Full Text of HB3603 102nd General Assembly
HB3603 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB3603 Introduced 2/22/2021, by Rep. Mark Batinick SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/18-185 | | 35 ILCS 200/18-205 | | 35 ILCS 200/18-212 | |
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Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that the extension limitation is 3.5% (currently, 5%) or the percentage increase
in the Consumer Price Index. Provides that the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units.
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| | FISCAL NOTE ACT MAY APPLY | HOME RULE 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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Sections 18-185, 18-205, and 18-212 as follows: | 6 | | (35 ILCS 200/18-185)
| 7 | | Sec. 18-185. Short title; definitions. This Division 5 | 8 | | may be cited as the
Property Tax Extension Limitation Law. As | 9 | | used in this Division 5:
| 10 | | "Consumer Price Index" means the Consumer Price Index for | 11 | | All Urban
Consumers for all items published by the United | 12 | | States Department of Labor.
| 13 | | "Extension limitation" means (a) the lesser of 3.5% 5% or | 14 | | the percentage increase
in the Consumer Price Index during the | 15 | | 12-month calendar year preceding the
levy year or (b) the rate | 16 | | of increase approved by voters under Section 18-205.
| 17 | | "Affected county" means a county of 3,000,000 or more | 18 | | inhabitants or a
county contiguous to a county of 3,000,000 or | 19 | | more inhabitants.
| 20 | | "Taxing district" has the same meaning provided in Section | 21 | | 1-150, except as
otherwise provided in this Section. For the | 22 | | 1991 through 1994 levy years only,
"taxing district" includes | 23 | | only each non-home rule taxing district having the
majority of |
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| 1 | | its
1990 equalized assessed value within any county or | 2 | | counties contiguous to a
county with 3,000,000 or more | 3 | | inhabitants. Beginning with the 1995 levy
year, "taxing | 4 | | district" includes only each non-home rule taxing district
| 5 | | subject to this Law before the 1995 levy year and each non-home | 6 | | rule
taxing district not subject to this Law before the 1995 | 7 | | levy year having the
majority of its 1994 equalized assessed | 8 | | value in an affected county or
counties. Beginning with the | 9 | | levy year in
which this Law becomes applicable to a taxing | 10 | | district as
provided in Section 18-213, "taxing district" also | 11 | | includes those taxing
districts made subject to this Law as | 12 | | provided in Section 18-213.
Beginning in levy year 2022, | 13 | | "taxing district" means all taxing districts, as defined in | 14 | | Section 1-150, including, but not limited to, home rule units. | 15 | | This Section is a limitation of
the power of home rule units to | 16 | | tax in accordance with subsection (g) of Section 6
of Article | 17 | | VII of the Illinois Constitution.
| 18 | | "Aggregate extension" for taxing districts to which this | 19 | | Law applied before
the 1995 levy year means the annual | 20 | | corporate extension for the taxing
district and those special | 21 | | purpose extensions that are made annually for
the taxing | 22 | | district, excluding special purpose extensions: (a) made for | 23 | | the
taxing district to pay interest or principal on general | 24 | | obligation bonds
that were approved by referendum; (b) made | 25 | | for any taxing district to pay
interest or principal on | 26 | | general obligation bonds issued before October 1,
1991; (c) |
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| 1 | | made for any taxing district to pay interest or principal on | 2 | | bonds
issued to refund or continue to refund those bonds | 3 | | issued before October 1,
1991; (d)
made for any taxing | 4 | | district to pay interest or principal on bonds
issued to | 5 | | refund or continue to refund bonds issued after October 1, | 6 | | 1991 that
were approved by referendum; (e)
made for any taxing | 7 | | district to pay interest
or principal on revenue bonds issued | 8 | | before October 1, 1991 for payment of
which a property tax levy | 9 | | or the full faith and credit of the unit of local
government is | 10 | | pledged; however, a tax for the payment of interest or | 11 | | principal
on those bonds shall be made only after the | 12 | | governing body of the unit of local
government finds that all | 13 | | other sources for payment are insufficient to make
those | 14 | | payments; (f) made for payments under a building commission | 15 | | lease when
the lease payments are for the retirement of bonds | 16 | | issued by the commission
before October 1, 1991, to pay for the | 17 | | building project; (g) made for payments
due under installment | 18 | | contracts entered into before October 1, 1991;
(h) made for | 19 | | payments of principal and interest on bonds issued under the
| 20 | | Metropolitan Water Reclamation District Act to finance | 21 | | construction projects
initiated before October 1, 1991; (i) | 22 | | made for payments of principal and
interest on limited bonds, | 23 | | as defined in Section 3 of the Local Government Debt
Reform | 24 | | Act, in an amount not to exceed the debt service extension base | 25 | | less
the amount in items (b), (c), (e), and (h) of this | 26 | | definition for
non-referendum obligations, except obligations |
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| 1 | | initially issued pursuant to
referendum; (j) made for payments | 2 | | of principal and interest on bonds
issued under Section 15 of | 3 | | the Local Government Debt Reform Act; (k)
made
by a school | 4 | | district that participates in the Special Education District | 5 | | of
Lake County, created by special education joint agreement | 6 | | under Section
10-22.31 of the School Code, for payment of the | 7 | | school district's share of the
amounts required to be | 8 | | contributed by the Special Education District of Lake
County | 9 | | to the Illinois Municipal Retirement Fund under Article 7 of | 10 | | the
Illinois Pension Code; the amount of any extension under | 11 | | this item (k) shall be
certified by the school district to the | 12 | | county clerk; (l) made to fund
expenses of providing joint | 13 | | recreational programs for persons with disabilities under
| 14 | | Section 5-8 of
the
Park District Code or Section 11-95-14 of | 15 | | the Illinois Municipal Code; (m) made for temporary relocation | 16 | | loan repayment purposes pursuant to Sections 2-3.77 and | 17 | | 17-2.2d of the School Code; (n) made for payment of principal | 18 | | and interest on any bonds issued under the authority of | 19 | | Section 17-2.2d of the School Code; (o) made for contributions | 20 | | to a firefighter's pension fund created under Article 4 of the | 21 | | Illinois Pension Code, to the extent of the amount certified | 22 | | under item (5) of Section 4-134 of the Illinois Pension Code; | 23 | | and (p) made for road purposes in the first year after a | 24 | | township assumes the rights, powers, duties, assets, property, | 25 | | liabilities, obligations, and
responsibilities of a road | 26 | | district abolished under the provisions of Section 6-133 of |
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| 1 | | the Illinois Highway Code.
| 2 | | "Aggregate extension" for the taxing districts to which | 3 | | this Law did not
apply before the 1995 levy year (except taxing | 4 | | districts subject to this Law
in
accordance with Section | 5 | | 18-213) means the annual corporate extension for the
taxing | 6 | | district and those special purpose extensions that are made | 7 | | annually for
the taxing district, excluding special purpose | 8 | | extensions: (a) made for the
taxing district to pay interest | 9 | | or principal on general obligation bonds that
were approved by | 10 | | referendum; (b) made for any taxing district to pay interest
| 11 | | or principal on general obligation bonds issued before March | 12 | | 1, 1995; (c) made
for any taxing district to pay interest or | 13 | | principal on bonds issued to refund
or continue to refund | 14 | | those bonds issued before March 1, 1995; (d) made for any
| 15 | | taxing district to pay interest or principal on bonds issued | 16 | | to refund or
continue to refund bonds issued after March 1, | 17 | | 1995 that were approved by
referendum; (e) made for any taxing | 18 | | district to pay interest or principal on
revenue bonds issued | 19 | | before March 1, 1995 for payment of which a property tax
levy | 20 | | or the full faith and credit of the unit of local government is | 21 | | pledged;
however, a tax for the payment of interest or | 22 | | principal on those bonds shall be
made only after the | 23 | | governing body of the unit of local government finds that
all | 24 | | 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 |
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| 1 | | issued by the commission before March 1, 1995 to
pay for the | 2 | | building project; (g) made for payments due under installment
| 3 | | contracts entered into before March 1, 1995; (h) made for | 4 | | payments of
principal and interest on bonds issued under the | 5 | | Metropolitan Water Reclamation
District Act to finance | 6 | | construction projects initiated before October 1,
1991; (h-4) | 7 | | made for stormwater management purposes by the Metropolitan | 8 | | Water Reclamation District of Greater Chicago under Section 12 | 9 | | of the Metropolitan Water Reclamation District Act; (i) made | 10 | | for payments of principal and interest on limited bonds,
as | 11 | | defined in Section 3 of the Local Government Debt Reform Act, | 12 | | in an amount
not to exceed the debt service extension base less | 13 | | the amount in items (b),
(c), and (e) of this definition for | 14 | | non-referendum obligations, except
obligations initially | 15 | | issued pursuant to referendum and bonds described in
| 16 | | subsection (h) of this definition; (j) made for payments of
| 17 | | principal and interest on bonds issued under Section 15 of the | 18 | | Local Government
Debt Reform Act; (k) made for payments of | 19 | | principal and interest on bonds
authorized by Public Act | 20 | | 88-503 and issued under Section 20a of the Chicago
Park | 21 | | District Act for aquarium or
museum projects; (l) made for | 22 | | payments of principal and interest on
bonds
authorized by | 23 | | Public Act 87-1191 or 93-601 and (i) issued pursuant to | 24 | | Section 21.2 of the Cook County Forest
Preserve District Act, | 25 | | (ii) issued under Section 42 of the Cook County
Forest | 26 | | Preserve District Act for zoological park projects, or (iii) |
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| 1 | | issued
under Section 44.1 of the Cook County Forest Preserve | 2 | | District Act for
botanical gardens projects; (m) made
pursuant
| 3 | | to Section 34-53.5 of the School Code, whether levied annually | 4 | | or not;
(n) made to fund expenses of providing joint | 5 | | recreational programs for persons with disabilities under | 6 | | Section 5-8 of the Park
District Code or Section 11-95-14 of | 7 | | the Illinois Municipal Code;
(o) made by the
Chicago Park
| 8 | | District for recreational programs for persons with | 9 | | disabilities under subsection (c) of
Section
7.06 of the | 10 | | Chicago Park District Act; (p) made for contributions to a | 11 | | firefighter's pension fund created under Article 4 of the | 12 | | Illinois Pension Code, to the extent of the amount certified | 13 | | under item (5) of Section 4-134 of the Illinois Pension Code; | 14 | | (q) made by Ford Heights School District 169 under Section | 15 | | 17-9.02 of the School Code; and (r) made for the purpose of | 16 | | making employer contributions to the Public School Teachers' | 17 | | Pension and Retirement Fund of Chicago under Section 34-53 of | 18 | | the School Code.
| 19 | | "Aggregate extension" for all taxing districts to which | 20 | | this Law applies in
accordance with Section 18-213, except for | 21 | | those taxing districts subject to
paragraph (2) of subsection | 22 | | (e) of Section 18-213, means the annual corporate
extension | 23 | | for the
taxing district and those special purpose extensions | 24 | | that are made annually for
the taxing district, excluding | 25 | | special purpose extensions: (a) made for the
taxing district | 26 | | to pay interest or principal on general obligation bonds that
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| 1 | | were approved by referendum; (b) made for any taxing district | 2 | | to pay interest
or principal on general obligation bonds | 3 | | issued before the date on which the
referendum making this
Law | 4 | | applicable to the taxing district is held; (c) made
for any | 5 | | taxing district to pay interest or principal on bonds issued | 6 | | to refund
or continue to refund those bonds issued before the | 7 | | date on which the
referendum making this Law
applicable to the | 8 | | taxing district is held;
(d) made for any
taxing district to | 9 | | pay interest or principal on bonds issued to refund or
| 10 | | continue to refund bonds issued after the date on which the | 11 | | referendum making
this Law
applicable to the taxing district | 12 | | is held if the bonds were approved by
referendum after the date | 13 | | on which the referendum making this Law
applicable to the | 14 | | taxing district is held; (e) made for any
taxing district to | 15 | | pay interest or principal on
revenue bonds issued before the | 16 | | date on which the referendum making this Law
applicable to the
| 17 | | taxing district is held for payment of which a property tax
| 18 | | levy or the full faith and credit of the unit of local | 19 | | government is pledged;
however, a tax for the payment of | 20 | | interest or principal on those bonds shall be
made only after | 21 | | the governing body of the unit of local government finds that
| 22 | | all other sources for payment are insufficient to make those | 23 | | payments; (f) made
for payments under a building commission | 24 | | lease when the lease payments are for
the retirement of bonds | 25 | | issued by the commission before the date on which the
| 26 | | referendum making this
Law applicable to the taxing district |
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| 1 | | is held to
pay for the building project; (g) made for payments | 2 | | due under installment
contracts entered into before the date | 3 | | on which the referendum making this Law
applicable to
the | 4 | | taxing district is held;
(h) made for payments
of principal | 5 | | and interest on limited bonds,
as defined in Section 3 of the | 6 | | Local Government Debt Reform Act, in an amount
not to exceed | 7 | | the debt service extension base less the amount in items (b),
| 8 | | (c), and (e) of this definition for non-referendum | 9 | | obligations, except
obligations initially issued pursuant to | 10 | | referendum; (i) made for payments
of
principal and interest on | 11 | | bonds issued under Section 15 of the Local Government
Debt | 12 | | Reform Act;
(j)
made for a qualified airport authority to pay | 13 | | interest or principal on
general obligation bonds issued for | 14 | | the purpose of paying obligations due
under, or financing | 15 | | airport facilities required to be acquired, constructed,
| 16 | | installed or equipped pursuant to, contracts entered into | 17 | | before March
1, 1996 (but not including any amendments to such | 18 | | a contract taking effect on
or after that date); (k) made to | 19 | | fund expenses of providing joint
recreational programs for | 20 | | persons with disabilities under Section 5-8 of
the
Park | 21 | | District Code or Section 11-95-14 of the Illinois Municipal | 22 | | Code; (l) made for contributions to a firefighter's pension | 23 | | fund created under Article 4 of the Illinois Pension Code, to | 24 | | the extent of the amount certified under item (5) of Section | 25 | | 4-134 of the Illinois Pension Code; and (m) made for the taxing | 26 | | district to pay interest or principal on general obligation |
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| 1 | | bonds issued pursuant to Section 19-3.10 of the School Code.
| 2 | | "Aggregate extension" for all taxing districts to which | 3 | | this Law applies in
accordance with paragraph (2) of | 4 | | subsection (e) of Section 18-213 or in
accordance with this | 5 | | amendatory Act of the 102nd General Assembly means the
annual | 6 | | corporate extension for the
taxing district and those special | 7 | | purpose extensions that are made annually for
the taxing | 8 | | district, excluding special purpose extensions: (a) made for | 9 | | the
taxing district to pay interest or principal on general | 10 | | obligation bonds that
were approved by referendum; (b) made | 11 | | for any taxing district to pay interest
or principal on | 12 | | general obligation bonds issued before March 7, 1997 ( the | 13 | | effective date of Public Act 89-718)
this amendatory Act of | 14 | | 1997 ;
(c) made
for any taxing district to pay interest or | 15 | | principal on bonds issued to refund
or continue to refund | 16 | | those bonds issued before March 7, 1997 ( the effective date
of | 17 | | Public Act 89-718) this amendatory Act of 1997 ;
(d) made for | 18 | | any
taxing district to pay interest or principal on bonds | 19 | | issued to refund or
continue to refund bonds issued after | 20 | | March 7, 1997 ( the effective date of Public Act 89-718) this | 21 | | amendatory Act
of 1997 if the bonds were approved by | 22 | | referendum after March 7, 1997 ( the effective date of Public | 23 | | Act 89-718)
this amendatory Act of 1997 ;
(e) made for any
| 24 | | taxing district to pay interest or principal on
revenue bonds | 25 | | issued before March 7, 1997 ( the effective date of Public Act | 26 | | 89-718) this amendatory Act of 1997
for payment of which a |
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| 1 | | property tax
levy or the full faith and credit of the unit of | 2 | | local government is pledged;
however, a tax for the payment of | 3 | | interest or principal on those bonds shall be
made only after | 4 | | the governing body of the unit of local government finds that
| 5 | | all other sources for payment are insufficient to make those | 6 | | payments; (f) made
for payments under a building commission | 7 | | lease when the lease payments are for
the retirement of bonds | 8 | | issued by the commission before March 7, 1997 ( the effective | 9 | | date
of Public Act 89-718) this amendatory Act of 1997
to
pay | 10 | | for the building project; (g) made for payments due under | 11 | | installment
contracts entered into before March 7, 1997 ( the | 12 | | effective date of Public Act 89-718) this amendatory Act of
| 13 | | 1997 ;
(h) made for payments
of principal and interest on | 14 | | limited bonds,
as defined in Section 3 of the Local Government | 15 | | Debt Reform Act, in an amount
not to exceed the debt service | 16 | | extension base less the amount in items (b),
(c), and (e) of | 17 | | this definition for non-referendum obligations, except
| 18 | | obligations initially issued pursuant to referendum; (i) made | 19 | | for payments
of
principal and interest on bonds issued under | 20 | | Section 15 of the Local Government
Debt Reform Act;
(j)
made | 21 | | for a qualified airport authority to pay interest or principal | 22 | | on
general obligation bonds issued for the purpose of paying | 23 | | obligations due
under, or financing airport facilities | 24 | | required to be acquired, constructed,
installed or equipped | 25 | | pursuant to, contracts entered into before March
1, 1996 (but | 26 | | not including any amendments to such a contract taking effect |
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| 1 | | on
or after that date); (k) made to fund expenses of providing | 2 | | joint
recreational programs for persons with disabilities | 3 | | under Section 5-8 of
the
Park District Code or Section | 4 | | 11-95-14 of the Illinois Municipal Code; and (l) made for | 5 | | contributions to a firefighter's pension fund created under | 6 | | Article 4 of the Illinois Pension Code, to the extent of the | 7 | | amount certified under item (5) of Section 4-134 of the | 8 | | Illinois Pension Code.
| 9 | | "Debt service extension base" means an amount equal to | 10 | | that portion of the
extension for a taxing district for the | 11 | | 1994 levy year, or for those taxing
districts subject to this | 12 | | Law in accordance with Section 18-213, except for
those | 13 | | subject to paragraph (2) of subsection (e) of Section 18-213, | 14 | | for the
levy
year in which the referendum making this Law | 15 | | applicable to the taxing district
is held, or for those taxing | 16 | | districts subject to this Law in accordance with
paragraph (2) | 17 | | of subsection (e) of Section 18-213 for the 1996 levy year,
| 18 | | constituting an
extension for payment of principal and | 19 | | interest on bonds issued by the taxing
district without | 20 | | referendum, but not including excluded non-referendum bonds. | 21 | | For park districts (i) that were first
subject to this Law in | 22 | | 1991 or 1995 and (ii) whose extension for the 1994 levy
year | 23 | | for the payment of principal and interest on bonds issued by | 24 | | the park
district without referendum (but not including | 25 | | excluded non-referendum bonds)
was less than 51% of the amount | 26 | | for the 1991 levy year constituting an
extension for payment |
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| 1 | | of principal and interest on bonds issued by the park
district | 2 | | without referendum (but not including excluded non-referendum | 3 | | bonds),
"debt service extension base" means an amount equal to | 4 | | that portion of the
extension for the 1991 levy year | 5 | | constituting an extension for payment of
principal and | 6 | | interest on bonds issued by the park district without | 7 | | referendum
(but not including excluded non-referendum bonds). | 8 | | A debt service extension base established or increased at any | 9 | | time pursuant to any provision of this Law, except Section | 10 | | 18-212, shall be increased each year commencing with the later | 11 | | of (i) the 2009 levy year or (ii) the first levy year in which | 12 | | this Law becomes applicable to the taxing district, by the | 13 | | lesser of 3.5% 5% or the percentage increase in the Consumer | 14 | | Price Index during the 12-month calendar year preceding the | 15 | | levy year. The debt service extension
base may be established | 16 | | or increased as provided under Section 18-212.
"Excluded | 17 | | non-referendum bonds" means (i) bonds authorized by Public
Act | 18 | | 88-503 and issued under Section 20a of the Chicago Park | 19 | | District Act for
aquarium and museum projects; (ii) bonds | 20 | | issued under Section 15 of the
Local Government Debt Reform | 21 | | Act; or (iii) refunding obligations issued
to refund or to | 22 | | continue to refund obligations initially issued pursuant to
| 23 | | referendum.
| 24 | | "Special purpose extensions" include, but are not limited | 25 | | to, extensions
for levies made on an annual basis for | 26 | | unemployment and workers'
compensation, self-insurance, |
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| 1 | | contributions to pension plans, and extensions
made pursuant | 2 | | to Section 6-601 of the Illinois Highway Code for a road
| 3 | | district's permanent road fund whether levied annually or not. | 4 | | The
extension for a special service area is not included in the
| 5 | | aggregate extension.
| 6 | | "Aggregate extension base" means the taxing district's | 7 | | last preceding
aggregate extension as adjusted under Sections | 8 | | 18-135, 18-215,
18-230, and 18-206.
An adjustment under | 9 | | Section 18-135 shall be made for the 2007 levy year and all | 10 | | subsequent levy years whenever one or more counties within | 11 | | which a taxing district is located (i) used estimated | 12 | | valuations or rates when extending taxes in the taxing | 13 | | district for the last preceding levy year that resulted in the | 14 | | over or under extension of taxes, or (ii) increased or | 15 | | decreased the tax extension for the last preceding levy year | 16 | | as required by Section 18-135(c). Whenever an adjustment is | 17 | | required under Section 18-135, the aggregate extension base of | 18 | | the taxing district shall be equal to the amount that the | 19 | | aggregate extension of the taxing district would have been for | 20 | | the last preceding levy year if either or both (i) actual, | 21 | | rather than estimated, valuations or rates had been used to | 22 | | calculate the extension of taxes for the last levy year, or | 23 | | (ii) the tax extension for the last preceding levy year had not | 24 | | been adjusted as required by subsection (c) of Section 18-135.
| 25 | | Notwithstanding any other provision of law, for levy year | 26 | | 2012, the aggregate extension base for West Northfield School |
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| 1 | | District No. 31 in Cook County shall be $12,654,592. | 2 | | "Levy year" has the same meaning as "year" under Section
| 3 | | 1-155.
| 4 | | "New property" means (i) the assessed value, after final | 5 | | board of review or
board of appeals action, of new | 6 | | improvements or additions to existing
improvements on any | 7 | | parcel of real property that increase the assessed value of
| 8 | | that real property during the levy year multiplied by the | 9 | | equalization factor
issued by the Department under Section | 10 | | 17-30, (ii) the assessed value, after
final board of review or | 11 | | board of appeals action, of real property not exempt
from real | 12 | | estate taxation, which real property was exempt from real | 13 | | estate
taxation for any portion of the immediately preceding | 14 | | levy year, multiplied by
the equalization factor issued by the | 15 | | Department under Section 17-30, including the assessed value, | 16 | | upon final stabilization of occupancy after new construction | 17 | | is complete, of any real property located within the | 18 | | boundaries of an otherwise or previously exempt military | 19 | | reservation that is intended for residential use and owned by | 20 | | or leased to a private corporation or other entity,
(iii) in | 21 | | counties that classify in accordance with Section 4 of Article
| 22 | | IX of the
Illinois Constitution, an incentive property's | 23 | | additional assessed value
resulting from a
scheduled increase | 24 | | in the level of assessment as applied to the first year
final | 25 | | board of
review market value, and (iv) any increase in | 26 | | assessed value due to oil or gas production from an oil or gas |
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| 1 | | well required to be permitted under the Hydraulic Fracturing | 2 | | Regulatory Act that was not produced in or accounted for | 3 | | during the previous levy year.
In addition, the county clerk | 4 | | in a county containing a population of
3,000,000 or more shall | 5 | | include in the 1997
recovered tax increment value for any | 6 | | school district, any recovered tax
increment value that was | 7 | | applicable to the 1995 tax year calculations.
| 8 | | "Qualified airport authority" means an airport authority | 9 | | organized under
the Airport Authorities Act and located in a | 10 | | county bordering on the State of
Wisconsin and having a | 11 | | population in excess of 200,000 and not greater than
500,000.
| 12 | | "Recovered tax increment value" means, except as otherwise | 13 | | provided in this
paragraph, the amount of the current year's | 14 | | equalized assessed value, in the
first year after a | 15 | | municipality terminates
the designation of an area as a | 16 | | redevelopment project area previously
established under the | 17 | | Tax Increment Allocation Redevelopment Development Act in the | 18 | | Illinois
Municipal Code, previously established under the | 19 | | Industrial Jobs Recovery Law
in the Illinois Municipal Code, | 20 | | previously established under the Economic Development Project | 21 | | Area Tax Increment Act of 1995, or previously established | 22 | | under the Economic
Development Area Tax Increment Allocation | 23 | | Act, of each taxable lot, block,
tract, or parcel of real | 24 | | property in the redevelopment project area over and
above the | 25 | | initial equalized assessed value of each property in the
| 26 | | redevelopment project area.
For the taxes which are extended |
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| 1 | | for the 1997 levy year, the recovered tax
increment value for a | 2 | | non-home rule taxing district that first became subject
to | 3 | | this Law for the 1995 levy year because a majority of its 1994 | 4 | | equalized
assessed value was in an affected county or counties | 5 | | shall be increased if a
municipality terminated the | 6 | | designation of an area in 1993 as a redevelopment
project area | 7 | | previously established under the Tax Increment Allocation | 8 | | Redevelopment
Development Act in the Illinois Municipal Code, | 9 | | previously established under
the Industrial Jobs Recovery Law | 10 | | in the Illinois Municipal Code, or previously
established | 11 | | under the Economic Development Area Tax Increment Allocation | 12 | | Act,
by an amount equal to the 1994 equalized assessed value of | 13 | | each taxable lot,
block, tract, or parcel of real property in | 14 | | the redevelopment project area over
and above the initial | 15 | | equalized assessed value of each property in the
redevelopment | 16 | | project area.
In the first year after a municipality
removes a | 17 | | taxable lot, block, tract, or parcel of real property from a
| 18 | | redevelopment project area established under the Tax Increment | 19 | | Allocation Redevelopment
Development Act in the Illinois
| 20 | | Municipal Code, the Industrial Jobs Recovery Law
in the | 21 | | Illinois Municipal Code, or the Economic
Development Area Tax | 22 | | Increment Allocation Act, "recovered tax increment value"
| 23 | | means the amount of the current year's equalized assessed | 24 | | value of each taxable
lot, block, tract, or parcel of real | 25 | | property removed from the redevelopment
project area over and | 26 | | above the initial equalized assessed value of that real
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| 1 | | property before removal from the redevelopment project area.
| 2 | | Except as otherwise provided in this Section, "limiting | 3 | | rate" means a
fraction the numerator of which is the last
| 4 | | preceding aggregate extension base times an amount equal to | 5 | | one plus the
extension limitation defined in this Section and | 6 | | the denominator of which
is the current year's equalized | 7 | | assessed value of all real property in the
territory under the | 8 | | jurisdiction of the taxing district during the prior
levy | 9 | | year. For those taxing districts that reduced their aggregate
| 10 | | extension for the last preceding levy year, except for school | 11 | | districts that reduced their extension for educational | 12 | | purposes pursuant to Section 18-206, the highest aggregate | 13 | | extension
in any of the last 3 preceding levy years shall be | 14 | | used for the purpose of
computing the limiting rate. The | 15 | | denominator shall not include new
property or the recovered | 16 | | tax increment
value.
If a new rate, a rate decrease, or a | 17 | | limiting rate increase has been approved at an election held | 18 | | after March 21, 2006, then (i) the otherwise applicable | 19 | | limiting rate shall be increased by the amount of the new rate | 20 | | or shall be reduced by the amount of the rate decrease, as the | 21 | | case may be, or (ii) in the case of a limiting rate increase, | 22 | | the limiting rate shall be equal to the rate set forth
in the | 23 | | proposition approved by the voters for each of the years | 24 | | specified in the proposition, after
which the limiting rate of | 25 | | the taxing district shall be calculated as otherwise provided. | 26 | | In the case of a taxing district that obtained referendum |
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| 1 | | approval for an increased limiting rate on March 20, 2012, the | 2 | | limiting rate for tax year 2012 shall be the rate that | 3 | | generates the approximate total amount of taxes extendable for | 4 | | that tax year, as set forth in the proposition approved by the | 5 | | voters; this rate shall be the final rate applied by the county | 6 | | clerk for the aggregate of all capped funds of the district for | 7 | | tax year 2012.
| 8 | | The changes made to this Section by this amendatory Act of | 9 | | the 102nd General Assembly apply beginning with levy year | 10 | | 2022. | 11 | | (Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17; | 12 | | 100-465, eff. 8-31-17; revised 8-12-19.)
| 13 | | (35 ILCS 200/18-205)
| 14 | | Sec. 18-205. Referendum to increase the extension | 15 | | limitation. A taxing
district is limited to an extension | 16 | | limitation of 3.5% 5% or the percentage increase
in the | 17 | | Consumer Price Index during the 12-month calendar year | 18 | | preceding the
levy year, whichever is less. A taxing district | 19 | | may increase its extension
limitation for one or more levy | 20 | | years if that taxing district holds a referendum
before the | 21 | | levy date for the first levy year at which a majority of voters | 22 | | voting on the issue approves
adoption of a higher extension | 23 | | limitation. Referenda shall be conducted at a
regularly | 24 | | scheduled election in accordance with the Election Code. The | 25 | | question shall be presented in
substantially the following |
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| 1 | | manner for all elections held after March 21, 2006:
| 2 | | Shall the extension limitation under the Property Tax | 3 | | Extension Limitation Law for (insert the legal name, | 4 | | number, if any, and county or counties of the taxing | 5 | | district and geographic or other common name by which a | 6 | | school or community college district is known and referred | 7 | | to), Illinois, be increased from the lesser of 3.5% 5% or | 8 | | the percentage increase in the Consumer Price Index over | 9 | | the prior levy year to (insert the percentage of the | 10 | | proposed increase)% per year for (insert each levy year | 11 | | for which the increased extension limitation will apply)? | 12 | | The votes must be recorded as "Yes" or "No".
| 13 | | If a majority of voters voting on the issue approves the | 14 | | adoption of
the increase, the increase shall be applicable for | 15 | | each
levy year specified.
| 16 | | The ballot for any question submitted pursuant to this | 17 | | Section shall have printed thereon, but not as a part of the | 18 | | question submitted, only the following supplemental | 19 | | information (which shall be supplied to the election authority | 20 | | by the taxing district) in substantially the following form: | 21 | | (1) For the (insert the first levy year for which the | 22 | | increased extension
limitation will be applicable) levy | 23 | | year the approximate amount of the additional tax
| 24 | | extendable against property containing a single family | 25 | | residence and having a fair market
value at the time of the | 26 | | referendum of $100,000 is estimated to be $.... |
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| 1 | | (2) Based upon an average annual percentage increase | 2 | | (or decrease) in the
market value of such property of ...% | 3 | | (insert percentage equal to the average
annual percentage | 4 | | increase or decrease for the prior 3 levy years, at the | 5 | | time the
submission of the question is initiated by the | 6 | | taxing district, in the amount of (A) the
equalized | 7 | | assessed value of the taxable property in the taxing | 8 | | district less (B) the new
property included in the | 9 | | equalized assessed value), the approximate amount of the
| 10 | | additional tax extendable against such property for the | 11 | | ... levy year is estimated to be
$... and for the ... levy | 12 | | year is estimated to be $.... | 13 | | Paragraph (2) shall be included only if the increased | 14 | | extension limitation will be applicable for more than one year | 15 | | and shall list each levy year for which the increased | 16 | | extension limitation will be applicable. The additional tax | 17 | | shown for each levy year shall be the approximate dollar | 18 | | amount of the increase over the amount of the most recently | 19 | | completed extension at the time the submission of the question | 20 | | is initiated by the taxing district. The approximate amount of | 21 | | the additional tax extendable shown in paragraphs (1) and (2) | 22 | | shall be calculated by multiplying $100,000 (the fair market | 23 | | value of the property without regard to any property tax | 24 | | exemptions) by (i) the percentage level of assessment | 25 | | prescribed for that property by statute, or by ordinance of | 26 | | the county board in counties that classify property for |
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| 1 | | purposes of taxation in accordance with Section 4 of Article | 2 | | IX of the Illinois Constitution; (ii) the most recent final | 3 | | equalization factor certified to the county clerk by the | 4 | | Department of Revenue at the time the taxing district | 5 | | initiates the submission of the proposition to the electors; | 6 | | (iii) the last known aggregate extension base of the taxing | 7 | | district at the time the submission of the question is | 8 | | initiated by the taxing district; and (iv) the difference | 9 | | between the percentage increase proposed in the question and | 10 | | the lesser of 3.5% 5% or the percentage increase in the | 11 | | Consumer Price Index for the prior levy year (or an estimate of | 12 | | the percentage increase for the prior levy year if the | 13 | | increase is unavailable at the time the submission of the | 14 | | question is initiated by the taxing district); and dividing | 15 | | the result by the last known equalized assessed value of the | 16 | | taxing district at the time the submission of the question is | 17 | | initiated by the taxing district. This amendatory Act of the | 18 | | 97th General Assembly is intended to clarify the existing | 19 | | requirements of this Section, and shall not be construed to | 20 | | validate any prior non-compliant referendum language. Any | 21 | | notice required to be published in connection with the | 22 | | submission of the question shall also contain this | 23 | | supplemental information and shall not contain any other | 24 | | supplemental information. Any error, miscalculation, or | 25 | | inaccuracy in computing any amount set forth on the ballot or | 26 | | in the notice that is not deliberate shall not invalidate or |
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| 1 | | affect the validity of any proposition approved. Notice of the | 2 | | referendum shall be published and posted as otherwise required | 3 | | by law, and the submission of the question shall be initiated | 4 | | as provided by law.
| 5 | | The changes made to this Section by this amendatory Act of | 6 | | the 102nd General Assembly apply beginning with levy year | 7 | | 2022. | 8 | | (Source: P.A. 97-1087, eff. 8-24-12.)
| 9 | | (35 ILCS 200/18-212)
| 10 | | Sec. 18-212. Referendum on debt service extension base. A | 11 | | taxing district
may establish or increase its debt service | 12 | | extension base if
(i) that taxing district holds a referendum | 13 | | before the date on which the levy
must
be filed with the county | 14 | | clerk of the county or counties in which the taxing
district is | 15 | | situated and (ii) a majority of voters voting on the issue | 16 | | approves
the establishment of or increase in the debt service | 17 | | extension base. A debt service extension base established or | 18 | | increased by a referendum held pursuant to this Section after | 19 | | February 2, 2010, shall be increased each year, commencing | 20 | | with the first levy year beginning after the date of the | 21 | | referendum, by the lesser of 3.5% 5% or the percentage | 22 | | increase in the Consumer Price Index during the 12-month | 23 | | calendar year preceding the levy year if the optional language | 24 | | concerning the annual increase is included in the question | 25 | | submitted to the electors of the taxing district. Referenda
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| 1 | | under
this
Section shall be conducted at a regularly scheduled | 2 | | election in accordance with
the Election Code. The governing | 3 | | body of the taxing district shall certify the
question to the | 4 | | proper election authorities who shall submit the question to
| 5 | | the electors of the taxing district in substantially the | 6 | | following form:
| 7 | | "Shall the debt service extension base under the Property | 8 | | Tax Extension
Limitation Law for ... (taxing district | 9 | | name) ...
for payment of principal and interest on limited | 10 | | bonds be .... ((established at
$ ....) . (or) (increased
| 11 | | from $ .... to $ ....)) .. for the ..... levy year and all | 12 | | subsequent levy
years (optional language: , such debt | 13 | | service extension base to be increased each year by the | 14 | | lesser of 3.5% 5% or the percentage increase in the | 15 | | Consumer Price Index during the 12-month calendar year | 16 | | preceding the levy year)?"
| 17 | | Votes on the question shall be recorded as "Yes" or "No".
| 18 | | If a majority of voters voting on the issue approves the | 19 | | establishment of or
increase
in the debt service extension | 20 | | base, the establishment of or increase in the
debt
service | 21 | | extension base shall be applicable for the levy years | 22 | | specified.
| 23 | | The changes made to this Section by this amendatory Act of | 24 | | the 102nd General Assembly apply beginning with levy year | 25 | | 2022. | 26 | | (Source: P.A. 96-1202, eff. 7-22-10.)
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