Full Text of SB1592 093rd General Assembly
SB1592enr 93RD GENERAL ASSEMBLY
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SB1592 Enrolled |
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| AN ACT concerning taxes.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Section 18-185 as follows: | 6 |
| (35 ILCS 200/18-185)
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| Sec. 18-185. Short title; definitions. This Division 5 may | 8 |
| be cited as the
Property Tax Extension Limitation Law. As used | 9 |
| in this Division 5:
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| "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.
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| "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 rate | 16 |
| of increase approved by voters under Section 18-205.
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| "Affected county" means a county of 3,000,000 or more | 18 |
| inhabitants or a
county contiguous to a county of 3,000,000 or | 19 |
| more inhabitants.
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| "Taxing district" has the same meaning provided in Section | 21 |
| 1-150, except as
otherwise provided in this Section. For the | 22 |
| 1991 through 1994 levy years only,
"taxing district" includes | 23 |
| only each non-home rule taxing district having the
majority of | 24 |
| its
1990 equalized assessed value within any county or counties | 25 |
| contiguous to a
county with 3,000,000 or more inhabitants. | 26 |
| Beginning with the 1995 levy
year, "taxing district" includes | 27 |
| only each non-home rule taxing district
subject to this Law | 28 |
| before the 1995 levy year and each non-home rule
taxing | 29 |
| district not subject to this Law before the 1995 levy year | 30 |
| having the
majority of its 1994 equalized assessed value in an | 31 |
| affected county or
counties. Beginning with the levy year in
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| which this Law becomes applicable to a taxing district as
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| provided in Section 18-213, "taxing district" also includes | 2 |
| those taxing
districts made subject to this Law as provided in | 3 |
| Section 18-213.
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| "Aggregate extension" for taxing districts to which this | 5 |
| Law applied before
the 1995 levy year means the annual | 6 |
| corporate extension for the taxing
district and those special | 7 |
| purpose extensions that are made annually for
the taxing | 8 |
| district, excluding special purpose extensions: (a) made for | 9 |
| the
taxing district to pay interest or principal on general | 10 |
| obligation bonds
that were approved by referendum; (b) made for | 11 |
| any taxing district to pay
interest or principal on general | 12 |
| obligation bonds issued before October 1,
1991; (c) made for | 13 |
| any taxing district to pay interest or principal on bonds
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| issued to refund or continue to refund those bonds issued | 15 |
| before October 1,
1991; (d)
made for any taxing district to pay | 16 |
| interest or principal on bonds
issued to refund or continue to | 17 |
| refund bonds issued after October 1, 1991 that
were approved by | 18 |
| referendum; (e)
made for any taxing district to pay interest
or | 19 |
| principal on revenue bonds issued before October 1, 1991 for | 20 |
| payment of
which a property tax levy or the full faith and | 21 |
| credit of the unit of local
government is pledged; however, a | 22 |
| tax for the payment of interest or principal
on those bonds | 23 |
| shall be made only after the governing body of the unit of | 24 |
| local
government finds that all other sources for payment are | 25 |
| insufficient to make
those payments; (f) made for payments | 26 |
| under a building commission lease when
the lease payments are | 27 |
| for the retirement of bonds issued by the commission
before | 28 |
| October 1, 1991, to pay for the building project; (g) made for | 29 |
| payments
due under installment contracts entered into before | 30 |
| October 1, 1991;
(h) made for payments of principal and | 31 |
| interest on bonds issued under the
Metropolitan Water | 32 |
| Reclamation District Act to finance construction projects
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| initiated before October 1, 1991; (i) made for payments of | 34 |
| principal and
interest on limited bonds, as defined in Section | 35 |
| 3 of the Local Government Debt
Reform Act, in an amount not to | 36 |
| exceed the debt service extension base less
the amount in items |
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| (b), (c), (e), and (h) of this definition for
non-referendum | 2 |
| obligations, except obligations initially issued pursuant to
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| referendum; (j) made for payments of principal and interest on | 4 |
| bonds
issued under Section 15 of the Local Government Debt | 5 |
| Reform Act; (k)
made
by a school district that participates in | 6 |
| the Special Education District of
Lake County, created by | 7 |
| special education joint agreement under Section
10-22.31 of the | 8 |
| School Code, for payment of the school district's share of the
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| amounts required to be contributed by the Special Education | 10 |
| District of Lake
County to the Illinois Municipal Retirement | 11 |
| Fund under Article 7 of the
Illinois Pension Code; the amount | 12 |
| of any extension under this item (k) shall be
certified by the | 13 |
| school district to the county clerk; and (l) made to fund
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| expenses of providing joint recreational programs for the | 15 |
| handicapped under
Section 5-8 of
the
Park District Code or | 16 |
| Section 11-95-14 of the Illinois Municipal Code.
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| "Aggregate extension" for the taxing districts to which | 18 |
| this Law did not
apply before the 1995 levy year (except taxing | 19 |
| districts subject to this Law
in
accordance with Section | 20 |
| 18-213) means the annual corporate extension for the
taxing | 21 |
| district and those special purpose extensions that are made | 22 |
| annually for
the taxing district, excluding special purpose | 23 |
| extensions: (a) made for the
taxing district to pay interest or | 24 |
| principal on general obligation bonds that
were approved by | 25 |
| referendum; (b) made for any taxing district to pay interest
or | 26 |
| principal on general obligation bonds issued before March 1, | 27 |
| 1995; (c) made
for any taxing district to pay interest or | 28 |
| principal on bonds issued to refund
or continue to refund those | 29 |
| bonds issued before March 1, 1995; (d) made for any
taxing | 30 |
| district to pay interest or principal on bonds issued to refund | 31 |
| or
continue to refund bonds issued after March 1, 1995 that | 32 |
| were approved by
referendum; (e) made for any taxing district | 33 |
| to pay interest or principal on
revenue bonds issued before | 34 |
| March 1, 1995 for payment of which a property tax
levy or the | 35 |
| full faith and credit of the unit of local government is | 36 |
| pledged;
however, a tax for the payment of interest or |
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| principal on those bonds shall be
made only after the governing | 2 |
| body of the unit of local government finds that
all other | 3 |
| sources for payment are insufficient to make those payments; | 4 |
| (f) made
for payments under a building commission lease when | 5 |
| the lease payments are for
the retirement of bonds issued by | 6 |
| the commission before March 1, 1995 to
pay for the building | 7 |
| project; (g) made for payments due under installment
contracts | 8 |
| entered into before March 1, 1995; (h) made for payments of
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| principal and interest on bonds issued under the Metropolitan | 10 |
| Water Reclamation
District Act to finance construction | 11 |
| projects initiated before October 1,
1991; (i) made for | 12 |
| payments of principal and interest on limited bonds,
as defined | 13 |
| in Section 3 of the Local Government Debt Reform Act, in an | 14 |
| amount
not to exceed the debt service extension base less the | 15 |
| amount in items (b),
(c), and (e) of this definition for | 16 |
| non-referendum obligations, except
obligations initially | 17 |
| issued pursuant to referendum and bonds described in
subsection | 18 |
| (h) of this definition; (j) made for payments of
principal and | 19 |
| interest on bonds issued under Section 15 of the Local | 20 |
| Government
Debt Reform Act; (k) made for payments of principal | 21 |
| and interest on bonds
authorized by Public Act 88-503 and | 22 |
| issued under Section 20a of the Chicago
Park District Act for | 23 |
| aquarium or
museum projects; (l) made for payments of principal | 24 |
| and interest on
bonds
authorized by Public Act 87-1191 or | 25 |
| 93-601
this amendatory Act of the 93rd General
Assembly and (i) | 26 |
| issued pursuant to Section 21.2 of the Cook County Forest
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| Preserve District Act, (ii) issued under Section 42 of the Cook | 28 |
| County
Forest Preserve District Act for zoological park | 29 |
| projects, or (iii) issued
under Section 44.1 of the Cook County | 30 |
| Forest Preserve District Act for
botanical gardens projects; | 31 |
| (m) made
pursuant
to Section 34-53.5 of the School Code, | 32 |
| whether levied annually or not;
(n) made to fund expenses of | 33 |
| providing joint recreational programs for the
handicapped | 34 |
| under Section 5-8 of the Park
District Code or Section 11-95-14 | 35 |
| of the Illinois Municipal Code;
and (o) made by the
Chicago | 36 |
| Park
District for recreational programs for the handicapped |
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| under subsection (c) of
Section
7.06 of the Chicago Park | 2 |
| District Act.
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| "Aggregate extension" for all taxing districts to which | 4 |
| this Law applies in
accordance with Section 18-213, except for | 5 |
| those taxing districts subject to
paragraph (2) of subsection | 6 |
| (e) of Section 18-213, means the annual corporate
extension for | 7 |
| the
taxing district and those special purpose extensions that | 8 |
| are made annually for
the taxing district, excluding special | 9 |
| purpose extensions: (a) made for the
taxing district to pay | 10 |
| interest or principal on general obligation bonds that
were | 11 |
| approved by referendum; (b) made for any taxing district to pay | 12 |
| interest
or principal on general obligation bonds issued before | 13 |
| the date on which the
referendum making this
Law applicable to | 14 |
| the taxing district is held; (c) made
for any taxing district | 15 |
| to pay interest or principal on bonds issued to refund
or | 16 |
| continue to refund those bonds issued before the date on which | 17 |
| the
referendum making this Law
applicable to the taxing | 18 |
| district is held;
(d) made for any
taxing district to pay | 19 |
| interest or principal on bonds issued to refund or
continue to | 20 |
| refund bonds issued after the date on which the referendum | 21 |
| making
this Law
applicable to the taxing district is held if | 22 |
| the bonds were approved by
referendum after the date on which | 23 |
| the referendum making this Law
applicable to the taxing | 24 |
| district is held; (e) made for any
taxing district to pay | 25 |
| interest or principal on
revenue bonds issued before the date | 26 |
| on which the referendum making this Law
applicable to the
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| taxing district is held for payment of which a property tax
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| levy or the full faith and credit of the unit of local | 29 |
| government is pledged;
however, a tax for the payment of | 30 |
| interest or principal on those bonds shall be
made only after | 31 |
| the governing body of the unit of local government finds that
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| all other sources for payment are insufficient to make those | 33 |
| payments; (f) made
for payments under a building commission | 34 |
| lease when the lease payments are for
the retirement of bonds | 35 |
| issued by the commission before the date on which the
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| referendum making this
Law applicable to the taxing district is |
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| held to
pay for the building project; (g) made for payments due | 2 |
| under installment
contracts entered into before the date on | 3 |
| which the referendum making this Law
applicable to
the taxing | 4 |
| district is held;
(h) made for payments
of principal and | 5 |
| interest on limited bonds,
as defined in Section 3 of the Local | 6 |
| Government Debt Reform Act, in an amount
not to exceed the debt | 7 |
| service extension base less the amount in items (b),
(c), and | 8 |
| (e) of this definition for non-referendum obligations, except
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| obligations initially issued pursuant to referendum; (i) made | 10 |
| for payments
of
principal and interest on bonds issued under | 11 |
| Section 15 of the Local Government
Debt Reform Act;
(j)
made | 12 |
| for a qualified airport authority to pay interest or principal | 13 |
| on
general obligation bonds issued for the purpose of paying | 14 |
| obligations due
under, or financing airport facilities | 15 |
| required to be acquired, constructed,
installed or equipped | 16 |
| pursuant to, contracts entered into before March
1, 1996 (but | 17 |
| not including any amendments to such a contract taking effect | 18 |
| on
or after that date); and (k) made to fund expenses of | 19 |
| providing joint
recreational programs for the handicapped | 20 |
| under Section 5-8 of
the
Park District Code or Section 11-95-14 | 21 |
| of the Illinois Municipal Code ; and (l) made for payments of | 22 |
| principal and interest on bonds issued before July 1, 2005 by | 23 |
| any school district on the State Board of Education's Financial | 24 |
| Warning List for the purpose of financing a retrofit program to | 25 |
| replace steam pipes .
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| "Aggregate extension" for all taxing districts to which | 27 |
| this Law applies in
accordance with paragraph (2) of subsection | 28 |
| (e) of Section 18-213 means the
annual corporate extension for | 29 |
| the
taxing district and those special purpose extensions that | 30 |
| are 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 pay | 34 |
| interest
or principal on general obligation bonds issued before | 35 |
| the effective date of
this amendatory Act of 1997;
(c) made
for | 36 |
| any taxing district to pay interest or principal on bonds |
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| issued to refund
or continue to refund those bonds issued | 2 |
| before the effective date
of this amendatory Act of 1997;
(d) | 3 |
| made for any
taxing district to pay interest or principal on | 4 |
| bonds issued to refund or
continue to refund bonds issued after | 5 |
| the effective date of this amendatory Act
of 1997 if the bonds | 6 |
| were approved by referendum after the effective date of
this | 7 |
| amendatory Act of 1997;
(e) made for any
taxing district to pay | 8 |
| interest or principal on
revenue bonds issued before the | 9 |
| effective date of this amendatory Act of 1997
for payment of | 10 |
| which a property tax
levy or the full faith and credit of the | 11 |
| unit of local government is pledged;
however, a tax for the | 12 |
| payment of interest or principal on those bonds shall be
made | 13 |
| only after the governing body of the unit of local government | 14 |
| finds that
all other sources for payment are insufficient to | 15 |
| make those payments; (f) made
for payments under a building | 16 |
| commission lease when the lease payments are for
the retirement | 17 |
| of bonds issued by the commission before the effective date
of | 18 |
| this amendatory Act of 1997
to
pay for the building project; | 19 |
| (g) made for payments due under installment
contracts entered | 20 |
| into before the effective date of this amendatory Act of
1997;
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| (h) made for payments
of principal and interest on limited | 22 |
| bonds,
as defined in Section 3 of the Local Government Debt | 23 |
| Reform Act, in an amount
not to exceed the debt service | 24 |
| extension base less the amount in items (b),
(c), and (e) of | 25 |
| this definition for non-referendum obligations, except
| 26 |
| obligations initially issued pursuant to referendum; (i) made | 27 |
| for payments
of
principal and interest on bonds issued under | 28 |
| Section 15 of the Local Government
Debt Reform Act;
(j)
made | 29 |
| for a qualified airport authority to pay interest or principal | 30 |
| on
general obligation bonds issued for the purpose of paying | 31 |
| obligations due
under, or financing airport facilities | 32 |
| required to be acquired, constructed,
installed or equipped | 33 |
| pursuant to, contracts entered into before March
1, 1996 (but | 34 |
| not including any amendments to such a contract taking effect | 35 |
| on
or after that date); and (k) made to fund expenses of | 36 |
| providing joint
recreational programs for the handicapped |
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| under Section 5-8 of
the
Park District Code or Section 11-95-14 | 2 |
| of the Illinois Municipal Code.
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| "Debt service extension base" means an amount equal to that | 4 |
| portion of the
extension for a taxing district for the 1994 | 5 |
| levy year, or for those taxing
districts subject to this Law in | 6 |
| accordance with Section 18-213, except for
those subject to | 7 |
| paragraph (2) of subsection (e) of Section 18-213, for the
levy
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| year in which the referendum making this Law applicable to the | 9 |
| taxing district
is held, or for those taxing districts subject | 10 |
| to this Law in accordance with
paragraph (2) of subsection (e) | 11 |
| of Section 18-213 for the 1996 levy year,
constituting an
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| extension for payment of principal and interest on bonds issued | 13 |
| by the taxing
district without referendum, but not including | 14 |
| excluded non-referendum bonds. For park districts (i) that were | 15 |
| first
subject to this Law in 1991 or 1995 and (ii) whose | 16 |
| extension for the 1994 levy
year for the payment of principal | 17 |
| and interest on bonds issued by the park
district without | 18 |
| referendum (but not including excluded non-referendum bonds)
| 19 |
| was less than 51% of the amount for the 1991 levy year | 20 |
| constituting an
extension for payment of principal and interest | 21 |
| on bonds issued by the park
district without referendum (but | 22 |
| not including excluded non-referendum bonds),
"debt service | 23 |
| extension base" means an amount equal to that portion of the
| 24 |
| extension for the 1991 levy year constituting an extension for | 25 |
| payment of
principal and interest on bonds issued by the park | 26 |
| district without referendum
(but not including excluded | 27 |
| non-referendum bonds). The debt service extension
base may be | 28 |
| established or increased as provided under Section 18-212.
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| "Excluded non-referendum bonds" means (i) bonds authorized by | 30 |
| Public
Act 88-503 and issued under Section 20a of the Chicago | 31 |
| Park District Act for
aquarium and museum projects; (ii) bonds | 32 |
| issued under Section 15 of the
Local Government Debt Reform | 33 |
| Act; or (iii) refunding obligations issued
to refund or to | 34 |
| continue to refund obligations initially issued pursuant to
| 35 |
| referendum.
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| "Special purpose extensions" include, but are not limited |
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| to, extensions
for levies made on an annual basis for | 2 |
| unemployment and workers'
compensation, self-insurance, | 3 |
| contributions to pension plans, and extensions
made pursuant to | 4 |
| Section 6-601 of the Illinois Highway Code for a road
| 5 |
| district's permanent road fund whether levied annually or not. | 6 |
| The
extension for a special service area is not included in the
| 7 |
| aggregate extension.
| 8 |
| "Aggregate extension base" means the taxing district's | 9 |
| last preceding
aggregate extension as adjusted under Sections | 10 |
| 18-215 through 18-230.
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| "Levy year" has the same meaning as "year" under Section
| 12 |
| 1-155.
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| "New property" means (i) the assessed value, after final | 14 |
| board of review or
board of appeals action, of new improvements | 15 |
| or additions to existing
improvements on any parcel of real | 16 |
| property that increase the assessed value of
that real property | 17 |
| during the levy year multiplied by the equalization factor
| 18 |
| issued by the Department under Section 17-30, (ii) the assessed | 19 |
| value, after
final board of review or board of appeals action, | 20 |
| of real property not exempt
from real estate taxation, which | 21 |
| real property was exempt from real estate
taxation for any | 22 |
| portion of the immediately preceding levy year, multiplied by
| 23 |
| the equalization factor issued by the Department under Section | 24 |
| 17-30, and
(iii) in counties that classify in accordance with | 25 |
| Section 4 of Article
IX of the
Illinois Constitution, an | 26 |
| incentive property's additional assessed value
resulting from | 27 |
| a
scheduled increase in the level of assessment as applied to | 28 |
| the first year
final board of
review market value.
In addition, | 29 |
| the county clerk in a county containing a population of
| 30 |
| 3,000,000 or more shall include in the 1997
recovered tax | 31 |
| increment value for any school district, any recovered tax
| 32 |
| increment value that was applicable to the 1995 tax year | 33 |
| calculations.
| 34 |
| "Qualified airport authority" means an airport authority | 35 |
| organized under
the Airport Authorities Act and located in a | 36 |
| county bordering on the State of
Wisconsin and having a |
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| population in excess of 200,000 and not greater than
500,000.
| 2 |
| "Recovered tax increment value" means, except as otherwise | 3 |
| provided in this
paragraph, the amount of the current year's | 4 |
| equalized assessed value, in the
first year after a | 5 |
| municipality terminates
the designation of an area as a | 6 |
| redevelopment project area previously
established under the | 7 |
| Tax Increment Allocation Development Act in the Illinois
| 8 |
| Municipal Code, previously established under the Industrial | 9 |
| Jobs Recovery Law
in the Illinois Municipal Code, or previously | 10 |
| established under the Economic
Development Area Tax Increment | 11 |
| Allocation Act, of each taxable lot, block,
tract, or parcel of | 12 |
| real property in the redevelopment project area over and
above | 13 |
| the initial equalized assessed value of each property in the
| 14 |
| redevelopment project area.
For the taxes which are extended | 15 |
| for the 1997 levy year, the recovered tax
increment value for a | 16 |
| non-home rule taxing district that first became subject
to this | 17 |
| Law for the 1995 levy year because a majority of its 1994 | 18 |
| equalized
assessed value was in an affected county or counties | 19 |
| shall be increased if a
municipality terminated the designation | 20 |
| of an area in 1993 as a redevelopment
project area previously | 21 |
| established under the Tax Increment Allocation
Development Act | 22 |
| in the Illinois Municipal Code, previously established under
| 23 |
| the Industrial Jobs Recovery Law in the Illinois Municipal | 24 |
| Code, or previously
established under the Economic Development | 25 |
| Area Tax Increment Allocation Act,
by an amount equal to the | 26 |
| 1994 equalized assessed value of each taxable lot,
block, | 27 |
| tract, or parcel of real property in the redevelopment project | 28 |
| area over
and above the initial equalized assessed value of | 29 |
| each property in the
redevelopment project area.
In the first | 30 |
| year after a municipality
removes a taxable lot, block, tract, | 31 |
| or parcel of real property from a
redevelopment project area | 32 |
| established under the Tax Increment Allocation
Development Act | 33 |
| in the Illinois
Municipal Code, the Industrial Jobs Recovery | 34 |
| Law
in the Illinois Municipal Code, or the Economic
Development | 35 |
| Area Tax Increment Allocation Act, "recovered tax increment | 36 |
| value"
means the amount of the current year's equalized |
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| assessed value of each taxable
lot, block, tract, or parcel of | 2 |
| real property removed from the redevelopment
project area over | 3 |
| and above the initial equalized assessed value of that real
| 4 |
| property before removal from the redevelopment project area.
| 5 |
| Except as otherwise provided in this Section, "limiting | 6 |
| rate" means a
fraction the numerator of which is the last
| 7 |
| preceding aggregate extension base times an amount equal to one | 8 |
| plus the
extension limitation defined in this Section and the | 9 |
| denominator of which
is the current year's equalized assessed | 10 |
| value of all real property in the
territory under the | 11 |
| jurisdiction of the taxing district during the prior
levy year. | 12 |
| For those taxing districts that reduced their aggregate
| 13 |
| extension for the last preceding levy year, the highest | 14 |
| aggregate extension
in any of the last 3 preceding levy years | 15 |
| shall be used for the purpose of
computing the limiting rate. | 16 |
| The denominator shall not include new
property. The denominator | 17 |
| shall not include the recovered tax increment
value.
| 18 |
| (Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04; | 19 |
| 93-606, eff. 11-18-03; 93-612, eff. 11-18-03; revised | 20 |
| 12-10-03.)
| 21 |
| Section 99. Effective date. This Act takes effect upon | 22 |
| becoming law.
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