SB3314 EnrolledLRB097 19252 HLH 64495 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 18-190 and 18-205 as follows:
 
6    (35 ILCS 200/18-190)
7    Sec. 18-190. Direct referendum; new rate or increased
8limiting rate.
9    (a) If a new rate is authorized by statute to be imposed
10without referendum or is subject to a backdoor referendum, as
11defined in Section 28-2 of the Election Code, the governing
12body of the affected taxing district before levying the new
13rate shall submit the new rate to direct referendum under the
14provisions of this Section and of Article 28 of the Election
15Code. Notwithstanding the provisions, requirements, or
16limitations of any other law, any tax levied for the 2005 levy
17year and all subsequent levy years by any taxing district
18subject to this Law may be extended at a rate exceeding the
19rate established for that tax by referendum or statute,
20provided that the rate does not exceed the statutory ceiling
21above which the tax is not authorized to be further increased
22either by referendum or in any other manner. Notwithstanding
23the provisions, requirements, or limitations of any other law,

 

 

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1all taxing districts subject to this Law shall follow the
2provisions of this Section whenever seeking referenda approval
3after March 21, 2006 to (i) levy a new tax rate authorized by
4statute or (ii) increase the limiting rate applicable to the
5taxing district. All taxing districts subject to this Law are
6authorized to seek referendum approval of each proposition
7described and set forth in this Section.
8    The proposition seeking to obtain referendum approval to
9levy a new tax rate as authorized in clause (i) shall be in
10substantially the following form:
11        Shall ... (insert legal name, number, if any, and
12    county or counties of taxing district and geographic or
13    other common name by which a school or community college
14    district is known and referred to), Illinois, be authorized
15    to levy a new tax for ... purposes and have an additional
16    tax of ...% of the equalized assessed value of the taxable
17    property therein extended for such purposes?
18The votes must be recorded as "Yes" or "No".
19    The proposition seeking to obtain referendum approval to
20increase the limiting rate as authorized in clause (ii) shall
21be in substantially the following form:
22        Shall the limiting rate under the Property Tax
23    Extension Limitation Law for ... (insert legal name,
24    number, if any, and county or counties of taxing district
25    and geographic or other common name by which a school or
26    community college district is known and referred to),

 

 

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1    Illinois, be increased by an additional amount equal to
2    ...% above the limiting rate for the purpose of...(insert
3    purpose) for levy year ... (insert the most recent levy
4    year for which the limiting rate of the taxing district is
5    known at the time the submission of the proposition is
6    initiated by the taxing district) and be equal to ...% of
7    the equalized assessed value of the taxable property
8    therein for levy year(s) (insert each levy year for which
9    the increase will be applicable, which years must be
10    consecutive and may not exceed 4)?
11    The votes must be recorded as "Yes" or "No".
12    The ballot for any proposition submitted pursuant to this
13Section shall have printed thereon, but not as a part of the
14proposition submitted, only the following supplemental
15information (which shall be supplied to the election authority
16by the taxing district) in substantially the following form:
17        (1) The approximate amount of taxes extendable at the
18    most recently extended limiting rate is $..., and the
19    approximate amount of taxes extendable if the proposition
20    is approved is $....
21        (2) For the ... (insert the first levy year for which
22    the new rate or increased limiting rate will be applicable)
23    levy year the approximate amount of the additional tax
24    extendable against property containing a single family
25    residence and having a fair market value at the time of the
26    referendum of $100,000 is estimated to be $....

 

 

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1        (3) Based upon an average annual percentage increase
2    (or decrease) in the market value of such property of %...
3    (insert percentage equal to the average annual percentage
4    increase or decrease for the prior 3 levy years, at the
5    time the submission of the proposition is initiated by the
6    taxing district, in the amount of (A) the equalized
7    assessed value of the taxable property in the taxing
8    district less (B) the new property included in the
9    equalized assessed value), the approximate amount of the
10    additional tax extendable against such property for the ...
11    levy year is estimated to be $... and for the ... levy year
12    is estimated to be $ ....
13        (4) If the proposition is approved, the aggregate
14    extension for ... (insert each levy year for which the
15    increase will apply) will be determined by the limiting
16    rate set forth in the proposition, rather than the
17    otherwise applicable limiting rate calculated under the
18    provisions of the Property Tax Extension Limitation Law
19    (commonly known as the Property Tax Cap Law).
20The approximate amount of taxes extendable shown in paragraph
21(1) shall be computed upon the last known equalized assessed
22value of taxable property in the taxing district (at the time
23the submission of the proposition is initiated by the taxing
24district). Paragraph (3) shall be included only if the
25increased limiting rate will be applicable for more than one
26levy year and shall list each levy year for which the increased

 

 

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1limiting rate will be applicable. The additional tax shown for
2each levy year shall be the approximate dollar amount of the
3increase over the amount of the most recently completed
4extension at the time the submission of the proposition is
5initiated by the taxing district. The approximate amount of the
6additional taxes extendable shown in paragraphs (2) and (3)
7shall be calculated by multiplying $100,000 (the fair market
8value of the property without regard to any property tax
9exemptions) by (i) the percentage level of assessment
10prescribed for that property by statute, or by ordinance of the
11county board in counties that classify property for purposes of
12taxation in accordance with Section 4 of Article IX of the
13Illinois Constitution; (ii) the most recent final equalization
14factor certified to the county clerk by the Department of
15Revenue at the time the taxing district initiates the
16submission of the proposition to the electors; and (iii) either
17the new rate or the amount by which the limiting rate is to be
18increased. This amendatory Act of the 97th General Assembly is
19intended to clarify the existing requirements of this Section,
20and shall not be construed to validate any prior non-compliant
21referendum language. (i) without regard to any property tax
22exemptions and (ii) based upon the percentage level of
23assessment prescribed for such property by statute or by
24ordinance of the county board in counties which classify
25property for purposes of taxation in accordance with Section 4
26of Article IX of the Constitution. Paragraph (4) shall be

 

 

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1included if the proposition concerns a limiting rate increase
2but shall not be included if the proposition concerns a new
3rate. Any notice required to be published in connection with
4the submission of the proposition shall also contain this
5supplemental information and shall not contain any other
6supplemental information regarding the proposition. Any error,
7miscalculation, or inaccuracy in computing any amount set forth
8on the ballot and in the notice that is not deliberate shall
9not invalidate or affect the validity of any proposition
10approved. Notice of the referendum shall be published and
11posted as otherwise required by law, and the submission of the
12proposition shall be initiated as provided by law.
13    If a majority of all ballots cast on the proposition are in
14favor of the proposition, the following provisions shall be
15applicable to the extension of taxes for the taxing district:
16        (A) a new tax rate shall be first effective for the
17    levy year in which the new rate is approved;
18        (B) if the proposition provides for a new tax rate, the
19    taxing district is authorized to levy a tax after the
20    canvass of the results of the referendum by the election
21    authority for the purposes for which the tax is authorized;
22        (C) a limiting rate increase shall be first effective
23    for the levy year in which the limiting rate increase is
24    approved, provided that the taxing district may elect to
25    have a limiting rate increase be effective for the levy
26    year prior to the levy year in which the limiting rate

 

 

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1    increase is approved unless the extension of taxes for the
2    prior levy year occurs 30 days or less after the canvass of
3    the results of the referendum by the election authority in
4    any county in which the taxing district is located;
5        (D) in order for the limiting rate increase to be first
6    effective for the levy year prior to the levy year of the
7    referendum, the taxing district must certify its election
8    to have the limiting rate increase be effective for the
9    prior levy year to the clerk of each county in which the
10    taxing district is located not more than 2 days after the
11    date the results of the referendum are canvassed by the
12    election authority; and
13        (E) if the proposition provides for a limiting rate
14    increase, the increase may be effective regardless of
15    whether the proposition is approved before or after the
16    taxing district adopts or files its levy for any levy year.
17    Rates required to extend taxes on levies subject to a
18backdoor referendum in each year there is a levy are not new
19rates or rate increases under this Section if a levy has been
20made for the fund in one or more of the preceding 3 levy years.
21Changes made by this amendatory Act of 1997 to this Section in
22reference to rates required to extend taxes on levies subject
23to a backdoor referendum in each year there is a levy are
24declarative of existing law and not a new enactment.
25    (b) Whenever other applicable law authorizes a taxing
26district subject to the limitation with respect to its

 

 

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1aggregate extension provided for in this Law to issue bonds or
2other obligations either without referendum or subject to
3backdoor referendum, the taxing district may elect for each
4separate bond issuance to submit the question of the issuance
5of the bonds or obligations directly to the voters of the
6taxing district, and if the referendum passes the taxing
7district is not required to comply with any backdoor referendum
8procedures or requirements set forth in the other applicable
9law. The direct referendum shall be initiated by ordinance or
10resolution of the governing body of the taxing district, and
11the question shall be certified to the proper election
12authorities in accordance with the provisions of the Election
13Code.
14(Source: P.A. 96-764, eff. 8-25-09.)
 
15    (35 ILCS 200/18-205)
16    Sec. 18-205. Referendum to increase the extension
17limitation. A taxing district is limited to an extension
18limitation of 5% or the percentage increase in the Consumer
19Price Index during the 12-month calendar year preceding the
20levy year, whichever is less. A taxing district may increase
21its extension limitation for one or more levy years if that
22taxing district holds a referendum before the levy date for the
23first levy year at which a majority of voters voting on the
24issue approves adoption of a higher extension limitation.
25Referenda shall be conducted at a regularly scheduled election

 

 

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1in accordance with the Election Code. The question shall be
2presented in substantially the following manner for all
3elections held after March 21, 2006:
4        Shall the extension limitation under the Property Tax
5    Extension Limitation Law for (insert the legal name,
6    number, if any, and county or counties of the taxing
7    district and geographic or other common name by which a
8    school or community college district is known and referred
9    to), Illinois, be increased from the lesser of 5% or the
10    percentage increase in the Consumer Price Index over the
11    prior levy year to (insert the percentage of the proposed
12    increase)% per year for (insert each levy year for which
13    the increased extension limitation will apply)?
14The votes must be recorded as "Yes" or "No".
15If a majority of voters voting on the issue approves the
16adoption of the increase, the increase shall be applicable for
17each levy year specified.
18    The ballot for any question submitted pursuant to this
19Section shall have printed thereon, but not as a part of the
20question submitted, only the following supplemental
21information (which shall be supplied to the election authority
22by the taxing district) in substantially the following form:
23        (1) For the (insert the first levy year for which the
24    increased extension limitation will be applicable) levy
25    year the approximate amount of the additional tax
26    extendable against property containing a single family

 

 

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1    residence and having a fair market value at the time of the
2    referendum of $100,000 is estimated to be $....
3        (2) Based upon an average annual percentage increase
4    (or decrease) in the market value of such property of ...%
5    (insert percentage equal to the average annual percentage
6    increase or decrease for the prior 3 levy years, at the
7    time the submission of the question is initiated by the
8    taxing district, in the amount of (A) the equalized
9    assessed value of the taxable property in the taxing
10    district less (B) the new property included in the
11    equalized assessed value), the approximate amount of the
12    additional tax extendable against such property for the ...
13    levy year is estimated to be $... and for the ... levy year
14    is estimated to be $....
15    Paragraph (2) shall be included only if the increased
16extension limitation will be applicable for more than one year
17and shall list each levy year for which the increased extension
18limitation will be applicable. The additional tax shown for
19each levy year shall be the approximate dollar amount of the
20increase over the amount of the most recently completed
21extension at the time the submission of the question is
22initiated by the taxing district. The approximate amount of the
23additional tax extendable shown in paragraphs (1) and (2) shall
24be calculated by multiplying $100,000 (the fair market value of
25the property without regard to any property tax exemptions) by
26(i) the percentage level of assessment prescribed for that

 

 

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1property by statute, or by ordinance of the county board in
2counties that classify property for purposes of taxation in
3accordance with Section 4 of Article IX of the Illinois
4Constitution; (ii) the most recent final equalization factor
5certified to the county clerk by the Department of Revenue at
6the time the taxing district initiates the submission of the
7proposition to the electors; (iii) the last known aggregate
8extension base of the taxing district at the time the
9submission of the question is initiated by the taxing district;
10and (iv) the difference between the percentage increase
11proposed in the question and the lesser of 5% or the percentage
12increase in the Consumer Price Index for the prior levy year
13(or an estimate of the percentage increase for the prior levy
14year if the increase is unavailable at the time the submission
15of the question is initiated by the taxing district); and
16dividing the result by the last known equalized assessed value
17of the taxing district at the time the submission of the
18question is initiated by the taxing district. This amendatory
19Act of the 97th General Assembly is intended to clarify the
20existing requirements of this Section, and shall not be
21construed to validate any prior non-compliant referendum
22language. using (A) the lesser of 5% or the percentage increase
23in the Consumer Price Index for the prior levy year (or an
24estimate of the percentage increase for the prior levy year if
25the increase is unavailable at the time the submission of the
26question is initiated by the taxing district), (B) the

 

 

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1percentage increase proposed in the question, and (C) the last
2known equalized assessed value and aggregate extension base of
3the taxing district at the time the submission of the question
4is initiated by the taxing district. The approximate amount of
5the tax extendable shall be calculated (i) without regard to
6any property tax exemptions and (ii) based upon the percentage
7level of assessment prescribed for such property by statute or
8by ordinance of the county board in counties which classify
9property for purposes of taxation in accordance with Section 4
10of Article IX of the Constitution. Any notice required to be
11published in connection with the submission of the question
12shall also contain this supplemental information and shall not
13contain any other supplemental information. Any error,
14miscalculation, or inaccuracy in computing any amount set forth
15on the ballot or in the notice that is not deliberate shall not
16invalidate or affect the validity of any proposition approved.
17Notice of the referendum shall be published and posted as
18otherwise required by law, and the submission of the question
19shall be initiated as provided by law.
20(Source: P.A. 94-976, eff. 6-30-06.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.