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90_HB1616 35 ILCS 200/18-185 Amends the Property Tax Extension Limitation Law within the Property Tax Code to exclude from the definition of "aggregate extension" taxes levied by school districts for purposes of fire prevention, safety, energy conservation, and school security. Effective immediately. LRB9002427KDcc LRB9002427KDcc 1 AN ACT to amend the Property Tax Code by changing Section 2 18-185. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Property Tax Code is amended by changing 6 Section 18-185 as follows: 7 (35 ILCS 200/18-185) 8 Sec. 18-185. Short title; definitions. This Section and 9 Sections 18-190 through 18-245 may be cited as the Property 10 Tax Extension Limitation Law. As used in Sections 18-190 11 through 18-245: 12 "Consumer Price Index" means the Consumer Price Index for 13 All Urban Consumers for all items published by the United 14 States Department of Labor. 15 "Extension limitation" means (a) the lesser of 5% or the 16 percentage increase in the Consumer Price Index during the 17 12-month calendar year preceding the levy year or (b) the 18 rate of increase approved by voters under Section 18-205. 19 "Affected county" means a county of 3,000,000 or more 20 inhabitants or a county contiguous to a county of 3,000,000 21 or more inhabitants. 22 "Taxing district" has the same meaning provided in 23 Section 1-150, except as otherwise provided in this Section. 24 For the 1991 through 1994 levy years only, "taxing district" 25 includes only each non-home rule taxing district having the 26 majority of its 1990 equalized assessed value within any 27 county or counties contiguous to a county with 3,000,000 or 28 more inhabitants. Beginning with the 1995 levy year, "taxing 29 district" includes only each non-home rule taxing district 30 subject to this Law before the 1995 levy year and each 31 non-home rule taxing district not subject to this Law before -2- LRB9002427KDcc 1 the 1995 levy year having the majority of its 1994 equalized 2 assessed value in an affected county or counties. Beginning 3 with the levy year in which this Law becomes applicable to a 4 taxing district as provided in Section 18-213, "taxing 5 district" also includes those taxing districts made subject 6 to this Law as provided in Section 18-213. 7 "Aggregate extension" for taxing districts to which this 8 Law applied before the 1995 levy year means the annual 9 corporate extension for the taxing district and those special 10 purpose extensions that are made annually for the taxing 11 district, excluding special purpose extensions: (a) made for 12 the taxing district to pay interest or principal on general 13 obligation bonds that were approved by referendum; (b) made 14 for any taxing district to pay interest or principal on 15 general obligation bonds issued before October 1, 1991; (c) 16 made for any taxing district to pay interest or principal on 17 bonds issued to refund or continue to refund those bonds 18 issued before October 1, 1991; (d) made for any taxing 19 district to pay interest or principal on bonds issued to 20 refund or continue to refund bonds issued after October 1, 21 1991 that were approved by referendum; (e) made for any 22 taxing district to pay interest or principal on revenue bonds 23 issued before October 1, 1991 for payment of which a property 24 tax levy or the full faith and credit of the unit of local 25 government is pledged; however, a tax for the payment of 26 interest or principal on those bonds shall be made only after 27 the governing body of the unit of local government finds that 28 all other sources for payment are insufficient to make those 29 payments; (f) made for payments under a building commission 30 lease when the lease payments are for the retirement of bonds 31 issued by the commission before October 1, 1991, to pay for 32 the building project; (g) made for payments due under 33 installment contracts entered into before October 1, 1991; 34 (h) made for payments of principal and interest on bonds -3- LRB9002427KDcc 1 issued under the Metropolitan Water Reclamation District Act 2 to finance construction projects initiated before October 1, 3 1991; (i) made for payments of principal and interest on 4 limited bonds, as defined in Section 3 of the Local 5 Government Debt Reform Act, in an amount not to exceed the 6 debt service extension base less the amount in items (b), 7 (c), (e), and (h) of this definition for non-referendum 8 obligations, except obligations initially issued pursuant to 9 referendum;and(j) made for payments of principal and 10 interest on bonds issued under Section 15 of the Local 11 Government Debt Reform Act; and (k) made under Section 12 17-2.11 of the School Code. 13 "Aggregate extension" for the taxing districts to which 14 this Law did not apply before the 1995 levy year (except 15 taxing districts subject to this Law in accordance with 16 Section 18-213) means the annual corporate extension for the 17 taxing district and those special purpose extensions that are 18 made annually for the taxing district, excluding special 19 purpose extensions: (a) made for the taxing district to pay 20 interest or principal on general obligation bonds that were 21 approved by referendum; (b) made for any taxing district to 22 pay interest or principal on general obligation bonds issued 23 before March 1, 1995; (c) made for any taxing district to pay 24 interest or principal on bonds issued to refund or continue 25 to refund those bonds issued before March 1, 1995; (d) made 26 for any taxing district to pay interest or principal on bonds 27 issued to refund or continue to refund bonds issued after 28 March 1, 1995 that were approved by referendum; (e) made for 29 any taxing district to pay interest or principal on revenue 30 bonds issued before March 1, 1995 for payment of which a 31 property tax levy or the full faith and credit of the unit of 32 local government is pledged; however, a tax for the payment 33 of interest or principal on those bonds shall be made only 34 after the governing body of the unit of local government -4- LRB9002427KDcc 1 finds that all other sources for payment are insufficient to 2 make those payments; (f) made for payments under a building 3 commission lease when the lease payments are for the 4 retirement of bonds issued by the commission before March 1, 5 1995 to pay for the building project; (g) made for payments 6 due under installment contracts entered into before March 1, 7 1995; (h) made for payments of principal and interest on 8 bonds issued under the Metropolitan Water Reclamation 9 District Act to finance construction projects initiated 10 before October 1, 1991; (i) made for payments of principal 11 and interest on limited bonds, as defined in Section 3 of the 12 Local Government Debt Reform Act, in an amount not to exceed 13 the debt service extension base less the amount in items (b), 14 (c), (e), and (h) of this definition for non-referendum 15 obligations, except obligations initially issued pursuant to 16 referendum; (j) made for payments of principal and interest 17 on bonds issued under Section 15 of the Local Government Debt 18 Reform Act; (k) made for payments of principal and interest 19 on bonds authorized by Public Act 88-503 and issued under 20 Section 20a of the Chicago Park District Act for aquarium or 21 museum projects;and(l) made for payments of principal and 22 interest on bonds authorized by Public Act 87-1191 and issued 23 under Section 42 of the Cook County Forest Preserve District 24 Act for zoological park projects; and (m) made under Section 25 17-2.11 of the School Code. 26 "Aggregate extension" for all taxing districts to which 27 this Law applies in accordance with Section 18-213 means the 28 annual corporate extension for the taxing district and those 29 special purpose extensions that are made annually for the 30 taxing district, excluding special purpose extensions: (a) 31 made for the taxing district to pay interest or principal on 32 general obligation bonds that were approved by referendum; 33 (b) made for any taxing district to pay interest or principal 34 on general obligation bonds issued before the date on which -5- LRB9002427KDcc 1 the referendum making this Law applicable to the taxing 2 district is held; (c) made for any taxing district to pay 3 interest or principal on bonds issued to refund or continue 4 to refund those bonds issued before the date on which the 5 referendum making this Law applicable to the taxing district 6 is held; (d) made for any taxing district to pay interest or 7 principal on bonds issued to refund or continue to refund 8 bonds issued after the date on which the referendum making 9 this Law applicable to the taxing district is held if the 10 bonds were approved by referendum after the date on which the 11 referendum making this Law applicable to the taxing district 12 is held; (e) made for any taxing district to pay interest or 13 principal on revenue bonds issued before the date on which 14 the referendum making this Law applicable to the taxing 15 district is held for payment of which a property tax levy or 16 the full faith and credit of the unit of local government is 17 pledged; however, a tax for the payment of interest or 18 principal on those bonds shall be made only after the 19 governing body of the unit of local government finds that all 20 other sources for payment are insufficient to make those 21 payments; (f) made for payments under a building commission 22 lease when the lease payments are for the retirement of bonds 23 issued by the commission before the date on which the 24 referendum making this Law applicable to the taxing district 25 is held to pay for the building project; (g) made for 26 payments due under installment contracts entered into before 27 the date on which the referendum making this Law applicable 28 to the taxing district is held; (h) made for payments of 29 principal and interest on limited bonds, as defined in 30 Section 3 of the Local Government Debt Reform Act, in an 31 amount not to exceed the debt service extension base less the 32 amount in items (b), (c), and (e) of this definition for 33 non-referendum obligations, except obligations initially 34 issued pursuant to referendum; (i) made for payments of -6- LRB9002427KDcc 1 principal and interest on bonds issued under Section 15 of 2 the Local Government Debt Reform Act;and(j) made for a 3 qualified airport authority to pay interest or principal on 4 general obligation bonds issued for the purpose of paying 5 obligations due under, or financing airport facilities 6 required to be acquired, constructed, installed or equipped 7 pursuant to, contracts entered into before March 1, 1996 (but 8 not including any amendments to such a contract taking effect 9 on or after that date); and (k) made under Section 17-2.11 of 10 the School Code. 11 "Debt service extension base" means an amount equal to 12 that portion of the extension for a taxing district for the 13 1994 levy year, or for those taxing districts subject to this 14 Law in accordance with Section 18-213 for the levy year in 15 which the referendum making this Law applicable to the taxing 16 district is held, constituting an extension for payment of 17 principal and interest on bonds issued by the taxing district 18 without referendum, but not including (i) bonds authorized by 19 Public Act 88-503 and issued under Section 20a of the Chicago 20 Park District Act for aquarium and museum projects; (ii) 21 bonds issued under Section 15 of the Local Government Debt 22 Reform Act; or (iii) refunding obligations issued to refund 23 or to continue to refund obligations initially issued 24 pursuant to referendum. The debt service extension base may 25 be established or increased as provided under Section 18-212. 26 "Special purpose extensions" include, but are not limited 27 to, extensions for levies made on an annual basis for 28 unemployment and workers' compensation, self-insurance, 29 contributions to pension plans, and extensions made pursuant 30 to Section 6-601 of the Illinois Highway Code for a road 31 district's permanent road fund whether levied annually or 32 not. The extension for a special service area is not 33 included in the aggregate extension. 34 "Aggregate extension base" means the taxing district's -7- LRB9002427KDcc 1 last preceding aggregate extension as adjusted under Sections 2 18-215 through 18-230. 3 "Levy year" has the same meaning as "year" under Section 4 1-155. 5 "New property" means (i) the assessed value, after final 6 board of review or board of appeals action, of new 7 improvements or additions to existing improvements on any 8 parcel of real property that increase the assessed value of 9 that real property during the levy year multiplied by the 10 equalization factor issued by the Department under Section 11 17-30 and (ii) the assessed value, after final board of 12 review or board of appeals action, of real property not 13 exempt from real estate taxation, which real property was 14 exempt from real estate taxation for any portion of the 15 immediately preceding levy year, multiplied by the 16 equalization factor issued by the Department under Section 17 17-30. 18 "Qualified airport authority" means an airport authority 19 organized under the Airport Authorities Act and located in a 20 county bordering on the State of Wisconsin and having a 21 population in excess of 200,000 and not greater than 500,000. 22 "Recovered tax increment value" means the amount of the 23 current year's equalized assessed value, in the first year 24 after a municipality terminates the designation of an area as 25 a redevelopment project area previously established under the 26 Tax Increment Allocation Development Act in the Illinois 27 Municipal Code, previously established under the Industrial 28 Jobs Recovery Law in the Illinois Municipal Code, or 29 previously established under the Economic Development Area 30 Tax Increment Allocation Act, of each taxable lot, block, 31 tract, or parcel of real property in the redevelopment 32 project area over and above the initial equalized assessed 33 value of each property in the redevelopment project area. 34 Except as otherwise provided in this Section, "limiting -8- LRB9002427KDcc 1 rate" means a fraction the numerator of which is the last 2 preceding aggregate extension base times an amount equal to 3 one plus the extension limitation defined in this Section and 4 the denominator of which is the current year's equalized 5 assessed value of all real property in the territory under 6 the jurisdiction of the taxing district during the prior levy 7 year. For those taxing districts that reduced their 8 aggregate extension for the last preceding levy year, the 9 highest aggregate extension in any of the last 3 preceding 10 levy years shall be used for the purpose of computing the 11 limiting rate. The denominator shall not include new 12 property. The denominator shall not include the recovered 13 tax increment value. 14 (Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff. 15 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, 16 eff. 6-1-96; 89-510, eff. 7-11-96.) 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.