99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5609

 

Introduced , by Rep. Donald L. Moffitt

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that levies by fire protection districts for insurance are excluded from the definition of "aggregate extension". Provides that all special purpose extensions made by a fire protection district for contributions to a firefighter's pension fund are excluded from the definition of "aggregate extension" (currently, only to the extent of the certification under the Illinois Pension Code).


LRB099 19224 HLH 43616 b

 

 

A BILL FOR

 

HB5609LRB099 19224 HLH 43616 b

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
5Section 18-185 as follows:
 
6    (35 ILCS 200/18-185)
7    Sec. 18-185. Short title; definitions. This Division 5 may
8be cited as the Property Tax Extension Limitation Law. As used
9in this Division 5:
10    "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13    "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year or (b) the rate
16of increase approved by voters under Section 18-205.
17    "Affected county" means a county of 3,000,000 or more
18inhabitants or a county contiguous to a county of 3,000,000 or
19more inhabitants.
20    "Taxing district" has the same meaning provided in Section
211-150, except as otherwise provided in this Section. For the
221991 through 1994 levy years only, "taxing district" includes
23only each non-home rule taxing district having the majority of

 

 

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1its 1990 equalized assessed value within any county or counties
2contiguous to a county with 3,000,000 or more inhabitants.
3Beginning with the 1995 levy year, "taxing district" includes
4only each non-home rule taxing district subject to this Law
5before the 1995 levy year and each non-home rule taxing
6district not subject to this Law before the 1995 levy year
7having the majority of its 1994 equalized assessed value in an
8affected county or counties. Beginning with the levy year in
9which this Law becomes applicable to a taxing district as
10provided in Section 18-213, "taxing district" also includes
11those taxing districts made subject to this Law as provided in
12Section 18-213.
13    "Aggregate extension" for taxing districts to which this
14Law applied before the 1995 levy year means the annual
15corporate extension for the taxing district and those special
16purpose extensions that are made annually for the taxing
17district, excluding special purpose extensions: (a) made for
18the taxing district to pay interest or principal on general
19obligation bonds that were approved by referendum; (b) made for
20any taxing district to pay interest or principal on general
21obligation bonds issued before October 1, 1991; (c) made for
22any taxing district to pay interest or principal on bonds
23issued to refund or continue to refund those bonds issued
24before October 1, 1991; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after October 1, 1991 that were approved by

 

 

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1referendum; (e) made for any taxing district to pay interest or
2principal on revenue bonds issued before October 1, 1991 for
3payment of which a property tax levy or the full faith and
4credit of the unit of local government is pledged; however, a
5tax for the payment of interest or principal on those bonds
6shall be made only after the governing body of the unit of
7local government finds that all other sources for payment are
8insufficient to make those payments; (f) made for payments
9under a building commission lease when the lease payments are
10for the retirement of bonds issued by the commission before
11October 1, 1991, to pay for the building project; (g) made for
12payments due under installment contracts entered into before
13October 1, 1991; (h) made for payments of principal and
14interest on bonds issued under the Metropolitan Water
15Reclamation District Act to finance construction projects
16initiated before October 1, 1991; (i) made for payments of
17principal and interest on limited bonds, as defined in Section
183 of the Local Government Debt Reform Act, in an amount not to
19exceed the debt service extension base less the amount in items
20(b), (c), (e), and (h) of this definition for non-referendum
21obligations, except obligations initially issued pursuant to
22referendum; (j) made for payments of principal and interest on
23bonds issued under Section 15 of the Local Government Debt
24Reform Act; (k) made by a school district that participates in
25the Special Education District of Lake County, created by
26special education joint agreement under Section 10-22.31 of the

 

 

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1School Code, for payment of the school district's share of the
2amounts required to be contributed by the Special Education
3District of Lake County to the Illinois Municipal Retirement
4Fund under Article 7 of the Illinois Pension Code; the amount
5of any extension under this item (k) shall be certified by the
6school district to the county clerk; (l) made to fund expenses
7of providing joint recreational programs for persons with
8disabilities under Section 5-8 of the Park District Code or
9Section 11-95-14 of the Illinois Municipal Code; (m) made for
10temporary relocation loan repayment purposes pursuant to
11Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
12payment of principal and interest on any bonds issued under the
13authority of Section 17-2.2d of the School Code; (o) made for
14contributions to a firefighter's pension fund created under
15Article 4 of the Illinois Pension Code, to the extent of the
16amount certified under item (5) of Section 4-134 of the
17Illinois Pension Code, except that all special purpose
18extensions made by a fire protection district for contributions
19to a firefighter's pension fund created under Article 4 of the
20Illinois Pension Code are excluded; and (p) made for road
21purposes in the first year after a township assumes the rights,
22powers, duties, assets, property, liabilities, obligations,
23and responsibilities of a road district abolished under the
24provisions of Section 6-133 of the Illinois Highway Code; and
25(q) made by a fire protection district for funding expenses
26related to insurance.

 

 

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1    "Aggregate extension" for the taxing districts to which
2this Law did not apply before the 1995 levy year (except taxing
3districts subject to this Law in accordance with Section
418-213) means the annual corporate extension for the taxing
5district and those special purpose extensions that are made
6annually for the taxing district, excluding special purpose
7extensions: (a) made for the taxing district to pay interest or
8principal on general obligation bonds that were approved by
9referendum; (b) made for any taxing district to pay interest or
10principal on general obligation bonds issued before March 1,
111995; (c) made for any taxing district to pay interest or
12principal on bonds issued to refund or continue to refund those
13bonds issued before March 1, 1995; (d) made for any taxing
14district to pay interest or principal on bonds issued to refund
15or continue to refund bonds issued after March 1, 1995 that
16were approved by referendum; (e) made for any taxing district
17to pay interest or principal on revenue bonds issued before
18March 1, 1995 for payment of which a property tax levy or the
19full faith and credit of the unit of local government is
20pledged; however, a tax for the payment of interest or
21principal on those bonds shall be made only after the governing
22body of the unit of local government finds that all other
23sources for payment are insufficient to make those payments;
24(f) made for payments under a building commission lease when
25the lease payments are for the retirement of bonds issued by
26the commission before March 1, 1995 to pay for the building

 

 

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1project; (g) made for payments due under installment contracts
2entered into before March 1, 1995; (h) made for payments of
3principal and interest on bonds issued under the Metropolitan
4Water Reclamation District Act to finance construction
5projects initiated before October 1, 1991; (h-4) made for
6stormwater management purposes by the Metropolitan Water
7Reclamation District of Greater Chicago under Section 12 of the
8Metropolitan Water Reclamation District Act; (i) made for
9payments of principal and interest on limited bonds, as defined
10in Section 3 of the Local Government Debt Reform Act, in an
11amount not to exceed the debt service extension base less the
12amount in items (b), (c), and (e) of this definition for
13non-referendum obligations, except obligations initially
14issued pursuant to referendum and bonds described in subsection
15(h) of this definition; (j) made for payments of principal and
16interest on bonds issued under Section 15 of the Local
17Government Debt Reform Act; (k) made for payments of principal
18and interest on bonds authorized by Public Act 88-503 and
19issued under Section 20a of the Chicago Park District Act for
20aquarium or museum projects; (l) made for payments of principal
21and interest on bonds authorized by Public Act 87-1191 or
2293-601 and (i) issued pursuant to Section 21.2 of the Cook
23County Forest Preserve District Act, (ii) issued under Section
2442 of the Cook County Forest Preserve District Act for
25zoological park projects, or (iii) issued under Section 44.1 of
26the Cook County Forest Preserve District Act for botanical

 

 

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1gardens projects; (m) made pursuant to Section 34-53.5 of the
2School Code, whether levied annually or not; (n) made to fund
3expenses of providing joint recreational programs for persons
4with disabilities under Section 5-8 of the Park District Code
5or Section 11-95-14 of the Illinois Municipal Code; (o) made by
6the Chicago Park District for recreational programs for persons
7with disabilities under subsection (c) of Section 7.06 of the
8Chicago Park District Act; (p) made for contributions to a
9firefighter's pension fund created under Article 4 of the
10Illinois Pension Code, to the extent of the amount certified
11under item (5) of Section 4-134 of the Illinois Pension Code,
12except that all special purpose extensions made by a fire
13protection district for contributions to a firefighter's
14pension fund created under Article 4 of the Illinois Pension
15Code are excluded; and (q) made by Ford Heights School District
16169 under Section 17-9.02 of the School Code; and (r) made by a
17fire protection district for funding expenses related to
18insurance.
19    "Aggregate extension" for all taxing districts to which
20this Law applies in accordance with Section 18-213, except for
21those taxing districts subject to paragraph (2) of subsection
22(e) of Section 18-213, means the annual corporate extension for
23the taxing district and those special purpose extensions that
24are made annually for the taxing district, excluding special
25purpose extensions: (a) made for the taxing district to pay
26interest or principal on general obligation bonds that were

 

 

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1approved by referendum; (b) made for any taxing district to pay
2interest or principal on general obligation bonds issued before
3the date on which the referendum making this Law applicable to
4the taxing district is held; (c) made for any taxing district
5to pay interest or principal on bonds issued to refund or
6continue to refund those bonds issued before the date on which
7the referendum making this Law applicable to the taxing
8district is held; (d) made for any taxing district to pay
9interest or principal on bonds issued to refund or continue to
10refund bonds issued after the date on which the referendum
11making this Law applicable to the taxing district is held if
12the bonds were approved by referendum after the date on which
13the referendum making this Law applicable to the taxing
14district is held; (e) made for any taxing district to pay
15interest or principal on revenue bonds issued before the date
16on which the referendum making this Law applicable to the
17taxing district is held for payment of which a property tax
18levy or the full faith and credit of the unit of local
19government is pledged; however, a tax for the payment of
20interest or principal on those bonds shall be made only after
21the governing body of the unit of local government finds that
22all other sources for payment are insufficient to make those
23payments; (f) made for payments under a building commission
24lease when the lease payments are for the retirement of bonds
25issued by the commission before the date on which the
26referendum making this Law applicable to the taxing district is

 

 

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1held to pay for the building project; (g) made for payments due
2under installment contracts entered into before the date on
3which the referendum making this Law applicable to the taxing
4district is held; (h) made for payments of principal and
5interest on limited bonds, as defined in Section 3 of the Local
6Government Debt Reform Act, in an amount not to exceed the debt
7service extension base less the amount in items (b), (c), and
8(e) of this definition for non-referendum obligations, except
9obligations initially issued pursuant to referendum; (i) made
10for payments of principal and interest on bonds issued under
11Section 15 of the Local Government Debt Reform Act; (j) made
12for a qualified airport authority to pay interest or principal
13on general obligation bonds issued for the purpose of paying
14obligations due under, or financing airport facilities
15required to be acquired, constructed, installed or equipped
16pursuant to, contracts entered into before March 1, 1996 (but
17not including any amendments to such a contract taking effect
18on or after that date); (k) made to fund expenses of providing
19joint recreational programs for persons with disabilities
20under Section 5-8 of the Park District Code or Section 11-95-14
21of the Illinois Municipal Code; (l) made for contributions to a
22firefighter's pension fund created under Article 4 of the
23Illinois Pension Code, to the extent of the amount certified
24under item (5) of Section 4-134 of the Illinois Pension Code,
25except that all special purpose extensions made by a fire
26protection district for contributions to a firefighter's

 

 

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1pension fund created under Article 4 of the Illinois Pension
2Code are excluded; and (m) made for the taxing district to pay
3interest or principal on general obligation bonds issued
4pursuant to Section 19-3.10 of the School Code; and (n) made by
5a fire protection district for funding expenses related to
6insurance.
7    "Aggregate extension" for all taxing districts to which
8this Law applies in accordance with paragraph (2) of subsection
9(e) of Section 18-213 means the annual corporate extension for
10the taxing district and those special purpose extensions that
11are made annually for the taxing district, excluding special
12purpose extensions: (a) made for the taxing district to pay
13interest or principal on general obligation bonds that were
14approved by referendum; (b) made for any taxing district to pay
15interest or principal on general obligation bonds issued before
16the effective date of this amendatory Act of 1997; (c) made for
17any taxing district to pay interest or principal on bonds
18issued to refund or continue to refund those bonds issued
19before the effective date of this amendatory Act of 1997; (d)
20made for any taxing district to pay interest or principal on
21bonds issued to refund or continue to refund bonds issued after
22the effective date of this amendatory Act of 1997 if the bonds
23were approved by referendum after the effective date of this
24amendatory Act of 1997; (e) made for any taxing district to pay
25interest or principal on revenue bonds issued before the
26effective date of this amendatory Act of 1997 for payment of

 

 

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1which a property tax levy or the full faith and credit of the
2unit of local government is pledged; however, a tax for the
3payment of interest or principal on those bonds shall be made
4only after the governing body of the unit of local government
5finds that all other sources for payment are insufficient to
6make those payments; (f) made for payments under a building
7commission lease when the lease payments are for the retirement
8of bonds issued by the commission before the effective date of
9this amendatory Act of 1997 to pay for the building project;
10(g) made for payments due under installment contracts entered
11into before the effective date of this amendatory Act of 1997;
12(h) made for payments of principal and interest on limited
13bonds, as defined in Section 3 of the Local Government Debt
14Reform Act, in an amount not to exceed the debt service
15extension base less the amount in items (b), (c), and (e) of
16this definition for non-referendum obligations, except
17obligations initially issued pursuant to referendum; (i) made
18for payments of principal and interest on bonds issued under
19Section 15 of the Local Government Debt Reform Act; (j) made
20for a qualified airport authority to pay interest or principal
21on general obligation bonds issued for the purpose of paying
22obligations due under, or financing airport facilities
23required to be acquired, constructed, installed or equipped
24pursuant to, contracts entered into before March 1, 1996 (but
25not including any amendments to such a contract taking effect
26on or after that date); (k) made to fund expenses of providing

 

 

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1joint recreational programs for persons with disabilities
2under Section 5-8 of the Park District Code or Section 11-95-14
3of the Illinois Municipal Code; and (l) made for contributions
4to a firefighter's pension fund created under Article 4 of the
5Illinois Pension Code, to the extent of the amount certified
6under item (5) of Section 4-134 of the Illinois Pension Code,
7except that all special purpose extensions made by a fire
8protection district for contributions to a firefighter's
9pension fund created under Article 4 of the Illinois Pension
10Code are excluded; and (m) made by a fire protection district
11for funding expenses related to insurance.
12    "Debt service extension base" means an amount equal to that
13portion of the extension for a taxing district for the 1994
14levy year, or for those taxing districts subject to this Law in
15accordance with Section 18-213, except for those subject to
16paragraph (2) of subsection (e) of Section 18-213, for the levy
17year in which the referendum making this Law applicable to the
18taxing district is held, or for those taxing districts subject
19to this Law in accordance with paragraph (2) of subsection (e)
20of Section 18-213 for the 1996 levy year, constituting an
21extension for payment of principal and interest on bonds issued
22by the taxing district without referendum, but not including
23excluded non-referendum bonds. For park districts (i) that were
24first subject to this Law in 1991 or 1995 and (ii) whose
25extension for the 1994 levy year for the payment of principal
26and interest on bonds issued by the park district without

 

 

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1referendum (but not including excluded non-referendum bonds)
2was less than 51% of the amount for the 1991 levy year
3constituting an extension for payment of principal and interest
4on bonds issued by the park district without referendum (but
5not including excluded non-referendum bonds), "debt service
6extension base" means an amount equal to that portion of the
7extension for the 1991 levy year constituting an extension for
8payment of principal and interest on bonds issued by the park
9district without referendum (but not including excluded
10non-referendum bonds). A debt service extension base
11established or increased at any time pursuant to any provision
12of this Law, except Section 18-212, shall be increased each
13year commencing with the later of (i) the 2009 levy year or
14(ii) the first levy year in which this Law becomes applicable
15to the taxing district, by the lesser of 5% or the percentage
16increase in the Consumer Price Index during the 12-month
17calendar year preceding the levy year. The debt service
18extension base may be established or increased as provided
19under Section 18-212. "Excluded non-referendum bonds" means
20(i) bonds authorized by Public Act 88-503 and issued under
21Section 20a of the Chicago Park District Act for aquarium and
22museum projects; (ii) bonds issued under Section 15 of the
23Local Government Debt Reform Act; or (iii) refunding
24obligations issued to refund or to continue to refund
25obligations initially issued pursuant to referendum.
26    "Special purpose extensions" include, but are not limited

 

 

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1to, extensions for levies made on an annual basis for
2unemployment and workers' compensation, self-insurance,
3contributions to pension plans, and extensions made pursuant to
4Section 6-601 of the Illinois Highway Code for a road
5district's permanent road fund whether levied annually or not.
6The extension for a special service area is not included in the
7aggregate extension.
8    "Aggregate extension base" means the taxing district's
9last preceding aggregate extension as adjusted under Sections
1018-135, 18-215, and 18-230. An adjustment under Section 18-135
11shall be made for the 2007 levy year and all subsequent levy
12years whenever one or more counties within which a taxing
13district is located (i) used estimated valuations or rates when
14extending taxes in the taxing district for the last preceding
15levy year that resulted in the over or under extension of
16taxes, or (ii) increased or decreased the tax extension for the
17last preceding levy year as required by Section 18-135(c).
18Whenever an adjustment is required under Section 18-135, the
19aggregate extension base of the taxing district shall be equal
20to the amount that the aggregate extension of the taxing
21district would have been for the last preceding levy year if
22either or both (i) actual, rather than estimated, valuations or
23rates had been used to calculate the extension of taxes for the
24last levy year, or (ii) the tax extension for the last
25preceding levy year had not been adjusted as required by
26subsection (c) of Section 18-135.

 

 

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1    Notwithstanding any other provision of law, for levy year
22012, the aggregate extension base for West Northfield School
3District No. 31 in Cook County shall be $12,654,592.
4    "Levy year" has the same meaning as "year" under Section
51-155.
6    "New property" means (i) the assessed value, after final
7board of review or board of appeals action, of new improvements
8or additions to existing improvements on any parcel of real
9property that increase the assessed value of that real property
10during the levy year multiplied by the equalization factor
11issued by the Department under Section 17-30, (ii) the assessed
12value, after final board of review or board of appeals action,
13of real property not exempt from real estate taxation, which
14real property was exempt from real estate taxation for any
15portion of the immediately preceding levy year, multiplied by
16the equalization factor issued by the Department under Section
1717-30, including the assessed value, upon final stabilization
18of occupancy after new construction is complete, of any real
19property located within the boundaries of an otherwise or
20previously exempt military reservation that is intended for
21residential use and owned by or leased to a private corporation
22or other entity, (iii) in counties that classify in accordance
23with Section 4 of Article IX of the Illinois Constitution, an
24incentive property's additional assessed value resulting from
25a scheduled increase in the level of assessment as applied to
26the first year final board of review market value, and (iv) any

 

 

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1increase in assessed value due to oil or gas production from an
2oil or gas well required to be permitted under the Hydraulic
3Fracturing Regulatory Act that was not produced in or accounted
4for during the previous levy year. In addition, the county
5clerk in a county containing a population of 3,000,000 or more
6shall include in the 1997 recovered tax increment value for any
7school district, any recovered tax increment value that was
8applicable to the 1995 tax year calculations.
9    "Qualified airport authority" means an airport authority
10organized under the Airport Authorities Act and located in a
11county bordering on the State of Wisconsin and having a
12population in excess of 200,000 and not greater than 500,000.
13    "Recovered tax increment value" means, except as otherwise
14provided in this paragraph, the amount of the current year's
15equalized assessed value, in the first year after a
16municipality terminates the designation of an area as a
17redevelopment project area previously established under the
18Tax Increment Allocation Development Act in the Illinois
19Municipal Code, previously established under the Industrial
20Jobs Recovery Law in the Illinois Municipal Code, previously
21established under the Economic Development Project Area Tax
22Increment Act of 1995, or previously established under the
23Economic Development Area Tax Increment Allocation Act, of each
24taxable lot, block, tract, or parcel of real property in the
25redevelopment project area over and above the initial equalized
26assessed value of each property in the redevelopment project

 

 

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1area. For the taxes which are extended for the 1997 levy year,
2the recovered tax increment value for a non-home rule taxing
3district that first became subject to this Law for the 1995
4levy year because a majority of its 1994 equalized assessed
5value was in an affected county or counties shall be increased
6if a municipality terminated the designation of an area in 1993
7as a redevelopment project area previously established under
8the Tax Increment Allocation Development Act in the Illinois
9Municipal Code, previously established under the Industrial
10Jobs Recovery Law in the Illinois Municipal Code, or previously
11established under the Economic Development Area Tax Increment
12Allocation Act, by an amount equal to the 1994 equalized
13assessed value of each taxable lot, block, tract, or parcel of
14real property in the redevelopment project area over and above
15the initial equalized assessed value of each property in the
16redevelopment project area. In the first year after a
17municipality removes a taxable lot, block, tract, or parcel of
18real property from a redevelopment project area established
19under the Tax Increment Allocation Development Act in the
20Illinois Municipal Code, the Industrial Jobs Recovery Law in
21the Illinois Municipal Code, or the Economic Development Area
22Tax Increment Allocation Act, "recovered tax increment value"
23means the amount of the current year's equalized assessed value
24of each taxable lot, block, tract, or parcel of real property
25removed from the redevelopment project area over and above the
26initial equalized assessed value of that real property before

 

 

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1removal from the redevelopment project area.
2    Except as otherwise provided in this Section, "limiting
3rate" means a fraction the numerator of which is the last
4preceding aggregate extension base times an amount equal to one
5plus the extension limitation defined in this Section and the
6denominator of which is the current year's equalized assessed
7value of all real property in the territory under the
8jurisdiction of the taxing district during the prior levy year.
9For those taxing districts that reduced their aggregate
10extension for the last preceding levy year, the highest
11aggregate extension in any of the last 3 preceding levy years
12shall be used for the purpose of computing the limiting rate.
13The denominator shall not include new property or the recovered
14tax increment value. If a new rate, a rate decrease, or a
15limiting rate increase has been approved at an election held
16after March 21, 2006, then (i) the otherwise applicable
17limiting rate shall be increased by the amount of the new rate
18or shall be reduced by the amount of the rate decrease, as the
19case may be, or (ii) in the case of a limiting rate increase,
20the limiting rate shall be equal to the rate set forth in the
21proposition approved by the voters for each of the years
22specified in the proposition, after which the limiting rate of
23the taxing district shall be calculated as otherwise provided.
24In the case of a taxing district that obtained referendum
25approval for an increased limiting rate on March 20, 2012, the
26limiting rate for tax year 2012 shall be the rate that

 

 

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1generates the approximate total amount of taxes extendable for
2that tax year, as set forth in the proposition approved by the
3voters; this rate shall be the final rate applied by the county
4clerk for the aggregate of all capped funds of the district for
5tax year 2012.
6(Source: P.A. 98-6, eff. 3-29-13; 98-23, eff. 6-17-13; 99-143,
7eff. 7-27-15.)