Full Text of HB4568 103rd General Assembly
HB4568 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4568 Introduced 1/31/2024, by Rep. Matt Hanson SYNOPSIS AS INTRODUCED: | | | Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a levy authorized for contributions to a Firefighters' Pension Fund for a municipality with a population of 500,00 or less is not considered a new rate. Effective immediately. |
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| 1 | | AN ACT concerning revenue. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 18-190 as follows: | 6 | | (35 ILCS 200/18-190) | 7 | | Sec. 18-190. Direct referendum; new rate or increased | 8 | | limiting rate. | 9 | | (a) If a new rate is authorized by statute to be imposed | 10 | | without referendum or is subject to a backdoor referendum, as | 11 | | defined in Section 28-2 of the Election Code, the governing | 12 | | body of the affected taxing district before levying the new | 13 | | rate shall submit the new rate to direct referendum under the | 14 | | provisions of this Section and of Article 28 of the Election | 15 | | Code. Notwithstanding any other provision of law, the levies | 16 | | authorized by Sections 4-118, 21-110 , and 21-110.1 of the | 17 | | Illinois Pension Code shall not be considered new rates; | 18 | | however, nothing in this amendatory Act of the 98th General | 19 | | Assembly or this amendatory Act of the 103rd General Assembly | 20 | | authorizes a taxing district to increase its limiting rate or | 21 | | its aggregate extension without first obtaining referendum | 22 | | approval as provided in this Section. Notwithstanding the | 23 | | provisions, requirements, or limitations of any other law, any |
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| 1 | | tax levied for the 2005 levy year and all subsequent levy years | 2 | | by any taxing district subject to this Law may be extended at a | 3 | | rate exceeding the rate established for that tax by referendum | 4 | | or statute, provided that the rate does not exceed the | 5 | | statutory ceiling above which the tax is not authorized to be | 6 | | further increased either by referendum or in any other manner. | 7 | | Notwithstanding the provisions, requirements, or limitations | 8 | | of any other law, all taxing districts subject to this Law | 9 | | shall follow the provisions of this Section whenever seeking | 10 | | referenda approval after March 21, 2006 to (i) levy a new tax | 11 | | rate authorized by statute or (ii) increase the limiting rate | 12 | | applicable to the taxing district. All taxing districts | 13 | | subject to this Law are authorized to seek referendum approval | 14 | | of each proposition described and set forth in this Section. | 15 | | The proposition seeking to obtain referendum approval to | 16 | | levy a new tax rate as authorized in clause (i) shall be in | 17 | | substantially the following form: | 18 | | Shall ... (insert legal name, number, if any, and | 19 | | county or counties of taxing district and geographic or | 20 | | other common name by which a school or community college | 21 | | district is known and referred to), Illinois, be | 22 | | authorized to levy a new tax for ... purposes and have an | 23 | | additional tax of ...% of the equalized assessed value of | 24 | | the taxable property therein extended for such purposes? | 25 | | The votes must be recorded as "Yes" or "No". | 26 | | The proposition seeking to obtain referendum approval to |
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| 1 | | increase the limiting rate as authorized in clause (ii) shall | 2 | | be in substantially the following form: | 3 | | Shall the limiting rate under the Property Tax | 4 | | Extension Limitation Law for ... (insert legal name, | 5 | | number, if any, and county or counties of taxing district | 6 | | and geographic or other common name by which a school or | 7 | | community college district is known and referred to), | 8 | | Illinois, be increased by an additional amount equal to | 9 | | ...% above the limiting rate for the purpose of...(insert | 10 | | purpose) for levy year ... (insert the most recent levy | 11 | | year for which the limiting rate of the taxing district is | 12 | | known at the time the submission of the proposition is | 13 | | initiated by the taxing district) and be equal to ...% of | 14 | | the equalized assessed value of the taxable property | 15 | | therein for levy year(s) (insert each levy year for which | 16 | | the increase will be applicable, which years must be | 17 | | consecutive and may not exceed 4)? | 18 | | The votes must be recorded as "Yes" or "No". | 19 | | The ballot for any proposition submitted pursuant to this | 20 | | Section shall have printed thereon, but not as a part of the | 21 | | proposition submitted, only the following supplemental | 22 | | information (which shall be supplied to the election authority | 23 | | by the taxing district) in substantially the following form: | 24 | | (1) The approximate amount of taxes extendable at the | 25 | | most recently extended limiting rate is $..., and the | 26 | | approximate amount of taxes extendable if the proposition |
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| 1 | | is approved is $.... | 2 | | (2) For the ... (insert the first levy year for which | 3 | | the new rate or increased limiting rate will be | 4 | | applicable) levy year the approximate amount of the | 5 | | additional tax extendable against property containing a | 6 | | single family residence and having a fair market value at | 7 | | the time of the referendum of $100,000 is estimated to be | 8 | | $.... | 9 | | (3) Based upon an average annual percentage increase | 10 | | (or decrease) in the market value of such property of %... | 11 | | (insert percentage equal to the average annual percentage | 12 | | increase or decrease for the prior 3 levy years, at the | 13 | | time the submission of the proposition is initiated by the | 14 | | taxing district, in the amount of (A) the equalized | 15 | | assessed value of the taxable property in the taxing | 16 | | district less (B) the new property included in the | 17 | | equalized assessed value), the approximate amount of the | 18 | | additional tax extendable against such property for the | 19 | | ... levy year is estimated to be $... and for the ... levy | 20 | | year is estimated to be $ .... | 21 | | (4) If the proposition is approved, the aggregate | 22 | | extension for ... (insert each levy year for which the | 23 | | increase will apply) will be determined by the limiting | 24 | | rate set forth in the proposition, rather than the | 25 | | otherwise applicable limiting rate calculated under the | 26 | | provisions of the Property Tax Extension Limitation Law |
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| 1 | | (commonly known as the Property Tax Cap Law). | 2 | | The approximate amount of taxes extendable shown in paragraph | 3 | | (1) shall be computed upon the last known equalized assessed | 4 | | value of taxable property in the taxing district (at the time | 5 | | the submission of the proposition is initiated by the taxing | 6 | | district). Paragraph (3) shall be included only if the | 7 | | increased limiting rate will be applicable for more than one | 8 | | levy year and shall list each levy year for which the increased | 9 | | limiting rate will be applicable. The additional tax shown for | 10 | | each levy year shall be the approximate dollar amount of the | 11 | | increase over the amount of the most recently completed | 12 | | extension at the time the submission of the proposition is | 13 | | initiated by the taxing district. The approximate amount of | 14 | | the additional taxes extendable shown in paragraphs (2) and | 15 | | (3) shall be calculated by multiplying $100,000 (the fair | 16 | | market value of the property without regard to any property | 17 | | tax exemptions) by (i) the percentage level of assessment | 18 | | prescribed for that property by statute, or by ordinance of | 19 | | the county board in counties that classify property for | 20 | | purposes of taxation in accordance with Section 4 of Article | 21 | | IX of the Illinois Constitution; (ii) the most recent final | 22 | | equalization factor certified to the county clerk by the | 23 | | Department of Revenue at the time the taxing district | 24 | | initiates the submission of the proposition to the electors; | 25 | | and (iii) either the new rate or the amount by which the | 26 | | limiting rate is to be increased. This amendatory Act of the |
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| 1 | | 97th General Assembly is intended to clarify the existing | 2 | | requirements of this Section, and shall not be construed to | 3 | | validate any prior non-compliant referendum language. | 4 | | Paragraph (4) shall be included if the proposition concerns a | 5 | | limiting rate increase but shall not be included if the | 6 | | proposition concerns a new rate. Any notice required to be | 7 | | published in connection with the submission of the proposition | 8 | | shall also contain this supplemental information and shall not | 9 | | contain any other supplemental information regarding the | 10 | | proposition. Any error, miscalculation, or inaccuracy in | 11 | | computing any amount set forth on the ballot and in the notice | 12 | | that is not deliberate shall not invalidate or affect the | 13 | | validity of any proposition approved. Notice of the referendum | 14 | | shall be published and posted as otherwise required by law, | 15 | | and the submission of the proposition shall be initiated as | 16 | | provided by law. | 17 | | If a majority of all ballots cast on the proposition are in | 18 | | favor of the proposition, the following provisions shall be | 19 | | applicable to the extension of taxes for the taxing district: | 20 | | (A) a new tax rate shall be first effective for the | 21 | | levy year in which the new rate is approved; | 22 | | (B) if the proposition provides for a new tax rate, | 23 | | the taxing district is authorized to levy a tax after the | 24 | | canvass of the results of the referendum by the election | 25 | | authority for the purposes for which the tax is | 26 | | authorized; |
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| 1 | | (C) a limiting rate increase shall be first effective | 2 | | for the levy year in which the limiting rate increase is | 3 | | approved, provided that the taxing district may elect to | 4 | | have a limiting rate increase be effective for the levy | 5 | | year prior to the levy year in which the limiting rate | 6 | | increase is approved unless the extension of taxes for the | 7 | | prior levy year occurs 30 days or less after the canvass of | 8 | | the results of the referendum by the election authority in | 9 | | any county in which the taxing district is located; | 10 | | (D) in order for the limiting rate increase to be | 11 | | first effective for the levy year prior to the levy year of | 12 | | the referendum, the taxing district must certify its | 13 | | election to have the limiting rate increase be effective | 14 | | for the prior levy year to the clerk of each county in | 15 | | which the taxing district is located not more than 2 days | 16 | | after the date the results of the referendum are canvassed | 17 | | by the election authority; and | 18 | | (E) if the proposition provides for a limiting rate | 19 | | increase, the increase may be effective regardless of | 20 | | whether the proposition is approved before or after the | 21 | | taxing district adopts or files its levy for any levy | 22 | | year. | 23 | | Rates required to extend taxes on levies subject to a | 24 | | backdoor referendum in each year there is a levy are not new | 25 | | rates or rate increases under this Section if a levy has been | 26 | | made for the fund in one or more of the preceding 3 levy years. |
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| 1 | | Changes made by this amendatory Act of 1997 to this Section in | 2 | | reference to rates required to extend taxes on levies subject | 3 | | to a backdoor referendum in each year there is a levy are | 4 | | declarative of existing law and not a new enactment. | 5 | | (b) Whenever other applicable law authorizes a taxing | 6 | | district subject to the limitation with respect to its | 7 | | aggregate extension provided for in this Law to issue bonds or | 8 | | other obligations either without referendum or subject to | 9 | | backdoor referendum, the taxing district may elect for each | 10 | | separate bond issuance to submit the question of the issuance | 11 | | of the bonds or obligations directly to the voters of the | 12 | | taxing district, and if the referendum passes the taxing | 13 | | district is not required to comply with any backdoor | 14 | | referendum procedures or requirements set forth in the other | 15 | | applicable law. The direct referendum shall be initiated by | 16 | | ordinance or resolution of the governing body of the taxing | 17 | | district, and the question shall be certified to the proper | 18 | | election authorities in accordance with the provisions of the | 19 | | Election Code. | 20 | | (Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.) | 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law. |
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