102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3602

 

Introduced 2/22/2021, by Rep. Mark Batinick

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-206 new
35 ILCS 200/18-212
35 ILCS 200/18-214
35 ILCS 200/18-216 new
35 ILCS 200/18-242 new
30 ILCS 805/8.45 new

    Amends the Property Tax Code. Provides that, for levy years 2018 through 2021, the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units. Provides that, for levy years 2018 through 2021, the extension limitation under the Property Tax Extension Limitation Law is 0% or the rate of increase approved by the voters. Provides that, for taxing districts that became subject to the Law as a result of the amendatory Act, "aggregate extension" does not include special purpose extensions made for the payment of principal and interest on bonds or other evidences of indebtedness issued by the taxing district prior to the effective date of the amendatory Act. Provides that taxing districts may provide for the continuation of the amendatory Act for up to 4 years upon referendum approval. Provides that the voters of the taxing district may require a reduction in the taxing district's aggregate extension base by referendum. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB102 14062 HLH 19414 b

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

 

 

A BILL FOR

 

HB3602LRB102 14062 HLH 19414 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4Section 5. The Property Tax Code is amended by changing
5Sections 18-185, 18-205, 18-212, 18-216, and 18-214 and by
6adding Sections 18-242 and 18-206 as follows:
 
7    (35 ILCS 200/18-185)
8    Sec. 18-185. Short title; definitions. This Division 5
9may be cited as the Property Tax Extension Limitation Law. As
10used in this Division 5:
11    "Consumer Price Index" means the Consumer Price Index for
12All Urban Consumers for all items published by the United
13States Department of Labor.
14    "Extension limitation", for levy years prior to levy year
152018 and again for levy years after levy year 2021, means (a)
16the lesser of 5% or the percentage increase in the Consumer
17Price Index during the 12-month calendar year preceding the
18levy year or (b) the rate of increase approved by voters under
19Section 18-205.
20    "Extension limitation", for levy years 2018 through 2021,
21means 0% or the rate of increase approved by the voters under
22Section 18-205.
23    "Affected county" means a county of 3,000,000 or more

 

 

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1inhabitants or a county contiguous to a county of 3,000,000 or
2more inhabitants.
3    "Taxing district" has the same meaning provided in Section
41-150, except as otherwise provided in this Section. For the
51991 through 1994 levy years only, "taxing district" includes
6only each non-home rule taxing district having the majority of
7its 1990 equalized assessed value within any county or
8counties contiguous to a county with 3,000,000 or more
9inhabitants. For levy years 1995 through 2017 and beginning
10again with levy year 2022 Beginning with the 1995 levy year,
11"taxing district" includes only each non-home rule taxing
12district subject to this Law before the 1995 levy year and each
13non-home rule taxing district not subject to this Law before
14the 1995 levy year having the majority of its 1994 equalized
15assessed value in an affected county or counties. Beginning
16with the levy year in which this Law becomes applicable to a
17taxing district as provided in Section 18-213, "taxing
18district" also includes those taxing districts made subject to
19this Law as provided in Section 18-213. For levy years 2018
20through 2021, "taxing district" has the same meaning provided
21in Section 1-150 and includes home rule units.
22    "Aggregate extension" for taxing districts to which this
23Law applied before the 1995 levy year means the annual
24corporate extension for the taxing district and those special
25purpose extensions that are made annually for the taxing
26district, excluding special purpose extensions: (a) made for

 

 

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1the taxing district to pay interest or principal on general
2obligation bonds that were approved by referendum; (b) made
3for any taxing district to pay interest or principal on
4general obligation bonds issued before October 1, 1991; (c)
5made for any taxing district to pay interest or principal on
6bonds issued to refund or continue to refund those bonds
7issued before October 1, 1991; (d) made for any taxing
8district to pay interest or principal on bonds issued to
9refund or continue to refund bonds issued after October 1,
101991 that were approved by referendum; (e) made for any taxing
11district to pay interest or principal on revenue bonds issued
12before October 1, 1991 for payment of which a property tax levy
13or the full faith and credit of the unit of local government is
14pledged; however, a tax for the payment of interest or
15principal on those bonds shall be made only after the
16governing body of the unit of local government finds that all
17other sources for payment are insufficient to make those
18payments; (f) made for payments under a building commission
19lease when the lease payments are for the retirement of bonds
20issued by the commission before October 1, 1991, to pay for the
21building project; (g) made for payments due under installment
22contracts entered into before October 1, 1991; (h) made for
23payments of principal and interest on bonds issued under the
24Metropolitan Water Reclamation District Act to finance
25construction projects initiated before October 1, 1991; (i)
26made for payments of principal and interest on limited bonds,

 

 

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1as defined in Section 3 of the Local Government Debt Reform
2Act, in an amount not to exceed the debt service extension base
3less the amount in items (b), (c), (e), and (h) of this
4definition for non-referendum obligations, except obligations
5initially issued pursuant to referendum; (j) made for payments
6of principal and interest on bonds issued under Section 15 of
7the Local Government Debt Reform Act; (k) made by a school
8district that participates in the Special Education District
9of Lake County, created by special education joint agreement
10under Section 10-22.31 of the School Code, for payment of the
11school district's share of the amounts required to be
12contributed by the Special Education District of Lake County
13to the Illinois Municipal Retirement Fund under Article 7 of
14the Illinois Pension Code; the amount of any extension under
15this item (k) shall be certified by the school district to the
16county clerk; (l) made to fund expenses of providing joint
17recreational programs for persons with disabilities under
18Section 5-8 of the Park District Code or Section 11-95-14 of
19the Illinois Municipal Code; (m) made for temporary relocation
20loan repayment purposes pursuant to Sections 2-3.77 and
2117-2.2d of the School Code; (n) made for payment of principal
22and interest on any bonds issued under the authority of
23Section 17-2.2d of the School Code; (o) made for contributions
24to a firefighter'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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1and (p) made for road purposes in the first year after a
2township assumes the rights, powers, duties, assets, property,
3liabilities, obligations, and responsibilities of a road
4district abolished under the provisions of Section 6-133 of
5the Illinois Highway Code.
6    "Aggregate extension" for the taxing districts to which
7this Law did not apply before the 1995 levy year (except taxing
8districts subject to this Law in accordance with Section
918-213 or this amendatory Act of the 102nd General Assembly)
10means the annual corporate extension for the taxing district
11and those special purpose extensions that are made annually
12for the taxing district, excluding special purpose extensions:
13(a) made for the taxing district to pay interest or principal
14on general obligation bonds that were approved by referendum;
15(b) made for any taxing district to pay interest or principal
16on general obligation bonds issued before March 1, 1995; (c)
17made for any taxing district to pay interest or principal on
18bonds issued to refund or continue to refund those bonds
19issued before March 1, 1995; (d) made for any taxing district
20to pay interest or principal on bonds issued to refund or
21continue to refund bonds issued after March 1, 1995 that were
22approved by referendum; (e) made for any taxing district to
23pay interest or principal on revenue bonds issued before March
241, 1995 for payment of which a property tax levy or the full
25faith and credit of the unit of local government is pledged;
26however, a tax for the payment of interest or principal on

 

 

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1those bonds shall be made only after the governing body of the
2unit of local government finds that all other sources for
3payment are insufficient to make those payments; (f) made for
4payments under a building commission lease when the lease
5payments are for the retirement of bonds issued by the
6commission before March 1, 1995 to pay for the building
7project; (g) made for payments due under installment contracts
8entered into before March 1, 1995; (h) made for payments of
9principal and interest on bonds issued under the Metropolitan
10Water Reclamation District Act to finance construction
11projects initiated before October 1, 1991; (h-4) made for
12stormwater management purposes by the Metropolitan Water
13Reclamation District of Greater Chicago under Section 12 of
14the Metropolitan Water Reclamation District Act; (i) made for
15payments of principal and interest on limited bonds, as
16defined in Section 3 of the Local Government Debt Reform Act,
17in an amount not to exceed the debt service extension base less
18the amount in items (b), (c), and (e) of this definition for
19non-referendum obligations, except obligations initially
20issued pursuant to referendum and bonds described in
21subsection (h) of this definition; (j) made for payments of
22principal and interest on bonds issued under Section 15 of the
23Local Government Debt Reform Act; (k) made for payments of
24principal and interest on bonds authorized by Public Act
2588-503 and issued under Section 20a of the Chicago Park
26District Act for aquarium or museum projects; (l) made for

 

 

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1payments of principal and interest on bonds authorized by
2Public Act 87-1191 or 93-601 and (i) issued pursuant to
3Section 21.2 of the Cook County Forest Preserve District Act,
4(ii) issued under Section 42 of the Cook County Forest
5Preserve District Act for zoological park projects, or (iii)
6issued under Section 44.1 of the Cook County Forest Preserve
7District Act for botanical gardens projects; (m) made pursuant
8to Section 34-53.5 of the School Code, whether levied annually
9or not; (n) made to fund expenses of providing joint
10recreational programs for persons with disabilities under
11Section 5-8 of the Park District Code or Section 11-95-14 of
12the Illinois Municipal Code; (o) made by the Chicago Park
13District for recreational programs for persons with
14disabilities under subsection (c) of Section 7.06 of the
15Chicago Park District Act; (p) made for contributions to a
16firefighter'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(q) made by Ford Heights School District 169 under Section
2017-9.02 of the School Code; and (r) made for the purpose of
21making employer contributions to the Public School Teachers'
22Pension and Retirement Fund of Chicago under Section 34-53 of
23the School Code.
24    "Aggregate extension" for all taxing districts to which
25this Law applies in accordance with Section 18-213, except for
26those taxing districts subject to paragraph (2) of subsection

 

 

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1(e) of Section 18-213, means the annual corporate extension
2for the taxing district and those special purpose extensions
3that are made annually for the taxing district, excluding
4special purpose extensions: (a) made for the taxing district
5to pay interest or principal on general obligation bonds that
6were approved by referendum; (b) made for any taxing district
7to pay interest or principal on general obligation bonds
8issued before the date on which the referendum making this Law
9applicable to the taxing district is held; (c) made for any
10taxing district to pay interest or principal on bonds issued
11to refund or continue to refund those bonds issued before the
12date on which the referendum making this Law applicable to the
13taxing district is held; (d) made for any taxing district to
14pay interest or principal on bonds issued to refund or
15continue to refund bonds issued after the date on which the
16referendum making this Law applicable to the taxing district
17is held if the bonds were approved by referendum after the date
18on which the referendum making this Law applicable to the
19taxing district is held; (e) made for any taxing district to
20pay interest or principal on revenue bonds issued before the
21date on which the referendum making this Law applicable to the
22taxing district is held for payment of which a property tax
23levy or the full faith and credit of the unit of local
24government is pledged; however, a tax for the payment of
25interest or principal on those bonds shall be made only after
26the governing body of the unit of local government finds that

 

 

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

 

 

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1Code; (l) made for contributions to a firefighter's pension
2fund created under Article 4 of the Illinois Pension Code, to
3the extent of the amount certified under item (5) of Section
44-134 of the Illinois Pension Code; and (m) made for the taxing
5district to pay interest or principal on general obligation
6bonds issued pursuant to Section 19-3.10 of the School Code.
7    "Aggregate extension" for all taxing districts to which
8this Law applies in accordance with paragraph (2) of
9subsection (e) of Section 18-213 or this amendatory Act of the
10102nd General Assembly means the annual corporate extension
11for the taxing district and those special purpose extensions
12that are made annually for the taxing district, excluding
13special purpose extensions: (a) made for the taxing district
14to pay interest or principal on general obligation bonds that
15were approved by referendum; (b) made for any taxing district
16to pay interest or principal on general obligation bonds
17issued before March 7, 1997 (the effective date of Public Act
1889-718) this amendatory Act of 1997; (c) made for any taxing
19district to pay interest or principal on bonds issued to
20refund or continue to refund those bonds issued before March
217, 1997 (the effective date of Public Act 89-718) this
22amendatory Act of 1997; (d) made for any taxing district to pay
23interest or principal on bonds issued to refund or continue to
24refund bonds issued after March 7, 1997 (the effective date of
25Public Act 89-718) this amendatory Act of 1997 if the bonds
26were approved by referendum after March 7, 1997 (the effective

 

 

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1date of Public Act 89-718) this amendatory Act of 1997; (e)
2made for any taxing district to pay interest or principal on
3revenue bonds issued before March 7, 1997 (the effective date
4of Public Act 89-718) this amendatory Act of 1997 for payment
5of which a property tax levy or the full faith and credit of
6the unit of local government is pledged; however, a tax for the
7payment of interest or principal on those bonds shall be made
8only after the governing body of the unit of local government
9finds that all other sources for payment are insufficient to
10make those payments; (f) made for payments under a building
11commission lease when the lease payments are for the
12retirement of bonds issued by the commission before March 7,
131997 (the effective date of Public Act 89-718) this amendatory
14Act of 1997 to pay for the building project; (g) made for
15payments due under installment contracts entered into before
16March 7, 1997 (the effective date of Public Act 89-718) this
17amendatory Act of 1997; (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
811-95-14 of the Illinois Municipal Code; and (l) made for
9contributions to a firefighter's pension fund created under
10Article 4 of the Illinois Pension Code, to the extent of the
11amount certified under item (5) of Section 4-134 of the
12Illinois Pension Code. In addition, for taxing districts that
13became subject to the Law as a result of this amendatory Act of
14the 102nd General Assembly, "aggregate extension" does not
15include special purpose extensions made for the payment of
16principal and interest on bonds or other evidences of
17indebtedness issued by the taxing district prior to the
18effective date of this amendatory Act of the 102nd General
19Assembly.
20    "Debt service extension base" means an amount equal to
21that portion of the extension for a taxing district for the
221994 levy year, or for those taxing districts subject to this
23Law in accordance with Section 18-213, except for those
24subject to paragraph (2) of subsection (e) of Section 18-213,
25for the levy year in which the referendum making this Law
26applicable to the taxing district is held, or for those taxing

 

 

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1districts subject to this Law in accordance with paragraph (2)
2of subsection (e) of Section 18-213 for the 1996 levy year,
3constituting an extension for payment of principal and
4interest on bonds issued by the taxing district without
5referendum, but not including excluded non-referendum bonds.
6For park districts (i) that were first subject to this Law in
71991 or 1995 and (ii) whose extension for the 1994 levy year
8for the payment of principal and interest on bonds issued by
9the park district without referendum (but not including
10excluded non-referendum bonds) was less than 51% of the amount
11for the 1991 levy year constituting an extension for payment
12of principal and interest on bonds issued by the park district
13without referendum (but not including excluded non-referendum
14bonds), "debt service extension base" means an amount equal to
15that portion of the extension for the 1991 levy year
16constituting an extension for payment of principal and
17interest on bonds issued by the park district without
18referendum (but not including excluded non-referendum bonds).
19A debt service extension base established or increased at any
20time pursuant to any provision of this Law, except Section
2118-212, shall be increased each year commencing with the later
22of (i) the 2009 levy year or (ii) the first levy year in which
23this Law becomes applicable to the taxing district, by (A) for
24levy years prior to the 2018 levy year and for levy year 2022
25and thereafter, the lesser of 5% or the percentage increase in
26the Consumer Price Index during the 12-month calendar year

 

 

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1preceding the levy year or (B) for levy years 2018 through
22021, 0%. The debt service extension base may be established
3or increased as provided under Section 18-212. "Excluded
4non-referendum bonds" means (i) bonds authorized by Public Act
588-503 and issued under Section 20a of the Chicago Park
6District Act for aquarium and museum projects; (ii) bonds
7issued under Section 15 of the Local Government Debt Reform
8Act; or (iii) refunding obligations issued to refund or to
9continue 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
15to Section 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, and 18-230, or the aggregate extension base
22set by referendum under Section 18-206, whichever is less and
2318-206. An adjustment under Section 18-135 shall be made for
24the 2007 levy year and all subsequent levy years whenever one
25or more counties within which a taxing district is located (i)
26used estimated valuations or rates when extending taxes in the

 

 

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1taxing district for the last preceding levy year that resulted
2in the over or under extension of taxes, or (ii) increased or
3decreased the tax extension for the last preceding levy year
4as required by Section 18-135(c). Whenever an adjustment is
5required under Section 18-135, the aggregate extension base of
6the taxing district shall be equal to the amount that the
7aggregate extension of the taxing district would have been for
8the last preceding levy year if either or both (i) actual,
9rather than estimated, valuations or rates had been used to
10calculate the extension of taxes for the last levy year, or
11(ii) the tax extension for the last preceding levy year had not
12been adjusted as required by subsection (c) of Section 18-135.
13    Notwithstanding any other provision of law, for levy year
142012, the aggregate extension base for West Northfield School
15District No. 31 in Cook County shall be $12,654,592.
16    "Levy year" has the same meaning as "year" under Section
171-155.
18    "New property" means (i) the assessed value, after final
19board of review or board of appeals action, of new
20improvements or additions to existing improvements on any
21parcel of real property that increase the assessed value of
22that real property during the levy year multiplied by the
23equalization factor issued by the Department under Section
2417-30, (ii) the assessed value, after final board of review or
25board of appeals action, of real property not exempt from real
26estate taxation, which real property was exempt from real

 

 

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1estate taxation for any portion of the immediately preceding
2levy year, multiplied by the equalization factor issued by the
3Department under Section 17-30, including the assessed value,
4upon final stabilization of occupancy after new construction
5is complete, of any real property located within the
6boundaries of an otherwise or previously exempt military
7reservation that is intended for residential use and owned by
8or leased to a private corporation or other entity, (iii) in
9counties that classify in accordance with Section 4 of Article
10IX of the Illinois Constitution, an incentive property's
11additional assessed value resulting from a scheduled increase
12in the level of assessment as applied to the first year final
13board of review market value, and (iv) any increase in
14assessed value due to oil or gas production from an oil or gas
15well required to be permitted under the Hydraulic Fracturing
16Regulatory Act that was not produced in or accounted for
17during the previous levy year. In addition, the county clerk
18in a county containing a population of 3,000,000 or more shall
19include in the 1997 recovered tax increment value for any
20school district, any recovered tax increment value that was
21applicable to the 1995 tax year calculations.
22    "Qualified airport authority" means an airport authority
23organized under the Airport Authorities Act and located in a
24county bordering on the State of Wisconsin and having a
25population in excess of 200,000 and not greater than 500,000.
26    "Recovered tax increment value" means, except as otherwise

 

 

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

 

 

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

 

 

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1extension in any of the last 3 preceding levy years shall be
2used for the purpose of computing the limiting rate.
3Notwithstanding any other provision of law, if the voters of
4the taxing district approve a reduced aggregate extension
5base, as provided in Section 18-206, then that reduced
6aggregate extension base shall be used for the purpose of
7computing the limiting rate. The denominator shall not include
8new property or the recovered tax increment value. If a new
9rate, a rate decrease, or a limiting rate increase has been
10approved at an election held after March 21, 2006, then (i) the
11otherwise applicable limiting rate shall be increased by the
12amount of the new rate or shall be reduced by the amount of the
13rate decrease, as the case may be, or (ii) in the case of a
14limiting rate increase, the limiting rate shall be equal to
15the rate set forth in the proposition approved by the voters
16for each of the years specified in the proposition, after
17which the limiting rate of the taxing district shall be
18calculated as otherwise provided. In the case of a taxing
19district that obtained referendum approval for an increased
20limiting rate on March 20, 2012, the limiting rate for tax year
212012 shall be the rate that generates the approximate total
22amount of taxes extendable for that tax year, as set forth in
23the proposition approved by the voters; this rate shall be the
24final rate applied by the county clerk for the aggregate of all
25capped funds of the district for tax year 2012.
26(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;

 

 

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1100-465, eff. 8-31-17; revised 8-12-19.)
 
2    (35 ILCS 200/18-205)
3    Sec. 18-205. Referendum to increase the extension
4limitation. A taxing district is limited to an extension
5limitation as defined in Section 18-185 of 5% or the
6percentage increase in the Consumer Price Index during the
712-month calendar year preceding the levy year, whichever is
8less. A taxing district may increase its extension limitation
9for one or more levy years if that taxing district holds a
10referendum before the levy date for the first levy year at
11which a majority of voters voting on the issue approves
12adoption of a higher extension limitation. Referenda shall be
13conducted at a regularly scheduled election in accordance with
14the Election Code. The question shall be presented in
15substantially the following manner for all elections held
16after March 21, 2006:
17        Shall the extension limitation under the Property Tax
18    Extension Limitation Law for (insert the legal name,
19    number, if any, and county or counties of the taxing
20    district and geographic or other common name by which a
21    school or community college district is known and referred
22    to), Illinois, be increased from (extension limitation
23    under Section 18-185) the lesser of 5% or the percentage
24    increase in the Consumer Price Index over the prior levy
25    year to (insert the percentage of the proposed increase)%

 

 

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

 

 

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

 

 

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1(A) the lesser of 5% or the percentage increase in the Consumer
2Price Index for the prior levy year (or an estimate of the
3percentage increase for the prior levy year if the increase is
4unavailable at the time the submission of the question is
5initiated by the taxing district) or (B) 0%, as applicable;
6and dividing the result by the last known equalized assessed
7value of the taxing district at the time the submission of the
8question is initiated by the taxing district. This amendatory
9Act of the 97th General Assembly is intended to clarify the
10existing requirements of this Section, and shall not be
11construed to validate any prior non-compliant referendum
12language. Any notice required to be published in connection
13with the submission of the question shall also contain this
14supplemental information and shall not contain any other
15supplemental information. Any error, miscalculation, or
16inaccuracy in computing any amount set forth on the ballot or
17in the notice that is not deliberate shall not invalidate or
18affect the validity of any proposition approved. Notice of the
19referendum shall be published and posted as otherwise required
20by law, and the submission of the question shall be initiated
21as provided by law.
22(Source: P.A. 97-1087, eff. 8-24-12.)
 
23    (35 ILCS 200/18-206 new)
24    Sec. 18-206. Referendum to reduce the aggregate extension
25base.

 

 

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1    (a) Notwithstanding any other provision of law, if a
2written petition is submitted to the corporate authorities of
3a taxing district calling for a referendum on the question of
4whether or not the aggregate extension base of the taxing
5district should be reduced and setting forth the amount of the
6reduction, signed by a number of voters of the taxing district
7equal to at least 5% of the total votes cast for candidates for
8Governor in the preceding gubernatorial election by the
9registered voters of the taxing district, then the corporate
10authorities of the taxing district shall adopt a resolution
11for the submission of that proposition at the next regular
12election held in that taxing district. The corporate
13authorities shall certify the resolution and the proposition
14to the proper election officials, who shall submit the
15proposition at the election in accordance with the general
16election law.
17    (b) The question shall be in substantially the following
18form:
19        Shall the aggregate extension base for (taxing
20    district) for (levy year or levy years) be reduced from
21    (statutory aggregate extension base) to (proposed
22    aggregate extension base)?
23    The votes must be recorded as "Yes" or "No". If a majority
24of voters voting on the issue approves the reduction, then the
25reduction shall be applicable for the levy year or levy years
26specified, but shall not exceed a 4-year period.

 

 

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1    The ballot for any question submitted pursuant to this
2Section shall have printed thereon, but not as a part of the
3question submitted, the following supplemental information
4(which shall be supplied to the election authority by the
5taxing district) in substantially the following form:
6        For the (levy year or levy years) the reduction in the
7    amount of taxes extendable against property containing a
8    single family residence and having a fair market value at
9    the time of the referendum of $100,000 is estimated to be
10    $....
 
11    (35 ILCS 200/18-212)
12    Sec. 18-212. Referendum on debt service extension base. A
13taxing district may establish or increase its debt service
14extension base if (i) that taxing district holds a referendum
15before the date on which the levy must be filed with the county
16clerk of the county or counties in which the taxing district is
17situated and (ii) a majority of voters voting on the issue
18approves the establishment of or increase in the debt service
19extension base. Except with respect to levy years 2018 through
202021, a A debt service extension base established or increased
21by a referendum held pursuant to this Section after February
222, 2010, shall be increased each year, commencing with the
23first levy year beginning after the date of the referendum, by
24the lesser of 5% or the percentage increase in the Consumer
25Price Index during the 12-month calendar year preceding the

 

 

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1levy year if the optional language concerning the annual
2increase is included in the question submitted to the electors
3of the taxing district. Referenda under this Section shall be
4conducted at a regularly scheduled election in accordance with
5the Election Code. The governing body of the taxing district
6shall certify the question to the proper election authorities
7who shall submit the question to the electors of the taxing
8district in substantially the following form:
9    "Shall the debt service extension base under the Property
10    Tax Extension Limitation Law for ... (taxing district
11    name) ... for payment of principal and interest on limited
12    bonds be .... ((established at $ ....) . (or) (increased
13    from $ .... to $ ....)) .. for the ..... levy year and all
14    subsequent levy years (optional language: , such debt
15    service extension base to be increased each year by the
16    lesser of 5% or the percentage increase in the Consumer
17    Price Index during the 12-month calendar year preceding
18    the levy year)?"
19    Votes on the question shall be recorded as "Yes" or "No".
20    If a majority of voters voting on the issue approves the
21establishment of or increase in the debt service extension
22base, the establishment of or increase in the debt service
23extension base shall be applicable for the levy years
24specified.
25(Source: P.A. 96-1202, eff. 7-22-10.)
 

 

 

HB3602- 27 -LRB102 14062 HLH 19414 b

1    (35 ILCS 200/18-214)
2    Sec. 18-214. Referenda on removal of the applicability of
3the Property Tax Extension Limitation Law to non-home rule
4taxing districts.
5    (a) The provisions of this Section do not apply to a taxing
6district that is subject to this Law because a majority of its
71990 equalized assessed value is in a county or counties
8contiguous to a county of 3,000,000 or more inhabitants, or
9because a majority of its 1994 equalized assessed value is in
10an affected county and the taxing district was not subject to
11this Law before the 1995 levy year.
12    (b) For purposes of this Section only:
13    "Taxing district" means any non-home rule taxing district
14that became subject to this Law under Section 18-213 of this
15Law.
16    "Equalized assessed valuation" means the equalized
17assessed valuation for a taxing district for the immediately
18preceding levy year.
19    (c) The county board of a county that became subject to
20this Law by a referendum approved by the voters of the county
21under Section 18-213 may, by ordinance or resolution, in the
22manner set forth in this Section, submit to the voters of the
23county the question of whether this Law applies to all
24non-home rule taxing districts that have all or a portion of
25their equalized assessed valuation situated in the county in
26the manner set forth in this Section.

 

 

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1    (d) The ordinance or resolution shall request the
2submission of the proposition at any election, except a
3consolidated primary election, for the purpose of voting for
4or against the continued application of the Property Tax
5Extension Limitation Law to all non-home rule taxing districts
6that have all or a portion of their equalized assessed
7valuation situated in the county.
8    The question shall be placed on a separate ballot and
9shall be in substantially the following form:
10        Shall the Property Tax Extension Limitation Law (35
11    ILCS 200/18-185 through 35 ILCS 200/18-245), which limits
12    annual property tax extension increases, apply to non-home
13    rule taxing districts with all or a portion of their
14    equalized assessed valuation located in (name of county)?
15Votes on the question shall be recorded as "yes" or "no".
16    (e) The county clerk shall order the proposition submitted
17to the electors of the county at the election specified in the
18ordinance or resolution. If part of the county is under the
19jurisdiction of a board or boards of election commissioners,
20the county clerk shall submit a certified copy of the
21ordinance or resolution to each board of election
22commissioners, which shall order the proposition submitted to
23the electors of the taxing district within its jurisdiction at
24the election specified in the ordinance or resolution.
25    (f) With respect to taxing districts having all of their
26equalized assessed valuation located in one county, if a

 

 

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1majority of the votes cast on the proposition are against the
2proposition, then this Law shall not apply to the taxing
3district beginning on January 1 of the year following the date
4of the referendum.
5    (g) With respect to taxing districts that do not have all
6of their equalized assessed valuation located in a single
7county, if both of the following conditions are met, then this
8Law shall no longer apply to the taxing district beginning on
9January 1 of the year following the date of the referendum.
10        (1) Each county in which the district has any
11    equalized assessed valuation must either, (i) have held a
12    referendum under this Section, (ii) be an affected county,
13    or (iii) have held a referendum under Section 18-213 at
14    which the voters rejected the proposition at the most
15    recent election at which the question was on the ballot in
16    the county.
17        (2) The majority of the equalized assessed valuation
18    of the taxing district, other than any equalized assessed
19    valuation in an affected county, is in one or more
20    counties in which the voters rejected the proposition. For
21    purposes of this Section, in determining whether a
22    majority of the equalized assessed valuation of the taxing
23    district is located in one or more counties in which the
24    voters have rejected the proposition under this Section,
25    the equalized assessed valuation of any taxing district in
26    a county which has held a referendum under Section 18-213

 

 

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1    at which the voters rejected that proposition, at the most
2    recent election at which the question was on the ballot in
3    the county, will be included with the equalized assessed
4    value of the taxing district in counties in which the
5    voters have rejected the referendum held under this
6    Section.
7    (h) Immediately after a referendum is held under this
8Section, the county clerk of the county holding the referendum
9shall give notice of the referendum having been held and its
10results to all taxing districts that have all or a portion of
11their equalized assessed valuation located in the county, the
12county clerk of any other county in which any of the equalized
13assessed valuation of any such taxing district is located, and
14the Department of Revenue. After the last referendum affecting
15a multi-county taxing district is held, the Department of
16Revenue shall determine whether the taxing district is no
17longer subject to this Law and, if the taxing district is no
18longer subject to this Law, the Department of Revenue shall
19notify the taxing district and the county clerks of all of the
20counties in which a portion of the equalized assessed
21valuation of the taxing district is located that, beginning on
22January 1 of the year following the date of the last
23referendum, the taxing district is no longer subject to this
24Law.
25    (i) Notwithstanding any other provision of law, no
26referendum may be submitted under this Section for levy years

 

 

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12018 through 2021.
2(Source: P.A. 89-718, eff. 3-7-97.)
 
3    (35 ILCS 200/18-216 new)
4    Sec. 18-216. Extension of amendatory Act.
5    (a) Notwithstanding any other provision of law, during
6calendar years 2018 through 2022, the corporate authorities of
7any taxing district may, by resolution, submit to the voters
8of the taxing district the question of whether or not to
9continue to apply the provisions of this amendatory Act of the
10102nd General Assembly concerning the Property Tax Extension
11Limitation Law to the taxing district for a period not to
12exceed 4 years. In addition, if a written petition calling for
13a referendum on that question signed by a number of voters of
14the taxing district equal to at least 5% of the total votes
15cast for candidates for Governor in the preceding
16gubernatorial election by the registered voters of the taxing
17district is submitted to the corporate authorities of the
18taxing district, then the corporate authorities shall adopt a
19resolution for the submission of that proposition at the next
20regular election held in that taxing district. Such a petition
21shall be submitted to the corporate authorities no later than
22September 30, 2021. In either case, the corporate authorities
23shall certify the resolution and the proposition to the proper
24election officials, who shall submit the proposition at the
25election in accordance with the general election law.

 

 

HB3602- 32 -LRB102 14062 HLH 19414 b

1    (b) The question shall be in substantially the following
2form:
3        Shall the provisions of (insert Public Act number),
4    commonly referred to as the Property Tax Freeze, be
5    continued for (name of taxing district) for a period of
6    (number of years, not to exceed 4 years) years? This would
7    mean that (taxing district) may not increase its annual
8    corporate extension or certain special purpose extensions
9    without referendum approval.
10    Votes shall be recorded as "yes" or "no".
11    If a majority of the votes cast on the proposition are in
12favor of the proposition, then the provisions of this
13amendatory Act of the 102nd General Assembly concerning the
14Property Tax Extension Limitation Law shall continue to apply
15to the taxing district for the period of time specified in the
16proposition.
17    (c) As used in this Section, "taxing district" includes
18each taxing district that is subject to this Law for the 2018
19through 2021 levy years.
 
20    (35 ILCS 200/18-242 new)
21    Sec. 18-242. Home rule. This Division 5 is a limitation,
22under subsection (g) of Section 6 of Article VII of the
23Illinois Constitution, on the power of home rule units to tax.
 
24    Section 90. The State Mandates Act is amended by adding

 

 

HB3602- 33 -LRB102 14062 HLH 19414 b

1Section 8.45 as follows:
 
2    (30 ILCS 805/8.45 new)
3    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
48 of this Act, no reimbursement by the State is required for
5the implementation of any mandate created by this amendatory
6Act of the 102nd General Assembly.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.