Full Text of SB2256 98th General Assembly
SB2256 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB2256 Introduced 2/15/2013, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that no referendum to increase a limiting rate may be submitted to the voters on or after January 1, 2014. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 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 18-190 as follows:
| 6 | | (35 ILCS 200/18-190)
| 7 | | Sec. 18-190. Direct referendum; new rate or increased | 8 | | limiting rate. | 9 | | (a) If a new rate
is authorized by statute to be imposed | 10 | | without referendum or
is subject to a backdoor referendum, as | 11 | | defined in Section 28-2 of the Election
Code, the governing | 12 | | body of the affected taxing district before levying the new
| 13 | | rate shall submit the new rate to direct
referendum under the | 14 | | provisions of this Section and of Article 28 of the Election | 15 | | Code. Notwithstanding the provisions, requirements, or | 16 | | limitations of any other law, any tax levied for the 2005 levy | 17 | | year and all subsequent levy years by any taxing district | 18 | | subject to this Law may be extended at a rate exceeding the | 19 | | rate established for that tax by referendum or statute, | 20 | | provided that the rate does not exceed the statutory ceiling | 21 | | above which the tax is not authorized to be further increased | 22 | | either by referendum or in any other manner. Notwithstanding | 23 | | the provisions, requirements, or limitations of any other law, |
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| 1 | | all taxing districts subject to this Law shall follow the | 2 | | provisions of this Section whenever seeking referenda approval | 3 | | after March 21, 2006 to (i) levy a new tax rate authorized by | 4 | | statute or (ii) increase the limiting rate applicable to the | 5 | | taxing district. Notwithstanding any other provision of law, no | 6 | | referendum to increase a limiting rate may be submitted to the | 7 | | voters on or after January 1, 2014. All taxing districts | 8 | | subject to this Law are authorized to seek referendum approval | 9 | | of each proposition described and set forth in this Section. | 10 | | The proposition seeking to obtain referendum approval to | 11 | | levy a new tax rate as authorized in clause (i) shall be in | 12 | | substantially the following form: | 13 | | Shall ... (insert legal name, number, if any, and | 14 | | county or counties of taxing district and geographic or | 15 | | other common name by which a school or community college | 16 | | district is known and referred to), Illinois, be authorized | 17 | | to levy a new tax for ... purposes and have an additional | 18 | | tax of ...% of the equalized assessed value of the taxable | 19 | | property therein extended for such purposes? | 20 | | The votes must be recorded as "Yes" or "No". | 21 | | The proposition seeking to obtain referendum approval to | 22 | | increase the limiting rate as authorized in clause (ii) shall | 23 | | be in substantially the following form: | 24 | | Shall the limiting rate under the Property Tax | 25 | | Extension Limitation Law for ... (insert legal name, | 26 | | number, if any, and county or counties of taxing district |
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| 1 | | and geographic or other common name by which a school or | 2 | | community college district is known and referred to), | 3 | | Illinois, be increased by an additional amount equal to | 4 | | ...% above the limiting rate for the purpose of...(insert | 5 | | purpose) for levy year ... (insert the most recent levy | 6 | | year for which the limiting rate of the taxing district is | 7 | | known at the time the submission of the proposition is | 8 | | initiated by the taxing district) and be equal to ...% of | 9 | | the equalized assessed value of the taxable property | 10 | | therein for levy year(s) (insert each levy year for which | 11 | | the increase will be applicable,
which years must be | 12 | | consecutive and may not exceed 4)? | 13 | | The votes must be recorded as "Yes" or "No". | 14 | | The ballot for any proposition submitted pursuant to this | 15 | | Section shall have printed thereon, but not as a part of the | 16 | | proposition submitted, only the following supplemental | 17 | | information (which shall be supplied to the election authority | 18 | | by the taxing district) in substantially the following form: | 19 | | (1) The approximate amount of taxes extendable at the | 20 | | most recently extended
limiting rate is $..., and the | 21 | | approximate amount of taxes extendable if the
proposition | 22 | | is approved is $.... | 23 | | (2) For the ... (insert the first levy year for which | 24 | | the new rate or increased
limiting rate will be applicable) | 25 | | levy year the approximate amount of the additional tax
| 26 | | extendable against property containing a single family |
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| 1 | | residence and having a fair market
value at the time of the | 2 | | referendum of $100,000 is estimated to be $.... | 3 | | (3) Based upon an average annual percentage increase | 4 | | (or decrease) in the market
value of such property of %... | 5 | | (insert percentage equal to the average annual percentage
| 6 | | increase or decrease for the prior 3 levy years, at the | 7 | | time the submission of the
proposition is initiated by the | 8 | | taxing district, in the amount of (A) the equalized | 9 | | assessed
value of the taxable property in the taxing | 10 | | district less (B) the new property included in the
| 11 | | equalized assessed value), the approximate amount of the | 12 | | additional tax extendable against
such property for the ... | 13 | | levy year is estimated to be $... and for the ... levy
year | 14 | | is estimated to be $
.... | 15 | | (4) If the proposition is approved, the aggregate | 16 | | extension for ... (insert each levy year for which the | 17 | | increase will apply) will be determined by the limiting | 18 | | rate set forth in the proposition, rather than the | 19 | | otherwise applicable limiting rate calculated under the | 20 | | provisions of the Property Tax Extension Limitation Law | 21 | | (commonly known as the Property Tax Cap Law). | 22 | | The approximate amount of taxes extendable shown in paragraph | 23 | | (1) shall be computed upon the last known equalized assessed | 24 | | value of taxable property in the taxing district (at the time | 25 | | the submission of the proposition is initiated by the taxing | 26 | | district). Paragraph (3) shall be included only if the |
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| 1 | | increased limiting rate will be applicable for more than one | 2 | | levy year and shall list each levy year for which the increased | 3 | | limiting rate will be applicable. The additional tax shown for | 4 | | each levy year shall be the approximate dollar amount of the | 5 | | increase over the amount of the most recently completed | 6 | | extension at the time the submission of the proposition is | 7 | | initiated by the taxing district. The approximate amount of the | 8 | | additional taxes extendable shown in paragraphs (2) and (3) | 9 | | shall be calculated by multiplying $100,000 (the fair market | 10 | | value of the property without regard to any property tax | 11 | | exemptions) by (i) the percentage level of assessment | 12 | | prescribed for that property by statute, or by ordinance of the | 13 | | county board in counties that classify property for purposes of | 14 | | taxation in accordance with Section 4 of Article IX of the | 15 | | Illinois Constitution; (ii) the most recent final equalization | 16 | | factor certified to the county clerk by the Department of | 17 | | Revenue at the time the taxing district initiates the | 18 | | submission of the proposition to the electors; and (iii) either | 19 | | the new rate or the amount by which the limiting rate is to be | 20 | | increased. This amendatory Act of the 97th General Assembly is | 21 | | intended to clarify the existing requirements of this Section, | 22 | | and shall not be construed to validate any prior non-compliant | 23 | | referendum language. Paragraph (4) shall be included if the | 24 | | proposition concerns a limiting rate increase but shall not be | 25 | | included if the proposition concerns a new rate. Any notice | 26 | | required to be published in connection with the submission of |
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| 1 | | the proposition shall also contain this supplemental | 2 | | information and shall not contain any other supplemental | 3 | | information regarding the proposition. Any error, | 4 | | miscalculation, or inaccuracy in computing any amount set forth | 5 | | on the ballot and in the notice that is not deliberate shall | 6 | | not invalidate or affect the validity of any proposition | 7 | | approved. Notice of the referendum shall be published and | 8 | | posted as otherwise required by law, and the submission of the | 9 | | proposition shall be initiated as provided by law. | 10 | | If a majority of all ballots cast on the proposition are in | 11 | | favor of the proposition, the following provisions shall be | 12 | | applicable to the extension of taxes for the taxing district: | 13 | | (A) a new tax rate shall be first effective for the | 14 | | levy year in which the new rate is approved; | 15 | | (B) if the proposition provides for a new tax rate, the | 16 | | taxing district is authorized to levy a tax after the | 17 | | canvass of the results of the referendum by the election | 18 | | authority for the purposes for which the tax is authorized; | 19 | | (C) a limiting rate increase shall be first effective | 20 | | for the levy year in which the limiting rate increase is | 21 | | approved, provided that the taxing district may elect to | 22 | | have a limiting rate increase be effective for the levy | 23 | | year prior to the levy year in which the limiting rate | 24 | | increase is approved unless the extension of taxes for the | 25 | | prior levy year occurs 30 days or less after the canvass of | 26 | | the results of the referendum by the election authority in |
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| 1 | | any county in which the taxing district is located; | 2 | | (D) in order for the limiting rate increase to be first | 3 | | effective for the levy year prior to the levy year of the | 4 | | referendum, the taxing district must certify its election | 5 | | to have the limiting rate increase be effective for the | 6 | | prior levy year to the clerk of each county in which the | 7 | | taxing district is located not more than 2 days after the | 8 | | date the results of the referendum are canvassed by the | 9 | | election authority; and | 10 | | (E) if the proposition provides for a limiting rate | 11 | | increase, the increase may be effective regardless of | 12 | | whether the proposition is approved before or after the | 13 | | taxing district adopts or files its levy for any levy year.
| 14 | | Rates
required to extend taxes on levies subject to a | 15 | | backdoor referendum in each
year there is a levy are not new | 16 | | rates or rate increases under this Section if
a
levy has been | 17 | | made for the fund in one or more of the preceding 3 levy
years. | 18 | | Changes made by this amendatory Act of 1997 to this Section in
| 19 | | reference to rates required to extend taxes on levies subject | 20 | | to a backdoor
referendum in each year there is a levy are | 21 | | declarative of existing law and not
a new enactment. | 22 | | (b) Whenever other applicable law authorizes a taxing | 23 | | district
subject to the
limitation
with respect to its | 24 | | aggregate extension provided for in this Law to issue bonds
or | 25 | | other obligations either without referendum or subject to | 26 | | backdoor
referendum, the taxing district may elect for each |
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| 1 | | separate bond issuance to
submit the question of the issuance | 2 | | of the bonds or obligations directly to the
voters of the | 3 | | taxing district, and if the referendum passes the taxing
| 4 | | district is not required to comply with any backdoor referendum
| 5 | | procedures or requirements set forth in the other applicable | 6 | | law. The
direct referendum shall be initiated by ordinance or | 7 | | resolution of the
governing body of the taxing district, and | 8 | | the question shall be certified
to the proper election | 9 | | authorities in accordance with the provisions of the
Election | 10 | | Code.
| 11 | | (Source: P.A. 96-764, eff. 8-25-09; 97-1087, eff. 8-24-12.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
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