Illinois General Assembly - Full Text of SB1049
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Full Text of SB1049  93rd General Assembly

SB1049 93rd General Assembly


093_SB1049

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