093_SB1881eng SB1881 Engrossed LRB093 10910 SJM 11433 b 1 AN ACT concerning taxes. 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 Section 18-185 as follows: 6 (35 ILCS 200/18-185) 7 Sec. 18-185. Short title; definitions. This Division 5 8 may be cited as the Property Tax Extension Limitation Law. 9 As used in this Division 5: 10 "Consumer Price Index" means the Consumer Price Index for 11 All Urban Consumers for all items published by the United 12 States Department of Labor. 13 "Extension limitation" means (a) the lesser of 5% or the 14 percentage increase in the Consumer Price Index during the 15 12-month calendar year preceding the levy year or (b) the 16 rate of increase approved by voters under Section 18-205. 17 "Affected county" means a county of 3,000,000 or more 18 inhabitants or a county contiguous to a county of 3,000,000 19 or more inhabitants. 20 "Taxing district" has the same meaning provided in 21 Section 1-150, except as otherwise provided in this Section. 22 For the 1991 through 1994 levy years only, "taxing district" 23 includes only each non-home rule taxing district having the 24 majority of its 1990 equalized assessed value within any 25 county or counties contiguous to a county with 3,000,000 or 26 more inhabitants. Beginning with the 1995 levy year, "taxing 27 district" includes only each non-home rule taxing district 28 subject to this Law before the 1995 levy year and each 29 non-home rule taxing district not subject to this Law before 30 the 1995 levy year having the majority of its 1994 equalized 31 assessed value in an affected county or counties. Beginning SB1881 Engrossed -2- LRB093 10910 SJM 11433 b 1 with the levy year in which this Law becomes applicable to a 2 taxing district as provided in Section 18-213, "taxing 3 district" also includes those taxing districts made subject 4 to this Law as provided in Section 18-213. 5 "Aggregate extension" for taxing districts to which this 6 Law applied before the 1995 levy year means the annual 7 corporate extension for the taxing district and those special 8 purpose extensions that are made annually for the taxing 9 district, excluding special purpose extensions: (a) made for 10 the taxing district to pay interest or principal on general 11 obligation bonds that were approved by referendum; (b) made 12 for any taxing district to pay interest or principal on 13 general obligation bonds issued before October 1, 1991; (c) 14 made for any taxing district to pay interest or principal on 15 bonds issued to refund or continue to refund those bonds 16 issued before October 1, 1991; (d) made for any taxing 17 district to pay interest or principal on bonds issued to 18 refund or continue to refund bonds issued after October 1, 19 1991 that were approved by referendum; (e) made for any 20 taxing district to pay interest or principal on revenue bonds 21 issued before October 1, 1991 for payment of which a property 22 tax levy or the full faith and credit of the unit of local 23 government is pledged; however, a tax for the payment of 24 interest or principal on those bonds shall be made only after 25 the governing body of the unit of local government finds that 26 all other sources for payment are insufficient to make those 27 payments; (f) made for payments under a building commission 28 lease when the lease payments are for the retirement of bonds 29 issued by the commission before October 1, 1991, to pay for 30 the building project; (g) made for payments due under 31 installment contracts entered into before October 1, 1991; 32 (h) made for payments of principal and interest on bonds 33 issued under the Metropolitan Water Reclamation District Act 34 to finance construction projects initiated before October 1, SB1881 Engrossed -3- LRB093 10910 SJM 11433 b 1 1991; (i) made for payments of principal and interest on 2 limited bonds, as defined in Section 3 of the Local 3 Government Debt Reform Act, in an amount not to exceed the 4 debt service extension base less the amount in items (b), 5 (c), (e), and (h) of this definition for non-referendum 6 obligations, except obligations initially issued pursuant to 7 referendum; (j) made for payments of principal and interest 8 on bonds issued under Section 15 of the Local Government Debt 9 Reform Act;and(k) made by a school district that 10 participates in the Special Education District of Lake 11 County, created by special education joint agreement under 12 Section 10-22.31 of the School Code, for payment of the 13 school district's share of the amounts required to be 14 contributed by the Special Education District of Lake County 15 to the Illinois Municipal Retirement Fund under Article 7 of 16 the Illinois Pension Code; the amount of any extension under 17 this item (k) shall be certified by the school district to 18 the county clerk; and (l) made to fund expenses of providing 19 joint recreational programs for the handicapped under Section 20 5-8 of the Park District Code or Section 11-95-14 of the 21 Illinois Municipal Code. 22 "Aggregate extension" for the taxing districts to which 23 this Law did not apply before the 1995 levy year (except 24 taxing districts subject to this Law in accordance with 25 Section 18-213) means the annual corporate extension for the 26 taxing district and those special purpose extensions that are 27 made annually for the taxing district, excluding special 28 purpose extensions: (a) made for the taxing district to pay 29 interest or principal on general obligation bonds that were 30 approved by referendum; (b) made for any taxing district to 31 pay interest or principal on general obligation bonds issued 32 before March 1, 1995; (c) made for any taxing district to pay 33 interest or principal on bonds issued to refund or continue 34 to refund those bonds issued before March 1, 1995; (d) made SB1881 Engrossed -4- LRB093 10910 SJM 11433 b 1 for any taxing district to pay interest or principal on bonds 2 issued to refund or continue to refund bonds issued after 3 March 1, 1995 that were approved by referendum; (e) made for 4 any taxing district to pay interest or principal on revenue 5 bonds issued before March 1, 1995 for payment of which a 6 property tax levy or the full faith and credit of the unit of 7 local government is pledged; however, a tax for the payment 8 of interest or principal on those bonds shall be made only 9 after the governing body of the unit of local government 10 finds that all other sources for payment are insufficient to 11 make those payments; (f) made for payments under a building 12 commission lease when the lease payments are for the 13 retirement of bonds issued by the commission before March 1, 14 1995 to pay for the building project; (g) made for payments 15 due under installment contracts entered into before March 1, 16 1995; (h) made for payments of principal and interest on 17 bonds issued under the Metropolitan Water Reclamation 18 District Act to finance construction projects initiated 19 before October 1, 1991; (i) 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 and bonds described in subsection (h) of this 26 definition; (j) made for payments of principal and interest 27 on bonds issued under Section 15 of the Local Government Debt 28 Reform Act; (k) made for payments of principal and interest 29 on bonds authorized by Public Act 88-503 and issued under 30 Section 20a of the Chicago Park District Act for aquarium or 31 museum projects; (l) made for payments of principal and 32 interest on bonds authorized by Public Act 87-1191 and issued 33 under Section 42 of the Cook County Forest Preserve District 34 Act for zoological park projects;and(m) made pursuant to SB1881 Engrossed -5- LRB093 10910 SJM 11433 b 1 Section 34-53.5 of the School Code, whether levied annually 2 or not; (n) made to fund expenses of providing joint 3 recreational programs for the handicapped under Section 5-8 4 of the Park District Code or Section 11-95-14 of the Illinois 5 Municipal Code; and (o) made by the Chicago Park District for 6 recreational programs for the handicapped under subsection 7 (c) of Section 7.06 of the Chicago Park District Act. 8 "Aggregate extension" for all taxing districts to which 9 this Law applies in accordance with Section 18-213, except 10 for those taxing districts subject to paragraph (2) of 11 subsection (e) of Section 18-213, means the annual corporate 12 extension for the taxing district and those special purpose 13 extensions that are made annually for the taxing district, 14 excluding special purpose extensions: (a) made for the taxing 15 district to pay interest or principal on general obligation 16 bonds that were approved by referendum; (b) made for any 17 taxing district to pay interest or principal on general 18 obligation bonds issued before the date on which the 19 referendum making this Law applicable to the taxing district 20 is held; (c) made for any taxing district to pay interest or 21 principal on bonds issued to refund or continue to refund 22 those bonds issued before the date on which the referendum 23 making this Law applicable to the taxing district is held; 24 (d) made for any taxing district to pay interest or principal 25 on bonds issued to refund or continue to refund bonds issued 26 after the date on which the referendum making this Law 27 applicable to the taxing district is held if the bonds were 28 approved by referendum after the date on which the referendum 29 making this Law applicable to the taxing district is held; 30 (e) made for any taxing district to pay interest or principal 31 on revenue bonds issued before the date on which the 32 referendum making this Law applicable to the taxing district 33 is held for payment of which a property tax levy or the full 34 faith and credit of the unit of local government is pledged; SB1881 Engrossed -6- LRB093 10910 SJM 11433 b 1 however, a tax for the payment of interest or principal on 2 those bonds shall be made only after the governing body of 3 the unit of local government finds that all other sources for 4 payment are insufficient to make those payments; (f) made for 5 payments under a building commission lease when the lease 6 payments are for the retirement of bonds issued by the 7 commission before the date on which the referendum making 8 this Law applicable to the taxing district is held to pay for 9 the building project; (g) made for payments due under 10 installment contracts entered into before the date on which 11 the referendum making this Law applicable to the taxing 12 district is held; (h) made for payments of principal and 13 interest on limited bonds, as defined in Section 3 of the 14 Local Government Debt Reform Act, in an amount not to exceed 15 the debt service extension base less the amount in items (b), 16 (c), and (e) of this definition for non-referendum 17 obligations, except obligations initially issued pursuant to 18 referendum; (i) made for payments of principal and interest 19 on bonds issued under Section 15 of the Local Government Debt 20 Reform Act;and(j) made for a qualified airport authority to 21 pay interest or principal on general obligation bonds issued 22 for the purpose of paying obligations due under, or financing 23 airport facilities required to be acquired, constructed, 24 installed or equipped pursuant to, contracts entered into 25 before March 1, 1996 (but not including any amendments to 26 such a contract taking effect on or after that date); and (k) 27 made to fund expenses of providing joint recreational 28 programs for the handicapped under Section 5-8 of the Park 29 District Code or Section 11-95-14 of the Illinois Municipal 30 Code. 31 "Aggregate extension" for all taxing districts to which 32 this Law applies in accordance with paragraph (2) of 33 subsection (e) of Section 18-213 means the annual corporate 34 extension for the taxing district and those special purpose SB1881 Engrossed -7- LRB093 10910 SJM 11433 b 1 extensions that are made annually for the taxing district, 2 excluding special purpose extensions: (a) made for the taxing 3 district to pay interest or principal on general obligation 4 bonds that were approved by referendum; (b) made for any 5 taxing district to pay interest or principal on general 6 obligation bonds issued before the effective date of this 7 amendatory Act of 1997; (c) made for any taxing district to 8 pay interest or principal on bonds issued to refund or 9 continue to refund those bonds issued before the effective 10 date of this amendatory Act of 1997; (d) made for any taxing 11 district to pay interest or principal on bonds issued to 12 refund or continue to refund bonds issued after the effective 13 date of this amendatory Act of 1997 if the bonds were 14 approved by referendum after the effective date of this 15 amendatory Act of 1997; (e) made for any taxing district to 16 pay interest or principal on revenue bonds issued before the 17 effective date of this amendatory Act of 1997 for payment of 18 which a property tax levy or the full faith and credit of the 19 unit of local government is pledged; however, a tax for the 20 payment of interest or principal on those bonds shall be made 21 only after the governing body of the unit of local government 22 finds that all other sources for payment are insufficient to 23 make those payments; (f) made for payments under a building 24 commission lease when the lease payments are for the 25 retirement of bonds issued by the commission before the 26 effective date of this amendatory Act of 1997 to pay for the 27 building project; (g) made for payments due under installment 28 contracts entered into before the effective date of this 29 amendatory Act of 1997; (h) made for payments of principal 30 and interest on limited bonds, as defined in Section 3 of the 31 Local Government Debt Reform Act, in an amount not to exceed 32 the debt service extension base less the amount in items (b), 33 (c), and (e) of this definition for non-referendum 34 obligations, except obligations initially issued pursuant to SB1881 Engrossed -8- LRB093 10910 SJM 11433 b 1 referendum; (i) made for payments of principal and interest 2 on bonds issued under Section 15 of the Local Government Debt 3 Reform Act;and(j) made for a qualified airport authority to 4 pay interest or principal on general obligation bonds issued 5 for the purpose of paying obligations due under, or financing 6 airport facilities required to be acquired, constructed, 7 installed or equipped pursuant to, contracts entered into 8 before March 1, 1996 (but not including any amendments to 9 such a contract taking effect on or after that date); and (k) 10 made to fund expenses of providing joint recreational 11 programs for the handicapped under Section 5-8 of the Park 12 District Code or Section 11-95-14 of the Illinois Municipal 13 Code. 14 "Debt service extension base" means an amount equal to 15 that portion of the extension for a taxing district for the 16 1994 levy year, or for those taxing districts subject to this 17 Law in accordance with Section 18-213, except for those 18 subject to paragraph (2) of subsection (e) of Section 18-213, 19 for the levy year in which the referendum making this Law 20 applicable to the taxing district is held, or for those 21 taxing districts subject to this Law in accordance with 22 paragraph (2) of subsection (e) of Section 18-213 for the 23 1996 levy year, constituting an extension for payment of 24 principal and interest on bonds issued by the taxing district 25 without referendum, but not including (i) bonds authorized by 26 Public Act 88-503 and issued under Section 20a of the Chicago 27 Park District Act for aquarium and museum projects; (ii) 28 bonds issued under Section 15 of the Local Government Debt 29 Reform Act; or (iii) refunding obligations issued to refund 30 or to continue to refund obligations initially issued 31 pursuant to referendum. The debt service extension base may 32 be established or increased as provided under Section 18-212. 33 "Special purpose extensions" include, but are not limited 34 to, extensions for levies made on an annual basis for SB1881 Engrossed -9- LRB093 10910 SJM 11433 b 1 unemployment and workers' compensation, self-insurance, 2 contributions to pension plans, and extensions made pursuant 3 to Section 6-601 of the Illinois Highway Code for a road 4 district's permanent road fund whether levied annually or 5 not. The extension for a special service area is not 6 included in the aggregate extension. 7 "Aggregate extension base" means the taxing district's 8 last preceding aggregate extension as adjusted under Sections 9 18-215 through 18-230. 10 "Levy year" has the same meaning as "year" under Section 11 1-155. 12 "New property" means (i) the assessed value, after final 13 board of review or board of appeals action, of new 14 improvements or additions to existing improvements on any 15 parcel of real property that increase the assessed value of 16 that real property during the levy year multiplied by the 17 equalization factor issued by the Department under Section 18 17-30 and (ii) the assessed value, after final board of 19 review or board of appeals action, of real property not 20 exempt from real estate taxation, which real property was 21 exempt from real estate taxation for any portion of the 22 immediately preceding levy year, multiplied by the 23 equalization factor issued by the Department under Section 24 17-30. In addition, the county clerk in a county containing a 25 population of 3,000,000 or more shall include in the 1997 26 recovered tax increment value for any school district, any 27 recovered tax increment value that was applicable to the 1995 28 tax year calculations. 29 "Qualified airport authority" means an airport authority 30 organized under the Airport Authorities Act and located in a 31 county bordering on the State of Wisconsin and having a 32 population in excess of 200,000 and not greater than 500,000. 33 "Recovered tax increment value" means, except as 34 otherwise provided in this paragraph, the amount of the SB1881 Engrossed -10- LRB093 10910 SJM 11433 b 1 current year's equalized assessed value, in the first year 2 after a municipality terminates the designation of an area as 3 a redevelopment project area previously established under the 4 Tax Increment Allocation Development Act in the Illinois 5 Municipal Code, previously established under the Industrial 6 Jobs Recovery Law in the Illinois Municipal Code, or 7 previously established under the Economic Development Area 8 Tax Increment Allocation Act, of each taxable lot, block, 9 tract, or parcel of real property in the redevelopment 10 project area over and above the initial equalized assessed 11 value of each property in the redevelopment project area. For 12 the taxes which are extended for the 1997 levy year, the 13 recovered tax increment value for a non-home rule taxing 14 district that first became subject to this Law for the 1995 15 levy year because a majority of its 1994 equalized assessed 16 value was in an affected county or counties shall be 17 increased if a municipality terminated the designation of an 18 area in 1993 as a redevelopment project area previously 19 established under the Tax Increment Allocation Development 20 Act in the Illinois Municipal Code, previously established 21 under the Industrial Jobs Recovery Law in the Illinois 22 Municipal Code, or previously established under the Economic 23 Development Area Tax Increment Allocation Act, by an amount 24 equal to the 1994 equalized assessed value of each taxable 25 lot, block, tract, or parcel of real property in the 26 redevelopment project area over and above the initial 27 equalized assessed value of each property in the 28 redevelopment project area. In the first year after a 29 municipality removes a taxable lot, block, tract, or parcel 30 of real property from a redevelopment project area 31 established under the Tax Increment Allocation Development 32 Act in the Illinois Municipal Code, the Industrial Jobs 33 Recovery Law in the Illinois Municipal Code, or the Economic 34 Development Area Tax Increment Allocation Act, "recovered tax SB1881 Engrossed -11- LRB093 10910 SJM 11433 b 1 increment value" means the amount of the current year's 2 equalized assessed value of each taxable lot, block, tract, 3 or parcel of real property removed from the redevelopment 4 project area over and above the initial equalized assessed 5 value of that real property before removal from the 6 redevelopment project area. 7 Except as otherwise provided in this Section, "limiting 8 rate" means a fraction the numerator of which is the last 9 preceding aggregate extension base times an amount equal to 10 one plus the extension limitation defined in this Section and 11 the denominator of which is the current year's equalized 12 assessed value of all real property in the territory under 13 the jurisdiction of the taxing district during the prior levy 14 year. For those taxing districts that reduced their 15 aggregate extension for the last preceding levy year, the 16 highest aggregate extension in any of the last 3 preceding 17 levy years shall be used for the purpose of computing the 18 limiting rate. The denominator shall not include new 19 property. The denominator shall not include the recovered 20 tax increment value. 21 (Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99; 22 92-547, eff. 6-13-02.) 23 Section 10. The Chicago Park District Act is amended by 24 adding Section 7.06 as follows: 25 (70 ILCS 1505/7.06 new) 26 Sec. 7.06. Recreational programs for the handicapped; 27 tax. 28 (a) The Chicago Park District is authorized to 29 establish, maintain, and manage recreational programs for the 30 handicapped, including both mentally and physically 31 handicapped, to provide transportation for the handicapped to 32 and from these programs, to provide for the examination of SB1881 Engrossed -12- LRB093 10910 SJM 11433 b 1 participants in such programs as deemed necessary, to charge 2 fees for participating in the programs (the fee charged for 3 non-residents of the district need not be the same as the 4 fees charged the residents of the district), and to charge 5 fees for transportation furnished to participants. 6 (b) For the purposes of the recreational programs for 7 the handicapped established under this Section, the Chicago 8 Park District is authorized to adopt procedures for approval 9 of budgets, authorization of expenditures, location of 10 recreational areas, acquisition of real estate by gift, 11 legacy, grant, or purchase, and employment of a director and 12 other professional workers for the programs. 13 (c) For the purposes of providing recreational programs 14 for the handicapped under this Section, the Chicago Park 15 District may levy and collect annually a tax of not to exceed 16 .04% of the value, as equalized or assessed by the Department 17 of Revenue, of all taxable property in the district for the 18 purpose of funding the district's expenses of providing these 19 programs. This tax shall be levied and collected in like 20 manner as the general taxes for the district. The tax shall 21 be in addition to all other taxes authorized by law to be 22 levied and collected in the district and shall not be 23 included within any limitation of rate contained in this Act 24 or any other law, but shall be excluded therefrom, in 25 addition thereto, and in excess thereof. 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.