Sen. Don Harmon

Filed: 4/15/2013

 

 


 

 


 
09800SB2256sam002LRB098 05573 HLH 44651 a

1
AMENDMENT TO SENATE BILL 2256

2    AMENDMENT NO. ______. Amend Senate Bill 2256, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Property Tax Code is amended by changing
6Section 18-185 as follows:
 
7    (35 ILCS 200/18-185)
8    Sec. 18-185. Short title; definitions. This Division 5 may
9be cited as the Property Tax Extension Limitation Law. As used
10in this Division 5:
11    "Consumer Price Index" means the Consumer Price Index for
12All Urban Consumers for all items published by the United
13States Department of Labor.
14    "Extension limitation" means (a) the lesser of 5% or the
15percentage increase in the Consumer Price Index during the
1612-month calendar year preceding the levy year or (b) the rate

 

 

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1of increase approved by voters under Section 18-205.
2    "Affected county" means a county of 3,000,000 or more
3inhabitants or a county contiguous to a county of 3,000,000 or
4more inhabitants.
5    "Taxing district" has the same meaning provided in Section
61-150, except as otherwise provided in this Section. For the
71991 through 1994 levy years only, "taxing district" includes
8only each non-home rule taxing district having the majority of
9its 1990 equalized assessed value within any county or counties
10contiguous to a county with 3,000,000 or more inhabitants.
11Beginning with the 1995 levy year, "taxing district" includes
12only each non-home rule taxing district subject to this Law
13before the 1995 levy year and each non-home rule taxing
14district not subject to this Law before the 1995 levy year
15having the majority of its 1994 equalized assessed value in an
16affected county or counties. Beginning with the levy year in
17which this Law becomes applicable to a taxing district as
18provided in Section 18-213, "taxing district" also includes
19those taxing districts made subject to this Law as provided in
20Section 18-213.
21    "Aggregate extension" for taxing districts to which this
22Law applied before the 1995 levy year means the annual
23corporate extension for the taxing district and those special
24purpose extensions that are made annually for the taxing
25district, excluding special purpose extensions: (a) made for
26the taxing district to pay interest or principal on general

 

 

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1obligation bonds that were approved by referendum; (b) made for
2any taxing district to pay interest or principal on general
3obligation bonds issued before October 1, 1991; (c) made for
4any taxing district to pay interest or principal on bonds
5issued to refund or continue to refund those bonds issued
6before October 1, 1991; (d) made for any taxing district to pay
7interest or principal on bonds issued to refund or continue to
8refund bonds issued after October 1, 1991 that were approved by
9referendum; (e) made for any taxing district to pay interest or
10principal on revenue bonds issued before October 1, 1991 for
11payment of which a property tax levy or the full faith and
12credit of the unit of local government is pledged; however, a
13tax for the payment of interest or principal on those bonds
14shall be made only after the governing body of the unit of
15local government finds that all other sources for payment are
16insufficient to make those payments; (f) made for payments
17under a building commission lease when the lease payments are
18for the retirement of bonds issued by the commission before
19October 1, 1991, to pay for the building project; (g) made for
20payments due under installment contracts entered into before
21October 1, 1991; (h) made for payments of principal and
22interest on bonds issued under the Metropolitan Water
23Reclamation District Act to finance construction projects
24initiated before October 1, 1991; (i) made for payments of
25principal and interest on limited bonds, as defined in Section
263 of the Local Government Debt Reform Act, in an amount not to

 

 

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1exceed the debt service extension base less the amount in items
2(b), (c), (e), and (h) of this definition for non-referendum
3obligations, except obligations initially issued pursuant to
4referendum; (j) made for payments of principal and interest on
5bonds issued under Section 15 of the Local Government Debt
6Reform Act; (k) made by a school district that participates in
7the Special Education District of Lake County, created by
8special education joint agreement under Section 10-22.31 of the
9School Code, for payment of the school district's share of the
10amounts required to be contributed by the Special Education
11District of Lake County to the Illinois Municipal Retirement
12Fund under Article 7 of the Illinois Pension Code; the amount
13of any extension under this item (k) shall be certified by the
14school district to the county clerk; (l) made to fund expenses
15of providing joint recreational programs for the handicapped
16under Section 5-8 of the Park District Code or Section 11-95-14
17of the Illinois Municipal Code; (m) made for temporary
18relocation loan repayment purposes pursuant to Sections 2-3.77
19and 17-2.2d of the School Code; (n) made for payment of
20principal and interest on any bonds issued under the authority
21of Section 17-2.2d of the School Code; (o) made for
22contributions to a firefighter's pension fund created under
23Article 4 of the Illinois Pension Code, to the extent of the
24amount certified under item (5) of Section 4-134 of the
25Illinois Pension Code; and (p) made for road purposes in the
26first year after a township assumes the rights, powers, duties,

 

 

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1assets, property, liabilities, obligations, and
2responsibilities of a road district abolished under the
3provisions of Section 6-133 of the Illinois Highway Code.
4    "Aggregate extension" for the taxing districts to which
5this Law did not apply before the 1995 levy year (except taxing
6districts subject to this Law in accordance with Section
718-213) means the annual corporate extension for the taxing
8district and those special purpose extensions that are made
9annually for the taxing district, excluding special purpose
10extensions: (a) made for the taxing district to pay interest or
11principal on general obligation bonds that were approved by
12referendum; (b) made for any taxing district to pay interest or
13principal on general obligation bonds issued before March 1,
141995; (c) made for any taxing district to pay interest or
15principal on bonds issued to refund or continue to refund those
16bonds issued before March 1, 1995; (d) made for any taxing
17district to pay interest or principal on bonds issued to refund
18or continue to refund bonds issued after March 1, 1995 that
19were approved by referendum; (e) made for any taxing district
20to pay interest or principal on revenue bonds issued before
21March 1, 1995 for payment of which a property tax levy or the
22full faith and credit of the unit of local government is
23pledged; however, a tax for the payment of interest or
24principal on those bonds shall be made only after the governing
25body of the unit of local government finds that all other
26sources for payment are insufficient to make those payments;

 

 

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1(f) made for payments under a building commission lease when
2the lease payments are for the retirement of bonds issued by
3the commission before March 1, 1995 to pay for the building
4project; (g) made for payments due under installment contracts
5entered into before March 1, 1995; (h) made for payments of
6principal and interest on bonds issued under the Metropolitan
7Water Reclamation District Act to finance construction
8projects initiated before October 1, 1991; (h-4) made for
9stormwater management purposes by the Metropolitan Water
10Reclamation District of Greater Chicago under Section 12 of the
11Metropolitan Water Reclamation District Act; (i) made for
12payments of principal and interest on limited bonds, as defined
13in Section 3 of the Local Government Debt Reform Act, in an
14amount not to exceed the debt service extension base less the
15amount in items (b), (c), and (e) of this definition for
16non-referendum obligations, except obligations initially
17issued pursuant to referendum and bonds described in subsection
18(h) of this definition; (j) made for payments of principal and
19interest on bonds issued under Section 15 of the Local
20Government Debt Reform Act; (k) made for payments of principal
21and interest on bonds authorized by Public Act 88-503 and
22issued under Section 20a of the Chicago Park District Act for
23aquarium or museum projects; (l) made for payments of principal
24and interest on bonds authorized by Public Act 87-1191 or
2593-601 and (i) issued pursuant to Section 21.2 of the Cook
26County Forest Preserve District Act, (ii) issued under Section

 

 

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142 of the Cook County Forest Preserve District Act for
2zoological park projects, or (iii) issued under Section 44.1 of
3the Cook County Forest Preserve District Act for botanical
4gardens projects; (m) made pursuant to Section 34-53.5 of the
5School Code, whether levied annually or not; (n) made to fund
6expenses of providing joint recreational programs for the
7handicapped under Section 5-8 of the Park District Code or
8Section 11-95-14 of the Illinois Municipal Code; (o) made by
9the Chicago Park District for recreational programs for the
10handicapped under subsection (c) of Section 7.06 of the Chicago
11Park District Act; (p) made for contributions to a
12firefighter's pension fund created under Article 4 of the
13Illinois Pension Code, to the extent of the amount certified
14under item (5) of Section 4-134 of the Illinois Pension Code;
15and (q) made by Ford Heights School District 169 under Section
1617-9.02 of the School Code.
17    "Aggregate extension" for all taxing districts to which
18this Law applies in accordance with Section 18-213, except for
19those taxing districts subject to paragraph (2) of subsection
20(e) of Section 18-213, means the annual corporate extension for
21the taxing district and those special purpose extensions that
22are made annually for the taxing district, excluding special
23purpose extensions: (a) made for the taxing district to pay
24interest or principal on general obligation bonds that were
25approved by referendum; (b) made for any taxing district to pay
26interest or principal on general obligation bonds issued before

 

 

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1the date on which the referendum making this Law applicable to
2the taxing district is held; (c) made for any taxing district
3to pay interest or principal on bonds issued to refund or
4continue to refund those bonds issued before the date on which
5the referendum making this Law applicable to the taxing
6district is held; (d) made for any taxing district to pay
7interest or principal on bonds issued to refund or continue to
8refund bonds issued after the date on which the referendum
9making this Law applicable to the taxing district is held if
10the bonds were approved by referendum after the date on which
11the referendum making this Law applicable to the taxing
12district is held; (e) made for any taxing district to pay
13interest or principal on revenue bonds issued before the date
14on which the referendum making this Law applicable to the
15taxing district is held for payment of which a property tax
16levy or the full faith and credit of the unit of local
17government is pledged; however, a tax for the payment of
18interest or principal on those bonds shall be made only after
19the governing body of the unit of local government finds that
20all other sources for payment are insufficient to make those
21payments; (f) made for payments under a building commission
22lease when the lease payments are for the retirement of bonds
23issued by the commission before the date on which the
24referendum making this Law applicable to the taxing district is
25held to pay for the building project; (g) made for payments due
26under installment contracts entered into before the date on

 

 

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1which the referendum making this Law applicable to the taxing
2district is held; (h) made for payments of principal and
3interest on limited bonds, as defined in Section 3 of the Local
4Government Debt Reform Act, in an amount not to exceed the debt
5service extension base less the amount in items (b), (c), and
6(e) of this definition for non-referendum obligations, except
7obligations initially issued pursuant to referendum; (i) made
8for payments of principal and interest on bonds issued under
9Section 15 of the Local Government Debt Reform Act; (j) made
10for a qualified airport authority to pay interest or principal
11on general obligation bonds issued for the purpose of paying
12obligations due under, or financing airport facilities
13required to be acquired, constructed, installed or equipped
14pursuant to, contracts entered into before March 1, 1996 (but
15not including any amendments to such a contract taking effect
16on or after that date); (k) made to fund expenses of providing
17joint recreational programs for the handicapped under Section
185-8 of the Park District Code or Section 11-95-14 of the
19Illinois Municipal Code; (l) made for contributions to a
20firefighter's pension fund created under Article 4 of the
21Illinois Pension Code, to the extent of the amount certified
22under item (5) of Section 4-134 of the Illinois Pension Code;
23and (m) made for the taxing district to pay interest or
24principal on general obligation bonds issued pursuant to
25Section 19-3.10 of the School Code.
26    "Aggregate extension" for all taxing districts to which

 

 

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1this Law applies in accordance with paragraph (2) of subsection
2(e) of Section 18-213 means the annual corporate extension for
3the taxing district and those special purpose extensions that
4are made annually for the taxing district, excluding special
5purpose extensions: (a) made for the taxing district to pay
6interest or principal on general obligation bonds that were
7approved by referendum; (b) made for any taxing district to pay
8interest or principal on general obligation bonds issued before
9the effective date of this amendatory Act of 1997; (c) made for
10any taxing district to pay interest or principal on bonds
11issued to refund or continue to refund those bonds issued
12before the effective date of this amendatory Act of 1997; (d)
13made for any taxing district to pay interest or principal on
14bonds issued to refund or continue to refund bonds issued after
15the effective date of this amendatory Act of 1997 if the bonds
16were approved by referendum after the effective date of this
17amendatory Act of 1997; (e) made for any taxing district to pay
18interest or principal on revenue bonds issued before the
19effective date of this amendatory Act of 1997 for payment of
20which a property tax levy or the full faith and credit of the
21unit of local government is pledged; however, a tax for the
22payment of interest or principal on those bonds shall be made
23only after the governing body of the unit of local government
24finds that all other sources for payment are insufficient to
25make those payments; (f) made for payments under a building
26commission lease when the lease payments are for the retirement

 

 

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1of bonds issued by the commission before the effective date of
2this amendatory Act of 1997 to pay for the building project;
3(g) made for payments due under installment contracts entered
4into before the effective date of this amendatory Act of 1997;
5(h) made for payments of principal and interest on limited
6bonds, as defined in Section 3 of the Local Government Debt
7Reform Act, in an amount not to exceed the debt service
8extension base less the amount in items (b), (c), and (e) of
9this definition for non-referendum obligations, except
10obligations initially issued pursuant to referendum; (i) made
11for payments of principal and interest on bonds issued under
12Section 15 of the Local Government Debt Reform Act; (j) made
13for a qualified airport authority to pay interest or principal
14on general obligation bonds issued for the purpose of paying
15obligations due under, or financing airport facilities
16required to be acquired, constructed, installed or equipped
17pursuant to, contracts entered into before March 1, 1996 (but
18not including any amendments to such a contract taking effect
19on or after that date); (k) made to fund expenses of providing
20joint recreational programs for the handicapped under Section
215-8 of the Park District Code or Section 11-95-14 of the
22Illinois Municipal Code; and (l) made for contributions to a
23firefighter's pension fund created under Article 4 of the
24Illinois Pension Code, to the extent of the amount certified
25under item (5) of Section 4-134 of the Illinois Pension Code.
26    "Debt service extension base" means an amount equal to that

 

 

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1portion of the extension for a taxing district for the 1994
2levy year, or for those taxing districts subject to this Law in
3accordance with Section 18-213, except for those subject to
4paragraph (2) of subsection (e) of Section 18-213, for the levy
5year in which the referendum making this Law applicable to the
6taxing district is held, or for those taxing districts subject
7to this Law in accordance with paragraph (2) of subsection (e)
8of Section 18-213 for the 1996 levy year, constituting an
9extension for payment of principal and interest on bonds issued
10by the taxing district without referendum, but not including
11excluded non-referendum bonds. For park districts (i) that were
12first subject to this Law in 1991 or 1995 and (ii) whose
13extension for the 1994 levy year for the payment of principal
14and interest on bonds issued by the park district without
15referendum (but not including excluded non-referendum bonds)
16was less than 51% of the amount for the 1991 levy year
17constituting an extension for payment of principal and interest
18on bonds issued by the park district without referendum (but
19not including excluded non-referendum bonds), "debt service
20extension base" means an amount equal to that portion of the
21extension for the 1991 levy year constituting an extension for
22payment of principal and interest on bonds issued by the park
23district without referendum (but not including excluded
24non-referendum bonds). A debt service extension base
25established or increased at any time pursuant to any provision
26of this Law, except Section 18-212, shall be increased each

 

 

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1year commencing with the later of (i) the 2009 levy year or
2(ii) the first levy year in which this Law becomes applicable
3to the taxing district, by the lesser of 5% or the percentage
4increase in the Consumer Price Index during the 12-month
5calendar year preceding the levy year. The debt service
6extension base may be established or increased as provided
7under Section 18-212. "Excluded non-referendum bonds" means
8(i) bonds authorized by Public Act 88-503 and issued under
9Section 20a of the Chicago Park District Act for aquarium and
10museum projects; (ii) bonds issued under Section 15 of the
11Local Government Debt Reform Act; or (iii) refunding
12obligations issued to refund or to continue to refund
13obligations initially issued pursuant to referendum.
14    "Special purpose extensions" include, but are not limited
15to, extensions for levies made on an annual basis for
16unemployment and workers' compensation, self-insurance,
17contributions to pension plans, and extensions made pursuant to
18Section 6-601 of the Illinois Highway Code for a road
19district's permanent road fund whether levied annually or not.
20The extension for a special service area is not included in the
21aggregate extension.
22    "Aggregate extension base" means: (i) for levy years before
232014, the taxing district's last preceding aggregate extension
24as adjusted under Sections 18-135, 18-215, and 18-230; and (ii)
25for levy years 2014 and later, modified aggregate extension
26base. An adjustment under Section 18-135 shall be made for the

 

 

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12007 levy year and all subsequent levy years whenever one or
2more counties within which a taxing district is located (i)
3used estimated valuations or rates when extending taxes in the
4taxing district for the last preceding levy year that resulted
5in the over or under extension of taxes, or (ii) increased or
6decreased the tax extension for the last preceding levy year as
7required by Section 18-135(c). Whenever an adjustment is
8required under Section 18-135, the aggregate extension base of
9the taxing district shall be equal to the amount that the
10aggregate extension of the taxing district would have been for
11the last preceding levy year if either or both (i) actual,
12rather than estimated, valuations or rates had been used to
13calculate the extension of taxes for the last levy year, or
14(ii) the tax extension for the last preceding levy year had not
15been adjusted as required by subsection (c) of Section 18-135.
16    "Aggregate extension limit" means: (i) for the 2014 levy
17year, the equalized assessed value of the district in the 2013
18levy year multiplied by the 2013 limiting rate; and (ii) for
19the 2015 levy year and thereafter, the previous levy year's
20maximum limiting rate multiplied by the equalized assessed
21value of the district in the previous levy year.
22    "Modified aggregate extension base" means the preceding
23year's aggregate extension base plus the recapture aggregate
24extension base.
25    "Recaptured aggregate extension base" means one-third of
26the difference between the aggregate extension limit and the

 

 

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1previous year's aggregate extension base.
2    "Maximum limiting rate" means a fraction the numerator of
3which is the last preceding aggregate extension limit times an
4amount equal to one plus the extension limitation defined in
5this Section and the denominator of which is the current year's
6equalized assessed value of all real property in the territory
7under the jurisdiction of the taxing district during the prior
8levy year.
9    Notwithstanding any other provision of law, for levy year
102012, the aggregate extension base for West Northfield School
11District No. 31 in Cook County shall be $12,654,592.
12    "Levy year" has the same meaning as "year" under Section
131-155.
14    "New property" means (i) the assessed value, after final
15board of review or board of appeals action, of new improvements
16or additions to existing improvements on any parcel of real
17property that increase the assessed value of that real property
18during the levy year multiplied by the equalization factor
19issued by the Department under Section 17-30, (ii) the assessed
20value, after final board of review or board of appeals action,
21of real property not exempt from real estate taxation, which
22real property was exempt from real estate taxation for any
23portion of the immediately preceding levy year, multiplied by
24the equalization factor issued by the Department under Section
2517-30, including the assessed value, upon final stabilization
26of occupancy after new construction is complete, of any real

 

 

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1property located within the boundaries of an otherwise or
2previously exempt military reservation that is intended for
3residential use and owned by or leased to a private corporation
4or other entity, and (iii) in counties that classify in
5accordance with Section 4 of Article IX of the Illinois
6Constitution, an incentive property's additional assessed
7value resulting from a scheduled increase in the level of
8assessment as applied to the first year final board of review
9market value. In addition, the county clerk in a county
10containing a population of 3,000,000 or more shall include in
11the 1997 recovered tax increment value for any school district,
12any recovered tax increment value that was applicable to the
131995 tax year calculations.
14    "Qualified airport authority" means an airport authority
15organized under the Airport Authorities Act and located in a
16county bordering on the State of Wisconsin and having a
17population in excess of 200,000 and not greater than 500,000.
18    "Recovered tax increment value" means, except as otherwise
19provided in this paragraph, the amount of the current year's
20equalized assessed value, in the first year after a
21municipality terminates the designation of an area as a
22redevelopment project area previously established under the
23Tax Increment Allocation Development Act in the Illinois
24Municipal Code, previously established under the Industrial
25Jobs Recovery Law in the Illinois Municipal Code, previously
26established under the Economic Development Project Area Tax

 

 

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1Increment Act of 1995, or previously established under the
2Economic Development Area Tax Increment Allocation Act, of each
3taxable lot, block, tract, or parcel of real property in the
4redevelopment project area over and above the initial equalized
5assessed value of each property in the redevelopment project
6area. For the taxes which are extended for the 1997 levy year,
7the recovered tax increment value for a non-home rule taxing
8district that first became subject to this Law for the 1995
9levy year because a majority of its 1994 equalized assessed
10value was in an affected county or counties shall be increased
11if a municipality terminated the designation of an area in 1993
12as a redevelopment project area previously established under
13the Tax Increment Allocation Development Act in the Illinois
14Municipal Code, previously established under the Industrial
15Jobs Recovery Law in the Illinois Municipal Code, or previously
16established under the Economic Development Area Tax Increment
17Allocation Act, by an amount equal to the 1994 equalized
18assessed value of each taxable lot, block, tract, or parcel of
19real property in the redevelopment project area over and above
20the initial equalized assessed value of each property in the
21redevelopment project area. In the first year after a
22municipality removes a taxable lot, block, tract, or parcel of
23real property from a redevelopment project area established
24under the Tax Increment Allocation Development Act in the
25Illinois Municipal Code, the Industrial Jobs Recovery Law in
26the Illinois Municipal Code, or the Economic Development Area

 

 

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1Tax Increment Allocation Act, "recovered tax increment value"
2means the amount of the current year's equalized assessed value
3of each taxable lot, block, tract, or parcel of real property
4removed from the redevelopment project area over and above the
5initial equalized assessed value of that real property before
6removal from the redevelopment project area.
7    Except as otherwise provided in this Section, "limiting
8rate" means a fraction the numerator of which is the last
9preceding aggregate extension base times an amount equal to one
10plus the extension limitation defined in this Section and the
11denominator of which is the current year's equalized assessed
12value of all real property in the territory under the
13jurisdiction of the taxing district during the prior levy year.
14For those taxing districts that reduced their aggregate
15extension for the last preceding levy year, the highest
16aggregate extension in any of the last 3 preceding levy years
17shall be used for the purpose of computing the limiting rate.
18The denominator shall not include new property or the recovered
19tax increment value. If a new rate, a rate decrease, or a
20limiting rate increase has been approved at an election held
21after March 21, 2006, then (i) the otherwise applicable
22limiting rate shall be increased by the amount of the new rate
23or shall be reduced by the amount of the rate decrease, as the
24case may be, or (ii) in the case of a limiting rate increase,
25the limiting rate shall be equal to the rate set forth in the
26proposition approved by the voters for each of the years

 

 

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1specified in the proposition, after which the limiting rate of
2the taxing district shall be calculated as otherwise provided.
3(Source: P.A. 96-501, eff. 8-14-09; 96-517, eff. 8-14-09;
496-1000, eff. 7-2-10; 96-1202, eff. 7-22-10; 97-611, eff.
51-1-12; 97-1154, eff. 1-25-13.)".