101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4907

 

Introduced 2/18/2020, by Rep. Tom Weber

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Taxpayer Protection Act. Provides that, on and after the effective date of the Act, for bonds or incurred debt issued through a referendum by a unit of local government or school district, the bonds or incurred debt shall not be extended or reissued unless authorized by a referendum. Provides that a unit of local government or school district shall not submit the question concerning the extension or reissuance of a bond or incurring debt to voters in a referendum until at least one year has passed since the retirement of the bond or debt approved by a referendum. Provides that, on and after the effective date of the Act, a unit of local government or school district shall not submit a question concerning the issuance of a bond or incurring debt to the voters in a referendum until at least one year has passed since that unit or district last proposed a question or proposition concerning the issuance of bonds or incurring debt in a referendum. Limits home rule powers. Amends the Property Tax Code. Provides that there shall not be a service extension base annual increase unless increased by referendum. Amends the School Code. Provides that no later than 30 days before a school district submits to the voters of that district a question on whether to issue bonds or increase the school district's property tax rate, the school district must send informational material to each resident of voting age in the school district; defines "informational material". Specifies what must be included in the informational material Effective immediately.


LRB101 20570 HLH 70190 b

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

 

 

A BILL FOR

 

HB4907LRB101 20570 HLH 70190 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Taxpayer Protection Act.
 
6    Section 5. Purpose. The purpose of this Act is to address
7the following items:
8        (1) To ensure that bonds or debts authorized by
9    referendums cannot be renewed.
10        (2) To require all governmental agencies to allow one
11    year between one referendum bond ending and one referendum
12    bond starting to allow taxpayers to see how bonds affect
13    their taxes and the savings they would incur if there was
14    not a bond.
 
15    Section 10. Definitions. As used in this Act:
16    "Bond" has the meaning given to that term in the Local
17Government Debt Reform Act.
18    "Governmental unit" means a unit of local government or
19school district.
 
20    Section 15. Issuance of bonds or incurring debt by
21referendum; one-year wait.

 

 

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1    (a) Notwithstanding any other provision of law, on and
2after the effective date of this Act, for bonds or incurred
3debt issued through a referendum by a governmental unit, the
4bonds or incurred debt shall not be extended or reissued unless
5authorized by a separate referendum. A government unit shall
6not submit the question concerning the extension or reissuance
7of a bond or incurring debt to voters in a referendum until at
8least one year has passed since the retirement of the bond or
9incurred debt approved by a referendum.
10    (b) Notwithstanding any other provision of law, on and
11after the effective date of this Act, a government unit shall
12not submit a question concerning the issuance of a bond or
13incurring debt to the voters in a referendum until at least one
14year has passed since that government unit last proposed a
15question or proposition concerning the issuance of bonds or
16incurring debt in a referendum.
 
17    Section 20. Home rule. The regulation of issuing,
18incurring, extending, or reissuing bonds and debt as contained
19in this Act are exclusive powers and functions of the State. A
20home rule unit may not regulate such matters. This Act is a
21denial and limitation of home rule powers and functions under
22subsection (h) of Section 6 of Article VII of the Illinois
23Constitution.
 
24    Section 90. The Property Tax Code is amended by changing

 

 

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1Sections 18-185 and 18-212 as follows:
 
2    (35 ILCS 200/18-185)
3    Sec. 18-185. Short title; definitions. This Division 5 may
4be cited as the Property Tax Extension Limitation Law. As used
5in this Division 5:
6    "Consumer Price Index" means the Consumer Price Index for
7All Urban Consumers for all items published by the United
8States Department of Labor.
9    "Extension limitation" means (a) the lesser of 5% or the
10percentage increase in the Consumer Price Index during the
1112-month calendar year preceding the levy year or (b) the rate
12of increase approved by voters under Section 18-205.
13    "Affected county" means a county of 3,000,000 or more
14inhabitants or a county contiguous to a county of 3,000,000 or
15more inhabitants.
16    "Taxing district" has the same meaning provided in Section
171-150, except as otherwise provided in this Section. For the
181991 through 1994 levy years only, "taxing district" includes
19only each non-home rule taxing district having the majority of
20its 1990 equalized assessed value within any county or counties
21contiguous to a county with 3,000,000 or more inhabitants.
22Beginning with the 1995 levy year, "taxing district" includes
23only each non-home rule taxing district subject to this Law
24before the 1995 levy year and each non-home rule taxing
25district not subject to this Law before the 1995 levy year

 

 

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1having the majority of its 1994 equalized assessed value in an
2affected county or counties. Beginning with the levy year in
3which this Law becomes applicable to a taxing district as
4provided in Section 18-213, "taxing district" also includes
5those taxing districts made subject to this Law as provided in
6Section 18-213.
7    "Aggregate extension" for taxing districts to which this
8Law applied before the 1995 levy year means the annual
9corporate extension for the taxing district and those special
10purpose extensions that are made annually for the taxing
11district, excluding special purpose extensions: (a) made for
12the taxing district to pay interest or principal on general
13obligation bonds that were approved by referendum; (b) made for
14any taxing district to pay interest or principal on general
15obligation bonds issued before October 1, 1991; (c) made for
16any taxing district to pay interest or principal on bonds
17issued to refund or continue to refund those bonds issued
18before October 1, 1991; (d) made for any taxing district to pay
19interest or principal on bonds issued to refund or continue to
20refund bonds issued after October 1, 1991 that were approved by
21referendum; (e) made for any taxing district to pay interest or
22principal on revenue bonds issued before October 1, 1991 for
23payment of which a property tax levy or the full faith and
24credit of the unit of local government is pledged; however, a
25tax for the payment of interest or principal on those bonds
26shall be made only after the governing body of the unit of

 

 

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1local government finds that all other sources for payment are
2insufficient to make those payments; (f) made for payments
3under a building commission lease when the lease payments are
4for the retirement of bonds issued by the commission before
5October 1, 1991, to pay for the building project; (g) made for
6payments due under installment contracts entered into before
7October 1, 1991; (h) made for payments of principal and
8interest on bonds issued under the Metropolitan Water
9Reclamation District Act to finance construction projects
10initiated before October 1, 1991; (i) made for payments of
11principal and interest on limited bonds, as defined in Section
123 of the Local Government Debt Reform Act, in an amount not to
13exceed the debt service extension base less the amount in items
14(b), (c), (e), and (h) of this definition for non-referendum
15obligations, except obligations initially issued pursuant to
16referendum; (j) made for payments of principal and interest on
17bonds issued under Section 15 of the Local Government Debt
18Reform Act; (k) made by a school district that participates in
19the Special Education District of Lake County, created by
20special education joint agreement under Section 10-22.31 of the
21School Code, for payment of the school district's share of the
22amounts required to be contributed by the Special Education
23District of Lake County to the Illinois Municipal Retirement
24Fund under Article 7 of the Illinois Pension Code; the amount
25of any extension under this item (k) shall be certified by the
26school district to the county clerk; (l) made to fund expenses

 

 

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1of providing joint recreational programs for persons with
2disabilities under Section 5-8 of the Park District Code or
3Section 11-95-14 of the Illinois Municipal Code; (m) made for
4temporary relocation loan repayment purposes pursuant to
5Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
6payment of principal and interest on any bonds issued under the
7authority of Section 17-2.2d of the School Code; (o) made for
8contributions to a firefighter's pension fund created under
9Article 4 of the Illinois Pension Code, to the extent of the
10amount certified under item (5) of Section 4-134 of the
11Illinois Pension Code; and (p) made for road purposes in the
12first year after a township assumes the rights, powers, duties,
13assets, property, liabilities, obligations, and
14responsibilities of a road district abolished under the
15provisions of Section 6-133 of the Illinois Highway Code.
16    "Aggregate extension" for the taxing districts to which
17this Law did not apply before the 1995 levy year (except taxing
18districts subject to this Law in accordance with Section
1918-213) means the annual corporate extension for the taxing
20district and those special purpose extensions that are made
21annually for the taxing district, excluding special purpose
22extensions: (a) made for the taxing district to pay interest or
23principal on general obligation bonds that were approved by
24referendum; (b) made for any taxing district to pay interest or
25principal on general obligation bonds issued before March 1,
261995; (c) made for any taxing district to pay interest or

 

 

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1principal on bonds issued to refund or continue to refund those
2bonds issued before March 1, 1995; (d) made for any taxing
3district to pay interest or principal on bonds issued to refund
4or continue to refund bonds issued after March 1, 1995 that
5were approved by referendum; (e) made for any taxing district
6to pay interest or principal on revenue bonds issued before
7March 1, 1995 for payment of which a property tax levy or the
8full faith and credit of the unit of local government is
9pledged; however, a tax for the payment of interest or
10principal on those bonds shall be made only after the governing
11body of the unit of local government finds that all other
12sources for payment are insufficient to make those payments;
13(f) made for payments under a building commission lease when
14the lease payments are for the retirement of bonds issued by
15the commission before March 1, 1995 to pay for the building
16project; (g) made for payments due under installment contracts
17entered into before March 1, 1995; (h) made for payments of
18principal and interest on bonds issued under the Metropolitan
19Water Reclamation District Act to finance construction
20projects initiated before October 1, 1991; (h-4) made for
21stormwater management purposes by the Metropolitan Water
22Reclamation District of Greater Chicago under Section 12 of the
23Metropolitan Water Reclamation District Act; (i) made for
24payments of principal and interest on limited bonds, as defined
25in Section 3 of the Local Government Debt Reform Act, in an
26amount not to exceed the debt service extension base less the

 

 

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1amount in items (b), (c), and (e) of this definition for
2non-referendum obligations, except obligations initially
3issued pursuant to referendum and bonds described in subsection
4(h) of this definition; (j) made for payments of principal and
5interest on bonds issued under Section 15 of the Local
6Government Debt Reform Act; (k) made for payments of principal
7and interest on bonds authorized by Public Act 88-503 and
8issued under Section 20a of the Chicago Park District Act for
9aquarium or museum projects; (l) made for payments of principal
10and interest on bonds authorized by Public Act 87-1191 or
1193-601 and (i) issued pursuant to Section 21.2 of the Cook
12County Forest Preserve District Act, (ii) issued under Section
1342 of the Cook County Forest Preserve District Act for
14zoological park projects, or (iii) issued under Section 44.1 of
15the Cook County Forest Preserve District Act for botanical
16gardens projects; (m) made pursuant to Section 34-53.5 of the
17School Code, whether levied annually or not; (n) made to fund
18expenses of providing joint recreational programs for persons
19with disabilities under Section 5-8 of the Park District Code
20or Section 11-95-14 of the Illinois Municipal Code; (o) made by
21the Chicago Park District for recreational programs for persons
22with disabilities under subsection (c) of Section 7.06 of the
23Chicago Park District Act; (p) made for contributions to a
24firefighter's pension fund created under Article 4 of the
25Illinois Pension Code, to the extent of the amount certified
26under item (5) of Section 4-134 of the Illinois Pension Code;

 

 

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1(q) made by Ford Heights School District 169 under Section
217-9.02 of the School Code; and (r) made for the purpose of
3making employer contributions to the Public School Teachers'
4Pension and Retirement Fund of Chicago under Section 34-53 of
5the School Code.
6    "Aggregate extension" for all taxing districts to which
7this Law applies in accordance with Section 18-213, except for
8those taxing districts subject to 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 date on which the referendum making this Law applicable to
17the taxing district is held; (c) made for any taxing district
18to pay interest or principal on bonds issued to refund or
19continue to refund those bonds issued before the date on which
20the referendum making this Law applicable to the taxing
21district is held; (d) made for any taxing district to pay
22interest or principal on bonds issued to refund or continue to
23refund bonds issued after the date on which the referendum
24making this Law applicable to the taxing district is held if
25the bonds were approved by referendum after the date on which
26the referendum making this Law applicable to the taxing

 

 

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

 

 

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1obligations due under, or financing airport facilities
2required to be acquired, constructed, installed or equipped
3pursuant to, contracts entered into before March 1, 1996 (but
4not including any amendments to such a contract taking effect
5on or after that date); (k) made to fund expenses of providing
6joint recreational programs for persons with disabilities
7under Section 5-8 of the Park District Code or Section 11-95-14
8of the Illinois Municipal Code; (l) 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;
12and (m) made for the taxing district to pay interest or
13principal on general obligation bonds issued pursuant to
14Section 19-3.10 of the School Code.
15    "Aggregate extension" for all taxing districts to which
16this Law applies in accordance with paragraph (2) of subsection
17(e) of Section 18-213 means the annual corporate extension for
18the taxing district and those special purpose extensions that
19are made annually for the taxing district, excluding special
20purpose extensions: (a) made for the taxing district to pay
21interest or principal on general obligation bonds that were
22approved by referendum; (b) made for any taxing district to pay
23interest or principal on general obligation bonds issued before
24March 7, 1997 (the effective date of Public Act 89-718) this
25amendatory Act of 1997; (c) made for any taxing district to pay
26interest or principal on bonds issued to refund or continue to

 

 

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1refund those bonds issued before March 7, 1997 (the effective
2date of Public Act 89-718) this amendatory Act of 1997; (d)
3made for any taxing district to pay interest or principal on
4bonds issued to refund or continue to refund bonds issued after
5March 7, 1997 (the effective date of Public Act 89-718) this
6amendatory Act of 1997 if the bonds were approved by referendum
7after March 7, 1997 (the effective date of Public Act 89-718)
8this amendatory Act of 1997; (e) made for any taxing district
9to pay interest or principal on revenue bonds issued before
10March 7, 1997 (the effective date of Public Act 89-718) this
11amendatory Act of 1997 for payment of which a property tax levy
12or the full faith and credit of the unit of local government is
13pledged; however, a tax for the payment of interest or
14principal on those bonds shall be made only after the governing
15body of the unit of local government finds that all other
16sources for payment are insufficient to make those payments;
17(f) made for payments under a building commission lease when
18the lease payments are for the retirement of bonds issued by
19the commission before March 7, 1997 (the effective date of
20Public Act 89-718) this amendatory Act of 1997 to pay for the
21building project; (g) made for payments due under installment
22contracts entered into before March 7, 1997 (the effective date
23of Public Act 89-718) this amendatory Act of 1997; (h) made for
24payments of principal and interest on limited bonds, as defined
25in Section 3 of the Local Government Debt Reform Act, in an
26amount not to exceed the debt service extension base less the

 

 

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1amount in items (b), (c), and (e) of this definition for
2non-referendum obligations, except obligations initially
3issued pursuant to referendum; (i) made for payments of
4principal and interest on bonds issued under Section 15 of the
5Local Government Debt Reform Act; (j) made for a qualified
6airport authority to pay interest or principal on general
7obligation bonds issued for the purpose of paying obligations
8due under, or financing airport facilities required to be
9acquired, constructed, installed or equipped pursuant to,
10contracts entered into before March 1, 1996 (but not including
11any amendments to such a contract taking effect on or after
12that date); (k) made to fund expenses of providing joint
13recreational programs for persons with disabilities under
14Section 5-8 of the Park District Code or Section 11-95-14 of
15the Illinois Municipal Code; and (l) made for contributions to
16a firefighter's pension fund created under Article 4 of the
17Illinois Pension Code, to the extent of the amount certified
18under item (5) of Section 4-134 of the Illinois Pension Code.
19    "Debt service extension base" means an amount equal to that
20portion of the extension for a taxing district for the 1994
21levy year, or for those taxing districts subject to this Law in
22accordance with Section 18-213, except for those subject to
23paragraph (2) of subsection (e) of Section 18-213, for the levy
24year in which the referendum making this Law applicable to the
25taxing district is held, or for those taxing districts subject
26to this Law in accordance with paragraph (2) of subsection (e)

 

 

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1of Section 18-213 for the 1996 levy year, constituting an
2extension for payment of principal and interest on bonds issued
3by the taxing district without referendum, but not including
4excluded non-referendum bonds. For park districts (i) that were
5first subject to this Law in 1991 or 1995 and (ii) whose
6extension for the 1994 levy year for the payment of principal
7and interest on bonds issued by the park district without
8referendum (but not including excluded non-referendum bonds)
9was less than 51% of the amount for the 1991 levy year
10constituting an extension for payment of principal and interest
11on bonds issued by the park district without referendum (but
12not including excluded non-referendum bonds), "debt service
13extension base" means an amount equal to that portion of the
14extension for the 1991 levy year constituting an extension for
15payment of principal and interest on bonds issued by the park
16district without referendum (but not including excluded
17non-referendum bonds). A debt service extension base
18established or increased at any time pursuant to any provision
19of this Law, except Section 18-212, shall be increased each
20year commencing with the later of: (i) the 2009 levy year; or
21(ii) the first levy year in which this Law becomes applicable
22to the taxing district, by (A) prior to the effective date of
23this amendatory Act of the 101st General Assembly, the lesser
24of 5% or the percentage increase in the Consumer Price Index
25during the 12-month calendar year preceding the levy year, and
26(B) on and after the effective date of this amendatory Act of

 

 

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1the 101st General Assembly, 0% or the rate of increase approved
2by the voters under Section 18-212. The debt service extension
3base may be established or increased as provided under Section
418-212. "Excluded non-referendum bonds" means (i) bonds
5authorized by Public Act 88-503 and issued under Section 20a of
6the Chicago Park District Act for aquarium and museum projects;
7(ii) bonds issued under Section 15 of the Local Government Debt
8Reform Act; or (iii) refunding obligations issued to refund or
9to continue to refund obligations initially issued pursuant to
10referendum.
11    "Special purpose extensions" include, but are not limited
12to, extensions for levies made on an annual basis for
13unemployment and workers' compensation, self-insurance,
14contributions to pension plans, and extensions made pursuant to
15Section 6-601 of the Illinois Highway Code for a road
16district's permanent road fund whether levied annually or not.
17The extension for a special service area is not included in the
18aggregate extension.
19    "Aggregate extension base" means the taxing district's
20last preceding aggregate extension as adjusted under Sections
2118-135, 18-215, 18-230, and 18-206. An adjustment under Section
2218-135 shall be made for the 2007 levy year and all subsequent
23levy years whenever one or more counties within which a taxing
24district is located (i) used estimated valuations or rates when
25extending taxes in the taxing district for the last preceding
26levy year that resulted in the over or under extension of

 

 

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1taxes, or (ii) increased or decreased the tax extension for the
2last preceding levy year as required by Section 18-135(c).
3Whenever an adjustment is required under Section 18-135, the
4aggregate extension base of the taxing district shall be equal
5to the amount that the aggregate extension of the taxing
6district would have been for the last preceding levy year if
7either or both (i) actual, rather than estimated, valuations or
8rates had been used to calculate the extension of taxes for the
9last levy year, or (ii) the tax extension for the last
10preceding levy year had not been adjusted as required by
11subsection (c) of Section 18-135.
12    Notwithstanding any other provision of law, for levy year
132012, the aggregate extension base for West Northfield School
14District No. 31 in Cook County shall be $12,654,592.
15    "Levy year" has the same meaning as "year" under Section
161-155.
17    "New property" means (i) the assessed value, after final
18board of review or board of appeals action, of new improvements
19or additions to existing improvements on any parcel of real
20property that increase the assessed value of that real property
21during the levy year multiplied by the equalization factor
22issued by the Department under Section 17-30, (ii) the assessed
23value, after final board of review or board of appeals action,
24of real property not exempt from real estate taxation, which
25real property was exempt from real estate taxation for any
26portion of the immediately preceding levy year, multiplied by

 

 

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1the equalization factor issued by the Department under Section
217-30, including the assessed value, upon final stabilization
3of occupancy after new construction is complete, of any real
4property located within the boundaries of an otherwise or
5previously exempt military reservation that is intended for
6residential use and owned by or leased to a private corporation
7or other entity, (iii) in counties that classify in accordance
8with Section 4 of Article IX of the Illinois Constitution, an
9incentive property's additional assessed value resulting from
10a scheduled increase in the level of assessment as applied to
11the first year final board of review market value, and (iv) any
12increase in assessed value due to oil or gas production from an
13oil or gas well required to be permitted under the Hydraulic
14Fracturing Regulatory Act that was not produced in or accounted
15for during the previous levy year. In addition, the county
16clerk in a county containing a population of 3,000,000 or more
17shall include in the 1997 recovered tax increment value for any
18school district, any recovered tax increment value that was
19applicable to the 1995 tax year calculations.
20    "Qualified airport authority" means an airport authority
21organized under the Airport Authorities Act and located in a
22county bordering on the State of Wisconsin and having a
23population in excess of 200,000 and not greater than 500,000.
24    "Recovered tax increment value" means, except as otherwise
25provided in this paragraph, the amount of the current year's
26equalized assessed value, in the first year after a

 

 

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

 

 

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1assessed value of each property in the redevelopment project
2area. In the first year after a municipality removes a taxable
3lot, block, tract, or parcel of real property from a
4redevelopment project area established under the Tax Increment
5Allocation Redevelopment Development Act in the Illinois
6Municipal Code, the Industrial Jobs Recovery Law in the
7Illinois Municipal Code, or the Economic Development Area Tax
8Increment Allocation Act, "recovered tax increment value"
9means the amount of the current year's equalized assessed value
10of each taxable lot, block, tract, or parcel of real property
11removed from the redevelopment project area over and above the
12initial equalized assessed value of that real property before
13removal from the redevelopment project area.
14    Except as otherwise provided in this Section, "limiting
15rate" means a fraction the numerator of which is the last
16preceding aggregate extension base times an amount equal to one
17plus the extension limitation defined in this Section and the
18denominator of which is the current year's equalized assessed
19value of all real property in the territory under the
20jurisdiction of the taxing district during the prior levy year.
21For those taxing districts that reduced their aggregate
22extension for the last preceding levy year, except for school
23districts that reduced their extension for educational
24purposes pursuant to Section 18-206, the highest aggregate
25extension in any of the last 3 preceding levy years shall be
26used for the purpose of computing the limiting rate. The

 

 

HB4907- 20 -LRB101 20570 HLH 70190 b

1denominator shall not include new property or the recovered tax
2increment value. If a new rate, a rate decrease, or a limiting
3rate increase has been approved at an election held after March
421, 2006, then (i) the otherwise applicable limiting rate shall
5be increased by the amount of the new rate or shall be reduced
6by the amount of the rate decrease, as the case may be, or (ii)
7in the case of a limiting rate increase, the limiting rate
8shall be equal to the rate set forth in the proposition
9approved by the voters for each of the years specified in the
10proposition, after which the limiting rate of the taxing
11district shall be calculated as otherwise provided. In the case
12of a taxing district that obtained referendum approval for an
13increased limiting rate on March 20, 2012, the limiting rate
14for tax year 2012 shall be the rate that generates the
15approximate total amount of taxes extendable for that tax year,
16as set forth in the proposition approved by the voters; this
17rate shall be the final rate applied by the county clerk for
18the aggregate of all capped funds of the district for tax year
192012.
20(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
21100-465, eff. 8-31-17; revised 8-12-19.)
 
22    (35 ILCS 200/18-212)
23    Sec. 18-212. Referendum on debt service extension base. A
24taxing district may establish or increase its debt service
25extension base if (i) that taxing district holds a referendum

 

 

HB4907- 21 -LRB101 20570 HLH 70190 b

1before the date on which the levy must be filed with the county
2clerk of the county or counties in which the taxing district is
3situated and (ii) a majority of voters voting on the issue
4approves the establishment of or increase in the debt service
5extension base. A debt service extension base established or
6increased by a referendum held pursuant to this Section after
7February 2, 2010 and prior to the effective date of this
8amendatory Act of the 101st General Assembly, shall be
9increased each year, commencing with the first levy year
10beginning after the date of the referendum, by the lesser of 5%
11or the percentage increase in the Consumer Price Index during
12the 12-month calendar year preceding the levy year if the
13optional language concerning the annual increase is included in
14the question submitted to the electors of the taxing district.
15On and after the effective date of this amendatory Act of the
16101st General Assembly, the date service extension base annual
17increase amount shall be 0% or the rate of increase approved by
18the voters under this Section. Referenda under this Section
19shall be conducted at a regularly scheduled election in
20accordance with the Election Code. The governing body of the
21taxing district shall certify the question to the proper
22election authorities who shall submit the question to the
23electors of the taxing district in substantially the following
24form:
25    "Shall the debt service extension base under the Property
26    Tax Extension Limitation Law for ... (taxing district name)

 

 

HB4907- 22 -LRB101 20570 HLH 70190 b

1    ... for payment of principal and interest on limited bonds
2    be .... ((established at $ ....) . (or) (increased from $
3    .... to $ ....)) .. for the ..... levy year and all
4    subsequent levy years (optional language: , such debt
5    service extension base to be increased each year by the
6    lesser of 5% or the percentage increase in the Consumer
7    Price Index during the 12-month calendar year preceding the
8    levy year)?"
9    Votes on the question shall be recorded as "Yes" or "No".
10    If a majority of voters voting on the issue approves the
11establishment of or increase in the debt service extension
12base, the establishment of or increase in the debt service
13extension base shall be applicable for the levy years
14specified.
15(Source: P.A. 96-1202, eff. 7-22-10.)
 
16    Section 95. The School Code is amended by adding Sections
1717-3.4a and 34-52.5 as follows:
 
18    (105 ILCS 5/17-3.4a new)
19    Sec. 17-3.4a. Tax increase; informational material.
20    (a) In this Section, "informational material" means a
21one-page fact sheet distributed via U.S. mail to all residents
22of a school district. A school district may determine the form
23of the fact sheet.
24    (b) No later than 30 days before a school district submits

 

 

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1to the voters of that district a question on whether to issue
2bonds or increase the school district's property tax rate, the
3school district must send informational material to each
4resident of voting age in the school district. The
5informational material must include all of the following, if
6applicable:
7        (1) A description of the project for which the bonds
8    will be issued.
9        (2) A description of the estimated expenditures
10    associated with the increase in the property tax rate.
11        (3) An estimate of the number of years during which the
12    bonds will be outstanding.
13        (4) An estimate of the total debt service to be paid on
14    the bonds, including principal, interest, and the costs of
15    issuing the bonds.
16        (5) All potential outcomes related to the property
17    taxes of a median-priced house in the district for both if
18    the referendum passes and if the referendum fails.
 
19    (105 ILCS 5/34-52.5 new)
20    Sec. 34-52.5. Tax increase; informational material.
21    (a) In this Section, "informational material" means a
22one-page fact sheet distributed via U.S. mail to all residents
23of the school district. The school district may determine the
24form of the fact sheet.
25    (b) No later than 30 days before the school district

 

 

HB4907- 24 -LRB101 20570 HLH 70190 b

1submits to the voters of the district a question on whether to
2issue bonds or increase the school district's property tax
3rate, the school district must send informational material to
4each resident of voting age in the school district. The
5informational material must include all of the following, if
6applicable:
7        (1) A description of the project for which the bonds
8    will be issued.
9        (2) A description of the estimated expenditures
10    associated with the increase in the property tax rate.
11        (3) An estimate of the number of years during which the
12    bonds will be outstanding.
13        (4) An estimate of the total debt service to be paid on
14    the bonds, including principal, interest, and the costs of
15    issuing the bonds.
16        (5) All potential outcomes related to the property
17    taxes of a median-priced house in the district for both if
18    the referendum passes and if the referendum fails.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.

 

 

HB4907- 25 -LRB101 20570 HLH 70190 b

1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    35 ILCS 200/18-185
5    35 ILCS 200/18-212
6    105 ILCS 5/17-3.4a new
7    105 ILCS 5/34-52.5 new