Illinois General Assembly - Full Text of HB0534
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Full Text of HB0534  93rd General Assembly

HB0534 93rd General Assembly


093_HB0534

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