98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2256

 

Introduced 2/15/2013, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-190

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that no referendum to increase a limiting rate may be submitted to the voters on or after January 1, 2014. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 Property Tax Code is amended by changing
5Section 18-190 as follows:
 
6    (35 ILCS 200/18-190)
7    Sec. 18-190. Direct referendum; new rate or increased
8limiting rate.
9    (a) If a new rate is authorized by statute to be imposed
10without referendum or is subject to a backdoor referendum, as
11defined in Section 28-2 of the Election Code, the governing
12body of the affected taxing district before levying the new
13rate shall submit the new rate to direct referendum under the
14provisions of this Section and of Article 28 of the Election
15Code. Notwithstanding the provisions, requirements, or
16limitations of any other law, any tax levied for the 2005 levy
17year and all subsequent levy years by any taxing district
18subject to this Law may be extended at a rate exceeding the
19rate established for that tax by referendum or statute,
20provided that the rate does not exceed the statutory ceiling
21above which the tax is not authorized to be further increased
22either by referendum or in any other manner. Notwithstanding
23the provisions, requirements, or limitations of any other law,

 

 

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1all taxing districts subject to this Law shall follow the
2provisions of this Section whenever seeking referenda approval
3after March 21, 2006 to (i) levy a new tax rate authorized by
4statute or (ii) increase the limiting rate applicable to the
5taxing district. Notwithstanding any other provision of law, no
6referendum to increase a limiting rate may be submitted to the
7voters on or after January 1, 2014. All taxing districts
8subject to this Law are authorized to seek referendum approval
9of each proposition described and set forth in this Section.
10    The proposition seeking to obtain referendum approval to
11levy a new tax rate as authorized in clause (i) shall be in
12substantially the following form:
13        Shall ... (insert legal name, number, if any, and
14    county or counties of taxing district and geographic or
15    other common name by which a school or community college
16    district is known and referred to), Illinois, be authorized
17    to levy a new tax for ... purposes and have an additional
18    tax of ...% of the equalized assessed value of the taxable
19    property therein extended for such purposes?
20The votes must be recorded as "Yes" or "No".
21    The proposition seeking to obtain referendum approval to
22increase the limiting rate as authorized in clause (ii) shall
23be in substantially the following form:
24        Shall the limiting rate under the Property Tax
25    Extension Limitation Law for ... (insert legal name,
26    number, if any, and county or counties of taxing district

 

 

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1    and geographic or other common name by which a school or
2    community college district is known and referred to),
3    Illinois, be increased by an additional amount equal to
4    ...% above the limiting rate for the purpose of...(insert
5    purpose) for levy year ... (insert the most recent levy
6    year for which the limiting rate of the taxing district is
7    known at the time the submission of the proposition is
8    initiated by the taxing district) and be equal to ...% of
9    the equalized assessed value of the taxable property
10    therein for levy year(s) (insert each levy year for which
11    the increase will be applicable, which years must be
12    consecutive and may not exceed 4)?
13    The votes must be recorded as "Yes" or "No".
14    The ballot for any proposition submitted pursuant to this
15Section shall have printed thereon, but not as a part of the
16proposition submitted, only the following supplemental
17information (which shall be supplied to the election authority
18by the taxing district) in substantially the following form:
19        (1) The approximate amount of taxes extendable at the
20    most recently extended limiting rate is $..., and the
21    approximate amount of taxes extendable if the proposition
22    is approved is $....
23        (2) For the ... (insert the first levy year for which
24    the new rate or increased limiting rate will be applicable)
25    levy year the approximate amount of the additional tax
26    extendable against property containing a single family

 

 

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1    residence and having a fair market value at the time of the
2    referendum of $100,000 is estimated to be $....
3        (3) Based upon an average annual percentage increase
4    (or decrease) in the market value of such property of %...
5    (insert percentage equal to the average annual percentage
6    increase or decrease for the prior 3 levy years, at the
7    time the submission of the proposition is initiated by the
8    taxing district, in the amount of (A) the equalized
9    assessed value of the taxable property in the taxing
10    district less (B) the new property included in the
11    equalized assessed value), the approximate amount of the
12    additional tax extendable against such property for the ...
13    levy year is estimated to be $... and for the ... levy year
14    is estimated to be $ ....
15        (4) If the proposition is approved, the aggregate
16    extension for ... (insert each levy year for which the
17    increase will apply) will be determined by the limiting
18    rate set forth in the proposition, rather than the
19    otherwise applicable limiting rate calculated under the
20    provisions of the Property Tax Extension Limitation Law
21    (commonly known as the Property Tax Cap Law).
22The approximate amount of taxes extendable shown in paragraph
23(1) shall be computed upon the last known equalized assessed
24value of taxable property in the taxing district (at the time
25the submission of the proposition is initiated by the taxing
26district). Paragraph (3) shall be included only if the

 

 

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1increased limiting rate will be applicable for more than one
2levy year and shall list each levy year for which the increased
3limiting rate will be applicable. The additional tax shown for
4each levy year shall be the approximate dollar amount of the
5increase over the amount of the most recently completed
6extension at the time the submission of the proposition is
7initiated by the taxing district. The approximate amount of the
8additional taxes extendable shown in paragraphs (2) and (3)
9shall be calculated by multiplying $100,000 (the fair market
10value of the property without regard to any property tax
11exemptions) by (i) the percentage level of assessment
12prescribed for that property by statute, or by ordinance of the
13county board in counties that classify property for purposes of
14taxation in accordance with Section 4 of Article IX of the
15Illinois Constitution; (ii) the most recent final equalization
16factor certified to the county clerk by the Department of
17Revenue at the time the taxing district initiates the
18submission of the proposition to the electors; and (iii) either
19the new rate or the amount by which the limiting rate is to be
20increased. This amendatory Act of the 97th General Assembly is
21intended to clarify the existing requirements of this Section,
22and shall not be construed to validate any prior non-compliant
23referendum language. Paragraph (4) shall be included if the
24proposition concerns a limiting rate increase but shall not be
25included if the proposition concerns a new rate. Any notice
26required to be published in connection with the submission of

 

 

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1the proposition shall also contain this supplemental
2information and shall not contain any other supplemental
3information regarding the proposition. Any error,
4miscalculation, or inaccuracy in computing any amount set forth
5on the ballot and in the notice that is not deliberate shall
6not invalidate or affect the validity of any proposition
7approved. Notice of the referendum shall be published and
8posted as otherwise required by law, and the submission of the
9proposition shall be initiated as provided by law.
10    If a majority of all ballots cast on the proposition are in
11favor of the proposition, the following provisions shall be
12applicable to the extension of taxes for the taxing district:
13        (A) a new tax rate shall be first effective for the
14    levy year in which the new rate is approved;
15        (B) if the proposition provides for a new tax rate, the
16    taxing district is authorized to levy a tax after the
17    canvass of the results of the referendum by the election
18    authority for the purposes for which the tax is authorized;
19        (C) a limiting rate increase shall be first effective
20    for the levy year in which the limiting rate increase is
21    approved, provided that the taxing district may elect to
22    have a limiting rate increase be effective for the levy
23    year prior to the levy year in which the limiting rate
24    increase is approved unless the extension of taxes for the
25    prior levy year occurs 30 days or less after the canvass of
26    the results of the referendum by the election authority in

 

 

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1    any county in which the taxing district is located;
2        (D) in order for the limiting rate increase to be first
3    effective for the levy year prior to the levy year of the
4    referendum, the taxing district must certify its election
5    to have the limiting rate increase be effective for the
6    prior levy year to the clerk of each county in which the
7    taxing district is located not more than 2 days after the
8    date the results of the referendum are canvassed by the
9    election authority; and
10        (E) if the proposition provides for a limiting rate
11    increase, the increase may be effective regardless of
12    whether the proposition is approved before or after the
13    taxing district adopts or files its levy for any levy year.
14    Rates required to extend taxes on levies subject to a
15backdoor referendum in each year there is a levy are not new
16rates or rate increases under this Section if a levy has been
17made for the fund in one or more of the preceding 3 levy years.
18Changes made by this amendatory Act of 1997 to this Section in
19reference to rates required to extend taxes on levies subject
20to a backdoor referendum in each year there is a levy are
21declarative of existing law and not a new enactment.
22    (b) Whenever other applicable law authorizes a taxing
23district subject to the limitation with respect to its
24aggregate extension provided for in this Law to issue bonds or
25other obligations either without referendum or subject to
26backdoor referendum, the taxing district may elect for each

 

 

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1separate bond issuance to submit the question of the issuance
2of the bonds or obligations directly to the voters of the
3taxing district, and if the referendum passes the taxing
4district is not required to comply with any backdoor referendum
5procedures or requirements set forth in the other applicable
6law. The direct referendum shall be initiated by ordinance or
7resolution of the governing body of the taxing district, and
8the question shall be certified to the proper election
9authorities in accordance with the provisions of the Election
10Code.
11(Source: P.A. 96-764, eff. 8-25-09; 97-1087, eff. 8-24-12.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.