fiscal years 2000, 2001, and 2002 amounts
9    attributable to transfers under item (3) of subsection (c)
10    less refunds resulting from the earned income tax credit,
11    and excluding for fiscal year 2022 amounts attributable to
12    transfers from the General Revenue Fund authorized by
13    Public Act 102-700 this amendatory Act of the 102nd
14    General Assembly.
15        (5) This Act shall constitute an irrevocable and
16    continuing appropriation from the Income Tax Refund Fund
17    for the purposes of (i) paying refunds upon the order of
18    the Director in accordance with the provisions of this
19    Section and (ii) paying one-time rebate payments under
20    Sections 208.5 and 212.1.
21    (e) Deposits into the Education Assistance Fund and the
22Income Tax Surcharge Local Government Distributive Fund. On
23July 1, 1991, and thereafter, of the amounts collected
24pursuant to subsections (a) and (b) of Section 201 of this Act,
25minus deposits into the Income Tax Refund Fund, the Department
26shall deposit 7.3% into the Education Assistance Fund in the

 

 

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1State Treasury. Beginning July 1, 1991, and continuing through
2January 31, 1993, of the amounts collected pursuant to
3subsections (a) and (b) of Section 201 of the Illinois Income
4Tax Act, minus deposits into the Income Tax Refund Fund, the
5Department shall deposit 3.0% into the Income Tax Surcharge
6Local Government Distributive Fund in the State Treasury.
7Beginning February 1, 1993 and continuing through June 30,
81993, of the amounts collected pursuant to subsections (a) and
9(b) of Section 201 of the Illinois Income Tax Act, minus
10deposits into the Income Tax Refund Fund, the Department shall
11deposit 4.4% into the Income Tax Surcharge Local Government
12Distributive Fund in the State Treasury. Beginning July 1,
131993, and continuing through June 30, 1994, of the amounts
14collected under subsections (a) and (b) of Section 201 of this
15Act, minus deposits into the Income Tax Refund Fund, the
16Department shall deposit 1.475% into the Income Tax Surcharge
17Local Government Distributive Fund in the State Treasury.
18    (f) Deposits into the Fund for the Advancement of
19Education. Beginning February 1, 2015, the Department shall
20deposit the following portions of the revenue realized from
21the tax imposed upon individuals, trusts, and estates by
22subsections (a) and (b) of Section 201 of this Act, minus
23deposits into the Income Tax Refund Fund, into the Fund for the
24Advancement of Education:
25        (1) beginning February 1, 2015, and prior to February
26    1, 2025, 1/30; and

 

 

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1        (2) beginning February 1, 2025, 1/26.
2    If the rate of tax imposed by subsection (a) and (b) of
3Section 201 is reduced pursuant to Section 201.5 of this Act,
4the Department shall not make the deposits required by this
5subsection (f) on or after the effective date of the
6reduction.
7    (g) Deposits into the Commitment to Human Services Fund.
8Beginning February 1, 2015, the Department shall deposit the
9following portions of the revenue realized from the tax
10imposed upon individuals, trusts, and estates by subsections
11(a) and (b) of Section 201 of this Act, minus deposits into the
12Income Tax Refund Fund, into the Commitment to Human Services
13Fund:
14        (1) beginning February 1, 2015, and prior to February
15    1, 2025, 1/30; and
16        (2) beginning February 1, 2025, 1/26.
17    If the rate of tax imposed by subsection (a) and (b) of
18Section 201 is reduced pursuant to Section 201.5 of this Act,
19the Department shall not make the deposits required by this
20subsection (g) on or after the effective date of the
21reduction.
22    (h) Deposits into the Tax Compliance and Administration
23Fund. Beginning on the first day of the first calendar month to
24occur on or after August 26, 2014 (the effective date of Public
25Act 98-1098), each month the Department shall pay into the Tax
26Compliance and Administration Fund, to be used, subject to

 

 

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1appropriation, to fund additional auditors and compliance
2personnel at the Department, an amount equal to 1/12 of 5% of
3the cash receipts collected during the preceding fiscal year
4by the Audit Bureau of the Department from the tax imposed by
5subsections (a), (b), (c), and (d) of Section 201 of this Act,
6net of deposits into the Income Tax Refund Fund made from those
7cash receipts.
8(Source: P.A. 101-8, see Section 99 for effective date;
9101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
106-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
11eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22;
12102-813, eff. 5-13-22; revised 8-2-22.)
 
13    Section 15. The Property Tax Code is amended by changing
14Sections 18-185, 18-205, and 18-212 and by adding Section
1518-207 as follows:
 
16    (35 ILCS 200/18-185)
17    Sec. 18-185. Short title; definitions. This Division 5
18may be cited as the Property Tax Extension Limitation Law. As
19used in this Division 5:
20    "Consumer Price Index" means the Consumer Price Index for
21All Urban Consumers for all items published by the United
22States Department of Labor.
23    "Extension limitation" means, for taxable years prior to
242024: (a) the lesser of 5% or the percentage increase in the

 

 

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1Consumer Price Index during the 12-month calendar year
2preceding the levy year; or (b) the rate of increase approved
3by voters under Section 18-205.
4    "Extension limitation" means, for taxable year 2024 and
5thereafter: (a) the lesser of 5% or the average percentage
6increase in the Consumer Price Index for the 10 years
7immediately preceding the levy year for which the extension
8limitation is being calculated; or (b) the rate of increase
9approved by voters under Section 18-205.
10    "Affected county" means a county of 3,000,000 or more
11inhabitants or a county contiguous to a county of 3,000,000 or
12more inhabitants.
13    "Taxing district" has the same meaning provided in Section
141-150, except as otherwise provided in this Section. For the
151991 through 1994 levy years only, "taxing district" includes
16only each non-home rule taxing district having the majority of
17its 1990 equalized assessed value within any county or
18counties contiguous to a county with 3,000,000 or more
19inhabitants. Beginning with the 1995 levy year, "taxing
20district" includes only each non-home rule taxing district
21subject to this Law before the 1995 levy year and each non-home
22rule taxing district not subject to this Law before the 1995
23levy year having the majority of its 1994 equalized assessed
24value in an affected county or counties. Beginning with the
25levy year in which this Law becomes applicable to a taxing
26district as provided in Section 18-213, "taxing district" also

 

 

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1includes those taxing districts made subject to this Law as
2provided in Section 18-213.
3    "Aggregate extension" for taxing districts to which this
4Law applied before the 1995 levy year means the annual
5corporate extension for the taxing district and those special
6purpose extensions that are made annually for the taxing
7district, excluding special purpose extensions: (a) made for
8the taxing district to pay interest or principal on general
9obligation bonds that were approved by referendum; (b) made
10for any taxing district to pay interest or principal on
11general obligation bonds issued before October 1, 1991; (c)
12made for any taxing district to pay interest or principal on
13bonds issued to refund or continue to refund those bonds
14issued before October 1, 1991; (d) made for any taxing
15district to pay interest or principal on bonds issued to
16refund or continue to refund bonds issued after October 1,
171991 that were approved by referendum; (e) made for any taxing
18district to pay interest or principal on revenue bonds issued
19before October 1, 1991 for payment of which a property tax levy
20or the full faith and credit of the unit of local government is
21pledged; however, a tax for the payment of interest or
22principal on those bonds shall be made only after the
23governing body of the unit of local government finds that all
24other sources for payment are insufficient to make those
25payments; (f) made for payments under a building commission
26lease when the lease payments are for the retirement of bonds

 

 

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1issued by the commission before October 1, 1991, to pay for the
2building project; (g) made for payments due under installment
3contracts entered into before October 1, 1991; (h) made for
4payments of principal and interest on bonds issued under the
5Metropolitan Water Reclamation District Act to finance
6construction projects initiated before October 1, 1991; (i)
7made for payments of principal and interest on limited bonds,
8as defined in Section 3 of the Local Government Debt Reform
9Act, in an amount not to exceed the debt service extension base
10less the amount in items (b), (c), (e), and (h) of this
11definition for non-referendum obligations, except obligations
12initially issued pursuant to referendum; (j) made for payments
13of principal and interest on bonds issued under Section 15 of
14the Local Government Debt Reform Act; (k) made by a school
15district that participates in the Special Education District
16of Lake County, created by special education joint agreement
17under Section 10-22.31 of the School Code, for payment of the
18school district's share of the amounts required to be
19contributed by the Special Education District of Lake County
20to the Illinois Municipal Retirement Fund under Article 7 of
21the Illinois Pension Code; the amount of any extension under
22this item (k) shall be certified by the school district to the
23county clerk; (l) made to fund expenses of providing joint
24recreational programs for persons with disabilities under
25Section 5-8 of the Park District Code or Section 11-95-14 of
26the Illinois Municipal Code; (m) made for temporary relocation

 

 

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1loan repayment purposes pursuant to Sections 2-3.77 and
217-2.2d of the School Code; (n) made for payment of principal
3and interest on any bonds issued under the authority of
4Section 17-2.2d of the School Code; (o) made for contributions
5to a firefighter's pension fund created under Article 4 of the
6Illinois Pension Code, to the extent of the amount certified
7under item (5) of Section 4-134 of the Illinois Pension Code;
8and (p) made for road purposes in the first year after a
9township assumes the rights, powers, duties, assets, property,
10liabilities, obligations, and responsibilities of a road
11district abolished under the provisions of Section 6-133 of
12the Illinois Highway Code.
13    "Aggregate extension" for the taxing districts to which
14this Law did not apply before the 1995 levy year (except taxing
15districts subject to this Law in accordance with Section
1618-213) means the annual corporate extension for the taxing
17district and those special purpose extensions that are made
18annually for the taxing district, excluding special purpose
19extensions: (a) made for the taxing district to pay interest
20or principal on general obligation bonds that were approved by
21referendum; (b) made for any taxing district to pay interest
22or principal on general obligation bonds issued before March
231, 1995; (c) made for any taxing district to pay interest or
24principal on bonds issued to refund or continue to refund
25those bonds issued before March 1, 1995; (d) made for any
26taxing district to pay interest or principal on bonds issued

 

 

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1to refund or continue to refund bonds issued after March 1,
21995 that were approved by referendum; (e) made for any taxing
3district to pay interest or principal on revenue bonds issued
4before March 1, 1995 for payment of which a property tax levy
5or the full faith and credit of the unit of local government is
6pledged; however, a tax for the payment of interest or
7principal on those bonds shall be made only after the
8governing body of the unit of local government finds that all
9other sources for payment are insufficient to make those
10payments; (f) made for payments under a building commission
11lease when the lease payments are for the retirement of bonds
12issued by the commission before March 1, 1995 to pay for the
13building project; (g) made for payments due under installment
14contracts entered into before March 1, 1995; (h) made for
15payments of principal and interest on bonds issued under the
16Metropolitan Water Reclamation District Act to finance
17construction projects initiated before October 1, 1991; (h-4)
18made for stormwater management purposes by the Metropolitan
19Water Reclamation District of Greater Chicago under Section 12
20of the Metropolitan Water Reclamation District Act; (h-8) made
21for payments of principal and interest on bonds issued under
22Section 9.6a of the Metropolitan Water Reclamation District
23Act to make contributions to the pension fund established
24under Article 13 of the Illinois Pension Code; (i) made for
25payments of principal and interest on limited bonds, as
26defined in Section 3 of the Local Government Debt Reform Act,

 

 

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1in an amount not to exceed the debt service extension base less
2the amount in items (b), (c), and (e) of this definition for
3non-referendum obligations, except obligations initially
4issued pursuant to referendum and bonds described in
5subsections (h) and (h-8) of this definition; (j) made for
6payments of principal and interest on bonds issued under
7Section 15 of the Local Government Debt Reform Act; (k) made
8for payments of principal and interest on bonds authorized by
9Public Act 88-503 and issued under Section 20a of the Chicago
10Park District Act for aquarium or museum projects and bonds
11issued under Section 20a of the Chicago Park District Act for
12the purpose of making contributions to the pension fund
13established under Article 12 of the Illinois Pension Code; (l)
14made for payments of principal and interest on bonds
15authorized by Public Act 87-1191 or 93-601 and (i) issued
16pursuant to Section 21.2 of the Cook County Forest Preserve
17District Act, (ii) issued under Section 42 of the Cook County
18Forest Preserve District Act for zoological park projects, or
19(iii) issued under Section 44.1 of the Cook County Forest
20Preserve District Act for botanical gardens projects; (m) made
21pursuant to Section 34-53.5 of the School Code, whether levied
22annually or not; (n) made to fund expenses of providing joint
23recreational programs for persons with disabilities under
24Section 5-8 of the Park District Code or Section 11-95-14 of
25the Illinois Municipal Code; (o) made by the Chicago Park
26District for recreational programs for persons with

 

 

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1disabilities under subsection (c) of Section 7.06 of the
2Chicago Park District Act; (p) made for contributions to a
3firefighter's pension fund created under Article 4 of the
4Illinois Pension Code, to the extent of the amount certified
5under item (5) of Section 4-134 of the Illinois Pension Code;
6(q) made by Ford Heights School District 169 under Section
717-9.02 of the School Code; and (r) made for the purpose of
8making employer contributions to the Public School Teachers'
9Pension and Retirement Fund of Chicago under Section 34-53 of
10the School Code.
11    "Aggregate extension" for all taxing districts to which
12this Law applies in accordance with Section 18-213, except for
13those taxing districts subject to paragraph (2) of subsection
14(e) of Section 18-213, means the annual corporate extension
15for the taxing district and those special purpose extensions
16that are made annually for the taxing district, excluding
17special purpose extensions: (a) made for the taxing district
18to pay interest or principal on general obligation bonds that
19were approved by referendum; (b) made for any taxing district
20to pay interest or principal on general obligation bonds
21issued before the date on which the referendum making this Law
22applicable to the taxing district is held; (c) made for any
23taxing district to pay interest or principal on bonds issued
24to refund or continue to refund those bonds issued before the
25date on which the referendum making this Law applicable to the
26taxing district is held; (d) made for any taxing district to

 

 

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1pay interest or principal on bonds issued to refund or
2continue to refund bonds issued after the date on which the
3referendum making this Law applicable to the taxing district
4is held if the bonds were approved by referendum after the date
5on which the referendum making this Law applicable to the
6taxing district is held; (e) made for any taxing district to
7pay interest or principal on revenue bonds issued before the
8date on which the referendum making this Law applicable to the
9taxing district is held for payment of which a property tax
10levy or the full faith and credit of the unit of local
11government is pledged; however, a tax for the payment of
12interest or principal on those bonds shall be made only after
13the governing body of the unit of local government finds that
14all other sources for payment are insufficient to make those
15payments; (f) made for payments under a building commission
16lease when the lease payments are for the retirement of bonds
17issued by the commission before the date on which the
18referendum making this Law applicable to the taxing district
19is held to pay for the building project; (g) made for payments
20due under installment contracts entered into before the date
21on which the referendum making this Law applicable to the
22taxing district is held; (h) made for payments of principal
23and interest on limited bonds, as defined in Section 3 of the
24Local Government Debt Reform Act, in an amount not to exceed
25the debt service extension base less the amount in items (b),
26(c), and (e) of this definition for non-referendum

 

 

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1obligations, except obligations initially issued pursuant to
2referendum; (i) made for payments of principal and interest on
3bonds issued under Section 15 of the Local Government Debt
4Reform Act; (j) made for a qualified airport authority to pay
5interest or principal on general obligation bonds issued for
6the purpose of paying obligations due under, or financing
7airport facilities required to be acquired, constructed,
8installed or equipped pursuant to, contracts entered into
9before March 1, 1996 (but not including any amendments to such
10a contract taking effect on or after that date); (k) made to
11fund expenses of providing joint recreational programs for
12persons with disabilities under Section 5-8 of the Park
13District Code or Section 11-95-14 of the Illinois Municipal
14Code; (l) made for contributions to a firefighter's pension
15fund created under Article 4 of the Illinois Pension Code, to
16the extent of the amount certified under item (5) of Section
174-134 of the Illinois Pension Code; and (m) made for the taxing
18district to pay interest or principal on general obligation
19bonds issued pursuant to Section 19-3.10 of the School Code.
20    "Aggregate extension" for all taxing districts to which
21this Law applies in accordance with paragraph (2) of
22subsection (e) of Section 18-213 means the annual corporate
23extension for the taxing district and those special purpose
24extensions that are made annually for the taxing district,
25excluding special purpose extensions: (a) made for the taxing
26district to pay interest or principal on general obligation

 

 

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1bonds that were approved by referendum; (b) made for any
2taxing district to pay interest or principal on general
3obligation bonds issued before March 7, 1997 (the effective
4date of Public Act 89-718); (c) made for any taxing district to
5pay interest or principal on bonds issued to refund or
6continue to refund those bonds issued before March 7, 1997
7(the effective date of Public Act 89-718); (d) made for any
8taxing district to pay interest or principal on bonds issued
9to refund or continue to refund bonds issued after March 7,
101997 (the effective date of Public Act 89-718) if the bonds
11were approved by referendum after March 7, 1997 (the effective
12date of Public Act 89-718); (e) made for any taxing district to
13pay interest or principal on revenue bonds issued before March
147, 1997 (the effective date of Public Act 89-718) for payment
15of which a property tax levy or the full faith and credit of
16the unit of local government is pledged; however, a tax for the
17payment of interest or principal on those bonds shall be made
18only after the governing body of the unit of local government
19finds that all other sources for payment are insufficient to
20make those payments; (f) made for payments under a building
21commission lease when the lease payments are for the
22retirement of bonds issued by the commission before March 7,
231997 (the effective date of Public Act 89-718) to pay for the
24building project; (g) made for payments due under installment
25contracts entered into before March 7, 1997 (the effective
26date of Public Act 89-718); (h) made for payments of principal

 

 

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1and interest on limited bonds, as defined in Section 3 of the
2Local Government Debt Reform Act, in an amount not to exceed
3the debt service extension base less the amount in items (b),
4(c), and (e) of this definition for non-referendum
5obligations, except obligations initially issued pursuant to
6referendum; (i) made for payments of principal and interest on
7bonds issued under Section 15 of the Local Government Debt
8Reform Act; (j) made for a qualified airport authority to pay
9interest or principal on general obligation bonds issued for
10the purpose of paying obligations due under, or financing
11airport facilities required to be acquired, constructed,
12installed or equipped pursuant to, contracts entered into
13before March 1, 1996 (but not including any amendments to such
14a contract taking effect on or after that date); (k) made to
15fund expenses of providing joint recreational programs for
16persons with disabilities under Section 5-8 of the Park
17District Code or Section 11-95-14 of the Illinois Municipal
18Code; and (l) made for contributions to a firefighter's
19pension fund created under Article 4 of the Illinois Pension
20Code, to the extent of the amount certified under item (5) of
21Section 4-134 of the Illinois Pension Code.
22    "Debt service extension base" means an amount equal to
23that portion of the extension for a taxing district for the
241994 levy year, or for those taxing districts subject to this
25Law in accordance with Section 18-213, except for those
26subject to paragraph (2) of subsection (e) of Section 18-213,

 

 

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1for the levy year in which the referendum making this Law
2applicable to the taxing district is held, or for those taxing
3districts subject to this Law in accordance with paragraph (2)
4of subsection (e) of Section 18-213 for the 1996 levy year,
5constituting an extension for payment of principal and
6interest on bonds issued by the taxing district without
7referendum, but not including excluded non-referendum bonds.
8For park districts (i) that were first subject to this Law in
91991 or 1995 and (ii) whose extension for the 1994 levy year
10for the payment of principal and interest on bonds issued by
11the park district without referendum (but not including
12excluded non-referendum bonds) was less than 51% of the amount
13for the 1991 levy year constituting an extension for payment
14of principal and interest on bonds issued by the park district
15without referendum (but not including excluded non-referendum
16bonds), "debt service extension base" means an amount equal to
17that portion of the extension for the 1991 levy year
18constituting an extension for payment of principal and
19interest on bonds issued by the park district without
20referendum (but not including excluded non-referendum bonds).
21A debt service extension base established or increased at any
22time pursuant to any provision of this Law, except Section
2318-212, shall be increased each year commencing with the later
24of (i) the 2009 levy year or (ii) the first levy year in which
25this Law becomes applicable to the taxing district, by the
26extension limitation lesser of 5% or the percentage increase

 

 

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1in the Consumer Price Index during the 12-month calendar year
2preceding the levy year. The debt service extension base may
3be established or increased as provided under Section 18-212.
4"Excluded non-referendum bonds" means (i) bonds authorized by
5Public Act 88-503 and issued under Section 20a of the Chicago
6Park District Act for aquarium and museum projects; (ii) bonds
7issued under Section 15 of the Local Government Debt Reform
8Act; or (iii) refunding obligations issued to refund or to
9continue to refund obligations initially issued pursuant to
10referendum.
11    "Special purpose extensions" include, but are not limited
12to, extensions for levies made on an annual basis for
13unemployment and workers' compensation, self-insurance,
14contributions to pension plans, and extensions made pursuant
15to Section 6-601 of the Illinois Highway Code for a road
16district's permanent road fund whether levied annually or not.
17The extension for a special service area is not included in the
18aggregate extension.
19    "Aggregate extension base" means the taxing district's
20last preceding aggregate extension as adjusted under Sections
2118-135, 18-215, 18-230, 18-206, and 18-233. Beginning with
22levy year 2022, for taxing districts that are specified in
23Section 18-190.7, the taxing district's aggregate extension
24base shall be calculated as provided in Section 18-190.7. An
25adjustment under Section 18-135 shall be made for the 2007
26levy year and all subsequent levy years whenever one or more

 

 

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1counties within which a taxing district is located (i) used
2estimated valuations or rates when extending taxes in the
3taxing district for the last preceding levy year that resulted
4in the over or under extension of taxes, or (ii) increased or
5decreased the tax extension for the last preceding levy year
6as required by Section 18-135(c). Whenever an adjustment is
7required under Section 18-135, the aggregate extension base of
8the taxing district shall be equal to the amount that the
9aggregate extension of the taxing district would have been for
10the last preceding levy year if either or both (i) actual,
11rather than estimated, valuations or rates had been used to
12calculate the extension of taxes for the last levy year, or
13(ii) the tax extension for the last preceding levy year had not
14been adjusted as required by subsection (c) of Section 18-135.
15    Notwithstanding any other provision of law, for levy year
162012, the aggregate extension base for West Northfield School
17District No. 31 in Cook County shall be $12,654,592.
18    Notwithstanding any other provision of law, for levy year
192022, the aggregate extension base of a home equity assurance
20program that levied at least $1,000,000 in property taxes in
21levy year 2019 or 2020 under the Home Equity Assurance Act
22shall be the amount that the program's aggregate extension
23base for levy year 2021 would have been if the program had
24levied a property tax for levy year 2021.
25    "Levy year" has the same meaning as "year" under Section
261-155.

 

 

SB2203- 38 -LRB103 25126 HLH 51463 b

1    "New property" means (i) the assessed value, after final
2board of review or board of appeals action, of new
3improvements or additions to existing improvements on any
4parcel of real property that increase the assessed value of
5that real property during the levy year multiplied by the
6equalization factor issued by the Department under Section
717-30, (ii) the assessed value, after final board of review or
8board of appeals action, of real property not exempt from real
9estate taxation, which real property was exempt from real
10estate taxation for any portion of the immediately preceding
11levy year, multiplied by the equalization factor issued by the
12Department under Section 17-30, including the assessed value,
13upon final stabilization of occupancy after new construction
14is complete, of any real property located within the
15boundaries of an otherwise or previously exempt military
16reservation that is intended for residential use and owned by
17or leased to a private corporation or other entity, (iii) in
18counties that classify in accordance with Section 4 of Article
19IX of the Illinois Constitution, an incentive property's
20additional assessed value resulting from a scheduled increase
21in the level of assessment as applied to the first year final
22board of review market value, and (iv) any increase in
23assessed value due to oil or gas production from an oil or gas
24well required to be permitted under the Hydraulic Fracturing
25Regulatory Act that was not produced in or accounted for
26during the previous levy year. In addition, the county clerk

 

 

SB2203- 39 -LRB103 25126 HLH 51463 b

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

 

 

SB2203- 40 -LRB103 25126 HLH 51463 b

1assessed value was in an affected county or counties shall be
2increased if a municipality terminated the designation of an
3area in 1993 as a redevelopment project area previously
4established under the Tax Increment Allocation Redevelopment
5Act in the Illinois Municipal Code, previously established
6under the Industrial Jobs Recovery Law in the Illinois
7Municipal Code, or previously established under the Economic
8Development Area Tax Increment Allocation Act, by an amount
9equal to the 1994 equalized assessed value of each taxable
10lot, block, tract, or parcel of real property in the
11redevelopment project area over and above the initial
12equalized assessed value of each property in the redevelopment
13project area. In the first year after a municipality removes a
14taxable lot, block, tract, or parcel of real property from a
15redevelopment project area established under the Tax Increment
16Allocation Redevelopment Act in the Illinois Municipal Code,
17the Industrial Jobs Recovery Law in the Illinois Municipal
18Code, or the Economic Development Area Tax Increment
19Allocation Act, "recovered tax increment value" means the
20amount of the current year's equalized assessed value of each
21taxable lot, block, tract, or parcel of real property removed
22from the redevelopment project area over and above the initial
23equalized assessed value of that real property before removal
24from the redevelopment project area.
25    Except as otherwise provided in this Section, "limiting
26rate" means a fraction the numerator of which is the last

 

 

SB2203- 41 -LRB103 25126 HLH 51463 b

1preceding aggregate extension base (as reduced by Section
218-207, if applicable) times an amount equal to one plus the
3extension limitation defined in this Section and the
4denominator of which is the current year's equalized assessed
5value of all real property in the territory under the
6jurisdiction of the taxing district during the prior levy
7year. For those taxing districts that reduced their aggregate
8extension for the last preceding levy year, except for school
9districts that reduced their extension for educational
10purposes pursuant to Section 18-206 and taxing districts that
11reduced their aggregate extension pursuant to Section 18-207,
12the highest aggregate extension in any of the last 3 preceding
13levy years shall be used for the purpose of computing the
14limiting rate. The denominator shall not include new property
15or the recovered tax increment value. If a new rate, a rate
16decrease, or a limiting rate increase has been approved at an
17election held after March 21, 2006, then (i) the otherwise
18applicable limiting rate shall be increased by the amount of
19the new rate or shall be reduced by the amount of the rate
20decrease, as the case may be, or (ii) in the case of a limiting
21rate increase, the limiting rate shall be equal to the rate set
22forth in the proposition approved by the voters for each of the
23years specified in the proposition, after which the limiting
24rate of the taxing district shall be calculated as otherwise
25provided. In the case of a taxing district that obtained
26referendum approval for an increased limiting rate on March

 

 

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120, 2012, the limiting rate for tax year 2012 shall be the rate
2that generates the approximate total amount of taxes
3extendable for that tax year, as set forth in the proposition
4approved by the voters; this rate shall be the final rate
5applied by the county clerk for the aggregate of all capped
6funds of the district for tax year 2012.
7(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
8102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff.
94-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22; revised
108-29-22.)
 
11    (35 ILCS 200/18-205)
12    Sec. 18-205. Referendum to increase the extension
13limitation. A taxing district is limited to an extension
14limitation as defined in Section 18-185 of 5% or the
15percentage increase in the Consumer Price Index during the
1612-month calendar year preceding the levy year, whichever is
17less. A taxing district may increase its extension limitation
18for one or more levy years if that taxing district holds a
19referendum before the levy date for the first levy year at
20which a majority of voters voting on the issue approves
21adoption of a higher extension limitation. Referenda shall be
22conducted at a regularly scheduled election in accordance with
23the Election Code. The question shall be presented in
24substantially the following manner for all elections held
25after March 21, 2006:

 

 

SB2203- 43 -LRB103 25126 HLH 51463 b

1        Shall the extension limitation under the Property Tax
2    Extension Limitation Law for (insert the legal name,
3    number, if any, and county or counties of the taxing
4    district and geographic or other common name by which a
5    school or community college district is known and referred
6    to), Illinois, be increased from (the extension limitation
7    under item (a) of the definition of extension limitation
8    in Section 18-185) the lesser of 5% or the percentage
9    increase in the Consumer Price Index over the prior levy
10    year to (insert the percentage of the proposed increase)%
11    per year for (insert each levy year for which the
12    increased extension limitation will apply)?
13The votes must be recorded as "Yes" or "No".
14If a majority of voters voting on the issue approves the
15adoption of the increase, the increase shall be applicable for
16each levy year specified.
17    The ballot for any question submitted pursuant to this
18Section shall have printed thereon, but not as a part of the
19question submitted, only the following supplemental
20information (which shall be supplied to the election authority
21by the taxing district) in substantially the following form:
22        (1) For the (insert the first levy year for which the
23    increased extension limitation will be applicable) levy
24    year the approximate amount of the additional tax
25    extendable against property containing a single family
26    residence and having a fair market value at the time of the

 

 

SB2203- 44 -LRB103 25126 HLH 51463 b

1    referendum of $100,000 is estimated to be $....
2        (2) Based upon an average annual percentage increase
3    (or decrease) in the market value of such property of ...%
4    (insert percentage equal to the average annual percentage
5    increase or decrease for the prior 3 levy years, at the
6    time the submission of the question is initiated by the
7    taxing district, in the amount of (A) the equalized
8    assessed value of the taxable property in the taxing
9    district less (B) the new property included in the
10    equalized assessed value), the approximate amount of the
11    additional tax extendable against such property for the
12    ... levy year is estimated to be $... and for the ... levy
13    year is estimated to be $....
14    Paragraph (2) shall be included only if the increased
15extension limitation will be applicable for more than one year
16and shall list each levy year for which the increased
17extension limitation will be applicable. The additional tax
18shown for each levy year shall be the approximate dollar
19amount of the increase over the amount of the most recently
20completed extension at the time the submission of the question
21is initiated by the taxing district. The approximate amount of
22the additional tax extendable shown in paragraphs (1) and (2)
23shall be calculated by multiplying $100,000 (the fair market
24value of the property without regard to any property tax
25exemptions) by (i) the percentage level of assessment
26prescribed for that property by statute, or by ordinance of

 

 

SB2203- 45 -LRB103 25126 HLH 51463 b

1the county board in counties that classify property for
2purposes of taxation in accordance with Section 4 of Article
3IX of the Illinois Constitution; (ii) the most recent final
4equalization factor certified to the county clerk by the
5Department of Revenue at the time the taxing district
6initiates the submission of the proposition to the electors;
7(iii) the last known aggregate extension base of the taxing
8district at the time the submission of the question is
9initiated by the taxing district; and (iv) the difference
10between the percentage increase proposed in the question and
11the otherwise applicable extension limitation lesser of 5% or
12the percentage increase in the Consumer Price Index for the
13prior levy year (or an estimate of the percentage increase for
14the prior levy year if the increase is unavailable at the time
15the submission of the question is initiated by the taxing
16district); and dividing the result by the last known equalized
17assessed value of the taxing district at the time the
18submission of the question is initiated by the taxing
19district. This amendatory Act of the 97th General Assembly is
20intended to clarify the existing requirements of this Section,
21and shall not be construed to validate any prior non-compliant
22referendum language. Any notice required to be published in
23connection with the submission of the question shall also
24contain this supplemental information and shall not contain
25any other supplemental information. Any error, miscalculation,
26or inaccuracy in computing any amount set forth on the ballot

 

 

SB2203- 46 -LRB103 25126 HLH 51463 b

1or in the notice that is not deliberate shall not invalidate or
2affect the validity of any proposition approved. Notice of the
3referendum shall be published and posted as otherwise required
4by law, and the submission of the question shall be initiated
5as provided by law.
6(Source: P.A. 97-1087, eff. 8-24-12.)
 
7    (35 ILCS 200/18-207 new)
8    Sec. 18-207. Reduced aggregate extension base.
9    (a) Upon submission of a petition signed by a number of
10voters of the taxing district that is not less than 10% of the
11votes cast in the taxing district at the immediately preceding
12gubernatorial election, the question of whether a taxing
13district shall reduce its aggregate extension base for the
14purpose of lowering its limiting rate for future years shall
15be submitted to the voters of the taxing district at the next
16general or consolidated election. The petition shall set forth
17the amount of the reduction and the levy years for which the
18reduction shall be applicable.
19    (b) The petition shall be filed with the applicable
20election authority, as defined in Section 1-3 of the Election
21Code, or, in the case of multiple election authorities, with
22the State Board of Elections, not more than 10 months nor less
23than 6 months prior to the election at which the question is to
24be submitted to the voters, and its validity shall be
25determined as provided by Article 28 of the Election Code and

 

 

SB2203- 47 -LRB103 25126 HLH 51463 b

1general election law. The election authority or Board, as
2applicable, shall certify the question and the proper election
3authority or authorities shall submit the question to the
4voters. Except as otherwise provided in this Section, this
5referendum shall be subject to all other general election law
6requirements.
7    (c) The proposition seeking to reduce the aggregate
8extension base shall be in substantially the following form:
9        Shall the aggregate extension base used to calculate
10    the limiting rate for (taxing district) under the Property
11    Tax Extension Limitation Law be reduced by (amount of
12    money expressed in U.S. dollars) for (levy year or years)?
13    Votes shall be recorded as "Yes" or "No".
14    If a majority of all votes cast on the proposition are in
15favor of the proposition, then the aggregate extension base
16shall be reduced as provided in the referendum.
 
17    (35 ILCS 200/18-212)
18    Sec. 18-212. Referendum on debt service extension base. A
19taxing district may establish or increase its debt service
20extension base if (i) that taxing district holds a referendum
21before the date on which the levy must be filed with the county
22clerk of the county or counties in which the taxing district is
23situated and (ii) a majority of voters voting on the issue
24approves the establishment of or increase in the debt service
25extension base. A debt service extension base established or

 

 

SB2203- 48 -LRB103 25126 HLH 51463 b

1increased by a referendum held pursuant to this Section after
2February 2, 2010, shall be increased each year, commencing
3with the first levy year beginning after the date of the
4referendum, by the extension limitation lesser of 5% or the
5percentage increase in the Consumer Price Index during the
612-month calendar year preceding the levy year if the optional
7language concerning the annual increase is included in the
8question submitted to the electors of the taxing district.
9Referenda under this Section shall be conducted at a regularly
10scheduled election in accordance with the Election Code. The
11governing body of the taxing district shall certify the
12question to the proper election authorities who shall submit
13the question to the electors of the taxing district in
14substantially the following form:
15    "Shall the debt service extension base under the Property
16    Tax Extension Limitation Law for ... (taxing district
17    name) ... for payment of principal and interest on limited
18    bonds be .... ((established at $ ....) . (or) (increased
19    from $ .... to $ ....)) .. for the ..... levy year and all
20    subsequent levy years (optional language: , such debt
21    service extension base to be increased each year by
22    (extension limitation amount) the lesser of 5% or the
23    percentage increase in the Consumer Price Index during the
24    12-month calendar year preceding the levy year)?"
25    Votes on the question shall be recorded as "Yes" or "No".
26    If a majority of voters voting on the issue approves the

 

 

SB2203- 49 -LRB103 25126 HLH 51463 b

1establishment of or increase in the debt service extension
2base, the establishment of or increase in the debt service
3extension base shall be applicable for the levy years
4specified.
5(Source: P.A. 96-1202, eff. 7-22-10.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.