101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5427

 

Introduced , by Rep. Grant Wehrli - Joe Sosnowski - Amy Grant, Lindsay Parkhurst and Tom Weber

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-212

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that the extension limitation is 3.5% (currently, 5%) or the percentage increase in the Consumer Price Index. Provides that the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units.


LRB101 18960 HLH 68419 b

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

 

 

A BILL FOR

 

HB5427LRB101 18960 HLH 68419 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
5Sections 18-185, 18-205, and 18-212 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 3.5% 5% or
14the percentage 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. Beginning in levy year 2021, "taxing district"
13means all taxing districts, as defined in Section 1-150,
14including, but not limited to, home rule units. This Section is
15a limitation of the power of home rule units to tax in
16accordance with subsection (g) of Section 6 of Article VII of
17the Illinois Constitution.
18    "Aggregate extension" for taxing districts to which this
19Law applied before the 1995 levy year means the annual
20corporate extension for the taxing district and those special
21purpose extensions that are made annually for the taxing
22district, excluding special purpose extensions: (a) made for
23the taxing district to pay interest or principal on general
24obligation bonds that were approved by referendum; (b) made for
25any taxing district to pay interest or principal on general
26obligation bonds issued before October 1, 1991; (c) made for

 

 

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

 

 

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1referendum; (j) made for payments of principal and interest on
2bonds issued under Section 15 of the Local Government Debt
3Reform Act; (k) made by a school district that participates in
4the Special Education District of Lake County, created by
5special education joint agreement under Section 10-22.31 of the
6School Code, for payment of the school district's share of the
7amounts required to be contributed by the Special Education
8District of Lake County to the Illinois Municipal Retirement
9Fund under Article 7 of the Illinois Pension Code; the amount
10of any extension under this item (k) shall be certified by the
11school district to the county clerk; (l) made to fund expenses
12of providing joint recreational programs for persons with
13disabilities under Section 5-8 of the Park District Code or
14Section 11-95-14 of the Illinois Municipal Code; (m) made for
15temporary relocation loan repayment purposes pursuant to
16Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
17payment of principal and interest on any bonds issued under the
18authority of Section 17-2.2d of the School Code; (o) made for
19contributions to a firefighter's pension fund created under
20Article 4 of the Illinois Pension Code, to the extent of the
21amount certified under item (5) of Section 4-134 of the
22Illinois Pension Code; and (p) made for road purposes in the
23first year after a township assumes the rights, powers, duties,
24assets, property, liabilities, obligations, and
25responsibilities of a road district abolished under the
26provisions of Section 6-133 of the Illinois Highway Code.

 

 

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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;
12(q) made by Ford Heights School District 169 under Section
1317-9.02 of the School Code; and (r) made for the purpose of
14making employer contributions to the Public School Teachers'
15Pension and Retirement Fund of Chicago under Section 34-53 of
16the School Code.
17    "Aggregate extension" for all taxing districts to which
18this Law applies in accordance with Section 18-213, except for
19those taxing districts subject to paragraph (2) of subsection
20(e) of Section 18-213, means the annual corporate extension for
21the taxing district and those special purpose extensions that
22are made annually for the taxing district, excluding special
23purpose extensions: (a) made for the taxing district to pay
24interest or principal on general obligation bonds that were
25approved by referendum; (b) made for any taxing district to pay
26interest or principal on general obligation bonds issued before

 

 

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

 

 

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1which the referendum making this Law applicable to the taxing
2district is held; (h) made for payments of principal and
3interest on limited bonds, as defined in Section 3 of the Local
4Government Debt Reform Act, in an amount not to exceed the debt
5service extension base less the amount in items (b), (c), and
6(e) of this definition for non-referendum obligations, except
7obligations initially issued pursuant to referendum; (i) made
8for payments of principal and interest on bonds issued under
9Section 15 of the Local Government Debt Reform Act; (j) made
10for a qualified airport authority to pay interest or principal
11on general obligation bonds issued for the purpose of paying
12obligations due under, or financing airport facilities
13required to be acquired, constructed, installed or equipped
14pursuant to, contracts entered into before March 1, 1996 (but
15not including any amendments to such a contract taking effect
16on or after that date); (k) made to fund expenses of providing
17joint recreational programs for persons with disabilities
18under Section 5-8 of the Park District Code or Section 11-95-14
19of the Illinois Municipal Code; (l) made for contributions to a
20firefighter's pension fund created under Article 4 of the
21Illinois Pension Code, to the extent of the amount certified
22under item (5) of Section 4-134 of the Illinois Pension Code;
23and (m) made for the taxing district to pay interest or
24principal on general obligation bonds issued pursuant to
25Section 19-3.10 of the School Code.
26    "Aggregate extension" for all taxing districts to which

 

 

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1this Law applies in accordance with paragraph (2) of subsection
2(e) of Section 18-213 or in accordance with this amendatory Act
3of the 101st General Assembly means the annual corporate
4extension for the taxing district and those special purpose
5extensions that are made annually for the taxing district,
6excluding special purpose extensions: (a) made for the taxing
7district to pay interest or principal on general obligation
8bonds that were approved by referendum; (b) made for any taxing
9district to pay interest or principal on general obligation
10bonds issued before March 7, 1997 (the effective date of Public
11Act 89-718) this amendatory Act of 1997; (c) made for any
12taxing district to pay interest or principal on bonds issued to
13refund or continue to refund those bonds issued before March 7,
141997 (the effective date of Public Act 89-718) this amendatory
15Act of 1997; (d) made for any taxing district to pay interest
16or principal on bonds issued to refund or continue to refund
17bonds issued after March 7, 1997 (the effective date of Public
18Act 89-718) this amendatory Act of 1997 if the bonds were
19approved by referendum after March 7, 1997 (the effective date
20of Public Act 89-718) this amendatory Act of 1997; (e) made for
21any taxing district to pay interest or principal on revenue
22bonds issued before March 7, 1997 (the effective date of Public
23Act 89-718) this amendatory Act of 1997 for payment of which a
24property tax levy or the full faith and credit of the unit of
25local government is pledged; however, a tax for the payment of
26interest or principal on those bonds shall be made only after

 

 

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1the governing body of the unit of local government finds that
2all other sources for payment are insufficient to make those
3payments; (f) made for payments under a building commission
4lease when the lease payments are for the retirement of bonds
5issued by the commission before March 7, 1997 (the effective
6date of Public Act 89-718) this amendatory Act of 1997 to pay
7for the building project; (g) made for payments due under
8installment contracts entered into before March 7, 1997 (the
9effective date of Public Act 89-718) this amendatory Act of
101997; (h) made for payments of principal and interest on
11limited bonds, as defined in Section 3 of the Local Government
12Debt Reform Act, in an amount not to exceed the debt service
13extension base less the amount in items (b), (c), and (e) of
14this definition for non-referendum obligations, except
15obligations initially issued pursuant to referendum; (i) made
16for payments of principal and interest on bonds issued under
17Section 15 of the Local Government Debt Reform Act; (j) made
18for a qualified airport authority to pay interest or principal
19on general obligation bonds issued for the purpose of paying
20obligations due under, or financing airport facilities
21required to be acquired, constructed, installed or equipped
22pursuant to, contracts entered into before March 1, 1996 (but
23not including any amendments to such a contract taking effect
24on or after that date); (k) made to fund expenses of providing
25joint recreational programs for persons with disabilities
26under Section 5-8 of the Park District Code or Section 11-95-14

 

 

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1of the Illinois Municipal Code; and (l) made for contributions
2to a firefighter's pension fund created under Article 4 of the
3Illinois Pension Code, to the extent of the amount certified
4under item (5) of Section 4-134 of the Illinois Pension Code.
5    "Debt service extension base" means an amount equal to that
6portion of the extension for a taxing district for the 1994
7levy year, or for those taxing districts subject to this Law in
8accordance with Section 18-213, except for those subject to
9paragraph (2) of subsection (e) of Section 18-213, for the levy
10year in which the referendum making this Law applicable to the
11taxing district is held, or for those taxing districts subject
12to this Law in accordance with paragraph (2) of subsection (e)
13of Section 18-213 for the 1996 levy year, constituting an
14extension for payment of principal and interest on bonds issued
15by the taxing district without referendum, but not including
16excluded non-referendum bonds. For park districts (i) that were
17first subject to this Law in 1991 or 1995 and (ii) whose
18extension for the 1994 levy year for the payment of principal
19and interest on bonds issued by the park district without
20referendum (but not including excluded non-referendum bonds)
21was less than 51% of the amount for the 1991 levy year
22constituting an extension for payment of principal and interest
23on bonds issued by the park district without referendum (but
24not including excluded non-referendum bonds), "debt service
25extension base" means an amount equal to that portion of the
26extension for the 1991 levy year constituting an extension for

 

 

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1payment of principal and interest on bonds issued by the park
2district without referendum (but not including excluded
3non-referendum bonds). A debt service extension base
4established or increased at any time pursuant to any provision
5of this Law, except Section 18-212, shall be increased each
6year commencing with the later of (i) the 2009 levy year or
7(ii) the first levy year in which this Law becomes applicable
8to the taxing district, by the lesser of 3.5% 5% or the
9percentage increase in the Consumer Price Index during the
1012-month calendar year preceding the levy year. The debt
11service extension base may be established or increased as
12provided under Section 18-212. "Excluded non-referendum bonds"
13means (i) bonds authorized by Public Act 88-503 and issued
14under Section 20a of the Chicago Park District Act for aquarium
15and museum projects; (ii) bonds issued under Section 15 of the
16Local Government Debt Reform Act; or (iii) refunding
17obligations issued to refund or to continue to refund
18obligations initially issued pursuant to referendum.
19    "Special purpose extensions" include, but are not limited
20to, extensions for levies made on an annual basis for
21unemployment and workers' compensation, self-insurance,
22contributions to pension plans, and extensions made pursuant to
23Section 6-601 of the Illinois Highway Code for a road
24district's permanent road fund whether levied annually or not.
25The extension for a special service area is not included in the
26aggregate extension.

 

 

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1    "Aggregate extension base" means the taxing district's
2last preceding aggregate extension as adjusted under Sections
318-135, 18-215, 18-230, and 18-206. An adjustment under Section
418-135 shall be made for the 2007 levy year and all subsequent
5levy years whenever one or more counties within which a taxing
6district is located (i) used estimated valuations or rates when
7extending taxes in the taxing district for the last preceding
8levy year that resulted in the over or under extension of
9taxes, or (ii) increased or decreased the tax extension for the
10last preceding levy year as required by Section 18-135(c).
11Whenever an adjustment is required under Section 18-135, the
12aggregate extension base of the taxing district shall be equal
13to the amount that the aggregate extension of the taxing
14district would have been for the last preceding levy year if
15either or both (i) actual, rather than estimated, valuations or
16rates had been used to calculate the extension of taxes for the
17last levy year, or (ii) the tax extension for the last
18preceding levy year had not been adjusted as required by
19subsection (c) of Section 18-135.
20    Notwithstanding any other provision of law, for levy year
212012, the aggregate extension base for West Northfield School
22District No. 31 in Cook County shall be $12,654,592.
23    "Levy year" has the same meaning as "year" under Section
241-155.
25    "New property" means (i) the assessed value, after final
26board of review or board of appeals action, of new improvements

 

 

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1or additions to existing improvements on any parcel of real
2property that increase the assessed value of that real property
3during the levy year multiplied by the equalization factor
4issued by the Department under Section 17-30, (ii) the assessed
5value, after final board of review or board of appeals action,
6of real property not exempt from real estate taxation, which
7real property was exempt from real estate taxation for any
8portion of the immediately preceding levy year, multiplied by
9the equalization factor issued by the Department under Section
1017-30, including the assessed value, upon final stabilization
11of occupancy after new construction is complete, of any real
12property located within the boundaries of an otherwise or
13previously exempt military reservation that is intended for
14residential use and owned by or leased to a private corporation
15or other entity, (iii) in counties that classify in accordance
16with Section 4 of Article IX of the Illinois Constitution, an
17incentive property's additional assessed value resulting from
18a scheduled increase in the level of assessment as applied to
19the first year final board of review market value, and (iv) any
20increase in assessed value due to oil or gas production from an
21oil or gas well required to be permitted under the Hydraulic
22Fracturing Regulatory Act that was not produced in or accounted
23for during the previous levy year. In addition, the county
24clerk in a county containing a population of 3,000,000 or more
25shall include in the 1997 recovered tax increment value for any
26school district, any recovered tax increment value that was

 

 

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1applicable to the 1995 tax year calculations.
2    "Qualified airport authority" means an airport authority
3organized under the Airport Authorities Act and located in a
4county bordering on the State of Wisconsin and having a
5population in excess of 200,000 and not greater than 500,000.
6    "Recovered tax increment value" means, except as otherwise
7provided in this paragraph, the amount of the current year's
8equalized assessed value, in the first year after a
9municipality terminates the designation of an area as a
10redevelopment project area previously established under the
11Tax Increment Allocation Redevelopment Development Act in the
12Illinois Municipal Code, previously established under the
13Industrial Jobs Recovery Law in the Illinois Municipal Code,
14previously established under the Economic Development Project
15Area Tax Increment Act of 1995, or previously established under
16the Economic Development Area Tax Increment Allocation Act, of
17each taxable lot, block, tract, or parcel of real property in
18the redevelopment project area over and above the initial
19equalized assessed value of each property in the redevelopment
20project area. For the taxes which are extended for the 1997
21levy year, the recovered tax increment value for a non-home
22rule taxing district that first became subject to this Law for
23the 1995 levy year because a majority of its 1994 equalized
24assessed value was in an affected county or counties shall be
25increased if a municipality terminated the designation of an
26area in 1993 as a redevelopment project area previously

 

 

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1established under the Tax Increment Allocation Redevelopment
2Development Act in the Illinois Municipal Code, previously
3established under the Industrial Jobs Recovery Law in the
4Illinois Municipal Code, or previously established under the
5Economic Development Area Tax Increment Allocation Act, by an
6amount equal to the 1994 equalized assessed value of each
7taxable lot, block, tract, or parcel of real property in the
8redevelopment project area over and above the initial equalized
9assessed value of each property in the redevelopment project
10area. In the first year after a municipality removes a taxable
11lot, block, tract, or parcel of real property from a
12redevelopment project area established under the Tax Increment
13Allocation Redevelopment Development Act in the Illinois
14Municipal Code, the Industrial Jobs Recovery Law in the
15Illinois Municipal Code, or the Economic Development Area Tax
16Increment Allocation Act, "recovered tax increment value"
17means the amount of the current year's equalized assessed value
18of each taxable lot, block, tract, or parcel of real property
19removed from the redevelopment project area over and above the
20initial equalized assessed value of that real property before
21removal from the redevelopment project area.
22    Except as otherwise provided in this Section, "limiting
23rate" means a fraction the numerator of which is the last
24preceding aggregate extension base times an amount equal to one
25plus the extension limitation defined in this Section and the
26denominator of which is the current year's equalized assessed

 

 

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1value of all real property in the territory under the
2jurisdiction of the taxing district during the prior levy year.
3For those taxing districts that reduced their aggregate
4extension for the last preceding levy year, except for school
5districts that reduced their extension for educational
6purposes pursuant to Section 18-206, the highest aggregate
7extension in any of the last 3 preceding levy years shall be
8used for the purpose of computing the limiting rate. The
9denominator shall not include new property or the recovered tax
10increment value. If a new rate, a rate decrease, or a limiting
11rate increase has been approved at an election held after March
1221, 2006, then (i) the otherwise applicable limiting rate shall
13be increased by the amount of the new rate or shall be reduced
14by the amount of the rate decrease, as the case may be, or (ii)
15in the case of a limiting rate increase, the limiting rate
16shall be equal to the rate set forth in the proposition
17approved by the voters for each of the years specified in the
18proposition, after which the limiting rate of the taxing
19district shall be calculated as otherwise provided. In the case
20of a taxing district that obtained referendum approval for an
21increased limiting rate on March 20, 2012, the limiting rate
22for tax year 2012 shall be the rate that generates the
23approximate total amount of taxes extendable for that tax year,
24as set forth in the proposition approved by the voters; this
25rate shall be the final rate applied by the county clerk for
26the aggregate of all capped funds of the district for tax year

 

 

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12012.
2    The changes made to this Section by this amendatory Act of
3the 101st General Assembly apply beginning with levy year 2021.
4(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
5100-465, eff. 8-31-17; revised 8-12-19.)
 
6    (35 ILCS 200/18-205)
7    Sec. 18-205. Referendum to increase the extension
8limitation. A taxing district is limited to an extension
9limitation of 3.5% 5% or the percentage increase in the
10Consumer Price Index during the 12-month calendar year
11preceding the levy year, whichever is less. A taxing district
12may increase its extension limitation for one or more levy
13years if that taxing district holds a referendum before the
14levy date for the first levy year at which a majority of voters
15voting on the issue approves adoption of a higher extension
16limitation. Referenda shall be conducted at a regularly
17scheduled election in accordance with the Election Code. The
18question shall be presented in substantially the following
19manner for all elections held after March 21, 2006:
20        Shall the extension limitation under the Property Tax
21    Extension Limitation Law for (insert the legal name,
22    number, if any, and county or counties of the taxing
23    district and geographic or other common name by which a
24    school or community college district is known and referred
25    to), Illinois, be increased from the lesser of 3.5% 5% or

 

 

HB5427- 20 -LRB101 18960 HLH 68419 b

1    the percentage increase in the Consumer Price Index over
2    the prior levy year to (insert the percentage of the
3    proposed increase)% per year for (insert each levy year for
4    which the increased extension limitation will apply)?
5The votes must be recorded as "Yes" or "No".
6If a majority of voters voting on the issue approves the
7adoption of the increase, the increase shall be applicable for
8each levy year specified.
9    The ballot for any question submitted pursuant to this
10Section shall have printed thereon, but not as a part of the
11question submitted, only the following supplemental
12information (which shall be supplied to the election authority
13by the taxing district) in substantially the following form:
14        (1) For the (insert the first levy year for which the
15    increased extension limitation will be applicable) levy
16    year the approximate amount of the additional tax
17    extendable against property containing a single family
18    residence and having a fair market value at the time of the
19    referendum of $100,000 is estimated to be $....
20        (2) Based upon an average annual percentage increase
21    (or decrease) in the market value of such property of ...%
22    (insert percentage equal to the average annual percentage
23    increase or decrease for the prior 3 levy years, at the
24    time the submission of the question is initiated by the
25    taxing district, in the amount of (A) the equalized
26    assessed value of the taxable property in the taxing

 

 

HB5427- 21 -LRB101 18960 HLH 68419 b

1    district less (B) the new property included in the
2    equalized assessed value), the approximate amount of the
3    additional tax extendable against such property for the ...
4    levy year is estimated to be $... and for the ... levy year
5    is estimated to be $....
6    Paragraph (2) shall be included only if the increased
7extension limitation will be applicable for more than one year
8and shall list each levy year for which the increased extension
9limitation will be applicable. The additional tax shown for
10each levy year shall be the approximate dollar amount of the
11increase over the amount of the most recently completed
12extension at the time the submission of the question is
13initiated by the taxing district. The approximate amount of the
14additional tax extendable shown in paragraphs (1) and (2) shall
15be calculated by multiplying $100,000 (the fair market value of
16the property without regard to any property tax exemptions) by
17(i) the percentage level of assessment prescribed for that
18property by statute, or by ordinance of the county board in
19counties that classify property for purposes of taxation in
20accordance with Section 4 of Article IX of the Illinois
21Constitution; (ii) the most recent final equalization factor
22certified to the county clerk by the Department of Revenue at
23the time the taxing district initiates the submission of the
24proposition to the electors; (iii) the last known aggregate
25extension base of the taxing district at the time the
26submission of the question is initiated by the taxing district;

 

 

HB5427- 22 -LRB101 18960 HLH 68419 b

1and (iv) the difference between the percentage increase
2proposed in the question and the lesser of 3.5% 5% or the
3percentage increase in the Consumer Price Index for the prior
4levy year (or an estimate of the percentage increase for the
5prior levy year if the increase is unavailable at the time the
6submission of the question is initiated by the taxing
7district); and dividing the result by the last known equalized
8assessed value of the taxing district at the time the
9submission of the question is initiated by the taxing district.
10This amendatory Act of the 97th General Assembly is intended to
11clarify the existing requirements of this Section, and shall
12not be construed to validate any prior non-compliant referendum
13language. Any notice required to be published in connection
14with the submission of the question shall also contain this
15supplemental information and shall not contain any other
16supplemental information. Any error, miscalculation, or
17inaccuracy in computing any amount set forth on the ballot or
18in the notice that is not deliberate shall not invalidate or
19affect the validity of any proposition approved. Notice of the
20referendum shall be published and posted as otherwise required
21by law, and the submission of the question shall be initiated
22as provided by law.
23    The changes made to this Section by this amendatory Act of
24the 101st General Assembly apply beginning with levy year 2021.
25(Source: P.A. 97-1087, eff. 8-24-12.)
 

 

 

HB5427- 23 -LRB101 18960 HLH 68419 b

1    (35 ILCS 200/18-212)
2    Sec. 18-212. Referendum on debt service extension base. A
3taxing district may establish or increase its debt service
4extension base if (i) that taxing district holds a referendum
5before the date on which the levy must be filed with the county
6clerk of the county or counties in which the taxing district is
7situated and (ii) a majority of voters voting on the issue
8approves the establishment of or increase in the debt service
9extension base. A debt service extension base established or
10increased by a referendum held pursuant to this Section after
11February 2, 2010, shall be increased each year, commencing with
12the first levy year beginning after the date of the referendum,
13by the lesser of 3.5% 5% or the percentage increase in the
14Consumer Price Index during the 12-month calendar year
15preceding the levy year if the optional language concerning the
16annual increase is included in the question submitted to the
17electors of the taxing district. Referenda under this Section
18shall be conducted at a regularly scheduled election in
19accordance with the Election Code. The governing body of the
20taxing district shall certify the question to the proper
21election authorities who shall submit the question to the
22electors of the taxing district in substantially the following
23form:
24    "Shall the debt service extension base under the Property
25    Tax Extension Limitation Law for ... (taxing district name)
26    ... for payment of principal and interest on limited bonds

 

 

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1    be .... ((established at $ ....) . (or) (increased from $
2    .... to $ ....)) .. for the ..... levy year and all
3    subsequent levy years (optional language: , such debt
4    service extension base to be increased each year by the
5    lesser of 3.5% 5% or the percentage increase in the
6    Consumer Price Index during the 12-month calendar year
7    preceding the levy year)?"
8    Votes on the question shall be recorded as "Yes" or "No".
9    If a majority of voters voting on the issue approves the
10establishment of or increase in the debt service extension
11base, the establishment of or increase in the debt service
12extension base shall be applicable for the levy years
13specified.
14    The changes made to this Section by this amendatory Act of
15the 101st General Assembly apply beginning with levy year 2021.
16(Source: P.A. 96-1202, eff. 7-22-10.)