[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
92_SB0367
SRS92SB0014NCcp
1 AN ACT concerning taxation.
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 18-55, 18-101.5, 18-185, and 18-190 and by adding
6 Section 18-52 as follows:
7 (35 ILCS 200/18-52 new)
8 Sec. 18-52. Supplemental levy to reimburse revenue lost
9 due to tax refund. If, as a result of an assessment
10 reduction by either the Property Tax Appeal Board or a court,
11 a taxing district is required to refund a portion of the
12 property tax revenue distributed to that taxing district,
13 then the taxing district may, without referendum, adopt a
14 supplemental tax levy. The supplemental levy shall not
15 exceed the amount of the refund and shall not exceed the
16 maximum rate of taxes that the taxing district is authorized
17 by law to levy for the fiscal year to which the increase
18 applies. For purposes of the Property Tax Extension
19 Limitation Law, the taxing district's aggregate extension
20 base does not include the supplemental levy authorized under
21 this Section.
22 (35 ILCS 200/18-55)
23 Sec. 18-55. Short title and definitions. This Division
24 2 may be cited as the Truth in Taxation Law. As used in this
25 Division 2:
26 (a) "Taxing district" has the meaning specified in
27 Section 1-150 and includes home rule units, but from January
28 1, 2000 through December 31, 2002 does not include taxing
29 districts that have territory in Cook County.
30 (b) "Aggregate levy" means the annual corporate levy of
-2- SRS92SB0014NCcp
1 the taxing district and those special purpose levies which
2 are made annually (other than debt service levies and levies
3 made for the purpose of paying amounts due under public
4 building commission leases).
5 (c) "Special purpose levies" include, but are not
6 limited to, levies made on an annual basis for contributions
7 to pension plans, unemployment and worker's compensation, or
8 self-insurance "Special purpose levies" do not include
9 supplemental levies authorized under Section 18-52.
10 (d) "Debt service" means levies made by any taxing
11 district pursuant to home rule authority, statute,
12 referendum, ordinance, resolution, indenture, agreement, or
13 contract to retire the principal or pay interest on bonds,
14 notes, debentures or other financial instruments which
15 evidence indebtedness.
16 (Source: P.A. 91-357, eff. 7-29-99; 91-523, eff. 1-1-00.)
17 (35 ILCS 200/18-101.5)
18 (Section scheduled to be repealed on January 1, 2003)
19 Sec. 18-101.5. Definitions. As used in this Division
20 2.1:
21 "Aggregate levy" or "levy" means the annual corporate
22 levy of the taxing district and those special purpose levies
23 which are made annually (other than debt service levies and
24 levies made for the purpose of paying amounts due under
25 public building commission leases).
26 "Debt service" means levies made by a taxing district
27 pursuant to home rule authority, statute, referendum,
28 ordinance, resolution, indenture, agreement, or contract to
29 retire the principal or pay interest on bonds, notes,
30 debentures, or other financial instruments that evidence
31 indebtedness.
32 "Special purpose levies" include, but are not limited to,
33 levies made on an annual basis for contributions to pension
-3- SRS92SB0014NCcp
1 plans, unemployment and workers' compensation, or
2 self-insurance. "Special purpose levies" do not include
3 supplemental levies authorized under Section 18-52.
4 "Taxing district" means any unit of local government,
5 including a home rule unit, school district, or community
6 college district with the power to levy taxes on territory in
7 Cook County.
8 (Source: P.A. 91-523, eff. 1-1-00.)
9 (35 ILCS 200/18-185)
10 Sec. 18-185. Short title; definitions. This Division 5
11 may be cited as the Property Tax Extension Limitation Law.
12 As used in this Division 5:
13 "Consumer Price Index" means the Consumer Price Index for
14 All Urban Consumers for all items published by the United
15 States Department of Labor.
16 "Extension limitation" means (a) the lesser of 5% or the
17 percentage increase in the Consumer Price Index during the
18 12-month calendar year preceding the levy year or (b) the
19 rate of increase approved by voters under Section 18-205.
20 "Affected county" means a county of 3,000,000 or more
21 inhabitants or a county contiguous to a county of 3,000,000
22 or more inhabitants.
23 "Taxing district" has the same meaning provided in
24 Section 1-150, except as otherwise provided in this Section.
25 For the 1991 through 1994 levy years only, "taxing district"
26 includes only each non-home rule taxing district having the
27 majority of its 1990 equalized assessed value within any
28 county or counties contiguous to a county with 3,000,000 or
29 more inhabitants. Beginning with the 1995 levy year, "taxing
30 district" includes only each non-home rule taxing district
31 subject to this Law before the 1995 levy year and each
32 non-home rule taxing district not subject to this Law before
33 the 1995 levy year having the majority of its 1994 equalized
-4- SRS92SB0014NCcp
1 assessed value in an affected county or counties. Beginning
2 with the levy year in which this Law becomes applicable to a
3 taxing district as provided in Section 18-213, "taxing
4 district" also includes those taxing districts made subject
5 to this Law as provided in Section 18-213.
6 "Aggregate extension" for taxing districts to which this
7 Law applied before the 1995 levy year means the annual
8 corporate extension for the taxing district and those special
9 purpose extensions that are made annually for the taxing
10 district, excluding special purpose extensions: (a) made for
11 the taxing district to pay interest or principal on general
12 obligation bonds that were approved by referendum; (b) made
13 for any taxing district to pay interest or principal on
14 general obligation bonds issued before October 1, 1991; (c)
15 made for any taxing district to pay interest or principal on
16 bonds issued to refund or continue to refund those bonds
17 issued before October 1, 1991; (d) made for any taxing
18 district to pay interest or principal on bonds issued to
19 refund or continue to refund bonds issued after October 1,
20 1991 that were approved by referendum; (e) made for any
21 taxing district to pay interest or principal on revenue bonds
22 issued before October 1, 1991 for payment of which a property
23 tax levy or the full faith and credit of the unit of local
24 government is pledged; however, a tax for the payment of
25 interest or principal on those bonds shall be made only after
26 the governing body of the unit of local government finds that
27 all other sources for payment are insufficient to make those
28 payments; (f) made for payments under a building commission
29 lease when the lease payments are for the retirement of bonds
30 issued by the commission before October 1, 1991, to pay for
31 the building project; (g) made for payments due under
32 installment contracts entered into before October 1, 1991;
33 (h) made for payments of principal and interest on bonds
34 issued under the Metropolitan Water Reclamation District Act
-5- SRS92SB0014NCcp
1 to finance construction projects initiated before October 1,
2 1991; (i) made for payments of principal and interest on
3 limited bonds, as defined in Section 3 of the Local
4 Government Debt Reform Act, in an amount not to exceed the
5 debt service extension base less the amount in items (b),
6 (c), (e), and (h) of this definition for non-referendum
7 obligations, except obligations initially issued pursuant to
8 referendum; (j) made for payments of principal and interest
9 on bonds issued under Section 15 of the Local Government Debt
10 Reform Act; and (k) made by a school district that
11 participates in the Special Education District of Lake
12 County, created by special education joint agreement under
13 Section 10-22.31 of the School Code, for payment of the
14 school district's share of the amounts required to be
15 contributed by the Special Education District of Lake County
16 to the Illinois Municipal Retirement Fund under Article 7 of
17 the Illinois Pension Code; the amount of any extension under
18 this item (k) shall be certified by the school district to
19 the county clerk; and (l) made by a taxing district under
20 Section 18-52.
21 "Aggregate extension" for the taxing districts to which
22 this Law did not apply before the 1995 levy year (except
23 taxing districts subject to this Law in accordance with
24 Section 18-213) means the annual corporate extension for the
25 taxing district and those special purpose extensions that are
26 made annually for the taxing district, excluding special
27 purpose extensions: (a) made for the taxing district to pay
28 interest or principal on general obligation bonds that were
29 approved by referendum; (b) made for any taxing district to
30 pay interest or principal on general obligation bonds issued
31 before March 1, 1995; (c) made for any taxing district to pay
32 interest or principal on bonds issued to refund or continue
33 to refund those bonds issued before March 1, 1995; (d) made
34 for any taxing district to pay interest or principal on bonds
-6- SRS92SB0014NCcp
1 issued to refund or continue to refund bonds issued after
2 March 1, 1995 that were approved by referendum; (e) made for
3 any taxing district to pay interest or principal on revenue
4 bonds issued before March 1, 1995 for payment of which a
5 property tax levy or the full faith and credit of the unit of
6 local government is pledged; however, a tax for the payment
7 of interest or principal on those bonds shall be made only
8 after the governing body of the unit of local government
9 finds that all other sources for payment are insufficient to
10 make those payments; (f) made for payments under a building
11 commission lease when the lease payments are for the
12 retirement of bonds issued by the commission before March 1,
13 1995 to pay for the building project; (g) made for payments
14 due under installment contracts entered into before March 1,
15 1995; (h) made for payments of principal and interest on
16 bonds issued under the Metropolitan Water Reclamation
17 District Act to finance construction projects initiated
18 before October 1, 1991; (i) 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 and bonds described in subsection (h) of this
25 definition; (j) made for payments of principal and interest
26 on bonds issued under Section 15 of the Local Government Debt
27 Reform Act; (k) made for payments of principal and interest
28 on bonds authorized by Public Act 88-503 and issued under
29 Section 20a of the Chicago Park District Act for aquarium or
30 museum projects; and (l) made for payments of principal and
31 interest on bonds authorized by Public Act 87-1191 and issued
32 under Section 42 of the Cook County Forest Preserve District
33 Act for zoological park projects; and (m) made by a taxing
34 district under Section 18-52.
-7- SRS92SB0014NCcp
1 "Aggregate extension" for all taxing districts to which
2 this Law applies in accordance with Section 18-213, except
3 for those taxing districts subject to paragraph (2) of
4 subsection (e) of Section 18-213, means the annual corporate
5 extension for the taxing district and those special purpose
6 extensions that are made annually for the taxing district,
7 excluding special purpose extensions: (a) made for the taxing
8 district to pay interest or principal on general obligation
9 bonds that were approved by referendum; (b) made for any
10 taxing district to pay interest or principal on general
11 obligation bonds issued before the date on which the
12 referendum making this Law applicable to the taxing district
13 is held; (c) made for any taxing district to pay interest or
14 principal on bonds issued to refund or continue to refund
15 those bonds issued before the date on which the referendum
16 making this Law applicable to the taxing district is held;
17 (d) made for any taxing district to pay interest or principal
18 on bonds issued to refund or continue to refund bonds issued
19 after the date on which the referendum making this Law
20 applicable to the taxing district is held if the bonds were
21 approved by referendum after the date on which the referendum
22 making this Law applicable to the taxing district is held;
23 (e) made for any taxing district to pay interest or principal
24 on revenue bonds issued before the date on which the
25 referendum making this Law applicable to the taxing district
26 is held for payment of which a property tax levy or the full
27 faith and credit of the unit of local government is pledged;
28 however, a tax for the payment of interest or principal on
29 those bonds shall be made only after the governing body of
30 the unit of local government finds that all other sources for
31 payment are insufficient to make those payments; (f) made for
32 payments under a building commission lease when the lease
33 payments are for the retirement of bonds issued by the
34 commission before the date on which the referendum making
-8- SRS92SB0014NCcp
1 this Law applicable to the taxing district is held to pay for
2 the building project; (g) made for payments due under
3 installment contracts entered into before the date on which
4 the referendum making this Law applicable to the taxing
5 district is held; (h) made for payments of principal and
6 interest on limited bonds, as defined in Section 3 of the
7 Local Government Debt Reform Act, in an amount not to exceed
8 the debt service extension base less the amount in items (b),
9 (c), and (e) of this definition for non-referendum
10 obligations, except obligations initially issued pursuant to
11 referendum; (i) made for payments of principal and interest
12 on bonds issued under Section 15 of the Local Government Debt
13 Reform Act; and (j) made for a qualified airport authority to
14 pay interest or principal on general obligation bonds issued
15 for the purpose of paying obligations due under, or financing
16 airport facilities required to be acquired, constructed,
17 installed or equipped pursuant to, contracts entered into
18 before March 1, 1996 (but not including any amendments to
19 such a contract taking effect on or after that date); and (k)
20 made by a taxing district under Section 18-52.
21 "Aggregate extension" for all taxing districts to which
22 this Law applies in accordance with paragraph (2) of
23 subsection (e) of Section 18-213 means the annual corporate
24 extension for the taxing district and those special purpose
25 extensions that are made annually for the taxing district,
26 excluding special purpose extensions: (a) made for the taxing
27 district to pay interest or principal on general obligation
28 bonds that were approved by referendum; (b) made for any
29 taxing district to pay interest or principal on general
30 obligation bonds issued before the effective date of this
31 amendatory Act of 1997; (c) made for any taxing district to
32 pay interest or principal on bonds issued to refund or
33 continue to refund those bonds issued before the effective
34 date of this amendatory Act of 1997; (d) made for any taxing
-9- SRS92SB0014NCcp
1 district to pay interest or principal on bonds issued to
2 refund or continue to refund bonds issued after the effective
3 date of this amendatory Act of 1997 if the bonds were
4 approved by referendum after the effective date of this
5 amendatory Act of 1997; (e) made for any taxing district to
6 pay interest or principal on revenue bonds issued before the
7 effective date of this amendatory Act of 1997 for payment of
8 which a property tax levy or the full faith and credit of the
9 unit of local government is pledged; however, a tax for the
10 payment of interest or principal on those bonds shall be made
11 only after the governing body of the unit of local government
12 finds that all other sources for payment are insufficient to
13 make those payments; (f) made for payments under a building
14 commission lease when the lease payments are for the
15 retirement of bonds issued by the commission before the
16 effective date of this amendatory Act of 1997 to pay for the
17 building project; (g) made for payments due under installment
18 contracts entered into before the effective date of this
19 amendatory Act of 1997; (h) made for payments of principal
20 and interest on limited bonds, as defined in Section 3 of the
21 Local Government Debt Reform Act, in an amount not to exceed
22 the debt service extension base less the amount in items (b),
23 (c), and (e) of this definition for non-referendum
24 obligations, except obligations initially issued pursuant to
25 referendum; (i) made for payments of principal and interest
26 on bonds issued under Section 15 of the Local Government Debt
27 Reform Act; and (j) made for a qualified airport authority to
28 pay interest or principal on general obligation bonds issued
29 for the purpose of paying obligations due under, or financing
30 airport facilities required to be acquired, constructed,
31 installed or equipped pursuant to, contracts entered into
32 before March 1, 1996 (but not including any amendments to
33 such a contract taking effect on or after that date); and (k)
34 made by a taxing district under Section 18-52.
-10- SRS92SB0014NCcp
1 "Debt service extension base" means an amount equal to
2 that portion of the extension for a taxing district for the
3 1994 levy year, or for those taxing districts subject to this
4 Law in accordance with Section 18-213, except for those
5 subject to paragraph (2) of subsection (e) of Section 18-213,
6 for the levy year in which the referendum making this Law
7 applicable to the taxing district is held, or for those
8 taxing districts subject to this Law in accordance with
9 paragraph (2) of subsection (e) of Section 18-213 for the
10 1996 levy year, constituting an extension for payment of
11 principal and interest on bonds issued by the taxing district
12 without referendum, but not including (i) bonds authorized by
13 Public Act 88-503 and issued under Section 20a of the Chicago
14 Park District Act for aquarium and museum projects; (ii)
15 bonds issued under Section 15 of the Local Government Debt
16 Reform Act; or (iii) refunding obligations issued to refund
17 or to continue to refund obligations initially issued
18 pursuant to referendum. The debt service extension base may
19 be established or increased as provided under Section 18-212.
20 "Special purpose extensions" include, but are not limited
21 to, extensions for levies made on an annual basis for
22 unemployment and workers' compensation, self-insurance,
23 contributions to pension plans, and extensions made pursuant
24 to Section 6-601 of the Illinois Highway Code for a road
25 district's permanent road fund whether levied annually or
26 not. The extension for a special service area is not
27 included in the aggregate extension.
28 "Aggregate extension base" means the taxing district's
29 last preceding aggregate extension as adjusted under Sections
30 18-215 through 18-230.
31 "Levy year" has the same meaning as "year" under Section
32 1-155.
33 "New property" means (i) the assessed value, after final
34 board of review or board of appeals action, of new
-11- SRS92SB0014NCcp
1 improvements or additions to existing improvements on any
2 parcel of real property that increase the assessed value of
3 that real property during the levy year multiplied by the
4 equalization factor issued by the Department under Section
5 17-30 and (ii) the assessed value, after final board of
6 review or board of appeals action, of real property not
7 exempt from real estate taxation, which real property was
8 exempt from real estate taxation for any portion of the
9 immediately preceding levy year, multiplied by the
10 equalization factor issued by the Department under Section
11 17-30. In addition, the county clerk in a county containing
12 a population of 3,000,000 or more shall include in the 1997
13 recovered tax increment value for any school district, any
14 recovered tax increment value that was applicable to the 1995
15 tax year calculations.
16 "Qualified airport authority" means an airport authority
17 organized under the Airport Authorities Act and located in a
18 county bordering on the State of Wisconsin and having a
19 population in excess of 200,000 and not greater than 500,000.
20 "Recovered tax increment value" means, except as
21 otherwise provided in this paragraph, the amount of the
22 current year's equalized assessed value, in the first year
23 after a municipality terminates the designation of an area as
24 a redevelopment project area previously established under the
25 Tax Increment Allocation Development Act in the Illinois
26 Municipal Code, previously established under the Industrial
27 Jobs Recovery Law in the Illinois Municipal Code, or
28 previously established under the Economic Development Area
29 Tax Increment Allocation Act, of each taxable lot, block,
30 tract, or parcel of real property in the redevelopment
31 project area over and above the initial equalized assessed
32 value of each property in the redevelopment project area.
33 For the taxes which are extended for the 1997 levy year, the
34 recovered tax increment value for a non-home rule taxing
-12- SRS92SB0014NCcp
1 district that first became subject to this Law for the 1995
2 levy year because a majority of its 1994 equalized assessed
3 value was in an affected county or counties shall be
4 increased if a municipality terminated the designation of an
5 area in 1993 as a redevelopment project area previously
6 established under the Tax Increment Allocation Development
7 Act in the Illinois Municipal Code, previously established
8 under the Industrial Jobs Recovery Law in the Illinois
9 Municipal Code, or previously established under the Economic
10 Development Area Tax Increment Allocation Act, by an amount
11 equal to the 1994 equalized assessed value of each taxable
12 lot, block, tract, or parcel of real property in the
13 redevelopment project area over and above the initial
14 equalized assessed value of each property in the
15 redevelopment project area. In the first year after a
16 municipality removes a taxable lot, block, tract, or parcel
17 of real property from a redevelopment project area
18 established under the Tax Increment Allocation Development
19 Act in the Illinois Municipal Code, the Industrial Jobs
20 Recovery Law in the Illinois Municipal Code, or the Economic
21 Development Area Tax Increment Allocation Act, "recovered tax
22 increment value" means the amount of the current year's
23 equalized assessed value of each taxable lot, block, tract,
24 or parcel of real property removed from the redevelopment
25 project area over and above the initial equalized assessed
26 value of that real property before removal from the
27 redevelopment project area.
28 Except as otherwise provided in this Section, "limiting
29 rate" means a fraction the numerator of which is the last
30 preceding aggregate extension base times an amount equal to
31 one plus the extension limitation defined in this Section and
32 the denominator of which is the current year's equalized
33 assessed value of all real property in the territory under
34 the jurisdiction of the taxing district during the prior levy
-13- SRS92SB0014NCcp
1 year. For those taxing districts that reduced their
2 aggregate extension for the last preceding levy year, the
3 highest aggregate extension in any of the last 3 preceding
4 levy years shall be used for the purpose of computing the
5 limiting rate. The denominator shall not include new
6 property. The denominator shall not include the recovered
7 tax increment value.
8 (Source: P.A. 90-485, eff. 1-1-98; 90-511, eff. 8-22-97;
9 90-568, eff. 1-1-99; 90-616, eff. 7-10-98; 90-655, eff.
10 7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.)
11 (35 ILCS 200/18-190)
12 Sec. 18-190. Direct referendum; new rate or increased
13 rate. If a new rate or a rate increase is authorized by
14 statute to be imposed without referendum or is subject to a
15 backdoor referendum, as defined in Section 28-2 of the
16 Election Code, the governing body of the affected taxing
17 district before levying the new rate or rate increase shall
18 submit the new rate or rate increase to direct referendum
19 under the provisions of Article 28 of the Election Code.
20 Rates required to extend taxes on levies subject to a
21 backdoor referendum in each year there is a levy are not new
22 rates or rate increases under this Section if a levy has been
23 made for the fund in one or more of the preceding 3 levy
24 years. Changes made by this amendatory Act of 1997 to this
25 Section in reference to rates required to extend taxes on
26 levies subject to a backdoor referendum in each year there is
27 a levy are declarative of existing law and not a new
28 enactment. Rates required to extend taxes on a supplemental
29 levy authorized by Section 18-52 are not new rates or rate
30 increases under this Section. Whenever other applicable law
31 authorizes a taxing district subject to the limitation with
32 respect to its aggregate extension provided for in this Law
33 to issue bonds or other obligations either without referendum
-14- SRS92SB0014NCcp
1 or subject to backdoor referendum, the taxing district may
2 elect for each separate bond issuance to submit the question
3 of the issuance of the bonds or obligations directly to the
4 voters of the taxing district, and if the referendum passes
5 the taxing district is not required to comply with any
6 backdoor referendum procedures or requirements set forth in
7 the other applicable law. The direct referendum shall be
8 initiated by ordinance or resolution of the governing body of
9 the taxing district, and the question shall be certified to
10 the proper election authorities in accordance with the
11 provisions of the Election Code.
12 (Source: P.A. 88-455; 88-670, eff. 12-2-94; 89-385, eff.
13 8-18-95; 89-718, eff. 3-7-97.)
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.