Full Text of HB3644 103rd General Assembly
HB3644 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3644 Introduced 2/17/2023, by Rep. Fred Crespo SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/18-185 | | 35 ILCS 200/18-205 | | 35 ILCS 200/18-242 new | | 30 ILCS 805/8.47 new | |
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Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if, at the end of any levy year, a taxing district has reserves of 50% or more of its operating budget for that levy year, then, for the next levy year, "extension limitation" means 0% or the rate of increase approved by the voters. Preempts the power of home rule units to tax. Effective immediately.
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| | 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 and 18-205 and by adding Section 18-242 as | 6 | | follows:
| 7 | | (35 ILCS 200/18-185)
| 8 | | Sec. 18-185. Short title; definitions. This Division 5 | 9 | | may be cited as the
Property Tax Extension Limitation Law. As | 10 | | used in this Division 5:
| 11 | | "Consumer Price Index" means the Consumer Price Index for | 12 | | All Urban
Consumers for all items published by the United | 13 | | States Department of Labor.
| 14 | | "Extension limitation" means , except as otherwise provided
| 15 | | in this Section, (a) the lesser of 5% or the percentage | 16 | | increase
in the Consumer Price Index during the 12-month | 17 | | calendar year preceding the
levy year or (b) the rate of | 18 | | increase approved by voters under Section 18-205.
| 19 | | If, at the end of any levy year, any taxing district, as
| 20 | | defined in Section 1-150, has reserves of 50% or more of its
| 21 | | operating budget for that levy year, then, for the next levy
| 22 | | year, "extension limitation" means 0% or the rate of increase
| 23 | | approved by the voters under Section 18-205. |
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| 1 | | "Affected county" means a county of 3,000,000 or more | 2 | | inhabitants or a
county contiguous to a county of 3,000,000 or | 3 | | more inhabitants.
| 4 | | "Taxing district" has the same meaning provided in Section | 5 | | 1-150, except as
otherwise provided in this Section. For the | 6 | | 1991 through 1994 levy years only,
"taxing district" includes | 7 | | only each non-home rule taxing district having the
majority of | 8 | | its
1990 equalized assessed value within any county or | 9 | | counties contiguous to a
county with 3,000,000 or more | 10 | | inhabitants. Beginning with the 1995 levy
year, "taxing | 11 | | district" includes only each non-home rule taxing district
| 12 | | subject to this Law before the 1995 levy year and each non-home | 13 | | rule
taxing district not subject to this Law before the 1995 | 14 | | levy year having the
majority of its 1994 equalized assessed | 15 | | value in an affected county or
counties. Beginning with the | 16 | | levy year in
which this Law becomes applicable to a taxing | 17 | | district as
provided in Section 18-213, "taxing district" also | 18 | | includes those taxing
districts made subject to this Law as | 19 | | provided in Section 18-213. Beginning in levy year 2023,
| 20 | | "taxing district" also means any taxing district, as defined
| 21 | | in Section 1-150, that had reserves of 50% or more of its
| 22 | | operating budget at the end of the immediately preceding levy
| 23 | | year.
| 24 | | "Aggregate extension" for taxing districts to which this | 25 | | Law applied before
the 1995 levy year means the annual | 26 | | corporate extension for the taxing
district and those special |
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| 1 | | purpose extensions that are made annually for
the taxing | 2 | | district, excluding special purpose extensions: (a) made for | 3 | | the
taxing district to pay interest or principal on general | 4 | | obligation bonds
that were approved by referendum; (b) made | 5 | | for any taxing district to pay
interest or principal on | 6 | | general obligation bonds issued before October 1,
1991; (c) | 7 | | made for any taxing district to pay interest or principal on | 8 | | bonds
issued to refund or continue to refund those bonds | 9 | | issued before October 1,
1991; (d)
made for any taxing | 10 | | district to pay interest or principal on bonds
issued to | 11 | | refund or continue to refund bonds issued after October 1, | 12 | | 1991 that
were approved by referendum; (e)
made for any taxing | 13 | | district to pay interest
or principal on revenue bonds issued | 14 | | before October 1, 1991 for payment of
which a property tax levy | 15 | | or the full faith and credit of the unit of local
government is | 16 | | pledged; however, a tax for the payment of interest or | 17 | | principal
on those bonds shall be made only after the | 18 | | governing body of the unit of local
government finds that all | 19 | | other sources for payment are insufficient to make
those | 20 | | payments; (f) made for payments under a building commission | 21 | | lease when
the lease payments are for the retirement of bonds | 22 | | issued by the commission
before October 1, 1991, to pay for the | 23 | | building project; (g) made for payments
due under installment | 24 | | contracts entered into before October 1, 1991;
(h) made for | 25 | | payments of principal and interest on bonds issued under the
| 26 | | Metropolitan Water Reclamation District Act to finance |
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| 1 | | construction projects
initiated before October 1, 1991; (i) | 2 | | made for payments of principal and
interest on limited bonds, | 3 | | as defined in Section 3 of the Local Government Debt
Reform | 4 | | Act, in an amount not to exceed the debt service extension base | 5 | | less
the amount in items (b), (c), (e), and (h) of this | 6 | | definition for
non-referendum obligations, except obligations | 7 | | initially issued pursuant to
referendum; (j) made for payments | 8 | | of principal and interest on bonds
issued under Section 15 of | 9 | | the Local Government Debt Reform Act; (k)
made
by a school | 10 | | district that participates in the Special Education District | 11 | | of
Lake County, created by special education joint agreement | 12 | | under Section
10-22.31 of the School Code, for payment of the | 13 | | school district's share of the
amounts required to be | 14 | | contributed by the Special Education District of Lake
County | 15 | | to the Illinois Municipal Retirement Fund under Article 7 of | 16 | | the
Illinois Pension Code; the amount of any extension under | 17 | | this item (k) shall be
certified by the school district to the | 18 | | county clerk; (l) made to fund
expenses of providing joint | 19 | | recreational programs for persons with disabilities under
| 20 | | Section 5-8 of
the
Park District Code or Section 11-95-14 of | 21 | | the Illinois Municipal Code; (m) made for temporary relocation | 22 | | loan repayment purposes pursuant to Sections 2-3.77 and | 23 | | 17-2.2d of the School Code; (n) made for payment of principal | 24 | | and interest on any bonds issued under the authority of | 25 | | Section 17-2.2d of the School Code; (o) made for contributions | 26 | | to a firefighter's pension fund created under Article 4 of the |
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| 1 | | Illinois Pension Code, to the extent of the amount certified | 2 | | under item (5) of Section 4-134 of the Illinois Pension Code; | 3 | | and (p) made for road purposes in the first year after a | 4 | | township assumes the rights, powers, duties, assets, property, | 5 | | liabilities, obligations, and
responsibilities of a road | 6 | | district abolished under the provisions of Section 6-133 of | 7 | | the Illinois Highway Code.
| 8 | | "Aggregate extension" for the taxing districts to which | 9 | | this Law did not
apply before the 1995 levy year (except taxing | 10 | | districts subject to this Law
in
accordance with Section | 11 | | 18-213 or this amendatory Act of the 103rd General Assembly ) | 12 | | means the annual corporate extension for the
taxing district | 13 | | and those special purpose extensions that are made annually | 14 | | for
the taxing district, excluding special purpose extensions: | 15 | | (a) made for the
taxing district to pay interest or principal | 16 | | on general obligation bonds that
were approved by referendum; | 17 | | (b) made for any taxing district to pay interest
or principal | 18 | | on general obligation bonds issued before March 1, 1995; (c) | 19 | | made
for any taxing district to pay interest or principal on | 20 | | bonds issued to refund
or continue to refund those bonds | 21 | | issued before March 1, 1995; (d) made for any
taxing district | 22 | | to pay interest or principal on bonds issued to refund or
| 23 | | continue to refund bonds issued after March 1, 1995 that were | 24 | | approved by
referendum; (e) made for any taxing district to | 25 | | pay interest or principal on
revenue bonds issued before March | 26 | | 1, 1995 for payment of which a property tax
levy or the full |
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| 1 | | faith and credit of the unit of local government is pledged;
| 2 | | however, a tax for the payment of interest or principal on | 3 | | those bonds shall be
made only after the governing body of the | 4 | | unit of local government finds that
all other sources for | 5 | | payment are insufficient to make those payments; (f) made
for | 6 | | payments under a building commission lease when the lease | 7 | | payments are for
the retirement of bonds issued by the | 8 | | commission before March 1, 1995 to
pay for the building | 9 | | project; (g) made for payments due under installment
contracts | 10 | | entered into before March 1, 1995; (h) made for payments of
| 11 | | principal and interest on bonds issued under the Metropolitan | 12 | | Water Reclamation
District Act to finance construction | 13 | | projects initiated before October 1,
1991; (h-4) made for | 14 | | stormwater management purposes by the Metropolitan Water | 15 | | Reclamation District of Greater Chicago under Section 12 of | 16 | | the Metropolitan Water Reclamation District Act; (h-8) made | 17 | | for payments of principal and interest on bonds issued under | 18 | | Section 9.6a of the Metropolitan Water Reclamation District | 19 | | Act to make contributions to the pension fund established | 20 | | under Article 13 of the Illinois Pension Code; (i) made for | 21 | | payments of principal and interest on limited bonds,
as | 22 | | defined in Section 3 of the Local Government Debt Reform Act, | 23 | | in an amount
not to exceed the debt service extension base less | 24 | | the amount in items (b),
(c), and (e) of this definition for | 25 | | non-referendum obligations, except
obligations initially | 26 | | issued pursuant to referendum and bonds described in
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| 1 | | subsections (h) and (h-8) of this definition; (j) made for | 2 | | payments of
principal and interest on bonds issued under | 3 | | Section 15 of the Local Government
Debt Reform Act; (k) made | 4 | | for payments of principal and interest on bonds
authorized by | 5 | | Public Act 88-503 and issued under Section 20a of the Chicago
| 6 | | Park District Act for aquarium or
museum projects and bonds | 7 | | issued under Section 20a of the Chicago Park District Act for | 8 | | the purpose of making contributions to the pension fund | 9 | | established under Article 12 of the Illinois Pension Code; (l) | 10 | | made for payments of principal and interest on
bonds
| 11 | | authorized by Public Act 87-1191 or 93-601 and (i) issued | 12 | | pursuant to Section 21.2 of the Cook County Forest
Preserve | 13 | | District Act, (ii) issued under Section 42 of the Cook County
| 14 | | Forest Preserve District Act for zoological park projects, or | 15 | | (iii) issued
under Section 44.1 of the Cook County Forest | 16 | | Preserve District Act for
botanical gardens projects; (m) made
| 17 | | pursuant
to Section 34-53.5 of the School Code, whether levied | 18 | | annually or not;
(n) made to fund expenses of providing joint | 19 | | recreational programs for persons with disabilities under | 20 | | Section 5-8 of the Park
District Code or Section 11-95-14 of | 21 | | the Illinois Municipal Code;
(o) made by the
Chicago Park
| 22 | | District for recreational programs for persons with | 23 | | disabilities under subsection (c) of
Section
7.06 of the | 24 | | Chicago Park District Act; (p) made for contributions to a | 25 | | firefighter's pension fund created under Article 4 of the | 26 | | Illinois Pension Code, to the extent of the amount certified |
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| 1 | | under item (5) of Section 4-134 of the Illinois Pension Code; | 2 | | (q) made by Ford Heights School District 169 under Section | 3 | | 17-9.02 of the School Code; and (r) made for the purpose of | 4 | | making employer contributions to the Public School Teachers' | 5 | | Pension and Retirement Fund of Chicago under Section 34-53 of | 6 | | the School Code.
| 7 | | "Aggregate extension" for all taxing districts to which | 8 | | this Law applies in
accordance with Section 18-213, except for | 9 | | those taxing districts subject to
paragraph (2) of subsection | 10 | | (e) of Section 18-213, means the annual corporate
extension | 11 | | for the
taxing district and those special purpose extensions | 12 | | that are made annually for
the taxing district, excluding | 13 | | special purpose extensions: (a) made for the
taxing district | 14 | | to pay interest or principal on general obligation bonds that
| 15 | | were approved by referendum; (b) made for any taxing district | 16 | | to pay interest
or principal on general obligation bonds | 17 | | issued before the date on which the
referendum making this
Law | 18 | | applicable to the taxing district is held; (c) made
for any | 19 | | taxing district to pay interest or principal on bonds issued | 20 | | to refund
or continue to refund those bonds issued before the | 21 | | date on which the
referendum making this Law
applicable to the | 22 | | taxing district is held;
(d) made for any
taxing district to | 23 | | pay interest or principal on bonds issued to refund or
| 24 | | continue to refund bonds issued after the date on which the | 25 | | referendum making
this Law
applicable to the taxing district | 26 | | is held if the bonds were approved by
referendum after the date |
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| 1 | | on which the referendum making this Law
applicable to the | 2 | | taxing district is held; (e) made for any
taxing district to | 3 | | pay interest or principal on
revenue bonds issued before the | 4 | | date on which the referendum making this Law
applicable to the
| 5 | | taxing district is held for payment of which a property tax
| 6 | | levy or the full faith and credit of the unit of local | 7 | | government is pledged;
however, a tax for the payment of | 8 | | interest or principal on those bonds shall be
made only after | 9 | | the governing body of the unit of local government finds that
| 10 | | all other sources for payment are insufficient to make those | 11 | | payments; (f) made
for payments under a building commission | 12 | | lease when the lease payments are for
the retirement of bonds | 13 | | issued by the commission before the date on which the
| 14 | | referendum making this
Law applicable to the taxing district | 15 | | is held to
pay for the building project; (g) made for payments | 16 | | due under installment
contracts entered into before the date | 17 | | on which the referendum making this Law
applicable to
the | 18 | | taxing district is held;
(h) made for payments
of principal | 19 | | and interest on limited bonds,
as defined in Section 3 of the | 20 | | Local Government Debt Reform Act, in an amount
not to exceed | 21 | | the debt service extension base less the amount in items (b),
| 22 | | (c), and (e) of this definition for non-referendum | 23 | | obligations, except
obligations initially issued pursuant to | 24 | | referendum; (i) made for payments
of
principal and interest on | 25 | | bonds issued under Section 15 of the Local Government
Debt | 26 | | Reform Act;
(j)
made for a qualified airport authority to pay |
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| 1 | | interest or principal on
general obligation bonds issued for | 2 | | the purpose of paying obligations due
under, or financing | 3 | | airport facilities required to be acquired, constructed,
| 4 | | installed or equipped pursuant to, contracts entered into | 5 | | before March
1, 1996 (but not including any amendments to such | 6 | | a contract taking effect on
or after that date); (k) made to | 7 | | fund expenses of providing joint
recreational programs for | 8 | | persons with disabilities under Section 5-8 of
the
Park | 9 | | District Code or Section 11-95-14 of the Illinois Municipal | 10 | | Code; (l) made for contributions to a firefighter's pension | 11 | | fund created under Article 4 of the Illinois Pension Code, to | 12 | | the extent of the amount certified under item (5) of Section | 13 | | 4-134 of the Illinois Pension Code; and (m) made for the taxing | 14 | | district to pay interest or principal on general obligation | 15 | | bonds issued pursuant to Section 19-3.10 of the School Code.
| 16 | | "Aggregate extension" for all taxing districts to which | 17 | | this Law applies in
accordance with paragraph (2) of | 18 | | subsection (e) of Section 18-213 or this amendatory Act of the
| 19 | | 103rd General Assembly means the
annual corporate extension | 20 | | for the
taxing district and those special purpose extensions | 21 | | that are made annually for
the taxing district, excluding | 22 | | special purpose extensions: (a) made for the
taxing district | 23 | | to pay interest or principal on general obligation bonds that
| 24 | | were approved by referendum; (b) made for any taxing district | 25 | | to pay interest
or principal on general obligation bonds | 26 | | issued before March 7, 1997 (the effective date of Public Act |
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| 1 | | 89-718);
(c) made
for any taxing district to pay interest or | 2 | | principal on bonds issued to refund
or continue to refund | 3 | | those bonds issued before March 7, 1997 (the effective date
of | 4 | | Public Act 89-718);
(d) made for any
taxing district to pay | 5 | | interest or principal on bonds issued to refund or
continue to | 6 | | refund bonds issued after March 7, 1997 (the effective date of | 7 | | Public Act 89-718) if the bonds were approved by referendum | 8 | | after March 7, 1997 (the effective date of Public Act 89-718);
| 9 | | (e) made for any
taxing district to pay interest or principal | 10 | | on
revenue bonds issued before March 7, 1997 (the effective | 11 | | date of Public Act 89-718)
for payment of which a property tax
| 12 | | levy or the full faith and credit of the unit of local | 13 | | government is pledged;
however, a tax for the payment of | 14 | | interest or principal on those bonds shall be
made only after | 15 | | the governing body of the unit of local government finds that
| 16 | | all other sources for payment are insufficient to make those | 17 | | payments; (f) made
for payments under a building commission | 18 | | lease when the lease payments are for
the retirement of bonds | 19 | | issued by the commission before March 7, 1997 (the effective | 20 | | date
of Public Act 89-718)
to
pay for the building project; (g) | 21 | | made for payments due under installment
contracts entered into | 22 | | before March 7, 1997 (the effective date of Public Act | 23 | | 89-718);
(h) made for payments
of principal and interest on | 24 | | limited bonds,
as defined in Section 3 of the Local Government | 25 | | Debt Reform Act, in an amount
not to exceed the debt service | 26 | | extension base less the amount in items (b),
(c), and (e) of |
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| 1 | | this definition for non-referendum obligations, except
| 2 | | obligations initially issued pursuant to referendum; (i) made | 3 | | for payments
of
principal and interest on bonds issued under | 4 | | Section 15 of the Local Government
Debt Reform Act;
(j)
made | 5 | | for a qualified airport authority to pay interest or principal | 6 | | on
general obligation bonds issued for the purpose of paying | 7 | | obligations due
under, or financing airport facilities | 8 | | required to be acquired, constructed,
installed or equipped | 9 | | pursuant to, contracts entered into before March
1, 1996 (but | 10 | | not including any amendments to such a contract taking effect | 11 | | on
or after that date); (k) made to fund expenses of providing | 12 | | joint
recreational programs for persons with disabilities | 13 | | under Section 5-8 of
the
Park District Code or Section | 14 | | 11-95-14 of the Illinois Municipal Code; and (l) made for | 15 | | contributions to a firefighter's pension fund created under | 16 | | Article 4 of the Illinois Pension Code, to the extent of the | 17 | | amount certified under item (5) of Section 4-134 of the | 18 | | Illinois Pension Code.
| 19 | | "Debt service extension base" means an amount equal to | 20 | | that portion of the
extension for a taxing district for the | 21 | | 1994 levy year, or for those taxing
districts subject to this | 22 | | Law in accordance with Section 18-213, except for
those | 23 | | subject to paragraph (2) of subsection (e) of Section 18-213, | 24 | | for the
levy
year in which the referendum making this Law | 25 | | applicable to the taxing district
is held, or for those taxing | 26 | | districts subject to this Law in accordance with
paragraph (2) |
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| 1 | | of subsection (e) of Section 18-213 for the 1996 levy year,
| 2 | | constituting an
extension for payment of principal and | 3 | | interest on bonds issued by the taxing
district without | 4 | | referendum, but not including excluded non-referendum bonds. | 5 | | For park districts (i) that were first
subject to this Law in | 6 | | 1991 or 1995 and (ii) whose extension for the 1994 levy
year | 7 | | for the payment of principal and interest on bonds issued by | 8 | | the park
district without referendum (but not including | 9 | | excluded non-referendum bonds)
was less than 51% of the amount | 10 | | for the 1991 levy year constituting an
extension for payment | 11 | | of principal and interest on bonds issued by the park
district | 12 | | without referendum (but not including excluded non-referendum | 13 | | bonds),
"debt service extension base" means an amount equal to | 14 | | that portion of the
extension for the 1991 levy year | 15 | | constituting an extension for payment of
principal and | 16 | | interest on bonds issued by the park district without | 17 | | referendum
(but not including excluded non-referendum bonds). | 18 | | A debt service extension base established or increased at any | 19 | | time pursuant to any provision of this Law, except Section | 20 | | 18-212, shall be increased each year commencing with the later | 21 | | of (i) the 2009 levy year or (ii) the first levy year in which | 22 | | this Law becomes applicable to the taxing district, by the | 23 | | lesser of 5% or the percentage increase in the Consumer Price | 24 | | Index during the 12-month calendar year preceding the levy | 25 | | year. The debt service extension
base may be established or | 26 | | increased as provided under Section 18-212.
"Excluded |
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| 1 | | non-referendum bonds" means (i) bonds authorized by Public
Act | 2 | | 88-503 and issued under Section 20a of the Chicago Park | 3 | | District Act for
aquarium and museum projects; (ii) bonds | 4 | | issued under Section 15 of the
Local Government Debt Reform | 5 | | Act; or (iii) refunding obligations issued
to refund or to | 6 | | continue to refund obligations initially issued pursuant to
| 7 | | referendum.
| 8 | | "Special purpose extensions" include, but are not limited | 9 | | to, extensions
for levies made on an annual basis for | 10 | | unemployment and workers'
compensation, self-insurance, | 11 | | contributions to pension plans, and extensions
made pursuant | 12 | | to Section 6-601 of the Illinois Highway Code for a road
| 13 | | district's permanent road fund whether levied annually or not. | 14 | | The
extension for a special service area is not included in the
| 15 | | aggregate extension.
| 16 | | "Aggregate extension base" means the taxing district's | 17 | | last preceding
aggregate extension as adjusted under Sections | 18 | | 18-135, 18-215,
18-230, 18-206, and 18-233. Beginning with | 19 | | levy year 2022, for taxing districts that are specified in | 20 | | Section 18-190.7, the taxing district's aggregate extension | 21 | | base shall be calculated as provided in Section 18-190.7.
An | 22 | | adjustment under Section 18-135 shall be made for the 2007 | 23 | | levy year and all subsequent levy years whenever one or more | 24 | | counties within which a taxing district is located (i) used | 25 | | estimated valuations or rates when extending taxes in the | 26 | | taxing district for the last preceding levy year that resulted |
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| 1 | | in the over or under extension of taxes, or (ii) increased or | 2 | | decreased the tax extension for the last preceding levy year | 3 | | as required by Section 18-135(c). Whenever an adjustment is | 4 | | required under Section 18-135, the aggregate extension base of | 5 | | the taxing district shall be equal to the amount that the | 6 | | aggregate extension of the taxing district would have been for | 7 | | the last preceding levy year if either or both (i) actual, | 8 | | rather than estimated, valuations or rates had been used to | 9 | | calculate the extension of taxes for the last levy year, or | 10 | | (ii) the tax extension for the last preceding levy year had not | 11 | | been adjusted as required by subsection (c) of Section 18-135.
| 12 | | Notwithstanding any other provision of law, for levy year | 13 | | 2012, the aggregate extension base for West Northfield School | 14 | | District No. 31 in Cook County shall be $12,654,592. | 15 | | Notwithstanding any other provision of law, for levy year | 16 | | 2022, the aggregate extension base of a home equity assurance | 17 | | program that levied at least $1,000,000 in property taxes in | 18 | | levy year 2019 or 2020 under the Home Equity Assurance Act | 19 | | shall be the amount that the program's aggregate extension | 20 | | base for levy year 2021 would have been if the program had | 21 | | levied a property tax for levy year 2021. | 22 | | "Levy year" has the same meaning as "year" under Section
| 23 | | 1-155.
| 24 | | "New property" means (i) the assessed value, after final | 25 | | board of review or
board of appeals action, of new | 26 | | improvements or additions to existing
improvements on any |
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| 1 | | parcel of real property that increase the assessed value of
| 2 | | that real property during the levy year multiplied by the | 3 | | equalization factor
issued by the Department under Section | 4 | | 17-30, (ii) the assessed value, after
final board of review or | 5 | | board of appeals action, of real property not exempt
from real | 6 | | estate taxation, which real property was exempt from real | 7 | | estate
taxation for any portion of the immediately preceding | 8 | | levy year, multiplied by
the equalization factor issued by the | 9 | | Department under Section 17-30, including the assessed value, | 10 | | upon final stabilization of occupancy after new construction | 11 | | is complete, of any real property located within the | 12 | | boundaries of an otherwise or previously exempt military | 13 | | reservation that is intended for residential use and owned by | 14 | | or leased to a private corporation or other entity,
(iii) in | 15 | | counties that classify in accordance with Section 4 of Article
| 16 | | IX of the
Illinois Constitution, an incentive property's | 17 | | additional assessed value
resulting from a
scheduled increase | 18 | | in the level of assessment as applied to the first year
final | 19 | | board of
review market value, and (iv) any increase in | 20 | | assessed value due to oil or gas production from an oil or gas | 21 | | well required to be permitted under the Hydraulic Fracturing | 22 | | Regulatory Act that was not produced in or accounted for | 23 | | during the previous levy year.
In addition, the county clerk | 24 | | in a county containing a population of
3,000,000 or more shall | 25 | | include in the 1997
recovered tax increment value for any | 26 | | school district, any recovered tax
increment value that was |
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| 1 | | applicable to the 1995 tax year calculations.
| 2 | | "Qualified airport authority" means an airport authority | 3 | | organized under
the Airport Authorities Act and located in a | 4 | | county bordering on the State of
Wisconsin and having a | 5 | | population in excess of 200,000 and not greater than
500,000.
| 6 | | "Recovered tax increment value" means, except as otherwise | 7 | | provided in this
paragraph, the amount of the current year's | 8 | | equalized assessed value, in the
first year after a | 9 | | municipality terminates
the designation of an area as a | 10 | | redevelopment project area previously
established under the | 11 | | Tax Increment Allocation Redevelopment Act in the Illinois
| 12 | | Municipal Code, previously established under the Industrial | 13 | | Jobs Recovery Law
in the Illinois Municipal Code, previously | 14 | | established under the Economic Development Project Area Tax | 15 | | Increment Act of 1995, or previously established under the | 16 | | Economic
Development Area Tax Increment Allocation Act, of | 17 | | each taxable lot, block,
tract, or parcel of real property in | 18 | | the redevelopment project area over and
above the initial | 19 | | equalized assessed value of each property in the
redevelopment | 20 | | project area.
For the taxes which are extended for the 1997 | 21 | | levy year, the recovered tax
increment value for a non-home | 22 | | rule taxing district that first became subject
to this Law for | 23 | | the 1995 levy year because a majority of its 1994 equalized
| 24 | | assessed value was in an affected county or counties shall be | 25 | | increased if a
municipality terminated the designation of an | 26 | | area in 1993 as a redevelopment
project area previously |
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| 1 | | established under the Tax Increment Allocation Redevelopment
| 2 | | Act in the Illinois Municipal Code, previously established | 3 | | under
the Industrial Jobs Recovery Law in the Illinois | 4 | | Municipal Code, or previously
established under the Economic | 5 | | Development Area Tax Increment Allocation Act,
by an amount | 6 | | equal to the 1994 equalized assessed value of each taxable | 7 | | lot,
block, tract, or parcel of real property in the | 8 | | redevelopment project area over
and above the initial | 9 | | equalized assessed value of each property in the
redevelopment | 10 | | project area.
In the first year after a municipality
removes a | 11 | | taxable lot, block, tract, or parcel of real property from a
| 12 | | redevelopment project area established under the Tax Increment | 13 | | Allocation Redevelopment
Act in the Illinois
Municipal Code, | 14 | | the Industrial Jobs Recovery Law
in the Illinois Municipal | 15 | | Code, or the Economic
Development Area Tax Increment | 16 | | Allocation Act, "recovered tax increment value"
means the | 17 | | amount of the current year's equalized assessed value of each | 18 | | taxable
lot, block, tract, or parcel of real property removed | 19 | | from the redevelopment
project area over and above the initial | 20 | | equalized assessed value of that real
property before removal | 21 | | from the redevelopment project area.
| 22 | | Except as otherwise provided in this Section, "limiting | 23 | | rate" means a
fraction the numerator of which is the last
| 24 | | preceding aggregate extension base times an amount equal to | 25 | | one plus the
extension limitation defined in this Section and | 26 | | the denominator of which
is the current year's equalized |
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| 1 | | assessed value of all real property in the
territory under the | 2 | | jurisdiction of the taxing district during the prior
levy | 3 | | year. For those taxing districts that reduced their aggregate
| 4 | | extension for the last preceding levy year, except for school | 5 | | districts that reduced their extension for educational | 6 | | purposes pursuant to Section 18-206, the highest aggregate | 7 | | extension
in any of the last 3 preceding levy years shall be | 8 | | used for the purpose of
computing the limiting rate. The | 9 | | denominator shall not include new
property or the recovered | 10 | | tax increment
value.
If a new rate, a rate decrease, or a | 11 | | limiting rate increase has been approved at an election held | 12 | | after March 21, 2006, then (i) the otherwise applicable | 13 | | limiting rate shall be increased by the amount of the new rate | 14 | | or shall be reduced by the amount of the rate decrease, as the | 15 | | case may be, or (ii) in the case of a limiting rate increase, | 16 | | the limiting rate shall be equal to the rate set forth
in the | 17 | | proposition approved by the voters for each of the years | 18 | | specified in the proposition, after
which the limiting rate of | 19 | | the taxing district shall be calculated as otherwise provided. | 20 | | In the case of a taxing district that obtained referendum | 21 | | approval for an increased limiting rate on March 20, 2012, the | 22 | | limiting rate for tax year 2012 shall be the rate that | 23 | | generates the approximate total amount of taxes extendable for | 24 | | that tax year, as set forth in the proposition approved by the | 25 | | voters; this rate shall be the final rate applied by the county | 26 | | clerk for the aggregate of all capped funds of the district for |
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| 1 | | tax year 2012.
| 2 | | (Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21; | 3 | | 102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff. | 4 | | 4-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22; revised | 5 | | 8-29-22.)
| 6 | | (35 ILCS 200/18-205)
| 7 | | Sec. 18-205. Referendum to increase the extension | 8 | | limitation. A taxing
district is limited to an extension | 9 | | limitation as defined in Section 18-185 of 5% or the | 10 | | percentage increase
in the Consumer Price Index during the | 11 | | 12-month calendar year preceding the
levy year, whichever is | 12 | | less . A taxing district may increase its extension
limitation | 13 | | for one or more levy years if that taxing district holds a | 14 | | referendum
before the levy date for the first levy year at | 15 | | which a majority of voters voting on the issue approves
| 16 | | adoption of a higher extension limitation. Referenda shall be | 17 | | conducted at a
regularly scheduled election in accordance with | 18 | | the Election Code. The question shall be presented in
| 19 | | substantially the following manner for all elections held | 20 | | after March 21, 2006 :
| 21 | | Shall the extension limitation under the Property Tax | 22 | | Extension Limitation Law for (insert the legal name, | 23 | | number, if any, and county or counties of the taxing | 24 | | district and geographic or other common name by which a | 25 | | school or community college district is known and referred |
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| 1 | | to), Illinois, be increased from the lesser of 5% or the | 2 | | percentage increase in the Consumer Price Index over the | 3 | | prior levy year to (insert the percentage of the proposed | 4 | | increase)% per year for (insert each levy year for which | 5 | | the increased extension limitation will apply)? | 6 | | In the case of a taxing district that had reserves of 50% | 7 | | or more of its operating budget at the end of the immediately | 8 | | preceding levy year, the question shall be presented in
| 9 | | substantially the following manner: | 10 | | Shall the extension limitation under the Property Tax | 11 | | Extension Limitation Law for (insert the legal name, | 12 | | number, if any, and county or counties of the taxing | 13 | | district and geographic or other common name by which a | 14 | | school or community college district is known and referred | 15 | | to), Illinois, be increased from 0% to (insert the | 16 | | percentage of the proposed increase)% per year for (insert | 17 | | each levy year for which the increased extension | 18 | | limitation will apply)? | 19 | | The votes must be recorded as "Yes" or "No".
| 20 | | If a majority of voters voting on the issue approves the | 21 | | adoption of
the increase, the increase shall be applicable for | 22 | | each
levy year specified.
| 23 | | The ballot for any question submitted pursuant to this | 24 | | Section shall have printed thereon, but not as a part of the | 25 | | question submitted, only the following supplemental | 26 | | information (which shall be supplied to the election authority |
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| 1 | | by the taxing district) in substantially the following form: | 2 | | (1) For the (insert the first levy year for which the | 3 | | increased extension
limitation will be applicable) levy | 4 | | year the approximate amount of the additional tax
| 5 | | extendable against property containing a single family | 6 | | residence and having a fair market
value at the time of the | 7 | | referendum of $100,000 is estimated to be $.... | 8 | | (2) Based upon an average annual percentage increase | 9 | | (or decrease) in the
market value of such property of ...% | 10 | | (insert percentage equal to the average
annual percentage | 11 | | increase or decrease for the prior 3 levy years, at the | 12 | | time the
submission of the question is initiated by the | 13 | | taxing district, in the amount of (A) the
equalized | 14 | | assessed value of the taxable property in the taxing | 15 | | district less (B) the new
property included in the | 16 | | equalized assessed value), the approximate amount of the
| 17 | | additional tax extendable against such property for the | 18 | | ... levy year is estimated to be
$... and for the ... levy | 19 | | year is estimated to be $.... | 20 | | Paragraph (2) shall be included only if the increased | 21 | | extension limitation will be applicable for more than one year | 22 | | and shall list each levy year for which the increased | 23 | | extension limitation will be applicable. The additional tax | 24 | | shown for each levy year shall be the approximate dollar | 25 | | amount of the increase over the amount of the most recently | 26 | | completed extension at the time the submission of the question |
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| 1 | | is initiated by the taxing district. The approximate amount of | 2 | | the additional tax extendable shown in paragraphs (1) and (2) | 3 | | shall be calculated by multiplying $100,000 (the fair market | 4 | | value of the property without regard to any property tax | 5 | | exemptions) by (i) the percentage level of assessment | 6 | | prescribed for that property by statute, or by ordinance of | 7 | | the county board in counties that classify property for | 8 | | purposes of taxation in accordance with Section 4 of Article | 9 | | IX of the Illinois Constitution; (ii) the most recent final | 10 | | equalization factor certified to the county clerk by the | 11 | | Department of Revenue at the time the taxing district | 12 | | initiates the submission of the proposition to the electors; | 13 | | (iii) the last known aggregate extension base of the taxing | 14 | | district at the time the submission of the question is | 15 | | initiated by the taxing district; and (iv) the difference | 16 | | between the percentage increase proposed in the question and | 17 | | (A) the lesser of 5% or the percentage increase in the Consumer | 18 | | Price Index for the prior levy year (or an estimate of the | 19 | | percentage increase for the prior levy year if the increase is | 20 | | unavailable at the time the submission of the question is | 21 | | initiated by the taxing district) or (B) 0%, as applicable ; | 22 | | and dividing the result by the last known equalized assessed | 23 | | value of the taxing district at the time the submission of the | 24 | | question is initiated by the taxing district. This amendatory | 25 | | Act of the 97th General Assembly is intended to clarify the | 26 | | existing requirements of this Section, and shall not be |
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| 1 | | construed to validate any prior non-compliant referendum | 2 | | language. Any notice required to be published in connection | 3 | | with the submission of the question shall also contain this | 4 | | supplemental information and shall not contain any other | 5 | | supplemental information. Any error, miscalculation, or | 6 | | inaccuracy in computing any amount set forth on the ballot or | 7 | | in the notice that is not deliberate shall not invalidate or | 8 | | affect the validity of any proposition approved. Notice of the | 9 | | referendum shall be published and posted as otherwise required | 10 | | by law, and the submission of the question shall be initiated | 11 | | as provided by law.
| 12 | | (Source: P.A. 97-1087, eff. 8-24-12.)
| 13 | | (35 ILCS 200/18-242 new) | 14 | | Sec. 18-242. Home rule. This Division 5 is a limitation, | 15 | | under
subsection
(g) of Section 6 of Article VII of the | 16 | | Illinois Constitution, on the power of
home rule units to tax. | 17 | | Section 90. The State Mandates Act is amended by adding | 18 | | Section 8.47 as follows: | 19 | | (30 ILCS 805/8.47 new) | 20 | | Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and | 21 | | 8 of this Act, no reimbursement by the State is required for | 22 | | the implementation of any mandate created by this amendatory | 23 | | Act of the 103rd General Assembly.
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law. |
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