Public Act 098-0006
 
HB1188 EnrolledLRB098 04253 HLH 34279 b


  
    AN ACT concerning revenue.
  
 
    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 
Section 18-185 as follows:
 
    (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;  (n) made for payment of 
principal and interest on any bonds issued under the authority 
of Section 17-2.2d of the School Code; (o) 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; and (p) made for road purposes in the 
first year after a township assumes the rights, powers, duties, 
assets, property, liabilities, obligations, and

responsibilities of a road district abolished under the 
provisions of Section 6-133 of  the Illinois Highway 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; (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; 
and (q) made by Ford Heights School District 169 under Section 
17-9.02 of the School 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; (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; 
and (m) made for the taxing district to pay interest or 
principal on general obligation bonds issued pursuant to 
Section 19-3.10 of the School 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).  A debt service extension base 
established or increased at any time pursuant to any provision 
of this Law, except Section 18-212, shall be increased each 
year commencing with the later of (i) the 2009 levy year or 
(ii) the first levy year in which this Law becomes applicable 
to the taxing district, by the lesser of 5% or the percentage 
increase in the Consumer Price Index during the 12-month 
calendar year preceding the levy year. 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 
18-135, 18-215,
and 18-230.
 An adjustment under Section 18-135 
shall be made for the 2007 levy year and all subsequent levy 
years whenever one or more counties within which a taxing 
district is located (i) used estimated valuations or rates when 
extending taxes in the taxing district for the last preceding 
levy year that resulted in the over or under extension of 
taxes, or (ii) increased or decreased the tax extension for the 
last preceding levy year as required by Section 18-135(c). 
Whenever an adjustment is required under Section 18-135, the 
aggregate extension base of the taxing district shall be equal 
to the amount that the aggregate extension of the taxing 
district would have been for the last preceding levy year if 
either or both (i) actual, rather than estimated, valuations or 
rates had been used to calculate the extension of taxes for the 
last levy year, or (ii) the tax extension for the last 
preceding levy year had not been adjusted as required by 
subsection (c) of Section 18-135. 

    "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, including the assessed value, upon final stabilization 
of occupancy after new construction is complete, of any real 
property located within the boundaries of an otherwise or 
previously exempt military reservation that is intended for 
residential use and owned by or leased to a private corporation 
or other entity, 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, previously 
established under the Economic Development Project Area Tax 
Increment Act of 1995, 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 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.

In the case of a taxing district that obtained referendum 
approval for an increased limiting rate on March 20, 2012, the 
limiting rate for tax year 2012 shall be the rate that 
generates the approximate total amount of taxes extendable for 
that tax year, as set forth in the proposition approved by the 
voters; this rate shall be the final rate applied by the county 
clerk for the aggregate of all capped funds of the district for 
tax year 2012. 

(Source: P.A. 96-501, eff. 8-14-09; 96-517, eff. 8-14-09; 
96-1000, eff. 7-2-10; 96-1202, eff. 7-22-10; 97-611, eff. 
1-1-12.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.