093_SB1049eng

 
SB1049 Engrossed                     LRB093 10778 SJM 11192 b

 1        AN ACT in relation to taxation.

 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
 
SB1049 Engrossed            -2-      LRB093 10778 SJM 11192 b
 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,
 
SB1049 Engrossed            -3-      LRB093 10778 SJM 11192 b
 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  school  district  for
19    contributions to the Illinois Municipal Retirement Fund under
20    Section  7-171  of  the  Pension  Code,  and that part of any
21    extension made by a school district  for coverage under  both
22    Part  A  and  B of Title XVIII of the federal Social Security
23    Act (Medicare) and made by a  school  district  for  coverage
24    under the Federal Insurance Contributions Act (FICA).
25        "Aggregate  extension"  for the taxing districts to which
26    this Law did not apply before  the  1995  levy  year  (except
27    taxing  districts  subject  to  this  Law  in accordance with
28    Section 18-213) means the annual corporate extension for  the
29    taxing district and those special purpose extensions that are
30    made  annually  for  the  taxing  district, excluding special
31    purpose extensions: (a) made for the taxing district  to  pay
32    interest  or  principal on general obligation bonds that were
33    approved by referendum; (b) made for any taxing  district  to
34    pay  interest or principal on general obligation bonds issued
 
SB1049 Engrossed            -4-      LRB093 10778 SJM 11192 b
 1    before March 1, 1995; (c) made for any taxing district to pay
 2    interest or principal on bonds issued to refund  or  continue
 3    to  refund  those bonds issued before March 1, 1995; (d) made
 4    for any taxing district to pay interest or principal on bonds
 5    issued to refund or continue to  refund  bonds  issued  after
 6    March  1, 1995 that were approved by referendum; (e) made for
 7    any taxing district to pay interest or principal  on  revenue
 8    bonds  issued  before  March  1,  1995 for payment of which a
 9    property tax levy or the full faith and credit of the unit of
10    local government is pledged; however, a tax for  the  payment
11    of  interest  or  principal on those bonds shall be made only
12    after the governing body of  the  unit  of  local  government
13    finds  that all other sources for payment are insufficient to
14    make those payments; (f) made for payments under  a  building
15    commission   lease  when  the  lease  payments  are  for  the
16    retirement of bonds issued by the commission before March  1,
17    1995  to  pay for the building project; (g) made for payments
18    due under installment contracts entered into before March  1,
19    1995;  (h)  made  for  payments  of principal and interest on
20    bonds  issued  under  the  Metropolitan   Water   Reclamation
21    District  Act  to  finance  construction  projects  initiated
22    before  October  1,  1991; (i) made for payments of principal
23    and interest on limited bonds, as defined in Section 3 of the
24    Local Government Debt Reform Act, in an amount not to  exceed
25    the debt service extension base less the amount in items (b),
26    (c),   and   (e)   of   this  definition  for  non-referendum
27    obligations, except obligations initially issued pursuant  to
28    referendum  and  bonds  described  in  subsection (h) of this
29    definition; (j) made for payments of principal  and  interest
30    on bonds issued under Section 15 of the Local Government Debt
31    Reform  Act;  (k) made for payments of principal and interest
32    on bonds authorized by Public Act  88-503  and  issued  under
33    Section  20a of the Chicago Park District Act for aquarium or
34    museum projects; (l)  made  for  payments  of  principal  and
 
SB1049 Engrossed            -5-      LRB093 10778 SJM 11192 b
 1    interest on bonds authorized by Public Act 87-1191 and issued
 2    under  Section 42 of the Cook County Forest Preserve District
 3    Act for zoological park projects; and (m)  made  pursuant  to
 4    Section  34-53.5  of the School Code, whether levied annually
 5    or not; and (n) made by a school district  for  contributions
 6    to the Illinois Municipal Retirement Fund under Section 7-171
 7    of the Pension Code, and that part of any extension made by a
 8    school district for coverage under both Part A and B of Title
 9    XVIII  of the federal Social Security Act (Medicare) and made
10    by a school district for coverage under the Federal Insurance
11    Contributions Act (FICA).
12        "Aggregate extension" for all taxing districts  to  which
13    this  Law  applies  in accordance with Section 18-213, except
14    for those  taxing  districts  subject  to  paragraph  (2)  of
15    subsection  (e) of Section 18-213, means the annual corporate
16    extension for the taxing district and those  special  purpose
17    extensions  that  are  made annually for the taxing district,
18    excluding special purpose extensions: (a) made for the taxing
19    district to pay interest or principal on  general  obligation
20    bonds  that  were  approved  by  referendum; (b) made for any
21    taxing district to  pay  interest  or  principal  on  general
22    obligation   bonds  issued  before  the  date  on  which  the
23    referendum making this Law applicable to the taxing  district
24    is  held; (c) made for any taxing district to pay interest or
25    principal on bonds issued to refund  or  continue  to  refund
26    those  bonds  issued  before the date on which the referendum
27    making this Law applicable to the taxing  district  is  held;
28    (d) made for any taxing district to pay interest or principal
29    on  bonds issued to refund or continue to refund bonds issued
30    after the date  on  which  the  referendum  making  this  Law
31    applicable  to  the taxing district is held if the bonds were
32    approved by referendum after the date on which the referendum
33    making this Law applicable to the taxing  district  is  held;
34    (e) made for any taxing district to pay interest or principal
 
SB1049 Engrossed            -6-      LRB093 10778 SJM 11192 b
 1    on  revenue  bonds  issued  before  the  date  on  which  the
 2    referendum  making this Law applicable to the taxing district
 3    is held for payment of which a property tax levy or the  full
 4    faith  and credit of the unit of local government is pledged;
 5    however, a tax for the payment of interest  or  principal  on
 6    those  bonds  shall  be made only after the governing body of
 7    the unit of local government finds that all other sources for
 8    payment are insufficient to make those payments; (f) made for
 9    payments under a building commission  lease  when  the  lease
10    payments  are  for  the  retirement  of  bonds  issued by the
11    commission before the date on  which  the  referendum  making
12    this Law applicable to the taxing district is held to pay for
13    the  building  project;  (g)  made  for  payments  due  under
14    installment  contracts  entered into before the date on which
15    the referendum making  this  Law  applicable  to  the  taxing
16    district  is  held;  (h)  made  for payments of principal and
17    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; (i) made for payments of principal  and  interest
23    on bonds issued under Section 15 of the Local Government Debt
24    Reform Act; and (j) made for a qualified airport authority to
25    pay  interest or principal on general obligation bonds issued
26    for the purpose of paying obligations due under, or financing
27    airport facilities  required  to  be  acquired,  constructed,
28    installed  or  equipped  pursuant  to, contracts entered into
29    before March 1, 1996 (but not  including  any  amendments  to
30    such a contract taking effect on or after that date); and (k)
31    made  by  a school district for contributions to the Illinois
32    Municipal Retirement Fund under Section 7-171 of the  Pension
33    Code,  and  that  part  of  any  extension  made  by a school
34    district for coverage under both Part A and B of Title  XVIII
 
SB1049 Engrossed            -7-      LRB093 10778 SJM 11192 b
 1    of  the  federal Social Security Act (Medicare) and made by a
 2    school district for  coverage  under  the  Federal  Insurance
 3    Contributions Act (FICA).
 4        "Aggregate  extension"  for all taxing districts to which
 5    this  Law  applies  in  accordance  with  paragraph  (2)   of
 6    subsection  (e)  of Section 18-213 means the annual corporate
 7    extension for the taxing district and those  special  purpose
 8    extensions  that  are  made annually for the taxing district,
 9    excluding special purpose extensions: (a) made for the taxing
10    district to pay interest or principal on  general  obligation
11    bonds  that  were  approved  by  referendum; (b) made for any
12    taxing district to  pay  interest  or  principal  on  general
13    obligation  bonds  issued  before  the effective date of this
14    amendatory Act of 1997; (c) made for any taxing  district  to
15    pay  interest  or  principal  on  bonds  issued  to refund or
16    continue to refund those bonds issued  before  the  effective
17    date  of this amendatory Act of 1997; (d) made for any taxing
18    district to pay interest or  principal  on  bonds  issued  to
19    refund or continue to refund bonds issued after the effective
20    date  of  this  amendatory  Act  of  1997  if  the bonds were
21    approved by referendum  after  the  effective  date  of  this
22    amendatory  Act  of 1997; (e) made for any taxing district to
23    pay interest or principal on revenue bonds issued before  the
24    effective  date of this amendatory Act of 1997 for payment of
25    which a property tax levy or the full faith and credit of the
26    unit of local government is pledged; however, a tax  for  the
27    payment of interest or principal on those bonds shall be made
28    only after the governing body of the unit of local government
29    finds  that all other sources for payment are insufficient to
30    make those payments; (f) made for payments under  a  building
31    commission   lease  when  the  lease  payments  are  for  the
32    retirement of bonds  issued  by  the  commission  before  the
33    effective  date of this amendatory Act of 1997 to pay for the
34    building project; (g) made for payments due under installment
 
SB1049 Engrossed            -8-      LRB093 10778 SJM 11192 b
 1    contracts entered into before  the  effective  date  of  this
 2    amendatory  Act  of  1997; (h) made for payments of principal
 3    and interest on limited bonds, as defined in Section 3 of the
 4    Local Government Debt Reform Act, in an amount not to  exceed
 5    the debt service extension base less the amount in items (b),
 6    (c),   and   (e)   of   this  definition  for  non-referendum
 7    obligations, except obligations initially issued pursuant  to
 8    referendum;  (i)  made for payments of principal and interest
 9    on bonds issued under Section 15 of the Local Government Debt
10    Reform Act; and (j) made for a qualified airport authority to
11    pay interest or principal on general obligation bonds  issued
12    for the purpose of paying obligations due under, or financing
13    airport  facilities  required  to  be  acquired, constructed,
14    installed or equipped pursuant  to,  contracts  entered  into
15    before  March  1,  1996  (but not including any amendments to
16    such a contract taking effect on or after that date); and (k)
17    made by a school district for contributions to  the  Illinois
18    Municipal  Retirement Fund under Section 7-171 of the Pension
19    Code, and that  part  of  any  extension  made  by  a  school
20    district  for coverage under both Part A and B of Title XVIII
21    of the federal Social Security Act (Medicare) and made  by  a
22    school  district  for  coverage  under  the Federal Insurance
23    Contributions Act (FICA).
24        "Debt service extension base" means an  amount  equal  to
25    that  portion  of the extension for a taxing district for the
26    1994 levy year, or for those taxing districts subject to this
27    Law in accordance  with  Section  18-213,  except  for  those
28    subject to paragraph (2) of subsection (e) of Section 18-213,
29    for  the  levy  year  in which the referendum making this Law
30    applicable to the taxing  district  is  held,  or  for  those
31    taxing  districts  subject  to  this  Law  in accordance with
32    paragraph (2) of subsection (e) of  Section  18-213  for  the
33    1996  levy  year,  constituting  an  extension for payment of
34    principal and interest on bonds issued by the taxing district
 
SB1049 Engrossed            -9-      LRB093 10778 SJM 11192 b
 1    without referendum, but not including (i) bonds authorized by
 2    Public Act 88-503 and issued under Section 20a of the Chicago
 3    Park District Act for  aquarium  and  museum  projects;  (ii)
 4    bonds  issued  under  Section 15 of the Local Government Debt
 5    Reform Act; or (iii) refunding obligations issued  to  refund
 6    or   to  continue  to  refund  obligations  initially  issued
 7    pursuant to referendum. The debt service extension  base  may
 8    be established or increased as provided under Section 18-212.
 9        "Special purpose extensions" include, but are not limited
10    to,  extensions  for  levies  made  on  an  annual  basis for
11    unemployment  and  workers'   compensation,   self-insurance,
12    contributions  to pension plans, and extensions made pursuant
13    to Section 6-601 of the Illinois  Highway  Code  for  a  road
14    district's  permanent  road  fund  whether levied annually or
15    not.  The  extension  for  a  special  service  area  is  not
16    included in the aggregate extension.
17        "Aggregate  extension  base"  means the taxing district's
18    last preceding aggregate extension as adjusted under Sections
19    18-215 through 18-230.
20        "Levy year" has the same meaning as "year" under  Section
21    1-155.
22        "New  property" means (i) the assessed value, after final
23    board  of  review  or  board  of  appeals  action,   of   new
24    improvements  or  additions  to  existing improvements on any
25    parcel of real property that increase the assessed  value  of
26    that  real  property  during  the levy year multiplied by the
27    equalization factor issued by the  Department  under  Section
28    17-30  and  (ii)  the  assessed  value,  after final board of
29    review or board of  appeals  action,  of  real  property  not
30    exempt  from  real  estate  taxation, which real property was
31    exempt from real estate  taxation  for  any  portion  of  the
32    immediately   preceding   levy   year,   multiplied   by  the
33    equalization factor issued by the  Department  under  Section
34    17-30. In addition, the county clerk in a county containing a
 
SB1049 Engrossed            -10-     LRB093 10778 SJM 11192 b
 1    population  of  3,000,000  or  more shall include in the 1997
 2    recovered tax increment value for any  school  district,  any
 3    recovered tax increment value that was applicable to the 1995
 4    tax year calculations.
 5        "Qualified  airport authority" means an airport authority
 6    organized under the Airport Authorities Act and located in  a
 7    county  bordering  on  the  State  of  Wisconsin and having a
 8    population in excess of 200,000 and not greater than 500,000.
 9        "Recovered  tax  increment  value"   means,   except   as
10    otherwise  provided  in  this  paragraph,  the  amount of the
11    current year's equalized assessed value, in  the  first  year
12    after a municipality terminates the designation of an area as
13    a redevelopment project area previously established under the
14    Tax  Increment  Allocation  Development  Act  in the Illinois
15    Municipal Code, previously established under  the  Industrial
16    Jobs   Recovery  Law  in  the  Illinois  Municipal  Code,  or
17    previously established under the  Economic  Development  Area
18    Tax  Increment  Allocation  Act,  of each taxable lot, block,
19    tract, or  parcel  of  real  property  in  the  redevelopment
20    project  area  over  and above the initial equalized assessed
21    value of each property in the redevelopment project area. For
22    the taxes which are extended for  the  1997  levy  year,  the
23    recovered  tax  increment  value  for  a non-home rule taxing
24    district that first became subject to this Law for  the  1995
25    levy  year  because a majority of its 1994 equalized assessed
26    value  was  in  an  affected  county  or  counties  shall  be
27    increased if a municipality terminated the designation of  an
28    area  in  1993  as  a  redevelopment  project area previously
29    established under the Tax  Increment  Allocation  Development
30    Act  in  the  Illinois Municipal Code, previously established
31    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
32    Municipal  Code, or previously established under the Economic
33    Development Area Tax Increment Allocation Act, by  an  amount
34    equal  to  the  1994 equalized assessed value of each taxable
 
SB1049 Engrossed            -11-     LRB093 10778 SJM 11192 b
 1    lot,  block,  tract,  or  parcel  of  real  property  in  the
 2    redevelopment  project  area  over  and  above  the   initial
 3    equalized   assessed   value   of   each   property   in  the
 4    redevelopment  project  area.  In  the  first  year  after  a
 5    municipality removes a taxable lot, block, tract,  or  parcel
 6    of   real   property   from   a  redevelopment  project  area
 7    established under the Tax  Increment  Allocation  Development
 8    Act  in  the  Illinois  Municipal  Code,  the Industrial Jobs
 9    Recovery Law in the Illinois Municipal Code, or the  Economic
10    Development Area Tax Increment Allocation Act, "recovered tax
11    increment  value"  means  the  amount  of  the current year's
12    equalized assessed value of each taxable lot,  block,  tract,
13    or  parcel  of  real  property removed from the redevelopment
14    project area over and above the  initial  equalized  assessed
15    value   of   that  real  property  before  removal  from  the
16    redevelopment project area.
17        Except as otherwise provided in this  Section,  "limiting
18    rate"  means  a  fraction  the numerator of which is the last
19    preceding aggregate extension base times an amount  equal  to
20    one plus the extension limitation defined in this Section and
21    the  denominator  of  which  is  the current year's equalized
22    assessed value of all real property in  the  territory  under
23    the jurisdiction of the taxing district during the prior levy
24    year.    For   those  taxing  districts  that  reduced  their
25    aggregate extension for the last  preceding  levy  year,  the
26    highest  aggregate  extension  in any of the last 3 preceding
27    levy years shall be used for the  purpose  of  computing  the
28    limiting   rate.   The  denominator  shall  not  include  new
29    property.  The denominator shall not  include  the  recovered
30    tax increment value.
31    (Source:  P.A.  91-357,  eff.  7-29-99; 91-478, eff. 11-1-99;
32    92-547, eff. 6-13-02.)