093_HB0534ham001
LRB093 06796 SJM 12589 a
1 AMENDMENT TO HOUSE BILL 534
2 AMENDMENT NO. . Amend House Bill 534 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Property Tax Code is amended by changing
5 Section 18-185 as follows:
6 (35 ILCS 200/18-185)
7 Sec. 18-185. Short title; definitions. This Division 5
8 may be cited as the Property Tax Extension Limitation Law.
9 As used in this Division 5:
10 "Consumer Price Index" means the Consumer Price Index for
11 All Urban Consumers for all items published by the United
12 States Department of Labor.
13 "Extension limitation" means (a) the lesser of 5% or the
14 percentage increase in the Consumer Price Index during the
15 12-month calendar year preceding the levy year or (b) the
16 rate of increase approved by voters under Section 18-205.
17 "Affected county" means a county of 3,000,000 or more
18 inhabitants or a county contiguous to a county of 3,000,000
19 or more inhabitants.
20 "Taxing district" has the same meaning provided in
21 Section 1-150, except as otherwise provided in this Section.
22 For the 1991 through 1994 levy years only, "taxing district"
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1 includes only each non-home rule taxing district having the
2 majority of its 1990 equalized assessed value within any
3 county or counties contiguous to a county with 3,000,000 or
4 more inhabitants. Beginning with the 1995 levy year, "taxing
5 district" includes only each non-home rule taxing district
6 subject to this Law before the 1995 levy year and each
7 non-home rule taxing district not subject to this Law before
8 the 1995 levy year having the majority of its 1994 equalized
9 assessed value in an affected county or counties. Beginning
10 with the levy year in which this Law becomes applicable to a
11 taxing district as provided in Section 18-213, "taxing
12 district" also includes those taxing districts made subject
13 to this Law as provided in Section 18-213.
14 "Aggregate extension" for taxing districts to which this
15 Law applied before the 1995 levy year means the annual
16 corporate extension for the taxing district and those special
17 purpose extensions that are made annually for the taxing
18 district, excluding special purpose extensions: (a) made for
19 the taxing district to pay interest or principal on general
20 obligation bonds that were approved by referendum; (b) made
21 for any taxing district to pay interest or principal on
22 general obligation bonds issued before October 1, 1991; (c)
23 made for any taxing district to pay interest or principal on
24 bonds issued to refund or continue to refund those bonds
25 issued before October 1, 1991; (d) made for any taxing
26 district to pay interest or principal on bonds issued to
27 refund or continue to refund bonds issued after October 1,
28 1991 that were approved by referendum; (e) made for any
29 taxing district to pay interest or principal on revenue bonds
30 issued before October 1, 1991 for payment of which a property
31 tax levy or the full faith and credit of the unit of local
32 government is pledged; however, a tax for the payment of
33 interest or principal on those bonds shall be made only after
34 the governing body of the unit of local government finds that
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1 all other sources for payment are insufficient to make those
2 payments; (f) made for payments under a building commission
3 lease when the lease payments are for the retirement of bonds
4 issued by the commission before October 1, 1991, to pay for
5 the building project; (g) made for payments due under
6 installment contracts entered into before October 1, 1991;
7 (h) made for payments of principal and interest on bonds
8 issued under the Metropolitan Water Reclamation District Act
9 to finance construction projects initiated before October 1,
10 1991; (i) made for payments of principal and interest on
11 limited bonds, as defined in Section 3 of the Local
12 Government Debt Reform Act, in an amount not to exceed the
13 debt service extension base less the amount in items (b),
14 (c), (e), and (h) of this definition for non-referendum
15 obligations, except obligations initially issued pursuant to
16 referendum; (j) made for payments of principal and interest
17 on bonds issued under Section 15 of the Local Government Debt
18 Reform Act; and (k) made by a school district that
19 participates in the Special Education District of Lake
20 County, created by special education joint agreement under
21 Section 10-22.31 of the School Code, for payment of the
22 school district's share of the amounts required to be
23 contributed by the Special Education District of Lake County
24 to the Illinois Municipal Retirement Fund under Article 7 of
25 the Illinois Pension Code; the amount of any extension under
26 this item (k) shall be certified by the school district to
27 the county clerk; and (l) made to fund expenses of providing
28 joint recreational programs for the handicapped under Section
29 5-8 of the Park District Code or Section 11-95-14 of the
30 Illinois Municipal Code.
31 "Aggregate extension" for the taxing districts to which
32 this Law did not apply before the 1995 levy year (except
33 taxing districts subject to this Law in accordance with
34 Section 18-213) means the annual corporate extension for the
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1 taxing district and those special purpose extensions that are
2 made annually for the taxing district, excluding special
3 purpose extensions: (a) made for the taxing district to pay
4 interest or principal on general obligation bonds that were
5 approved by referendum; (b) made for any taxing district to
6 pay interest or principal on general obligation bonds issued
7 before March 1, 1995; (c) made for any taxing district to pay
8 interest or principal on bonds issued to refund or continue
9 to refund those bonds issued before March 1, 1995; (d) made
10 for any taxing district to pay interest or principal on bonds
11 issued to refund or continue to refund bonds issued after
12 March 1, 1995 that were approved by referendum; (e) made for
13 any taxing district to pay interest or principal on revenue
14 bonds issued before March 1, 1995 for payment of which a
15 property tax levy or the full faith and credit of the unit of
16 local government is pledged; however, a tax for the payment
17 of interest or principal on those bonds shall be made only
18 after the governing body of the unit of local government
19 finds that all other sources for payment are insufficient to
20 make those payments; (f) made for payments under a building
21 commission lease when the lease payments are for the
22 retirement of bonds issued by the commission before March 1,
23 1995 to pay for the building project; (g) made for payments
24 due under installment contracts entered into before March 1,
25 1995; (h) made for payments of principal and interest on
26 bonds issued under the Metropolitan Water Reclamation
27 District Act to finance construction projects initiated
28 before October 1, 1991; (i) made for payments of principal
29 and interest on limited bonds, as defined in Section 3 of the
30 Local Government Debt Reform Act, in an amount not to exceed
31 the debt service extension base less the amount in items (b),
32 (c), and (e) of this definition for non-referendum
33 obligations, except obligations initially issued pursuant to
34 referendum and bonds described in subsection (h) of this
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1 definition; (j) made for payments of principal and interest
2 on bonds issued under Section 15 of the Local Government Debt
3 Reform Act; (k) made for payments of principal and interest
4 on bonds authorized by Public Act 88-503 and issued under
5 Section 20a of the Chicago Park District Act for aquarium or
6 museum projects; (l) made for payments of principal and
7 interest on bonds authorized by Public Act 87-1191 and issued
8 under Section 42 of the Cook County Forest Preserve District
9 Act for zoological park projects; and (m) made pursuant to
10 Section 34-53.5 of the School Code, whether levied annually
11 or not; and (n) made to fund expenses of providing joint
12 recreational programs for the handicapped under Section 5-8
13 of the Park District Code or Section 11-95-14 of the Illinois
14 Municipal Code.
15 "Aggregate extension" for all taxing districts to which
16 this Law applies in accordance with Section 18-213, except
17 for those taxing districts subject to paragraph (2) of
18 subsection (e) of Section 18-213, means the annual corporate
19 extension for the taxing district and those special purpose
20 extensions that are made annually for the taxing district,
21 excluding special purpose extensions: (a) made for the taxing
22 district to pay interest or principal on general obligation
23 bonds that were approved by referendum; (b) made for any
24 taxing district to pay interest or principal on general
25 obligation bonds issued before the date on which the
26 referendum making this Law applicable to the taxing district
27 is held; (c) made for any taxing district to pay interest or
28 principal on bonds issued to refund or continue to refund
29 those bonds issued before the date on which the referendum
30 making this Law applicable to the taxing district is held;
31 (d) made for any taxing district to pay interest or principal
32 on bonds issued to refund or continue to refund bonds issued
33 after the date on which the referendum making this Law
34 applicable to the taxing district is held if the bonds were
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1 approved by referendum after the date on which the referendum
2 making this Law applicable to the taxing district is held;
3 (e) made for any taxing district to pay interest or principal
4 on revenue bonds issued before the date on which the
5 referendum making this Law applicable to the taxing district
6 is held for payment of which a property tax levy or the full
7 faith and credit of the unit of local government is pledged;
8 however, a tax for the payment of interest or principal on
9 those bonds shall be made only after the governing body of
10 the unit of local government finds that all other sources for
11 payment are insufficient to make those payments; (f) made for
12 payments under a building commission lease when the lease
13 payments are for the retirement of bonds issued by the
14 commission before the date on which the referendum making
15 this Law applicable to the taxing district is held to pay for
16 the building project; (g) made for payments due under
17 installment contracts entered into before the date on which
18 the referendum making this Law applicable to the taxing
19 district is held; (h) made for payments of principal and
20 interest on limited bonds, as defined in Section 3 of the
21 Local Government Debt Reform Act, in an amount not to exceed
22 the debt service extension base less the amount in items (b),
23 (c), and (e) of this definition for non-referendum
24 obligations, except obligations initially issued pursuant to
25 referendum; (i) made for payments of principal and interest
26 on bonds issued under Section 15 of the Local Government Debt
27 Reform Act; and (j) made for a qualified airport authority to
28 pay interest or principal on general obligation bonds issued
29 for the purpose of paying obligations due under, or financing
30 airport facilities required to be acquired, constructed,
31 installed or equipped pursuant to, contracts entered into
32 before March 1, 1996 (but not including any amendments to
33 such a contract taking effect on or after that date); and (k)
34 made to fund expenses of providing joint recreational
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1 programs for the handicapped under Section 5-8 of the Park
2 District Code or Section 11-95-14 of the Illinois Municipal
3 Code.
4 "Aggregate extension" for all taxing districts to which
5 this Law applies in accordance with paragraph (2) of
6 subsection (e) of Section 18-213 means the annual corporate
7 extension for the taxing district and those special purpose
8 extensions that are made annually for the taxing district,
9 excluding special purpose extensions: (a) made for the taxing
10 district to pay interest or principal on general obligation
11 bonds that were approved by referendum; (b) made for any
12 taxing district to pay interest or principal on general
13 obligation bonds issued before the effective date of this
14 amendatory Act of 1997; (c) made for any taxing district to
15 pay interest or principal on bonds issued to refund or
16 continue to refund those bonds issued before the effective
17 date of this amendatory Act of 1997; (d) made for any taxing
18 district to pay interest or principal on bonds issued to
19 refund or continue to refund bonds issued after the effective
20 date of this amendatory Act of 1997 if the bonds were
21 approved by referendum after the effective date of this
22 amendatory Act of 1997; (e) made for any taxing district to
23 pay interest or principal on revenue bonds issued before the
24 effective date of this amendatory Act of 1997 for payment of
25 which a property tax levy or the full faith and credit of the
26 unit of local government is pledged; however, a tax for the
27 payment of interest or principal on those bonds shall be made
28 only after the governing body of the unit of local government
29 finds that all other sources for payment are insufficient to
30 make those payments; (f) made for payments under a building
31 commission lease when the lease payments are for the
32 retirement of bonds issued by the commission before the
33 effective date of this amendatory Act of 1997 to pay for the
34 building project; (g) made for payments due under installment
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1 contracts entered into before the effective date of this
2 amendatory Act of 1997; (h) made for payments of principal
3 and interest on limited bonds, as defined in Section 3 of the
4 Local Government Debt Reform Act, in an amount not to exceed
5 the debt service extension base less the amount in items (b),
6 (c), and (e) of this definition for non-referendum
7 obligations, except obligations initially issued pursuant to
8 referendum; (i) made for payments of principal and interest
9 on bonds issued under Section 15 of the Local Government Debt
10 Reform Act; and (j) made for a qualified airport authority to
11 pay interest or principal on general obligation bonds issued
12 for the purpose of paying obligations due under, or financing
13 airport facilities required to be acquired, constructed,
14 installed or equipped pursuant to, contracts entered into
15 before March 1, 1996 (but not including any amendments to
16 such a contract taking effect on or after that date); and (k)
17 made to fund expenses of providing joint recreational
18 programs for the handicapped under Section 5-8 of the Park
19 District Code or Section 11-95-14 of the Illinois Municipal
20 Code.
21 "Debt service extension base" means an amount equal to
22 that portion of the extension for a taxing district for the
23 1994 levy year, or for those taxing districts subject to this
24 Law in accordance with Section 18-213, except for those
25 subject to paragraph (2) of subsection (e) of Section 18-213,
26 for the levy year in which the referendum making this Law
27 applicable to the taxing district is held, or for those
28 taxing districts subject to this Law in accordance with
29 paragraph (2) of subsection (e) of Section 18-213 for the
30 1996 levy year, constituting an extension for payment of
31 principal and interest on bonds issued by the taxing district
32 without referendum, but not including (i) bonds authorized by
33 Public Act 88-503 and issued under Section 20a of the Chicago
34 Park District Act for aquarium and museum projects; (ii)
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1 bonds issued under Section 15 of the Local Government Debt
2 Reform Act; or (iii) refunding obligations issued to refund
3 or to continue to refund obligations initially issued
4 pursuant to referendum. The debt service extension base may
5 be established or increased as provided under Section 18-212.
6 "Special purpose extensions" include, but are not limited
7 to, extensions for levies made on an annual basis for
8 unemployment and workers' compensation, self-insurance,
9 contributions to pension plans, and extensions made pursuant
10 to Section 6-601 of the Illinois Highway Code for a road
11 district's permanent road fund whether levied annually or
12 not. The extension for a special service area is not
13 included in the aggregate extension.
14 "Aggregate extension base" means the taxing district's
15 last preceding aggregate extension as adjusted under Sections
16 18-215 through 18-230.
17 "Levy year" has the same meaning as "year" under Section
18 1-155.
19 "New property" means (i) the assessed value, after final
20 board of review or board of appeals action, of new
21 improvements or additions to existing improvements on any
22 parcel of real property that increase the assessed value of
23 that real property during the levy year multiplied by the
24 equalization factor issued by the Department under Section
25 17-30 and (ii) the assessed value, after final board of
26 review or board of appeals action, of real property not
27 exempt from real estate taxation, which real property was
28 exempt from real estate taxation for any portion of the
29 immediately preceding levy year, multiplied by the
30 equalization factor issued by the Department under Section
31 17-30. In addition, the county clerk in a county containing a
32 population of 3,000,000 or more shall include in the 1997
33 recovered tax increment value for any school district, any
34 recovered tax increment value that was applicable to the 1995
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1 tax year calculations.
2 "Qualified airport authority" means an airport authority
3 organized under the Airport Authorities Act and located in a
4 county bordering on the State of Wisconsin and having a
5 population in excess of 200,000 and not greater than 500,000.
6 "Recovered tax increment value" means, except as
7 otherwise provided in this paragraph, the amount of the
8 current year's equalized assessed value, in the first year
9 after a municipality terminates the designation of an area as
10 a redevelopment project area previously established under the
11 Tax Increment Allocation Development Act in the Illinois
12 Municipal Code, previously established under the Industrial
13 Jobs Recovery Law in the Illinois Municipal Code, or
14 previously established under the Economic Development Area
15 Tax Increment Allocation Act, of each taxable lot, block,
16 tract, or parcel of real property in the redevelopment
17 project area over and above the initial equalized assessed
18 value of each property in the redevelopment project area. For
19 the taxes which are extended for the 1997 levy year, the
20 recovered tax increment value for a non-home rule taxing
21 district that first became subject to this Law for the 1995
22 levy year because a majority of its 1994 equalized assessed
23 value was in an affected county or counties shall be
24 increased if a municipality terminated the designation of an
25 area in 1993 as a redevelopment project area previously
26 established under the Tax Increment Allocation Development
27 Act in the Illinois Municipal Code, previously established
28 under the Industrial Jobs Recovery Law in the Illinois
29 Municipal Code, or previously established under the Economic
30 Development Area Tax Increment Allocation Act, by an amount
31 equal to the 1994 equalized assessed value of each taxable
32 lot, block, tract, or parcel of real property in the
33 redevelopment project area over and above the initial
34 equalized assessed value of each property in the
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1 redevelopment project area. In the first year after a
2 municipality removes a taxable lot, block, tract, or parcel
3 of real property from a redevelopment project area
4 established under the Tax Increment Allocation Development
5 Act in the Illinois Municipal Code, the Industrial Jobs
6 Recovery Law in the Illinois Municipal Code, or the Economic
7 Development Area Tax Increment Allocation Act, "recovered tax
8 increment value" means the amount of the current year's
9 equalized assessed value of each taxable lot, block, tract,
10 or parcel of real property removed from the redevelopment
11 project area over and above the initial equalized assessed
12 value of that real property before removal from the
13 redevelopment project area.
14 Except as otherwise provided in this Section, "limiting
15 rate" means a fraction the numerator of which is the last
16 preceding aggregate extension base times an amount equal to
17 one plus the extension limitation defined in this Section and
18 the denominator of which is the current year's equalized
19 assessed value of all real property in the territory under
20 the jurisdiction of the taxing district during the prior levy
21 year. For those taxing districts that reduced their
22 aggregate extension for the last preceding levy year, the
23 highest aggregate extension in any of the last 3 preceding
24 levy years shall be used for the purpose of computing the
25 limiting rate. The denominator shall not include new
26 property. The denominator shall not include the recovered
27 tax increment value.
28 (Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99;
29 92-547, eff. 6-13-02.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.".