100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0649

 

Introduced 1/25/2017, by Sen. Michael Connelly

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Special Service Area Tax Law in the Property Tax Code. Defines "service provider agency" and "special service area commission". Provides that a list of the names and addresses of the individuals and entities receiving a mailed notice of the public hearing concerning the establishment of a special service area shall be published at the time notice is given and shall be available at the public hearing. Provides that no special service area may be created or enlarged; no special service area tax may be levied, imposed, or increased; and no bonds may be issued in connection with a special service area, unless an authorization petition is filed with the municipal clerk or county clerk. Provides that no member of a special service area commission may be an owner or board member of the service provider agency selected for that special service area. Provides that no business owned by a member of a special service area commission or an employee of the municipality may provide goods or services in connection with the special service area. Provides that at least one member of the special service area commission shall be an owner of homestead property located within the special service area. Provides that special service area commissions may not establish a loan or line of credit in connection with the special service area. Provides that special service area commissions shall submit an audit of the special service area to the corporate authorities of the municipality at least annually. Contains provisions concerning the expiration of special service areas. Preempts home rule powers. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 27-5, 27-25, 27-30, 27-55, 27-100, 27-105, 27-110,
627-115, 27-120, and 27-125 as follows:
 
7    (35 ILCS 200/27-5)
8    Sec. 27-5. Short title; definitions. This Article may be
9cited as the Special Service Area Tax Law.
10    When used in this Article:
11    "Service Provider Agency" means a local non-profit entity
12that enters into a contract with the municipality or county for
13the purpose of managing a special service area.
14    "Special Service Area" means a contiguous area within a
15municipality or county in which special governmental services
16are provided in addition to those services provided generally
17throughout the municipality or county, the cost of the special
18services to be paid from revenues collected from taxes levied
19or imposed upon property within that area. Territory shall be
20considered contiguous for purposes of this Article even though
21certain completely surrounded portions of the territory are
22excluded from the special service area. A county may create a
23special service area within a municipality or municipalities

 

 

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1when the municipality or municipalities consent to the creation
2of the special service area. A municipality may create a
3special service area within a municipality and the
4unincorporated area of a county or within another municipality
5when the county or other municipality consents to the creation
6of the special service area.
7    "Special Service Area Commission" means a local board
8established by the corporate authorities of a municipality or
9county for the purpose of overseeing a particular special
10service area.
11    "Special Services" means all forms of services pertaining
12to the government and affairs of the municipality or county,
13including but not limited to weather modification and
14improvements permissible under Article 9 of the Illinois
15Municipal Code, and contracts for the supply of water as
16described in Section 11-124-1 of the Illinois Municipal Code
17which may be entered into by the municipality or by the county
18on behalf of a county service area.
19(Source: P.A. 86-1324; 88-445.)
 
20    (35 ILCS 200/27-25)
21    Sec. 27-25. Form of hearing notice. Taxes may be levied or
22imposed by the municipality or county in the special service
23area at a rate or amount of tax sufficient to produce revenues
24required to provide the special services. Prior to the first
25levy of taxes in the special service area, notice shall be

 

 

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1given and a hearing shall be held under the provisions of
2Sections 27-30 and 27-35. For purposes of this Section the
3notice shall include:
4        (a) The time and place of hearing;
5        (b) The boundaries of the area by legal description
6    and, where possible, by street location;
7        (c) The permanent tax index number of each parcel
8    located within the area;
9        (d) The nature of the proposed special services to be
10    provided within the special service area and a statement as
11    to whether the proposed special services are for new
12    construction, maintenance, or other purposes;
13        (d-5) The proposed amount of the tax levy for special
14    services for the initial year for which taxes will be
15    levied within the special service area;
16        (e) A notification that all interested persons,
17    including all persons owning taxable real property located
18    within the special service area, will be given an
19    opportunity to be heard at the hearing regarding the tax
20    levy and an opportunity to file objections to the amount of
21    the tax levy if the tax is a tax upon property; and
22        (f) The maximum rate of taxes to be extended within the
23    special service area in any year and the maximum number of
24    years taxes will be levied if a maximum number of years is
25    to be established; and .
26        (g) If funds received through the special service area

 

 

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1    are going to be used by a person or entity other than the
2    municipality or county, then the notice must include a
3    statement to that effect.
4     After the first levy of taxes within the special service
5area, taxes may continue to be levied in subsequent years
6without the requirement of an additional public hearing if the
7tax rate does not exceed the rate specified in the notice for
8the original public hearing and the taxes are not extended for
9a longer period than the number of years specified in the
10notice if a number of years is specified. Tax rates may be
11increased and the period specified may be extended, if notice
12is given and new public hearings are held in accordance with
13Sections 27-30 and 27-35.
14(Source: P.A. 97-1053, eff. 1-1-13.)
 
15    (35 ILCS 200/27-30)
16    Sec. 27-30. Manner of notice. Prior to or within 60 days
17after the adoption of the ordinance proposing the establishment
18of a special service area the municipality or county shall fix
19a time and a place for a public hearing. The public hearing
20shall be held not less than 60 days after the adoption of the
21ordinance proposing the establishment of a special service
22area. Notice of the hearing shall be given by publication and
23mailing, except that notice of a public hearing to propose the
24establishment of a special service area for weather
25modification purposes may be given by publication only. Notice

 

 

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1by publication shall be given by publication at least once not
2less than 15 days prior to the hearing in a newspaper of
3general circulation within the municipality or county. Notice
4by mailing shall be given by depositing the notice in the
5United States mails addressed to the person or persons in whose
6name the general taxes for the last preceding year were paid on
7each property lying within the special service area. A notice
8shall be mailed not less than 10 days prior to the time set for
9the public hearing. In the event taxes for the last preceding
10year were not paid, the notice shall be sent to the person last
11listed on the tax rolls prior to that year as the owner of the
12property. A list of the names and addresses of the individuals
13and entities to whom the notice will be sent by mail shall be
14published at the time notice is given and shall be available at
15the public hearing.
16(Source: P.A. 97-1053, eff. 1-1-13.)
 
17    (35 ILCS 200/27-55)
18    Sec. 27-55. Authorization Objection petition.
19Notwithstanding any other provision of law, on and after the
20effective date of this amendatory Act of the 100th General
21Assembly, no special service area may be created or enlarged;
22no special service area tax may be levied, imposed, or
23increased; and no bonds may be issued for the provision of
24special services within the area, unless If a petition signed
25by at least 51% of the taxpayers of record of all property

 

 

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1electors residing within the special service area or and by at
2least 51% of the taxpayers owners of record of the land
3included within the boundaries of the special service area is
4filed with the municipal clerk or county clerk, as the case may
5be, authorizing within 60 days following the final adjournment
6of the public hearing, objecting to the creation of the special
7service district, the enlargement of the area, the levy or
8imposition of a tax or the issuance of bonds for the provision
9of special services to the area, or to a proposed increase in
10the tax rate, as the case may be. The petition must be filed
11within 60 days following the final adjournment of the public
12hearing. Only one taxpayer of record may sign an authorization
13petition for any single property index number within the
14proposed special service area. For the purposes of signing the
15petition, "taxpayer of record" means either (i) any person in
16whose name the general taxes for the last preceding year were
17paid, as demonstrated by a copy of the tax bill or
18documentation from the assessor or clerk, or (ii) any person in
19whose name title is held, as demonstrated by a copy of the last
20recorded deed to the property. Any authorized agent may sign a
21petition on behalf of an entity, and that person's
22certification of his or her authority to sign shall be
23presumptive evidence of his or her authority to sign. A
24beneficiary of a land trust may sign the petition with respect
25to the property held by that land trust, and that person's
26certification that he or she is a beneficiary shall be

 

 

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1presumptive evidence of his or her authorization to sign.
2Taxpayers , the district shall not be created or enlarged, or
3the tax shall not be levied or imposed nor the rate increased,
4or no bonds may be issued. The subject matter of the petition
5shall not be proposed relative to any signatories of the
6petition within the next 2 years. Each resident of the special
7service area registered to vote at the time of the public
8hearing held with regard to the special service area shall be
9considered an elector. Each person in whose name legal title to
10land included within the boundaries of the special service area
11is held according to the records of the county in which the
12land is located shall be considered an owner of record. Owners
13of record shall be determined at the time of the public hearing
14held with regard to a special service area. Land owned in the
15name of a land trust, corporation, estate or partnership shall
16be considered to have a single owner of record.
17(Source: P.A. 82-640; 88-455.)
 
18    (35 ILCS 200/27-100 new)
19    Sec. 27-100. Special service area commissions.
20    (a) Notwithstanding any other provision of law, no member
21of a special service area commission may be an owner or board
22member of the service provider agency selected for that special
23service area.
24    (b) Notwithstanding any other provision of law, no business
25owned by a member of a special service area commission or an

 

 

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1employee of the municipality may, for valuable consideration,
2provide goods or services in connection with the special
3service area.
4    (c) Notwithstanding any other provision of law, with
5respect to special service area commissions established on or
6after the effective date of this amendatory Act of the 100th
7General Assembly, at least one member of the special service
8area commission shall be an owner of homestead property, as
9defined in Section 15-175, located within the special service
10area.
11    (d) This Section is a limitation under subsection (i) of
12Section 6 of Article VII of the Illinois Constitution on the
13concurrent exercise by home rule units of powers and functions
14exercised by the State.
 
15    (35 ILCS 200/27-105 new)
16    Sec. 27-105. Lines of credit. Special service area
17commissions may not establish a loan or line of credit in
18connection with the special service area. Service provider
19agencies in those municipalities may establish a loan or line
20of credit in connection with the special service area; however,
21financing under this Section may not be secured by future tax
22revenue generated by the special service area. This Section is
23a limitation under subsection (i) of Section 6 of Article VII
24of the Illinois Constitution on the concurrent exercise by home
25rule units of powers and functions exercised by the State.
 

 

 

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1    (35 ILCS 200/27-110 new)
2    Sec. 27-110. Special service area moneys used in the next
3fiscal year. Notwithstanding any other provision of law, if
4there is excess money remaining in a special service area fund
5at the end of a fiscal year, then the corporate authorities may
6use that excess money to provide special services within the
7special service area in the next fiscal year, provided that the
8total amount used for purposes other than capital expenditures
9may not exceed 25% of the previous fiscal year's budget for the
10special service area. This Section is a limitation under
11subsection (i) of Section 6 of Article VII of the Illinois
12Constitution on the concurrent exercise by home rule units of
13powers and functions exercised by the State.
 
14    (35 ILCS 200/27-115 new)
15    Sec. 27-115. Special service area audits. Each special
16service area commission shall cause an audit of the funds and
17accounts of the special service area to be submitted to the
18corporate authorities of the municipality at least annually.
19The audit shall be made in accordance with generally accepted
20auditing standards. This Section is a limitation under
21subsection (i) of Section 6 of Article VII of the Illinois
22Constitution on the concurrent exercise by home rule units of
23powers and functions exercised by the State.
 

 

 

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1    (35 ILCS 200/27-120 new)
2    Sec. 27-120. Terms of special service areas.
3Notwithstanding any other provision of law, each special
4service area established on or after the effective date of this
5amendatory Act of the 100th General Assembly shall expire on
6December 31 of the tenth levy year after the special service
7area takes effect, unless an earlier date is specified in the
8ordinance proposing the establishment of the special service
9area. A special service area established on or after the
10effective date of this amendatory Act of the 100th General
11Assembly may be renewed once for an additional period of not
12more than 15 years if a petition proposing the extension signed
13by at least 20% of the electors residing within the special
14service area and by at least 20% of the owners of record of the
15land included within the boundaries of the special service area
16is filed with the municipal clerk not less than 60 days prior
17to expiration of the special service area. This Section is a
18limitation under subsection (i) of Section 6 of Article VII of
19the Illinois Constitution on the concurrent exercise by home
20rule units of powers and functions exercised by the State.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    35 ILCS 200/27-5
4    35 ILCS 200/27-25
5    35 ILCS 200/27-30
6    35 ILCS 200/27-55
7    35 ILCS 200/27-100 new
8    35 ILCS 200/27-105 new
9    35 ILCS 200/27-110 new
10    35 ILCS 200/27-115 new
11    35 ILCS 200/27-120 new