97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1937

 

Introduced 2/10/2011, by Sen. William Delgado

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that the extension limitation may not be less than 2%. Effective immediately.


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

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 18-185 as follows:
 
6    (35 ILCS 200/18-185)
7    Sec. 18-185. Short title; definitions. This Division 5 may
8be cited as the Property Tax Extension Limitation Law. As used
9in this Division 5:
10    "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13    "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year, but not less
16than 2%, or (b) the rate of increase approved by voters under
17Section 18-205.
18    "Affected county" means a county of 3,000,000 or more
19inhabitants or a county contiguous to a county of 3,000,000 or
20more inhabitants.
21    "Taxing district" has the same meaning provided in Section
221-150, except as otherwise provided in this Section. For the
231991 through 1994 levy years only, "taxing district" includes

 

 

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1only each non-home rule taxing district having the majority of
2its 1990 equalized assessed value within any county or counties
3contiguous to a county with 3,000,000 or more inhabitants.
4Beginning with the 1995 levy year, "taxing district" includes
5only each non-home rule taxing district subject to this Law
6before the 1995 levy year and each non-home rule taxing
7district not subject to this Law before the 1995 levy year
8having the majority of its 1994 equalized assessed value in an
9affected county or counties. Beginning with the levy year in
10which this Law becomes applicable to a taxing district as
11provided in Section 18-213, "taxing district" also includes
12those taxing districts made subject to this Law as provided in
13Section 18-213.
14    "Aggregate extension" for taxing districts to which this
15Law applied before the 1995 levy year means the annual
16corporate extension for the taxing district and those special
17purpose extensions that are made annually for the taxing
18district, excluding special purpose extensions: (a) made for
19the taxing district to pay interest or principal on general
20obligation bonds that were approved by referendum; (b) made for
21any taxing district to pay interest or principal on general
22obligation bonds issued before October 1, 1991; (c) made for
23any taxing district to pay interest or principal on bonds
24issued to refund or continue to refund those bonds issued
25before October 1, 1991; (d) made for any taxing district to pay
26interest or principal on bonds issued to refund or continue to

 

 

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

 

 

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1special education joint agreement under Section 10-22.31 of the
2School Code, for payment of the school district's share of the
3amounts required to be contributed by the Special Education
4District of Lake County to the Illinois Municipal Retirement
5Fund under Article 7 of the Illinois Pension Code; the amount
6of any extension under this item (k) shall be certified by the
7school district to the county clerk; (l) made to fund expenses
8of providing joint recreational programs for the handicapped
9under Section 5-8 of the Park District Code or Section 11-95-14
10of the Illinois Municipal Code; (m) made for temporary
11relocation loan repayment purposes pursuant to Sections 2-3.77
12and 17-2.2d of the School Code; (n) made for payment of
13principal and interest on any bonds issued under the authority
14of Section 17-2.2d of the School Code; and (o) made for
15contributions to a firefighter's pension fund created under
16Article 4 of the Illinois Pension Code, to the extent of the
17amount certified under item (5) of Section 4-134 of the
18Illinois Pension Code.
19    "Aggregate extension" for the taxing districts to which
20this Law did not apply before the 1995 levy year (except taxing
21districts subject to this Law in accordance with Section
2218-213) means the annual corporate extension for the taxing
23district and those special purpose extensions that are made
24annually for the taxing district, excluding special purpose
25extensions: (a) made for the taxing district to pay interest or
26principal on general obligation bonds that were approved by

 

 

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1referendum; (b) made for any taxing district to pay interest or
2principal on general obligation bonds issued before March 1,
31995; (c) made for any taxing district to pay interest or
4principal on bonds issued to refund or continue to refund those
5bonds issued before March 1, 1995; (d) made for any taxing
6district to pay interest or principal on bonds issued to refund
7or continue to refund bonds issued after March 1, 1995 that
8were approved by referendum; (e) made for any taxing district
9to pay interest or principal on revenue bonds issued before
10March 1, 1995 for payment of which a property tax levy or the
11full faith and credit of the unit of local government is
12pledged; however, a tax for the payment of interest or
13principal on those bonds shall be made only after the governing
14body of the unit of local government finds that all other
15sources for payment are insufficient to make those payments;
16(f) made for payments under a building commission lease when
17the lease payments are for the retirement of bonds issued by
18the commission before March 1, 1995 to pay for the building
19project; (g) made for payments due under installment contracts
20entered into before March 1, 1995; (h) made for payments of
21principal and interest on bonds issued under the Metropolitan
22Water Reclamation District Act to finance construction
23projects initiated before October 1, 1991; (h-4) made for
24stormwater management purposes by the Metropolitan Water
25Reclamation District of Greater Chicago under Section 12 of the
26Metropolitan Water Reclamation District Act; (i) made for

 

 

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1payments of principal and interest on limited bonds, as defined
2in Section 3 of the Local Government Debt Reform Act, in an
3amount not to exceed the debt service extension base less the
4amount in items (b), (c), and (e) of this definition for
5non-referendum obligations, except obligations initially
6issued pursuant to referendum and bonds described in subsection
7(h) of this definition; (j) made for payments of principal and
8interest on bonds issued under Section 15 of the Local
9Government Debt Reform Act; (k) made for payments of principal
10and interest on bonds authorized by Public Act 88-503 and
11issued under Section 20a of the Chicago Park District Act for
12aquarium or museum projects; (l) made for payments of principal
13and interest on bonds authorized by Public Act 87-1191 or
1493-601 and (i) issued pursuant to Section 21.2 of the Cook
15County Forest Preserve District Act, (ii) issued under Section
1642 of the Cook County Forest Preserve District Act for
17zoological park projects, or (iii) issued under Section 44.1 of
18the Cook County Forest Preserve District Act for botanical
19gardens projects; (m) made pursuant to Section 34-53.5 of the
20School Code, whether levied annually or not; (n) made to fund
21expenses of providing joint recreational programs for the
22handicapped under Section 5-8 of the Park District Code or
23Section 11-95-14 of the Illinois Municipal Code; (o) made by
24the Chicago Park District for recreational programs for the
25handicapped under subsection (c) of Section 7.06 of the Chicago
26Park District Act; (p) made for contributions to a

 

 

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1firefighter's pension fund created under Article 4 of the
2Illinois Pension Code, to the extent of the amount certified
3under item (5) of Section 4-134 of the Illinois Pension Code;
4and (q) made by Ford Heights School District 169 under Section
517-9.02 of the School Code.
6    "Aggregate extension" for all taxing districts to which
7this Law applies in accordance with Section 18-213, except for
8those taxing districts subject to paragraph (2) of subsection
9(e) of Section 18-213, means the annual corporate extension for
10the taxing district and those special purpose extensions that
11are made annually for the taxing district, excluding special
12purpose extensions: (a) made for the taxing district to pay
13interest or principal on general obligation bonds that were
14approved by referendum; (b) made for any taxing district to pay
15interest or principal on general obligation bonds issued before
16the date on which the referendum making this Law applicable to
17the taxing district is held; (c) made for any taxing district
18to pay interest or principal on bonds issued to refund or
19continue to refund those bonds issued before the date on which
20the referendum making this Law applicable to the taxing
21district is held; (d) made for any taxing district to pay
22interest or principal on bonds issued to refund or continue to
23refund bonds issued after the date on which the referendum
24making this Law applicable to the taxing district is held if
25the bonds were approved by referendum after the date on which
26the referendum making this Law applicable to the taxing

 

 

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

 

 

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1obligations due under, or financing airport facilities
2required to be acquired, constructed, installed or equipped
3pursuant to, contracts entered into before March 1, 1996 (but
4not including any amendments to such a contract taking effect
5on or after that date); (k) made to fund expenses of providing
6joint recreational programs for the handicapped under Section
75-8 of the Park District Code or Section 11-95-14 of the
8Illinois Municipal Code; (l) made for contributions to a
9firefighter's pension fund created under Article 4 of the
10Illinois Pension Code, to the extent of the amount certified
11under item (5) of Section 4-134 of the Illinois Pension Code;
12and (m) made for the taxing district to pay interest or
13principal on general obligation bonds issued pursuant to
14Section 19-3.10 of the School Code.
15    "Aggregate extension" for all taxing districts to which
16this Law applies in accordance with paragraph (2) of subsection
17(e) of Section 18-213 means the annual corporate extension for
18the taxing district and those special purpose extensions that
19are made annually for the taxing district, excluding special
20purpose extensions: (a) made for the taxing district to pay
21interest or principal on general obligation bonds that were
22approved by referendum; (b) made for any taxing district to pay
23interest or principal on general obligation bonds issued before
24the effective date of this amendatory Act of 1997; (c) made for
25any taxing district to pay interest or principal on bonds
26issued to refund or continue to refund those bonds issued

 

 

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

 

 

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1Section 15 of the Local Government Debt Reform Act; (j) made
2for a qualified airport authority to pay interest or principal
3on general obligation bonds issued for the purpose of paying
4obligations due under, or financing airport facilities
5required to be acquired, constructed, installed or equipped
6pursuant to, contracts entered into before March 1, 1996 (but
7not including any amendments to such a contract taking effect
8on or after that date); (k) made to fund expenses of providing
9joint recreational programs for the handicapped under Section
105-8 of the Park District Code or Section 11-95-14 of the
11Illinois Municipal Code; and (l) made for contributions to a
12firefighter's pension fund created under Article 4 of the
13Illinois Pension Code, to the extent of the amount certified
14under item (5) of Section 4-134 of the Illinois Pension Code.
15    "Debt service extension base" means an amount equal to that
16portion of the extension for a taxing district for the 1994
17levy year, or for those taxing districts subject to this Law in
18accordance with Section 18-213, except for those subject to
19paragraph (2) of subsection (e) of Section 18-213, for the levy
20year in which the referendum making this Law applicable to the
21taxing district is held, or for those taxing districts subject
22to this Law in accordance with paragraph (2) of subsection (e)
23of Section 18-213 for the 1996 levy year, constituting an
24extension for payment of principal and interest on bonds issued
25by the taxing district without referendum, but not including
26excluded non-referendum bonds. For park districts (i) that were

 

 

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1first subject to this Law in 1991 or 1995 and (ii) whose
2extension for the 1994 levy year for the payment of principal
3and interest on bonds issued by the park district without
4referendum (but not including excluded non-referendum bonds)
5was less than 51% of the amount for the 1991 levy year
6constituting an extension for payment of principal and interest
7on bonds issued by the park district without referendum (but
8not including excluded non-referendum bonds), "debt service
9extension base" means an amount equal to that portion of the
10extension for the 1991 levy year constituting an extension for
11payment of principal and interest on bonds issued by the park
12district without referendum (but not including excluded
13non-referendum bonds). A debt service extension base
14established or increased at any time pursuant to any provision
15of this Law, except Section 18-212, shall be increased each
16year commencing with the later of (i) the 2009 levy year or
17(ii) the first levy year in which this Law becomes applicable
18to the taxing district, by the lesser of 5% or the percentage
19increase in the Consumer Price Index during the 12-month
20calendar year preceding the levy year. The debt service
21extension base may be established or increased as provided
22under Section 18-212. "Excluded non-referendum bonds" means
23(i) bonds authorized by Public Act 88-503 and issued under
24Section 20a of the Chicago Park District Act for aquarium and
25museum projects; (ii) bonds issued under Section 15 of the
26Local Government Debt Reform Act; or (iii) refunding

 

 

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1obligations issued to refund or to continue to refund
2obligations initially issued pursuant to referendum.
3    "Special purpose extensions" include, but are not limited
4to, extensions for levies made on an annual basis for
5unemployment and workers' compensation, self-insurance,
6contributions to pension plans, and extensions made pursuant to
7Section 6-601 of the Illinois Highway Code for a road
8district's permanent road fund whether levied annually or not.
9The extension for a special service area is not included in the
10aggregate extension.
11    "Aggregate extension base" means the taxing district's
12last preceding aggregate extension as adjusted under Sections
1318-135, 18-215, and 18-230. An adjustment under Section 18-135
14shall be made for the 2007 levy year and all subsequent levy
15years whenever one or more counties within which a taxing
16district is located (i) used estimated valuations or rates when
17extending taxes in the taxing district for the last preceding
18levy year that resulted in the over or under extension of
19taxes, or (ii) increased or decreased the tax extension for the
20last preceding levy year as required by Section 18-135(c).
21Whenever an adjustment is required under Section 18-135, the
22aggregate extension base of the taxing district shall be equal
23to the amount that the aggregate extension of the taxing
24district would have been for the last preceding levy year if
25either or both (i) actual, rather than estimated, valuations or
26rates had been used to calculate the extension of taxes for the

 

 

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1last levy year, or (ii) the tax extension for the last
2preceding levy year had not been adjusted as required by
3subsection (c) of Section 18-135.
4    "Levy year" has the same meaning as "year" under Section
51-155.
6    "New property" means (i) the assessed value, after final
7board of review or board of appeals action, of new improvements
8or additions to existing improvements on any parcel of real
9property that increase the assessed value of that real property
10during the levy year multiplied by the equalization factor
11issued by the Department under Section 17-30, (ii) the assessed
12value, after final board of review or board of appeals action,
13of real property not exempt from real estate taxation, which
14real property was exempt from real estate taxation for any
15portion of the immediately preceding levy year, multiplied by
16the equalization factor issued by the Department under Section
1717-30, including the assessed value, upon final stabilization
18of occupancy after new construction is complete, of any real
19property located within the boundaries of an otherwise or
20previously exempt military reservation that is intended for
21residential use and owned by or leased to a private corporation
22or other entity, and (iii) in counties that classify in
23accordance with Section 4 of Article IX of the Illinois
24Constitution, an incentive property's additional assessed
25value resulting from a scheduled increase in the level of
26assessment as applied to the first year final board of review

 

 

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1market value. In addition, the county clerk in a county
2containing a population of 3,000,000 or more shall include in
3the 1997 recovered tax increment value for any school district,
4any recovered tax increment value that was applicable to the
51995 tax year calculations.
6    "Qualified airport authority" means an airport authority
7organized under the Airport Authorities Act and located in a
8county bordering on the State of Wisconsin and having a
9population in excess of 200,000 and not greater than 500,000.
10    "Recovered tax increment value" means, except as otherwise
11provided in this paragraph, the amount of the current year's
12equalized assessed value, in the first year after a
13municipality terminates the designation of an area as a
14redevelopment project area previously established under the
15Tax Increment Allocation Development Act in the Illinois
16Municipal Code, previously established under the Industrial
17Jobs Recovery Law in the Illinois Municipal Code, previously
18established under the Economic Development Project Area Tax
19Increment Act of 1995, or previously established under the
20Economic Development Area Tax Increment Allocation Act, of each
21taxable lot, block, tract, or parcel of real property in the
22redevelopment project area over and above the initial equalized
23assessed value of each property in the redevelopment project
24area. For the taxes which are extended for the 1997 levy year,
25the recovered tax increment value for a non-home rule taxing
26district that first became subject to this Law for the 1995

 

 

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1levy year because a majority of its 1994 equalized assessed
2value was in an affected county or counties shall be increased
3if a municipality terminated the designation of an area in 1993
4as a redevelopment project area previously established under
5the Tax Increment Allocation Development Act in the Illinois
6Municipal Code, previously established under the Industrial
7Jobs Recovery Law in the Illinois Municipal Code, or previously
8established under the Economic Development Area Tax Increment
9Allocation Act, by an amount equal to the 1994 equalized
10assessed value of each taxable lot, block, tract, or parcel of
11real property in the redevelopment project area over and above
12the initial equalized assessed value of each property in the
13redevelopment project area. In the first year after a
14municipality removes a taxable lot, block, tract, or parcel of
15real property from a redevelopment project area established
16under the Tax Increment Allocation Development Act in the
17Illinois Municipal Code, the Industrial Jobs Recovery Law in
18the Illinois Municipal Code, or the Economic Development Area
19Tax Increment Allocation Act, "recovered tax increment value"
20means the amount of the current year's equalized assessed value
21of each taxable lot, block, tract, or parcel of real property
22removed from the redevelopment project area over and above the
23initial equalized assessed value of that real property before
24removal from the redevelopment project area.
25    Except as otherwise provided in this Section, "limiting
26rate" means a fraction the numerator of which is the last

 

 

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1preceding aggregate extension base times an amount equal to one
2plus the extension limitation defined in this Section and the
3denominator of which is the current year's equalized assessed
4value of all real property in the territory under the
5jurisdiction of the taxing district during the prior levy year.
6For those taxing districts that reduced their aggregate
7extension for the last preceding levy year, the highest
8aggregate extension in any of the last 3 preceding levy years
9shall be used for the purpose of computing the limiting rate.
10The denominator shall not include new property or the recovered
11tax increment value. If a new rate, a rate decrease, or a
12limiting rate increase has been approved at an election held
13after March 21, 2006, then (i) the otherwise applicable
14limiting rate shall be increased by the amount of the new rate
15or shall be reduced by the amount of the rate decrease, as the
16case may be, or (ii) in the case of a limiting rate increase,
17the limiting rate shall be equal to the rate set forth in the
18proposition approved by the voters for each of the years
19specified in the proposition, after which the limiting rate of
20the taxing district shall be calculated as otherwise provided.
21(Source: P.A. 95-90, eff. 1-1-08; 95-331, eff. 8-21-07; 95-404,
22eff. 1-1-08; 95-876, eff. 8-21-08; 96-501, eff. 8-14-09;
2396-517, eff. 8-14-09; 96-1000, eff. 7-2-10; 96-1202, eff.
247-22-10.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.