Illinois General Assembly - Full Text of Public Act 094-0976
Illinois General Assembly

Previous General Assemblies

Public Act 094-0976


 

Public Act 0976 94TH GENERAL ASSEMBLY



 


 
Public Act 094-0976
 
SB1682 Enrolled LRB094 07334 BDD 42075 b

    AN ACT concerning taxes.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by changing
Sections 18-125, 18-185, 18-190, 18-205, and 18-230 as follows:
 
    (35 ILCS 200/18-125)
    Sec. 18-125. Rate limit referenda. Referenda initiated
under Section 18-120 shall be subject to the provisions and
limitations of the general election law.
    The question of adopting a maximum tax rate other than that
applicable shall be in substantially the following form for all
elections held after March 21, 2006:
        Shall the maximum tax rate for . . . purposes of . . .
    (insert legal name, number, if any, and county or counties
    of taxing district), Illinois, be established at . . . % of
    the equalized assessed value of the taxable property
    therein instead of . . . %, the maximum rate otherwise
    applicable to the next taxes to be extended?
The votes must be recorded as "Yes" or "No".
-------------------------------------------------------------
    Shall the maximum tax rate for
the..... fund of.........
(identify taxing district) be             YES
established at........ percent
on the equalized assessed              ---------------------
value instead of........... per
cent, the maximum rate otherwise           NO
applicable to the next taxes to
be extended?
-------------------------------------------------------------
    The ballot shall have printed thereon, but not as a part of
the proposition submitted, (i) a statement of the purpose or
reason for the proposed change in the tax rate, (ii) an
estimate of the approximate amount extendable under the
proposed rate and of the approximate amount extendable under
the current rate applicable to the next taxes extended, such
amounts being computed upon the last known equalized assessed
value, and (iii) the approximate amount of the tax extendable
against property containing a single family residence and
having a fair market value of $100,000 at the current maximum
rate and at the proposed rate. The approximate amount of the
tax extendable against property containing a single family
residence shall be calculated (i) without regard to any
property tax exemptions and (ii) based upon the percentage
level of assessment prescribed for such property by statute or
by ordinance of the county board in counties which classify
property for purposes of taxation in accordance with Section 4
of Article IX of the Constitution. Any error, miscalculation or
inaccuracy in computing such amounts that is not deliberate
shall not invalidate or affect the validity of any maximum tax
rate so adopted.
    If a majority of all ballots cast on the proposition are in
favor of the proposition, the maximum tax rate so established
shall become effective with the levy next following the
referendum. It is the duty of the county clerk to reduce, if
necessary, the amount of any taxes levied thereafter. Nothing
in this Section shall be construed as precluding the extension
of taxes at rates less than that authorized by the referendum.
(Source: P.A. 86-1253; 88-455.)
 
    (35 ILCS 200/18-185)
    Sec. 18-185. Short title; definitions. This Division 5 may
be cited as the Property Tax Extension Limitation Law. As used
in this Division 5:
    "Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
    "Extension limitation" means (a) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the rate
of increase approved by voters under Section 18-205.
    "Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000 or
more inhabitants.
    "Taxing district" has the same meaning provided in Section
1-150, except as otherwise provided in this Section. For the
1991 through 1994 levy years only, "taxing district" includes
only each non-home rule taxing district having the majority of
its 1990 equalized assessed value within any county or counties
contiguous to a county with 3,000,000 or more inhabitants.
Beginning with the 1995 levy year, "taxing district" includes
only each non-home rule taxing district subject to this Law
before the 1995 levy year and each non-home rule taxing
district not subject to this Law before the 1995 levy year
having the majority of its 1994 equalized assessed value in an
affected county or counties. Beginning with the levy year in
which this Law becomes applicable to a taxing district as
provided in Section 18-213, "taxing district" also includes
those taxing districts made subject to this Law as provided in
Section 18-213.
    "Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made for
any taxing district to pay interest or principal on general
obligation bonds issued before October 1, 1991; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before October 1, 1991; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after October 1, 1991 that were approved by
referendum; (e) made for any taxing district to pay interest or
principal on revenue bonds issued before October 1, 1991 for
payment of which a property tax levy or the full faith and
credit of the unit of local government is pledged; however, a
tax for the payment of interest or principal on those bonds
shall be made only after the governing body of the unit of
local government finds that all other sources for payment are
insufficient to make those payments; (f) made for payments
under a building commission lease when the lease payments are
for the retirement of bonds issued by the commission before
October 1, 1991, to pay for the building project; (g) made for
payments due under installment contracts entered into before
October 1, 1991; (h) made for payments of principal and
interest on bonds issued under the Metropolitan Water
Reclamation District Act to finance construction projects
initiated before October 1, 1991; (i) made for payments of
principal and interest on limited bonds, as defined in Section
3 of the Local Government Debt Reform Act, in an amount not to
exceed the debt service extension base less the amount in items
(b), (c), (e), and (h) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (j) made for payments of principal and interest on
bonds issued under Section 15 of the Local Government Debt
Reform Act; (k) made by a school district that participates in
the Special Education District of Lake County, created by
special education joint agreement under Section 10-22.31 of the
School Code, for payment of the school district's share of the
amounts required to be contributed by the Special Education
District of Lake County to the Illinois Municipal Retirement
Fund under Article 7 of the Illinois Pension Code; the amount
of any extension under this item (k) shall be certified by the
school district to the county clerk; (l) made to fund expenses
of providing joint recreational programs for the handicapped
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code; (m) made for temporary
relocation loan repayment purposes pursuant to Sections 2-3.77
and 17-2.2d of the School Code; , and (n) made for payment of
principal and interest on any bonds issued under the authority
of Section 17-2.2d of the School Code; and (o) (m) made for
contributions to a firefighter's pension fund created under
Article 4 of the Illinois Pension Code, to the extent of the
amount certified under item (5) of Section 4-134 of the
Illinois Pension Code.
    "Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except taxing
districts subject to this Law in accordance with Section
18-213) means the annual corporate extension for the taxing
district and those special purpose extensions that are made
annually for the taxing district, excluding special purpose
extensions: (a) made for the taxing district to pay interest or
principal on general obligation bonds that were approved by
referendum; (b) made for any taxing district to pay interest or
principal on general obligation bonds issued before March 1,
1995; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund those
bonds issued before March 1, 1995; (d) made for any taxing
district to pay interest or principal on bonds issued to refund
or continue to refund bonds issued after March 1, 1995 that
were approved by referendum; (e) made for any taxing district
to pay interest or principal on revenue bonds issued before
March 1, 1995 for payment of which a property tax levy or the
full faith and credit of the unit of local government is
pledged; however, a tax for the payment of interest or
principal on those bonds shall be made only after the governing
body of the unit of local government finds that all other
sources for payment are insufficient to make those payments;
(f) made for payments under a building commission lease when
the lease payments are for the retirement of bonds issued by
the commission before March 1, 1995 to pay for the building
project; (g) made for payments due under installment contracts
entered into before March 1, 1995; (h) made for payments of
principal and interest on bonds issued under the Metropolitan
Water Reclamation District Act to finance construction
projects initiated before October 1, 1991; (h-4) made for
stormwater management purposes by the Metropolitan Water
Reclamation District of Greater Chicago under Section 12 of the
Metropolitan Water Reclamation District Act; (i) made for
payments of principal and interest on limited bonds, as defined
in Section 3 of the Local Government Debt Reform Act, in an
amount not to exceed the debt service extension base less the
amount in items (b), (c), and (e) of this definition for
non-referendum obligations, except obligations initially
issued pursuant to referendum and bonds described in subsection
(h) of this definition; (j) made for payments of principal and
interest on bonds issued under Section 15 of the Local
Government Debt Reform Act; (k) made for payments of principal
and interest on bonds authorized by Public Act 88-503 and
issued under Section 20a of the Chicago Park District Act for
aquarium or museum projects; (l) made for payments of principal
and interest on bonds authorized by Public Act 87-1191 or
93-601 and (i) issued pursuant to Section 21.2 of the Cook
County Forest Preserve District Act, (ii) issued under Section
42 of the Cook County Forest Preserve District Act for
zoological park projects, or (iii) issued under Section 44.1 of
the Cook County Forest Preserve District Act for botanical
gardens projects; (m) made pursuant to Section 34-53.5 of the
School Code, whether levied annually or not; (n) made to fund
expenses of providing joint recreational programs for the
handicapped under Section 5-8 of the Park District Code or
Section 11-95-14 of the Illinois Municipal Code; (o) made by
the Chicago Park District for recreational programs for the
handicapped under subsection (c) of Section 7.06 of the Chicago
Park District Act; and (p) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code.
    "Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except for
those taxing districts subject to paragraph (2) of subsection
(e) of Section 18-213, means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the date on which the referendum making this Law applicable to
the taxing district is held; (c) made for any taxing district
to pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the date on which
the referendum making this Law applicable to the taxing
district is held; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after the date on which the referendum
making this Law applicable to the taxing district is held if
the bonds were approved by referendum after the date on which
the referendum making this Law applicable to the taxing
district is held; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the date
on which the referendum making this Law applicable to the
taxing district is held for payment of which a property tax
levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before the date on which the
referendum making this Law applicable to the taxing district is
held to pay for the building project; (g) made for payments due
under installment contracts entered into before the date on
which the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the debt
service extension base less the amount in items (b), (c), and
(e) of this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing
joint recreational programs for the handicapped under Section
5-8 of the Park District Code or Section 11-95-14 of the
Illinois Municipal Code; and (l) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code.
    "Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of subsection
(e) of Section 18-213 means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the effective date of this amendatory Act of 1997; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before the effective date of this amendatory Act of 1997; (d)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund bonds issued after
the effective date of this amendatory Act of 1997 if the bonds
were approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 for payment of
which a property tax levy or the full faith and credit of the
unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the retirement
of bonds issued by the commission before the effective date of
this amendatory Act of 1997 to pay for the building project;
(g) made for payments due under installment contracts entered
into before the effective date of this amendatory Act of 1997;
(h) made for payments of principal and interest on limited
bonds, as defined in Section 3 of the Local Government Debt
Reform Act, in an amount not to exceed the debt service
extension base less the amount in items (b), (c), and (e) of
this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing
joint recreational programs for the handicapped under Section
5-8 of the Park District Code or Section 11-95-14 of the
Illinois Municipal Code; and (l) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code.
    "Debt service extension base" means an amount equal to that
portion of the extension for a taxing district for the 1994
levy year, or for those taxing districts subject to this Law in
accordance with Section 18-213, except for those subject to
paragraph (2) of subsection (e) of Section 18-213, for the levy
year in which the referendum making this Law applicable to the
taxing district is held, or for those taxing districts subject
to this Law in accordance with paragraph (2) of subsection (e)
of Section 18-213 for the 1996 levy year, constituting an
extension for payment of principal and interest on bonds issued
by the taxing district without referendum, but not including
excluded non-referendum bonds. For park districts (i) that were
first subject to this Law in 1991 or 1995 and (ii) whose
extension for the 1994 levy year for the payment of principal
and interest on bonds issued by the park district without
referendum (but not including excluded non-referendum bonds)
was less than 51% of the amount for the 1991 levy year
constituting an extension for payment of principal and interest
on bonds issued by the park district without referendum (but
not including excluded non-referendum bonds), "debt service
extension base" means an amount equal to that portion of the
extension for the 1991 levy year constituting an extension for
payment of principal and interest on bonds issued by the park
district without referendum (but not including excluded
non-referendum bonds). The debt service extension base may be
established or increased as provided under Section 18-212.
"Excluded non-referendum bonds" means (i) bonds authorized by
Public Act 88-503 and issued under Section 20a of the Chicago
Park District Act for aquarium and museum projects; (ii) bonds
issued under Section 15 of the Local Government Debt Reform
Act; or (iii) refunding obligations issued to refund or to
continue to refund obligations initially issued pursuant to
referendum.
    "Special purpose extensions" include, but are not limited
to, extensions for levies made on an annual basis for
unemployment and workers' compensation, self-insurance,
contributions to pension plans, and extensions made pursuant to
Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or not.
The extension for a special service area is not included in the
aggregate extension.
    "Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-215 through 18-230.
    "Levy year" has the same meaning as "year" under Section
1-155.
    "New property" means (i) the assessed value, after final
board of review or board of appeals action, of new improvements
or additions to existing improvements on any parcel of real
property that increase the assessed value of that real property
during the levy year multiplied by the equalization factor
issued by the Department under Section 17-30, (ii) the assessed
value, after final board of review or board of appeals action,
of real property not exempt from real estate taxation, which
real property was exempt from real estate taxation for any
portion of the immediately preceding levy year, multiplied by
the equalization factor issued by the Department under Section
17-30, and (iii) in counties that classify in accordance with
Section 4 of Article IX of the Illinois Constitution, an
incentive property's additional assessed value resulting from
a scheduled increase in the level of assessment as applied to
the first year final board of review market value. In addition,
the county clerk in a county containing a population of
3,000,000 or more shall include in the 1997 recovered tax
increment value for any school district, any recovered tax
increment value that was applicable to the 1995 tax year
calculations.
    "Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
    "Recovered tax increment value" means, except as otherwise
provided in this paragraph, the amount of the current year's
equalized assessed value, in the first year after a
municipality terminates the designation of an area as a
redevelopment project area previously established under the
Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, or previously
established under the Economic Development Area Tax Increment
Allocation Act, of each taxable lot, block, tract, or parcel of
real property in the redevelopment project area over and above
the initial equalized assessed value of each property in the
redevelopment project area. For the taxes which are extended
for the 1997 levy year, the recovered tax increment value for a
non-home rule taxing district that first became subject to this
Law for the 1995 levy year because a majority of its 1994
equalized assessed value was in an affected county or counties
shall be increased if a municipality terminated the designation
of an area in 1993 as a redevelopment project area previously
established under the Tax Increment Allocation Development Act
in the Illinois Municipal Code, previously established under
the Industrial Jobs Recovery Law in the Illinois Municipal
Code, or previously established under the Economic Development
Area Tax Increment Allocation Act, by an amount equal to the
1994 equalized assessed value of each taxable lot, block,
tract, or parcel of real property in the redevelopment project
area over and above the initial equalized assessed value of
each property in the redevelopment project area. In the first
year after a municipality removes a taxable lot, block, tract,
or parcel of real property from a redevelopment project area
established under the Tax Increment Allocation Development Act
in the Illinois Municipal Code, the Industrial Jobs Recovery
Law in the Illinois Municipal Code, or the Economic Development
Area Tax Increment Allocation Act, "recovered tax increment
value" means the amount of the current year's equalized
assessed value of each taxable lot, block, tract, or parcel of
real property removed from the redevelopment project area over
and above the initial equalized assessed value of that real
property before removal from the redevelopment project area.
    Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to one
plus the extension limitation defined in this Section and the
denominator of which is the current year's equalized assessed
value of all real property in the territory under the
jurisdiction of the taxing district during the prior levy year.
For those taxing districts that reduced their aggregate
extension for the last preceding levy year, the highest
aggregate extension in any of the last 3 preceding levy years
shall be used for the purpose of computing the limiting rate.
The denominator shall not include new property or . The
denominator shall not include the recovered tax increment
value. If a new rate, a rate decrease, or a limiting rate
increase has been approved at an election held after March 21,
2006, then (i) the otherwise applicable limiting rate shall be
increased by the amount of the new rate or shall be reduced by
the amount of the rate decrease, as the case may be, or (ii) in
the case of a limiting rate increase, the limiting rate shall
be equal to the rate set forth in the proposition approved by
the voters for each of the years specified in the proposition,
after which the limiting rate of the taxing district shall be
calculated as otherwise provided.
(Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
93-606, eff. 11-18-03; 93-612, eff. 11-18-03; 93-689, eff.
7-1-04; 93-690, eff. 7-1-04; 93-1049, eff. 11-17-04; revised
12-14-04.)
 
    (35 ILCS 200/18-190)
    Sec. 18-190. Direct referendum; new rate or increased
limiting rate.
    (a) If a new rate or a rate increase is authorized by
statute to be imposed without referendum or is subject to a
backdoor referendum, as defined in Section 28-2 of the Election
Code, the governing body of the affected taxing district before
levying the new rate or rate increase shall submit the new rate
or rate increase to direct referendum under the provisions of
this Section and of Article 28 of the Election Code.
Notwithstanding the provisions, requirements, or limitations
of any other law, any tax levied for the 2005 levy year and all
subsequent levy years by any taxing district subject to this
Law may be extended at a rate exceeding the rate established
for that tax by referendum or statute, provided that the rate
does not exceed the statutory ceiling above which the tax is
not authorized to be further increased either by referendum or
in any other manner. Notwithstanding the provisions,
requirements, or limitations of any other law, all taxing
districts subject to this Law shall follow the provisions of
this Section whenever seeking referenda approval after March
21, 2006 to (i) levy a new tax rate authorized by statute or
(ii) increase the limiting rate applicable to the taxing
district. All taxing districts subject to this Law are
authorized to seek referendum approval of each proposition
described and set forth in this Section.
    The proposition seeking to obtain referendum approval to
levy a new tax rate as authorized in clause (i) shall be in
substantially the following form:
        Shall ... (insert legal name, number, if any, and
    county or counties of taxing district and geographic or
    other common name by which a school or community college
    district is known and referred to), Illinois, be authorized
    to levy a new tax for ... purposes and have an additional
    tax of ...% of the equalized assessed value of the taxable
    property therein extended for such purposes?
The votes must be recorded as "Yes" or "No".
    The proposition seeking to obtain referendum approval to
increase the limiting rate as authorized in clause (ii) shall
be in substantially the following form:
        Shall the limiting rate under the Property Tax
    Extension Limitation Law for ... (insert legal name,
    number, if any, and county or counties of taxing district
    and geographic or other common name by which a school or
    community college district is known and referred to),
    Illinois, be increased by an additional amount equal to
    ...% above the limiting rate for levy year ... (insert the
    most recent levy year for which the limiting rate of the
    taxing district is known at the time the submission of the
    proposition is initiated by the taxing district) and be
    equal to ...% of the equalized assessed value of the
    taxable property therein for levy year(s) (insert each levy
    year for which the increase will be applicable, which years
    must be consecutive and may not exceed 4)?
The votes must be recorded as "Yes" or "No".
    The ballot for any proposition submitted pursuant to this
Section shall have printed thereon, but not as a part of the
proposition submitted, only the following supplemental
information (which shall be supplied to the election authority
by the taxing district) in substantially the following form:
        (1) The approximate amount of taxes extendable at the
    most recently extended limiting rate is $..., and the
    approximate amount of taxes extendable if the proposition
    is approved is $....
        (2) For the ... (insert the first levy year for which
    the new rate or increased limiting rate will be applicable)
    levy year the approximate amount of the additional tax
    extendable against property containing a single family
    residence and having a fair market value at the time of the
    referendum of $100,000 is estimated to be $....
        (3) Based upon an average annual percentage increase
    (or decrease) in the market value of such property of %...
    (insert percentage equal to the average annual percentage
    increase or decrease for the prior 3 levy years, at the
    time the submission of the proposition is initiated by the
    taxing district, in the amount of (A) the equalized
    assessed value of the taxable property in the taxing
    district less (B) the new property included in the
    equalized assessed value), the approximate amount of the
    additional tax extendable against such property for the ...
    levy year is estimated to be $... and for the ... levy year
    is estimated to be $ ....
        (4) If the proposition is approved, the aggregate
    extension for ... (insert each levy year for which the
    increase will apply) will be determined by the limiting
    rate set forth in the proposition, rather than the
    otherwise applicable limiting rate calculated under the
    provisions of the Property Tax Extension Limitation Law
    (commonly known as the Property Tax Cap Law).
The approximate amount of taxes extendable shown in paragraph
(1) shall be computed upon the last known equalized assessed
value of taxable property in the taxing district (at the time
the submission of the proposition is initiated by the taxing
district). Paragraph (3) shall be included only if the
increased limiting rate will be applicable for more than one
levy year and shall list each levy year for which the increased
limiting rate will be applicable. The additional tax shown for
each levy year shall be the approximate dollar amount of the
increase over the amount of the most recently completed
extension at the time the submission of the proposition is
initiated by the taxing district. The approximate amount of the
additional taxes extendable shall be calculated (i) without
regard to any property tax exemptions and (ii) based upon the
percentage level of assessment prescribed for such property by
statute or by ordinance of the county board in counties which
classify property for purposes of taxation in accordance with
Section 4 of Article IX of the Constitution. Paragraph (4)
shall be included if the proposition concerns a limiting rate
increase but shall not be included if the proposition concerns
a new rate. Any notice required to be published in connection
with the submission of the proposition shall also contain this
supplemental information and shall not contain any other
supplemental information regarding the proposition. Any error,
miscalculation, or inaccuracy in computing any amount set forth
on the ballot and in the notice that is not deliberate shall
not invalidate or affect the validity of any proposition
approved. Notice of the referendum shall be published and
posted as otherwise required by law, and the submission of the
proposition shall be initiated as provided by law.
    If a majority of all ballots cast on the proposition are in
favor of the proposition, the following provisions shall be
applicable to the extension of taxes for the taxing district:
        (A) a new tax rate shall be first effective for the
    levy year in which the new rate is approved;
        (B) if the proposition provides for a new tax rate, the
    taxing district is authorized to levy a tax after the
    canvass of the results of the referendum by the election
    authority for the purposes for which the tax is authorized;
        (C) a limiting rate increase shall be first effective
    for the levy year in which the limiting rate increase is
    approved, provided that the taxing district may elect to
    have a limiting rate increase be effective for the levy
    year prior to the levy year in which the limiting rate
    increase is approved unless the extension of taxes for the
    prior levy year occurs 30 days or less after the canvass of
    the results of the referendum by the election authority in
    any county in which the taxing district is located;
        (D) in order for the limiting rate increase to be first
    effective for the levy year prior to the levy year of the
    referendum, the taxing district must certify its election
    to have the limiting rate increase be effective for the
    prior levy year to the clerk of each county in which the
    taxing district is located not more than 2 days after the
    date the results of the referendum are canvassed by the
    election authority; and
        (E) if the proposition provides for a limiting rate
    increase, the increase may be effective regardless of
    whether the proposition is approved before or after the
    taxing district adopts or files its levy for any levy year.
    Rates required to extend taxes on levies subject to a
backdoor referendum in each year there is a levy are not new
rates or rate increases under this Section if a levy has been
made for the fund in one or more of the preceding 3 levy years.
Changes made by this amendatory Act of 1997 to this Section in
reference to rates required to extend taxes on levies subject
to a backdoor referendum in each year there is a levy are
declarative of existing law and not a new enactment.
    (b) Whenever other applicable law authorizes a taxing
district subject to the limitation with respect to its
aggregate extension provided for in this Law to issue bonds or
other obligations either without referendum or subject to
backdoor referendum, the taxing district may elect for each
separate bond issuance to submit the question of the issuance
of the bonds or obligations directly to the voters of the
taxing district, and if the referendum passes the taxing
district is not required to comply with any backdoor referendum
procedures or requirements set forth in the other applicable
law. The direct referendum shall be initiated by ordinance or
resolution of the governing body of the taxing district, and
the question shall be certified to the proper election
authorities in accordance with the provisions of the Election
Code.
(Source: P.A. 88-455; 88-670, eff. 12-2-94; 89-385, eff.
8-18-95; 89-718, eff. 3-7-97.)
 
    (35 ILCS 200/18-205)
    Sec. 18-205. Referendum to increase the extension
limitation. A taxing district is limited to an extension
limitation increase of 5% or the percentage increase in the
Consumer Price Index during the 12-month calendar year
preceding the levy year, whichever is less. A taxing district
may increase its extension limitation for one or more levy
years a current levy year if that taxing district holds a
referendum before the levy date for the first levy year at
which a majority of voters voting on the issue approves
adoption of a higher extension limitation. Referenda shall be
conducted at a regularly scheduled election in accordance with
the Election Code provided that notice of the referendum, if
held before July 1, 1999, has been given in accordance with the
provisions of Section 12-5 of the Election Code in effect at
the time of the bond referendum, at least 10 and not more than
45 days before the date of the election, notwithstanding the
time for publication otherwise imposed by Section 12-5. Notices
required in connection with the submission of public questions
on or after July 1, 1999 shall be as set forth in Section 12-5
of the Election Code. The question shall be presented in
substantially the following manner for all elections held after
March 21, 2006:
        Shall the extension limitation under the Property Tax
    Extension Limitation Law for (insert the legal name,
    number, if any, and county or counties of the taxing
    district and geographic or other common name by which a
    school or community college district is known and referred
    to), Illinois, be increased from the lesser of 5% or the
    percentage increase in the Consumer Price Index over the
    prior levy year to (insert the percentage of the proposed
    increase)% per year for (insert each levy year for which
    the increased extension limitation will apply)?
The votes must be recorded as "Yes" or "No".
-------------------------------------------------------------
    Shall the extension limitation
under the Property Tax Extension
Limitation Law for ...(taxing                    YES
district name)... be increased from
...(the lesser of 5% or the increase        ----------------
in the Consumer Price Index over the
prior levy year)...%  to ...(percentage          NO
of proposed increase)...%  for the
...(levy year)... levy year?
-------------------------------------------------------------
If a majority of voters voting on the issue approves the
adoption of the increase, the increase shall be applicable for
each the levy year specified.
    The ballot for any question submitted pursuant to this
Section shall have printed thereon, but not as a part of the
question submitted, only the following supplemental
information (which shall be supplied to the election authority
by the taxing district) in substantially the following form:
        (1) For the (insert the first levy year for which the
    increased extension limitation will be applicable) levy
    year the approximate amount of the additional tax
    extendable against property containing a single family
    residence and having a fair market value at the time of the
    referendum of $100,000 is estimated to be $....
        (2) Based upon an average annual percentage increase
    (or decrease) in the market value of such property of ...%
    (insert percentage equal to the average annual percentage
    increase or decrease for the prior 3 levy years, at the
    time the submission of the question is initiated by the
    taxing district, in the amount of (A) the equalized
    assessed value of the taxable property in the taxing
    district less (B) the new property included in the
    equalized assessed value), the approximate amount of the
    additional tax extendable against such property for the ...
    levy year is estimated to be $... and for the ... levy year
    is estimated to be $....
    Paragraph (2) shall be included only if the increased
extension limitation will be applicable for more than one year
and shall list each levy year for which the increased extension
limitation will be applicable. The additional tax shown for
each levy year shall be the approximate dollar amount of the
increase over the amount of the most recently completed
extension at the time the submission of the question is
initiated by the taxing district. The approximate amount of the
additional tax extendable shall be calculated by using (A) the
lesser of 5% or the percentage increase in the Consumer Price
Index for the prior levy year (or an estimate of the percentage
increase for the prior levy year if the increase is unavailable
at the time the submission of the question is initiated by the
taxing district), (B) the percentage increase proposed in the
question, and (C) the last known equalized assessed value and
aggregate extension base of the taxing district at the time the
submission of the question is initiated by the taxing district.
The approximate amount of the tax extendable shall be
calculated (i) without regard to any property tax exemptions
and (ii) based upon the percentage level of assessment
prescribed for such property by statute or by ordinance of the
county board in counties which classify property for purposes
of taxation in accordance with Section 4 of Article IX of the
Constitution. Any notice required to be published in connection
with the submission of the question shall also contain this
supplemental information and shall not contain any other
supplemental information. Any error, miscalculation, or
inaccuracy in computing any amount set forth on the ballot or
in the notice that is not deliberate shall not invalidate or
affect the validity of any proposition approved. Notice of the
referendum shall be published and posted as otherwise required
by law, and the submission of the question shall be initiated
as provided by law.
(Source: P.A. 90-812, eff. 1-26-99; 91-57, eff. 6-30-99.)
 
    (35 ILCS 200/18-230)
    Sec. 18-230. Rate increase or decrease factor. Only when
When a new rate or a rate increase or decrease first effective
for the current levy year has been approved by referendum held
prior to March 22, 2006, the aggregate extension base, as
adjusted in Section Sections 18-215 and 18-220, shall be
multiplied by a rate increase (or decrease) factor. The
numerator of the rate increase (or decrease) factor is the
total combined rate for the funds that made up the aggregate
extension for the taxing district for the prior year plus the
rate increase approved or minus the rate decrease approved. The
denominator of the rate increase or decrease factor is the
total combined rate for the funds that made up the aggregate
extension for the prior year. For those taxing districts for
which a new rate or a rate increase has been approved by
referendum held after December 31, 1988 and prior to March 22,
2006, and that did not increase their rate to the new maximum
rate for that fund, the rate increase factor shall be adjusted
for 4 levy years after the year of the referendum (unless the
governing body of a taxing district to which this Law applied
before the 1995 levy year that approved a tax rate increase at
a general election held after 2002 directs the county clerk or
clerks by resolution to make such adjustment for a lesser
number of years) by a factor the numerator of which is the
portion of the new or increased rate for which taxes were not
extended plus the aggregate rate in effect for the levy year
prior to the levy year in which the referendum was passed and
the denominator of which is the aggregate rate in effect for
the levy year prior to the levy year in which the referendum
was passed.
(Source: P.A. 87-17; 88-455.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 6/30/2006