Revenue Committee

Filed: 3/30/2006

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 702

2     AMENDMENT NO. ______. Amend Senate Bill 702 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Property Tax Code is amended by changing
5 Sections 18-165 and 18-185 and by adding Division 14 to Article
6 10 as follows:
 
7     (35 ILCS 200/Art. 10 Div. 14 heading new)
8
DIVISION 14. VALUATION OF CERTAIN LEASES OF EXEMPT PROPERTY

 
9     (35 ILCS 200/10-365 new)
10     Sec. 10-365. U.S. Military Public/Private Residential
11 Developments. PPV Leases must be classified and valued as set
12 forth in Sections 10-370 through 10-380 during the period
13 beginning January 1, 2006 and ending with the earlier of the
14 year 50 years after January 1, 2006 or the year in which a PPV
15 Lease terminates.
 
16     (35 ILCS 200/10-370 new)
17     Sec. 10-370. Definitions. For the purposes of this Division
18 14:
19     (a) "PPV Lease" means a leasehold interest in property that
20 is exempt from taxation under Section 15-50 of this Code and
21 that is leased, pursuant to authority set forth in Chapter 10
22 of the United States Code, to another whose property is not

 

 

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1 exempt for the purpose of, after January 1, 2006, the design,
2 finance, construction, renovation, management, operation, and
3 maintenance of rental housing units and associated
4 improvements at naval training and related naval support
5 facilities in the State of Illinois.
6     (b) "Net operating income" means all revenues received
7 minus the lesser of (i) 42% of all revenues or (ii) actual
8 expenses before interest, taxes, depreciation, and
9 amortization.
10     (c) "Tax load factor" means the level of assessment, as set
11 forth under item (b) of Section 9-145 or under Section 9-150,
12 multiplied by the cumulative tax rate for the current taxable
13 year.
 
14     (35 ILCS 200/10-375 new)
15     Sec. 10-375. Valuation.
16     (a) A PPV Lease must be valued at its fair cash value, as
17 provided under item (b) of Section 9-145 or under Section
18 9-150.
19     (b) The fair cash value of a PPV Lease must be determined
20 by using an income capitalization approach.
21     (c) To determine the fair cash value of a PPV Lease, the
22 net operating income is divided by (i) a rate of 7.75% plus
23 (ii) the actual or most recently ascertainable tax load factor
24 for the subject year.
25     (d) By April 15 of each year, the holder of a PPV Lease
26 must report to the chief county assessment officer in each
27 county in which the leasehold property is located the annual
28 gross income and expenses derived and incurred from the PPV
29 Lease, including the rental of leased property for each
30 military housing facility subject to a PPV Lease.
 
31     (35 ILCS 200/10-380 new)
32     Sec. 10-380. For the taxable years 2006, 2007, 2008, and

 

 

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1 2009, the chief county assessment officer in the county in
2 which property subject to a PPV Lease is located shall apply
3 the provisions of 10-370(b)(i) and 10-375(c)(i) of this
4 Division 14 in assessing and determining the value of any PPV
5 lease for purposes of the property tax laws of this State.
 
6     (35 ILCS 200/18-165)
7     Sec. 18-165. Abatement of taxes.
8     (a) Any taxing district, upon a majority vote of its
9 governing authority, may, after the determination of the
10 assessed valuation of its property, order the clerk of that
11 county to abate any portion of its taxes on the following types
12 of property:
13         (1) Commercial and industrial.
14             (A) The property of any commercial or industrial
15         firm, including but not limited to the property of (i)
16         any firm that is used for collecting, separating,
17         storing, or processing recyclable materials, locating
18         within the taxing district during the immediately
19         preceding year from another state, territory, or
20         country, or having been newly created within this State
21         during the immediately preceding year, or expanding an
22         existing facility, or (ii) any firm that is used for
23         the generation and transmission of electricity
24         locating within the taxing district during the
25         immediately preceding year or expanding its presence
26         within the taxing district during the immediately
27         preceding year by construction of a new electric
28         generating facility that uses natural gas as its fuel,
29         or any firm that is used for production operations at a
30         new, expanded, or reopened coal mine within the taxing
31         district, that has been certified as a High Impact
32         Business by the Illinois Department of Commerce and
33         Economic Opportunity Community Affairs. The property

 

 

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1         of any firm used for the generation and transmission of
2         electricity shall include all property of the firm used
3         for transmission facilities as defined in Section 5.5
4         of the Illinois Enterprise Zone Act. The abatement
5         shall not exceed a period of 10 years and the aggregate
6         amount of abated taxes for all taxing districts
7         combined shall not exceed $4,000,000.
8             (A-5) Any property in the taxing district of a new
9         electric generating facility, as defined in Section
10         605-332 of the Department of Commerce and Economic
11         Opportunity Community Affairs Law of the Civil
12         Administrative Code of Illinois. The abatement shall
13         not exceed a period of 10 years. The abatement shall be
14         subject to the following limitations:
15                 (i) if the equalized assessed valuation of the
16             new electric generating facility is equal to or
17             greater than $25,000,000 but less than
18             $50,000,000, then the abatement may not exceed (i)
19             over the entire term of the abatement, 5% of the
20             taxing district's aggregate taxes from the new
21             electric generating facility and (ii) in any one
22             year of abatement, 20% of the taxing district's
23             taxes from the new electric generating facility;
24                 (ii) if the equalized assessed valuation of
25             the new electric generating facility is equal to or
26             greater than $50,000,000 but less than
27             $75,000,000, then the abatement may not exceed (i)
28             over the entire term of the abatement, 10% of the
29             taxing district's aggregate taxes from the new
30             electric generating facility and (ii) in any one
31             year of abatement, 35% of the taxing district's
32             taxes from the new electric generating facility;
33                 (iii) if the equalized assessed valuation of
34             the new electric generating facility is equal to or

 

 

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1             greater than $75,000,000 but less than
2             $100,000,000, then the abatement may not exceed
3             (i) over the entire term of the abatement, 20% of
4             the taxing district's aggregate taxes from the new
5             electric generating facility and (ii) in any one
6             year of abatement, 50% of the taxing district's
7             taxes from the new electric generating facility;
8                 (iv) if the equalized assessed valuation of
9             the new electric generating facility is equal to or
10             greater than $100,000,000 but less than
11             $125,000,000, then the abatement may not exceed
12             (i) over the entire term of the abatement, 30% of
13             the taxing district's aggregate taxes from the new
14             electric generating facility and (ii) in any one
15             year of abatement, 60% of the taxing district's
16             taxes from the new electric generating facility;
17                 (v) if the equalized assessed valuation of the
18             new electric generating facility is equal to or
19             greater than $125,000,000 but less than
20             $150,000,000, then the abatement may not exceed
21             (i) over the entire term of the abatement, 40% of
22             the taxing district's aggregate taxes from the new
23             electric generating facility and (ii) in any one
24             year of abatement, 60% of the taxing district's
25             taxes from the new electric generating facility;
26                 (vi) if the equalized assessed valuation of
27             the new electric generating facility is equal to or
28             greater than $150,000,000, then the abatement may
29             not exceed (i) over the entire term of the
30             abatement, 50% of the taxing district's aggregate
31             taxes from the new electric generating facility
32             and (ii) in any one year of abatement, 60% of the
33             taxing district's taxes from the new electric
34             generating facility.

 

 

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1             The abatement is not effective unless the owner of
2         the new electric generating facility agrees to repay to
3         the taxing district all amounts previously abated,
4         together with interest computed at the rate and in the
5         manner provided for delinquent taxes, in the event that
6         the owner of the new electric generating facility
7         closes the new electric generating facility before the
8         expiration of the entire term of the abatement.
9             The authorization of taxing districts to abate
10         taxes under this subdivision (a)(1)(A-5) expires on
11         January 1, 2010.
12             (B) The property of any commercial or industrial
13         development of at least 500 acres having been created
14         within the taxing district. The abatement shall not
15         exceed a period of 20 years and the aggregate amount of
16         abated taxes for all taxing districts combined shall
17         not exceed $12,000,000.
18             (C) The property of any commercial or industrial
19         firm currently located in the taxing district that
20         expands a facility or its number of employees. The
21         abatement shall not exceed a period of 10 years and the
22         aggregate amount of abated taxes for all taxing
23         districts combined shall not exceed $4,000,000. The
24         abatement period may be renewed at the option of the
25         taxing districts.
26         (2) Horse racing. Any property in the taxing district
27     which is used for the racing of horses and upon which
28     capital improvements consisting of expansion, improvement
29     or replacement of existing facilities have been made since
30     July 1, 1987. The combined abatements for such property
31     from all taxing districts in any county shall not exceed
32     $5,000,000 annually and shall not exceed a period of 10
33     years.
34         (3) Auto racing. Any property designed exclusively for

 

 

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1     the racing of motor vehicles. Such abatement shall not
2     exceed a period of 10 years.
3         (4) Academic or research institute. The property of any
4     academic or research institute in the taxing district that
5     (i) is an exempt organization under paragraph (3) of
6     Section 501(c) of the Internal Revenue Code, (ii) operates
7     for the benefit of the public by actually and exclusively
8     performing scientific research and making the results of
9     the research available to the interested public on a
10     non-discriminatory basis, and (iii) employs more than 100
11     employees. An abatement granted under this paragraph shall
12     be for at least 15 years and the aggregate amount of abated
13     taxes for all taxing districts combined shall not exceed
14     $5,000,000.
15         (5) Housing for older persons. Any property in the
16     taxing district that is devoted exclusively to affordable
17     housing for older households. For purposes of this
18     paragraph, "older households" means those households (i)
19     living in housing provided under any State or federal
20     program that the Department of Human Rights determines is
21     specifically designed and operated to assist elderly
22     persons and is solely occupied by persons 55 years of age
23     or older and (ii) whose annual income does not exceed 80%
24     of the area gross median income, adjusted for family size,
25     as such gross income and median income are determined from
26     time to time by the United States Department of Housing and
27     Urban Development. The abatement shall not exceed a period
28     of 15 years, and the aggregate amount of abated taxes for
29     all taxing districts shall not exceed $3,000,000.
30         (6) Historical society. For assessment years 1998
31     through 2008, the property of an historical society
32     qualifying as an exempt organization under Section
33     501(c)(3) of the federal Internal Revenue Code.
34         (7) Recreational facilities. Any property in the

 

 

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1     taxing district (i) that is used for a municipal airport,
2     (ii) that is subject to a leasehold assessment under
3     Section 9-195 of this Code and (iii) which is sublet from a
4     park district that is leasing the property from a
5     municipality, but only if the property is used exclusively
6     for recreational facilities or for parking lots used
7     exclusively for those facilities. The abatement shall not
8     exceed a period of 10 years.
9         (8) Relocated corporate headquarters. If approval
10     occurs within 5 years after the effective date of this
11     amendatory Act of the 92nd General Assembly, any property
12     or a portion of any property in a taxing district that is
13     used by an eligible business for a corporate headquarters
14     as defined in the Corporate Headquarters Relocation Act.
15     Instead of an abatement under this paragraph (8), a taxing
16     district may enter into an agreement with an eligible
17     business to make annual payments to that eligible business
18     in an amount not to exceed the property taxes paid directly
19     or indirectly by that eligible business to the taxing
20     district and any other taxing districts for premises
21     occupied pursuant to a written lease and may make those
22     payments without the need for an annual appropriation. No
23     school district, however, may enter into an agreement with,
24     or abate taxes for, an eligible business unless the
25     municipality in which the corporate headquarters is
26     located agrees to provide funding to the school district in
27     an amount equal to the amount abated or paid by the school
28     district as provided in this paragraph (8). Any abatement
29     ordered or agreement entered into under this paragraph (8)
30     may be effective for the entire term specified by the
31     taxing district, except the term of the abatement or annual
32     payments may not exceed 20 years.
33         (9) United States Military Public/Private Residential
34     Developments. Each building, structure, or other

 

 

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1     improvement designed, financed, constructed, renovated,
2     managed, operated, or maintained after January 1, 2006
3     under a "PPV Lease", as set forth under Division 14 of
4     Article 10, and any such PPV lease.
5     (b) Upon a majority vote of its governing authority, any
6 municipality may, after the determination of the assessed
7 valuation of its property, order the county clerk to abate any
8 portion of its taxes on any property that is located within the
9 corporate limits of the municipality in accordance with Section
10 8-3-18 of the Illinois Municipal Code.
11 (Source: P.A. 92-12, eff. 7-1-01; 92-207, eff. 8-1-01; 92-247,
12 eff. 8-3-01; 92-651, eff. 7-11-02; 93-270, eff. 7-22-03;
13 revised 12-6-03.)
 
14     (35 ILCS 200/18-185)
15     Sec. 18-185. Short title; definitions. This Division 5 may
16 be cited as the Property Tax Extension Limitation Law. As used
17 in this Division 5:
18     "Consumer Price Index" means the Consumer Price Index for
19 All Urban Consumers for all items published by the United
20 States Department of Labor.
21     "Extension limitation" means (a) the lesser of 5% or the
22 percentage increase in the Consumer Price Index during the
23 12-month calendar year preceding the levy year or (b) the rate
24 of increase approved by voters under Section 18-205.
25     "Affected county" means a county of 3,000,000 or more
26 inhabitants or a county contiguous to a county of 3,000,000 or
27 more inhabitants.
28     "Taxing district" has the same meaning provided in Section
29 1-150, except as otherwise provided in this Section. For the
30 1991 through 1994 levy years only, "taxing district" includes
31 only each non-home rule taxing district having the majority of
32 its 1990 equalized assessed value within any county or counties
33 contiguous to a county with 3,000,000 or more inhabitants.

 

 

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

 

 

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1 October 1, 1991, to pay for the building project; (g) made for
2 payments due under installment contracts entered into before
3 October 1, 1991; (h) made for payments of principal and
4 interest on bonds issued under the Metropolitan Water
5 Reclamation District Act to finance construction projects
6 initiated before October 1, 1991; (i) made for payments of
7 principal and interest on limited bonds, as defined in Section
8 3 of the Local Government Debt Reform Act, in an amount not to
9 exceed the debt service extension base less the amount in items
10 (b), (c), (e), and (h) of this definition for non-referendum
11 obligations, except obligations initially issued pursuant to
12 referendum; (j) made for payments of principal and interest on
13 bonds issued under Section 15 of the Local Government Debt
14 Reform Act; (k) made by a school district that participates in
15 the Special Education District of Lake County, created by
16 special education joint agreement under Section 10-22.31 of the
17 School Code, for payment of the school district's share of the
18 amounts required to be contributed by the Special Education
19 District of Lake County to the Illinois Municipal Retirement
20 Fund under Article 7 of the Illinois Pension Code; the amount
21 of any extension under this item (k) shall be certified by the
22 school district to the county clerk; (l) made to fund expenses
23 of providing joint recreational programs for the handicapped
24 under Section 5-8 of the Park District Code or Section 11-95-14
25 of the Illinois Municipal Code; (m) made for temporary
26 relocation loan repayment purposes pursuant to Sections 2-3.77
27 and 17-2.2d of the School Code; , and (n) made for payment of
28 principal and interest on any bonds issued under the authority
29 of Section 17-2.2d of the School Code; and (o) (m) made for
30 contributions to a firefighter's pension fund created under
31 Article 4 of the Illinois Pension Code, to the extent of the
32 amount certified under item (5) of Section 4-134 of the
33 Illinois Pension Code.
34     "Aggregate extension" for the taxing districts to which

 

 

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1 this Law did not apply before the 1995 levy year (except taxing
2 districts subject to this Law in accordance with Section
3 18-213) means the annual corporate extension for the taxing
4 district and those special purpose extensions that are made
5 annually for the taxing district, excluding special purpose
6 extensions: (a) made for the taxing district to pay interest or
7 principal on general obligation bonds that were approved by
8 referendum; (b) made for any taxing district to pay interest or
9 principal on general obligation bonds issued before March 1,
10 1995; (c) made for any taxing district to pay interest or
11 principal on bonds issued to refund or continue to refund those
12 bonds issued before March 1, 1995; (d) made for any taxing
13 district to pay interest or principal on bonds issued to refund
14 or continue to refund bonds issued after March 1, 1995 that
15 were approved by referendum; (e) made for any taxing district
16 to pay interest or principal on revenue bonds issued before
17 March 1, 1995 for payment of which a property tax levy or the
18 full faith and credit of the unit of local government is
19 pledged; however, a tax for the payment of interest or
20 principal on those bonds shall be made only after the governing
21 body of the unit of local government finds that all other
22 sources for payment are insufficient to make those payments;
23 (f) made for payments under a building commission lease when
24 the lease payments are for the retirement of bonds issued by
25 the commission before March 1, 1995 to pay for the building
26 project; (g) made for payments due under installment contracts
27 entered into before March 1, 1995; (h) made for payments of
28 principal and interest on bonds issued under the Metropolitan
29 Water Reclamation District Act to finance construction
30 projects initiated before October 1, 1991; (h-4) made for
31 stormwater management purposes by the Metropolitan Water
32 Reclamation District of Greater Chicago under Section 12 of the
33 Metropolitan Water Reclamation District Act; (i) made for
34 payments of principal and interest on limited bonds, as defined

 

 

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1 in Section 3 of the Local Government Debt Reform Act, in an
2 amount not to exceed the debt service extension base less the
3 amount in items (b), (c), and (e) of this definition for
4 non-referendum obligations, except obligations initially
5 issued pursuant to referendum and bonds described in subsection
6 (h) of this definition; (j) made for payments of principal and
7 interest on bonds issued under Section 15 of the Local
8 Government Debt Reform Act; (k) made for payments of principal
9 and interest on bonds authorized by Public Act 88-503 and
10 issued under Section 20a of the Chicago Park District Act for
11 aquarium or museum projects; (l) made for payments of principal
12 and interest on bonds authorized by Public Act 87-1191 or
13 93-601 and (i) issued pursuant to Section 21.2 of the Cook
14 County Forest Preserve District Act, (ii) issued under Section
15 42 of the Cook County Forest Preserve District Act for
16 zoological park projects, or (iii) issued under Section 44.1 of
17 the Cook County Forest Preserve District Act for botanical
18 gardens projects; (m) made pursuant to Section 34-53.5 of the
19 School Code, whether levied annually or not; (n) made to fund
20 expenses of providing joint recreational programs for the
21 handicapped under Section 5-8 of the Park District Code or
22 Section 11-95-14 of the Illinois Municipal Code; (o) made by
23 the Chicago Park District for recreational programs for the
24 handicapped under subsection (c) of Section 7.06 of the Chicago
25 Park District Act; and (p) made for contributions to a
26 firefighter's pension fund created under Article 4 of the
27 Illinois Pension Code, to the extent of the amount certified
28 under item (5) of Section 4-134 of the Illinois Pension Code.
29     "Aggregate extension" for all taxing districts to which
30 this Law applies in accordance with Section 18-213, except for
31 those taxing districts subject to paragraph (2) of subsection
32 (e) of Section 18-213, means the annual corporate extension for
33 the taxing district and those special purpose extensions that
34 are made annually for the taxing district, excluding special

 

 

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

 

 

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1 service extension base less the amount in items (b), (c), and
2 (e) of this definition for non-referendum obligations, except
3 obligations initially issued pursuant to referendum; (i) made
4 for payments of principal and interest on bonds issued under
5 Section 15 of the Local Government Debt Reform Act; (j) made
6 for a qualified airport authority to pay interest or principal
7 on general obligation bonds issued for the purpose of paying
8 obligations due under, or financing airport facilities
9 required to be acquired, constructed, installed or equipped
10 pursuant to, contracts entered into before March 1, 1996 (but
11 not including any amendments to such a contract taking effect
12 on or after that date); (k) made to fund expenses of providing
13 joint recreational programs for the handicapped under Section
14 5-8 of the Park District Code or Section 11-95-14 of the
15 Illinois Municipal Code; and (l) made for contributions to a
16 firefighter's pension fund created under Article 4 of the
17 Illinois Pension Code, to the extent of the amount certified
18 under item (5) of Section 4-134 of the Illinois Pension Code.
19     "Aggregate extension" for all taxing districts to which
20 this Law applies in accordance with paragraph (2) of subsection
21 (e) of Section 18-213 means the annual corporate extension for
22 the taxing district and those special purpose extensions that
23 are made annually for the taxing district, excluding special
24 purpose extensions: (a) made for the taxing district to pay
25 interest or principal on general obligation bonds that were
26 approved by referendum; (b) made for any taxing district to pay
27 interest or principal on general obligation bonds issued before
28 the effective date of this amendatory Act of 1997; (c) made for
29 any taxing district to pay interest or principal on bonds
30 issued to refund or continue to refund those bonds issued
31 before the effective date of this amendatory Act of 1997; (d)
32 made for any taxing district to pay interest or principal on
33 bonds issued to refund or continue to refund bonds issued after
34 the effective date of this amendatory Act of 1997 if the bonds

 

 

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1 were approved by referendum after the effective date of this
2 amendatory Act of 1997; (e) made for any taxing district to pay
3 interest or principal on revenue bonds issued before the
4 effective date of this amendatory Act of 1997 for payment of
5 which a property tax levy or the full faith and credit of the
6 unit of local government is pledged; however, a tax for the
7 payment of interest or principal on those bonds shall be made
8 only after the governing body of the unit of local government
9 finds that all other sources for payment are insufficient to
10 make those payments; (f) made for payments under a building
11 commission lease when the lease payments are for the retirement
12 of bonds issued by the commission before the effective date of
13 this amendatory Act of 1997 to pay for the building project;
14 (g) made for payments due under installment contracts entered
15 into before the effective date of this amendatory Act of 1997;
16 (h) made for payments of principal and interest on limited
17 bonds, as defined in Section 3 of the Local Government Debt
18 Reform Act, in an amount not to exceed the debt service
19 extension base less the amount in items (b), (c), and (e) of
20 this definition for non-referendum obligations, except
21 obligations initially issued pursuant to referendum; (i) made
22 for payments of principal and interest on bonds issued under
23 Section 15 of the Local Government Debt Reform Act; (j) made
24 for a qualified airport authority to pay interest or principal
25 on general obligation bonds issued for the purpose of paying
26 obligations due under, or financing airport facilities
27 required to be acquired, constructed, installed or equipped
28 pursuant to, contracts entered into before March 1, 1996 (but
29 not including any amendments to such a contract taking effect
30 on or after that date); (k) made to fund expenses of providing
31 joint recreational programs for the handicapped under Section
32 5-8 of the Park District Code or Section 11-95-14 of the
33 Illinois Municipal Code; and (l) made for contributions to a
34 firefighter's pension fund created under Article 4 of the

 

 

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1 Illinois Pension Code, to the extent of the amount certified
2 under item (5) of Section 4-134 of the Illinois Pension Code.
3     "Debt service extension base" means an amount equal to that
4 portion of the extension for a taxing district for the 1994
5 levy year, or for those taxing districts subject to this Law in
6 accordance with Section 18-213, except for those subject to
7 paragraph (2) of subsection (e) of Section 18-213, for the levy
8 year in which the referendum making this Law applicable to the
9 taxing district is held, or for those taxing districts subject
10 to this Law in accordance with paragraph (2) of subsection (e)
11 of Section 18-213 for the 1996 levy year, constituting an
12 extension for payment of principal and interest on bonds issued
13 by the taxing district without referendum, but not including
14 excluded non-referendum bonds. For park districts (i) that were
15 first subject to this Law in 1991 or 1995 and (ii) whose
16 extension for the 1994 levy year for the payment of principal
17 and interest on bonds issued by the park district without
18 referendum (but not including excluded non-referendum bonds)
19 was less than 51% of the amount for the 1991 levy year
20 constituting an extension for payment of principal and interest
21 on bonds issued by the park district without referendum (but
22 not including excluded non-referendum bonds), "debt service
23 extension base" means an amount equal to that portion of the
24 extension for the 1991 levy year constituting an extension for
25 payment of principal and interest on bonds issued by the park
26 district without referendum (but not including excluded
27 non-referendum bonds). The debt service extension base may be
28 established or increased as provided under Section 18-212.
29 "Excluded non-referendum bonds" means (i) bonds authorized by
30 Public Act 88-503 and issued under Section 20a of the Chicago
31 Park District Act for aquarium and museum projects; (ii) bonds
32 issued under Section 15 of the Local Government Debt Reform
33 Act; or (iii) refunding obligations issued to refund or to
34 continue to refund obligations initially issued pursuant to

 

 

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1 referendum.
2     "Special purpose extensions" include, but are not limited
3 to, extensions for levies made on an annual basis for
4 unemployment and workers' compensation, self-insurance,
5 contributions to pension plans, and extensions made pursuant to
6 Section 6-601 of the Illinois Highway Code for a road
7 district's permanent road fund whether levied annually or not.
8 The extension for a special service area is not included in the
9 aggregate extension.
10     "Aggregate extension base" means the taxing district's
11 last preceding aggregate extension as adjusted under Sections
12 18-215 through 18-230.
13     "Levy year" has the same meaning as "year" under Section
14 1-155.
15     "New property" means (i) the assessed value, after final
16 board of review or board of appeals action, of new improvements
17 or additions to existing improvements on any parcel of real
18 property that increase the assessed value of that real property
19 during the levy year multiplied by the equalization factor
20 issued by the Department under Section 17-30, (ii) the assessed
21 value, after final board of review or board of appeals action,
22 of real property not exempt from real estate taxation, which
23 real property was exempt from real estate taxation for any
24 portion of the immediately preceding levy year, multiplied by
25 the equalization factor issued by the Department under Section
26 17-30, including the assessed value, upon final stabilization
27 of occupancy after new construction is complete, of any real
28 property located within the boundaries of an otherwise or
29 previously exempt military reservation that is intended for
30 residential use and owned by or leased to a private corporation
31 or other entity, and (iii) in counties that classify in
32 accordance with Section 4 of Article IX of the Illinois
33 Constitution, an incentive property's additional assessed
34 value resulting from a scheduled increase in the level of

 

 

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1 assessment as applied to the first year final board of review
2 market value. In addition, the county clerk in a county
3 containing a population of 3,000,000 or more shall include in
4 the 1997 recovered tax increment value for any school district,
5 any recovered tax increment value that was applicable to the
6 1995 tax year calculations.
7     "Qualified airport authority" means an airport authority
8 organized under the Airport Authorities Act and located in a
9 county bordering on the State of Wisconsin and having a
10 population in excess of 200,000 and not greater than 500,000.
11     "Recovered tax increment value" means, except as otherwise
12 provided in this paragraph, the amount of the current year's
13 equalized assessed value, in the first year after a
14 municipality terminates the designation of an area as a
15 redevelopment project area previously established under the
16 Tax Increment Allocation Development Act in the Illinois
17 Municipal Code, previously established under the Industrial
18 Jobs Recovery Law in the Illinois Municipal Code, or previously
19 established under the Economic Development Area Tax Increment
20 Allocation Act, of each taxable lot, block, tract, or parcel of
21 real property in the redevelopment project area over and above
22 the initial equalized assessed value of each property in the
23 redevelopment project area. For the taxes which are extended
24 for the 1997 levy year, the recovered tax increment value for a
25 non-home rule taxing district that first became subject to this
26 Law for the 1995 levy year because a majority of its 1994
27 equalized assessed value was in an affected county or counties
28 shall be increased if a municipality terminated the designation
29 of an area in 1993 as a redevelopment project area previously
30 established under the Tax Increment Allocation Development Act
31 in the Illinois Municipal Code, previously established under
32 the Industrial Jobs Recovery Law in the Illinois Municipal
33 Code, or previously established under the Economic Development
34 Area Tax Increment Allocation Act, by an amount equal to the

 

 

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1 1994 equalized assessed value of each taxable lot, block,
2 tract, or parcel of real property in the redevelopment project
3 area over and above the initial equalized assessed value of
4 each property in the redevelopment project area. In the first
5 year after a municipality removes a taxable lot, block, tract,
6 or parcel of real property from a redevelopment project area
7 established under the Tax Increment Allocation Development Act
8 in the Illinois Municipal Code, the Industrial Jobs Recovery
9 Law in the Illinois Municipal Code, or the Economic Development
10 Area Tax Increment Allocation Act, "recovered tax increment
11 value" means the amount of the current year's equalized
12 assessed value of each taxable lot, block, tract, or parcel of
13 real property removed from the redevelopment project area over
14 and above the initial equalized assessed value of that real
15 property before removal from the redevelopment project area.
16     Except as otherwise provided in this Section, "limiting
17 rate" means a fraction the numerator of which is the last
18 preceding aggregate extension base times an amount equal to one
19 plus the extension limitation defined in this Section and the
20 denominator of which is the current year's equalized assessed
21 value of all real property in the territory under the
22 jurisdiction of the taxing district during the prior levy year.
23 For those taxing districts that reduced their aggregate
24 extension for the last preceding levy year, the highest
25 aggregate extension in any of the last 3 preceding levy years
26 shall be used for the purpose of computing the limiting rate.
27 The denominator shall not include new property. The denominator
28 shall not include the recovered tax increment value.
29 (Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
30 93-606, eff. 11-18-03; 93-612, eff. 11-18-03; 93-689, eff.
31 7-1-04; 93-690, eff. 7-1-04; 93-1049, eff. 11-17-04; revised
32 12-14-04.)
 
33     Section 99. Effective date. This Act takes effect upon

 

 

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1 becoming law.".