093_HB2648eng

 
HB2648 Engrossed                     LRB093 08325 SJM 11523 b

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

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

12        Section  99.  Effective date.  This Act takes effect upon
13    becoming law.