093_HB0534ham001

 










                                     LRB093 06796 SJM 12589 a

 1                     AMENDMENT TO HOUSE BILL 534

 2        AMENDMENT NO.     .  Amend House Bill  534  by  replacing
 3    everything after the enacting clause with the following:

 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"
 
                            -2-      LRB093 06796 SJM 12589 a
 1    includes  only  each non-home rule taxing district having the
 2    majority of its 1990  equalized  assessed  value  within  any
 3    county  or  counties contiguous to a county with 3,000,000 or
 4    more inhabitants.  Beginning with the 1995 levy year, "taxing
 5    district" includes only each non-home  rule  taxing  district
 6    subject  to  this  Law  before  the  1995  levy year and each
 7    non-home rule taxing district not subject to this Law  before
 8    the  1995 levy year having the majority of its 1994 equalized
 9    assessed value in an affected county or counties.   Beginning
10    with  the levy year in which this Law becomes applicable to a
11    taxing  district  as  provided  in  Section  18-213,  "taxing
12    district" also includes those taxing districts  made  subject
13    to this Law as provided in Section 18-213.
14        "Aggregate  extension" for taxing districts to which this
15    Law applied before  the  1995  levy  year  means  the  annual
16    corporate extension for the taxing district and those special
17    purpose  extensions  that  are  made  annually for the taxing
18    district, excluding special purpose extensions: (a) made  for
19    the  taxing  district to pay interest or principal on general
20    obligation bonds that were approved by referendum;  (b)  made
21    for  any  taxing  district  to  pay  interest or principal on
22    general obligation bonds issued before October 1,  1991;  (c)
23    made  for any taxing district to pay interest or principal on
24    bonds issued to refund or  continue  to  refund  those  bonds
25    issued  before  October  1,  1991;  (d)  made  for any taxing
26    district to pay interest or  principal  on  bonds  issued  to
27    refund  or  continue  to refund bonds issued after October 1,
28    1991 that were approved  by  referendum;  (e)  made  for  any
29    taxing district to pay interest or principal on revenue bonds
30    issued before October 1, 1991 for payment of which a property
31    tax  levy  or  the full faith and credit of the unit of local
32    government is pledged; however, a  tax  for  the  payment  of
33    interest or principal on those bonds shall be made only after
34    the governing body of the unit of local government finds that
 
                            -3-      LRB093 06796 SJM 12589 a
 1    all  other sources for payment are insufficient to make those
 2    payments; (f) made for payments under a  building  commission
 3    lease when the lease payments are for the retirement of bonds
 4    issued  by  the commission before October 1, 1991, to pay for
 5    the  building  project;  (g)  made  for  payments  due  under
 6    installment contracts entered into before  October  1,  1991;
 7    (h)  made  for  payments  of  principal and interest on bonds
 8    issued under the Metropolitan Water Reclamation District  Act
 9    to  finance construction projects initiated before October 1,
10    1991; (i) made for payments  of  principal  and  interest  on
11    limited   bonds,  as  defined  in  Section  3  of  the  Local
12    Government Debt Reform Act, in an amount not  to  exceed  the
13    debt  service  extension  base  less the amount in items (b),
14    (c), (e), and  (h)  of  this  definition  for  non-referendum
15    obligations,  except obligations initially issued pursuant to
16    referendum; (j) made for payments of principal  and  interest
17    on bonds issued under Section 15 of the Local Government Debt
18    Reform   Act;   and  (k)  made  by  a  school  district  that
19    participates  in  the  Special  Education  District  of  Lake
20    County, created by special education  joint  agreement  under
21    Section  10-22.31  of  the  School  Code,  for payment of the
22    school  district's  share  of  the  amounts  required  to  be
23    contributed by the Special Education District of Lake  County
24    to  the Illinois Municipal Retirement Fund under Article 7 of
25    the Illinois Pension Code; the amount of any extension  under
26    this  item  (k)  shall be certified by the school district to
27    the county clerk; and (l) made to fund expenses of  providing
28    joint recreational programs for the handicapped under Section
29    5-8  of  the  Park  District  Code or Section 11-95-14 of the
30    Illinois Municipal Code.
31        "Aggregate extension" for the taxing districts  to  which
32    this  Law  did  not  apply  before the 1995 levy year (except
33    taxing districts subject  to  this  Law  in  accordance  with
34    Section  18-213) means the annual corporate extension for the
 
                            -4-      LRB093 06796 SJM 12589 a
 1    taxing district and those special purpose extensions that are
 2    made annually for  the  taxing  district,  excluding  special
 3    purpose  extensions:  (a) made for the taxing district to pay
 4    interest or principal on general obligation bonds  that  were
 5    approved  by  referendum; (b) made for any taxing district to
 6    pay interest or principal on general obligation bonds  issued
 7    before March 1, 1995; (c) made for any taxing district to pay
 8    interest  or  principal on bonds issued to refund or continue
 9    to refund those bonds issued before March 1, 1995;  (d)  made
10    for any taxing district to pay interest or principal on bonds
11    issued  to  refund  or  continue to refund bonds issued after
12    March 1, 1995 that were approved by referendum; (e) made  for
13    any  taxing  district to pay interest or principal on revenue
14    bonds issued before March 1, 1995  for  payment  of  which  a
15    property tax levy or the full faith and credit of the unit of
16    local  government  is pledged; however, a tax for the payment
17    of interest or principal on those bonds shall  be  made  only
18    after  the  governing  body  of  the unit of local government
19    finds that all other sources for payment are insufficient  to
20    make  those  payments; (f) made for payments under a building
21    commission  lease  when  the  lease  payments  are  for   the
22    retirement  of bonds issued by the commission before March 1,
23    1995 to pay for the building project; (g) made  for  payments
24    due  under installment contracts entered into before March 1,
25    1995; (h) made for payments  of  principal  and  interest  on
26    bonds   issued   under  the  Metropolitan  Water  Reclamation
27    District  Act  to  finance  construction  projects  initiated
28    before October 1, 1991; (i) made for  payments  of  principal
29    and interest on limited bonds, as defined in Section 3 of the
30    Local  Government Debt Reform Act, in an amount not to exceed
31    the debt service extension base less the amount in items (b),
32    (c),  and  (e)  of   this   definition   for   non-referendum
33    obligations,  except obligations initially issued pursuant to
34    referendum and bonds described  in  subsection  (h)  of  this
 
                            -5-      LRB093 06796 SJM 12589 a
 1    definition;  (j)  made for payments of principal and interest
 2    on bonds issued under Section 15 of the Local Government Debt
 3    Reform Act; (k) made for payments of principal  and  interest
 4    on  bonds  authorized  by  Public Act 88-503 and issued under
 5    Section 20a of the Chicago Park District Act for aquarium  or
 6    museum  projects;  (l)  made  for  payments  of principal and
 7    interest on bonds authorized by Public Act 87-1191 and issued
 8    under Section 42 of the Cook County Forest Preserve  District
 9    Act  for  zoological  park projects; and (m) made pursuant to
10    Section 34-53.5 of the School Code, whether  levied  annually
11    or  not;  and  (n)  made  to fund expenses of providing joint
12    recreational programs for the handicapped under  Section  5-8
13    of the Park District Code or Section 11-95-14 of the Illinois
14    Municipal Code.
15        "Aggregate  extension"  for all taxing districts to which
16    this Law applies in accordance with  Section  18-213,  except
17    for  those  taxing  districts  subject  to  paragraph  (2) of
18    subsection (e) of Section 18-213, means the annual  corporate
19    extension  for  the taxing district and those special purpose
20    extensions that are made annually for  the  taxing  district,
21    excluding special purpose extensions: (a) made for the taxing
22    district  to  pay interest or principal on general obligation
23    bonds that were approved by  referendum;  (b)  made  for  any
24    taxing  district  to  pay  interest  or  principal on general
25    obligation  bonds  issued  before  the  date  on  which   the
26    referendum  making this Law applicable to the taxing district
27    is held; (c) made for any taxing district to pay interest  or
28    principal  on  bonds  issued  to refund or continue to refund
29    those bonds issued before the date on  which  the  referendum
30    making  this  Law  applicable to the taxing district is held;
31    (d) made for any taxing district to pay interest or principal
32    on bonds issued to refund or continue to refund bonds  issued
33    after  the  date  on  which  the  referendum  making this Law
34    applicable to the taxing district is held if the  bonds  were
 
                            -6-      LRB093 06796 SJM 12589 a
 1    approved by referendum after the date on which the referendum
 2    making  this  Law  applicable to the taxing district is held;
 3    (e) made for any taxing district to pay interest or principal
 4    on  revenue  bonds  issued  before  the  date  on  which  the
 5    referendum making this Law applicable to the taxing  district
 6    is  held for payment of which a property tax levy or the full
 7    faith and credit of the unit of local government is  pledged;
 8    however,  a  tax  for the payment of interest or principal on
 9    those bonds shall be made only after the  governing  body  of
10    the unit of local government finds that all other sources for
11    payment are insufficient to make those payments; (f) made for
12    payments  under  a  building  commission lease when the lease
13    payments are for  the  retirement  of  bonds  issued  by  the
14    commission  before  the  date  on which the referendum making
15    this Law applicable to the taxing district is held to pay for
16    the  building  project;  (g)  made  for  payments  due  under
17    installment contracts entered into before the date  on  which
18    the  referendum  making  this  Law  applicable  to the taxing
19    district is held; (h) made  for  payments  of  principal  and
20    interest  on  limited  bonds,  as defined in Section 3 of the
21    Local Government Debt Reform Act, in an amount not to  exceed
22    the debt service extension base less the amount in items (b),
23    (c),   and   (e)   of   this  definition  for  non-referendum
24    obligations, except obligations initially issued pursuant  to
25    referendum;  (i)  made for payments of principal and interest
26    on bonds issued under Section 15 of the Local Government Debt
27    Reform Act; and (j) made for a qualified airport authority to
28    pay interest or principal on general obligation bonds  issued
29    for the purpose of paying obligations due under, or financing
30    airport  facilities  required  to  be  acquired, constructed,
31    installed or equipped pursuant  to,  contracts  entered  into
32    before  March  1,  1996  (but not including any amendments to
33    such a contract taking effect on or after that date); and (k)
34    made  to  fund  expenses  of  providing  joint   recreational
 
                            -7-      LRB093 06796 SJM 12589 a
 1    programs  for  the  handicapped under Section 5-8 of the Park
 2    District Code or Section 11-95-14 of the  Illinois  Municipal
 3    Code.
 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
 
                            -8-      LRB093 06796 SJM 12589 a
 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  to  fund  expenses  of  providing  joint   recreational
18    programs  for  the  handicapped under Section 5-8 of the Park
19    District Code or Section 11-95-14 of the  Illinois  Municipal
20    Code.
21        "Debt  service  extension  base" means an amount equal to
22    that portion of the extension for a taxing district  for  the
23    1994 levy year, or for those taxing districts subject to this
24    Law  in  accordance  with  Section  18-213,  except for those
25    subject to paragraph (2) of subsection (e) of Section 18-213,
26    for the levy year in which the  referendum  making  this  Law
27    applicable  to  the  taxing  district  is  held, or for those
28    taxing districts subject  to  this  Law  in  accordance  with
29    paragraph  (2)  of  subsection  (e) of Section 18-213 for the
30    1996 levy year, constituting  an  extension  for  payment  of
31    principal and interest on bonds issued by the taxing district
32    without referendum, but not including (i) bonds authorized by
33    Public Act 88-503 and issued under Section 20a of the Chicago
34    Park  District  Act  for  aquarium  and museum projects; (ii)
 
                            -9-      LRB093 06796 SJM 12589 a
 1    bonds issued under Section 15 of the  Local  Government  Debt
 2    Reform  Act;  or (iii) refunding obligations issued to refund
 3    or  to  continue  to  refund  obligations  initially   issued
 4    pursuant  to  referendum. The debt service extension base may
 5    be established or increased as provided under Section 18-212.
 6        "Special purpose extensions" include, but are not limited
 7    to, extensions  for  levies  made  on  an  annual  basis  for
 8    unemployment   and   workers'  compensation,  self-insurance,
 9    contributions to pension plans, and extensions made  pursuant
10    to  Section  6-601  of  the  Illinois Highway Code for a road
11    district's permanent road fund  whether  levied  annually  or
12    not.   The  extension  for  a  special  service  area  is not
13    included in the aggregate extension.
14        "Aggregate extension base" means  the  taxing  district's
15    last preceding aggregate extension as adjusted under Sections
16    18-215 through 18-230.
17        "Levy  year" has the same meaning as "year" under Section
18    1-155.
19        "New property" means (i) the assessed value, after  final
20    board   of   review  or  board  of  appeals  action,  of  new
21    improvements or additions to  existing  improvements  on  any
22    parcel  of  real property that increase the assessed value of
23    that real property during the levy  year  multiplied  by  the
24    equalization  factor  issued  by the Department under Section
25    17-30 and (ii) the  assessed  value,  after  final  board  of
26    review  or  board  of  appeals  action,  of real property not
27    exempt from real estate taxation,  which  real  property  was
28    exempt  from  real  estate  taxation  for  any portion of the
29    immediately  preceding   levy   year,   multiplied   by   the
30    equalization  factor  issued  by the Department under Section
31    17-30. In addition, the county clerk in a county containing a
32    population of 3,000,000 or more shall  include  in  the  1997
33    recovered  tax  increment  value for any school district, any
34    recovered tax increment value that was applicable to the 1995
 
                            -10-     LRB093 06796 SJM 12589 a
 1    tax year calculations.
 2        "Qualified airport authority" means an airport  authority
 3    organized  under the Airport Authorities Act and located in a
 4    county bordering on the  State  of  Wisconsin  and  having  a
 5    population in excess of 200,000 and not greater than 500,000.
 6        "Recovered   tax   increment   value"  means,  except  as
 7    otherwise provided in  this  paragraph,  the  amount  of  the
 8    current  year's  equalized  assessed value, in the first year
 9    after a municipality terminates the designation of an area as
10    a redevelopment project area previously established under the
11    Tax Increment Allocation  Development  Act  in  the  Illinois
12    Municipal  Code,  previously established under the Industrial
13    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
14    previously  established  under  the Economic Development Area
15    Tax Increment Allocation Act, of  each  taxable  lot,  block,
16    tract,  or  parcel  of  real  property  in  the redevelopment
17    project area over and above the  initial  equalized  assessed
18    value of each property in the redevelopment project area. For
19    the  taxes  which  are  extended  for the 1997 levy year, the
20    recovered tax increment value  for  a  non-home  rule  taxing
21    district  that  first became subject to this Law for the 1995
22    levy year because a majority of its 1994  equalized  assessed
23    value  was  in  an  affected  county  or  counties  shall  be
24    increased  if a municipality terminated the designation of an
25    area in 1993  as  a  redevelopment  project  area  previously
26    established  under  the  Tax Increment Allocation Development
27    Act in the Illinois Municipal  Code,  previously  established
28    under  the  Industrial  Jobs  Recovery  Law  in  the Illinois
29    Municipal Code, or previously established under the  Economic
30    Development  Area  Tax Increment Allocation Act, by an amount
31    equal to the 1994 equalized assessed value  of  each  taxable
32    lot,  block,  tract,  or  parcel  of  real  property  in  the
33    redevelopment   project  area  over  and  above  the  initial
34    equalized  assessed   value   of   each   property   in   the
 
                            -11-     LRB093 06796 SJM 12589 a
 1    redevelopment  project  area.  In  the  first  year  after  a
 2    municipality  removes  a taxable lot, block, tract, or parcel
 3    of  real  property  from   a   redevelopment   project   area
 4    established  under  the  Tax Increment Allocation Development
 5    Act in the  Illinois  Municipal  Code,  the  Industrial  Jobs
 6    Recovery  Law in the Illinois Municipal Code, or the Economic
 7    Development Area Tax Increment Allocation Act, "recovered tax
 8    increment value" means  the  amount  of  the  current  year's
 9    equalized  assessed  value of each taxable lot, block, tract,
10    or parcel of real property  removed  from  the  redevelopment
11    project  area  over  and above the initial equalized assessed
12    value  of  that  real  property  before  removal   from   the
13    redevelopment project area.
14        Except  as  otherwise provided in this Section, "limiting
15    rate" means a fraction the numerator of  which  is  the  last
16    preceding  aggregate  extension base times an amount equal to
17    one plus the extension limitation defined in this Section and
18    the denominator of which  is  the  current  year's  equalized
19    assessed  value  of  all real property in the territory under
20    the jurisdiction of the taxing district during the prior levy
21    year.   For  those  taxing  districts  that   reduced   their
22    aggregate  extension  for  the  last preceding levy year, the
23    highest aggregate extension in any of the  last  3  preceding
24    levy  years  shall  be  used for the purpose of computing the
25    limiting  rate.   The  denominator  shall  not  include   new
26    property.   The  denominator  shall not include the recovered
27    tax increment value.
28    (Source: P.A. 91-357, eff.  7-29-99;  91-478,  eff.  11-1-99;
29    92-547, eff. 6-13-02.)

30        Section  99.  Effective date.  This Act takes effect upon
31    becoming law.".