Full Text of HB5427 101st General Assembly
HB5427 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB5427 Introduced , by Rep. Grant Wehrli - Joe Sosnowski - Amy Grant, Lindsay Parkhurst and Tom Weber SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/18-185 |
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35 ILCS 200/18-205 |
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35 ILCS 200/18-212 |
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Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that the extension limitation is 3.5% (currently, 5%) or the percentage increase
in the Consumer Price Index. Provides that the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units.
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| | FISCAL NOTE ACT MAY APPLY | HOME RULE 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 | | Sections 18-185, 18-205, and 18-212 as follows: | 6 | | (35 ILCS 200/18-185)
| 7 | | 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:
| 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 3.5% 5% or | 14 | | the 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.
| 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 or | 19 | | more inhabitants.
| 20 | | "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 |
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| 1 | | its
1990 equalized assessed value within any county or counties | 2 | | contiguous to a
county with 3,000,000 or more inhabitants. | 3 | | Beginning with the 1995 levy
year, "taxing district" includes | 4 | | only each non-home rule taxing district
subject to this Law | 5 | | before the 1995 levy year and each non-home rule
taxing | 6 | | district not subject to this Law before the 1995 levy year | 7 | | having the
majority of its 1994 equalized assessed value in an | 8 | | affected county or
counties. Beginning with the levy year in
| 9 | | which this Law becomes applicable to a taxing district as
| 10 | | provided in Section 18-213, "taxing district" also includes | 11 | | those taxing
districts made subject to this Law as provided in | 12 | | Section 18-213.
Beginning in levy year 2021, "taxing district" | 13 | | means all taxing districts, as defined in Section 1-150, | 14 | | including, but not limited to, home rule units. This Section is | 15 | | a limitation of
the power of home rule units to tax in | 16 | | accordance with subsection (g) of Section 6
of Article VII of | 17 | | the Illinois Constitution.
| 18 | | "Aggregate extension" for taxing districts to which this | 19 | | Law applied before
the 1995 levy year means the annual | 20 | | corporate extension for the taxing
district and those special | 21 | | purpose extensions that are made annually for
the taxing | 22 | | district, excluding special purpose extensions: (a) made for | 23 | | the
taxing district to pay interest or principal on general | 24 | | obligation bonds
that were approved by referendum; (b) made for | 25 | | any taxing district to pay
interest or principal on general | 26 | | obligation bonds issued before October 1,
1991; (c) made for |
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| 1 | | any taxing district to pay interest or principal on bonds
| 2 | | issued to refund or continue to refund those bonds issued | 3 | | before October 1,
1991; (d)
made for any taxing district to pay | 4 | | interest or principal on bonds
issued to refund or continue to | 5 | | refund bonds issued after October 1, 1991 that
were approved by | 6 | | referendum; (e)
made for any taxing district to pay interest
or | 7 | | principal on revenue bonds issued before October 1, 1991 for | 8 | | payment of
which a property tax levy or the full faith and | 9 | | credit of the unit of local
government is pledged; however, a | 10 | | tax for the payment of interest or principal
on those bonds | 11 | | shall be made only after the governing body of the unit of | 12 | | local
government finds that all other sources for payment are | 13 | | insufficient to make
those payments; (f) made for payments | 14 | | under a building commission lease when
the lease payments are | 15 | | for the retirement of bonds issued by the commission
before | 16 | | October 1, 1991, to pay for the building project; (g) made for | 17 | | payments
due under installment contracts entered into before | 18 | | October 1, 1991;
(h) made for payments of principal and | 19 | | interest on bonds issued under the
Metropolitan Water | 20 | | Reclamation District Act to finance construction projects
| 21 | | initiated before October 1, 1991; (i) made for payments of | 22 | | principal and
interest on limited bonds, as defined in Section | 23 | | 3 of the Local Government Debt
Reform Act, in an amount not to | 24 | | exceed the debt service extension base less
the amount in items | 25 | | (b), (c), (e), and (h) of this definition for
non-referendum | 26 | | obligations, except obligations initially issued pursuant to
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| 1 | | referendum; (j) made for payments of principal and interest on | 2 | | bonds
issued under Section 15 of the Local Government Debt | 3 | | Reform Act; (k)
made
by a school district that participates in | 4 | | the Special Education District of
Lake County, created by | 5 | | special education joint agreement under Section
10-22.31 of the | 6 | | School Code, for payment of the school district's share of the
| 7 | | amounts required to be contributed by the Special Education | 8 | | District of Lake
County to the Illinois Municipal Retirement | 9 | | Fund under Article 7 of the
Illinois Pension Code; the amount | 10 | | of any extension under this item (k) shall be
certified by the | 11 | | school district to the county clerk; (l) made to fund
expenses | 12 | | of providing joint recreational programs for persons with | 13 | | disabilities under
Section 5-8 of
the
Park District Code or | 14 | | Section 11-95-14 of the Illinois Municipal Code; (m) made for | 15 | | temporary relocation loan repayment purposes pursuant to | 16 | | Sections 2-3.77 and 17-2.2d of the School Code; (n) made for | 17 | | payment of principal and interest on any bonds issued under the | 18 | | authority of Section 17-2.2d of the School Code; (o) made for | 19 | | contributions to a firefighter's pension fund created under | 20 | | Article 4 of the Illinois Pension Code, to the extent of the | 21 | | amount certified under item (5) of Section 4-134 of the | 22 | | Illinois Pension Code; and (p) made for road purposes in the | 23 | | first year after a township assumes the rights, powers, duties, | 24 | | assets, property, liabilities, obligations, and
| 25 | | responsibilities of a road district abolished under the | 26 | | provisions of Section 6-133 of the Illinois Highway Code.
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| 1 | | "Aggregate extension" for the taxing districts to which | 2 | | this Law did not
apply before the 1995 levy year (except taxing | 3 | | districts subject to this Law
in
accordance with Section | 4 | | 18-213) means the annual corporate extension for the
taxing | 5 | | district and those special purpose extensions that are made | 6 | | annually for
the taxing district, excluding special purpose | 7 | | extensions: (a) made for the
taxing district to pay interest or | 8 | | principal on general obligation bonds that
were approved by | 9 | | referendum; (b) made for any taxing district to pay interest
or | 10 | | principal on general obligation bonds issued before March 1, | 11 | | 1995; (c) made
for any taxing district to pay interest or | 12 | | principal on bonds issued to refund
or continue to refund those | 13 | | bonds issued before March 1, 1995; (d) made for any
taxing | 14 | | district to pay interest or principal on bonds issued to refund | 15 | | or
continue to refund bonds issued after March 1, 1995 that | 16 | | were approved by
referendum; (e) made for any taxing district | 17 | | to pay interest or principal on
revenue bonds issued before | 18 | | March 1, 1995 for payment of which a property tax
levy or the | 19 | | full faith and credit of the unit of local government is | 20 | | pledged;
however, a tax for the payment of interest or | 21 | | principal on those bonds shall be
made only after the governing | 22 | | body of the unit of local government finds that
all other | 23 | | sources for payment are insufficient to make those payments; | 24 | | (f) made
for payments under a building commission lease when | 25 | | the lease payments are for
the retirement of bonds issued by | 26 | | the commission before March 1, 1995 to
pay for the building |
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| 1 | | project; (g) made for payments due under installment
contracts | 2 | | entered into before March 1, 1995; (h) made for payments of
| 3 | | principal and interest on bonds issued under the Metropolitan | 4 | | Water Reclamation
District Act to finance construction | 5 | | projects initiated before October 1,
1991; (h-4) made for | 6 | | stormwater management purposes by the Metropolitan Water | 7 | | Reclamation District of Greater Chicago under Section 12 of the | 8 | | Metropolitan Water Reclamation District Act; (i) made for | 9 | | payments of principal and interest on limited bonds,
as defined | 10 | | in Section 3 of the Local Government Debt Reform Act, in an | 11 | | amount
not to exceed the debt service extension base less the | 12 | | amount in items (b),
(c), and (e) of this definition for | 13 | | non-referendum obligations, except
obligations initially | 14 | | issued pursuant to referendum and bonds described in
subsection | 15 | | (h) of this definition; (j) made for payments of
principal and | 16 | | interest on bonds issued under Section 15 of the Local | 17 | | Government
Debt Reform Act; (k) made for payments of principal | 18 | | and interest on bonds
authorized by Public Act 88-503 and | 19 | | issued under Section 20a of the Chicago
Park District Act for | 20 | | aquarium or
museum projects; (l) made for payments of principal | 21 | | and interest on
bonds
authorized by Public Act 87-1191 or | 22 | | 93-601 and (i) issued pursuant to Section 21.2 of the Cook | 23 | | County Forest
Preserve District Act, (ii) issued under Section | 24 | | 42 of the Cook County
Forest Preserve District Act for | 25 | | zoological park projects, or (iii) issued
under Section 44.1 of | 26 | | the Cook County Forest Preserve District Act for
botanical |
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| 1 | | gardens projects; (m) made
pursuant
to Section 34-53.5 of the | 2 | | School Code, whether levied annually or not;
(n) made to fund | 3 | | expenses of providing joint recreational programs for persons | 4 | | with disabilities under Section 5-8 of the Park
District Code | 5 | | or Section 11-95-14 of the Illinois Municipal Code;
(o) made by | 6 | | the
Chicago Park
District for recreational programs for persons | 7 | | with disabilities under subsection (c) of
Section
7.06 of the | 8 | | Chicago Park District Act; (p) made for contributions to a | 9 | | firefighter's pension fund created under Article 4 of the | 10 | | Illinois Pension Code, to the extent of the amount certified | 11 | | under item (5) of Section 4-134 of the Illinois Pension Code; | 12 | | (q) made by Ford Heights School District 169 under Section | 13 | | 17-9.02 of the School Code; and (r) made for the purpose of | 14 | | making employer contributions to the Public School Teachers' | 15 | | Pension and Retirement Fund of Chicago under Section 34-53 of | 16 | | the School Code.
| 17 | | "Aggregate extension" for all taxing districts to which | 18 | | this Law applies in
accordance with Section 18-213, except for | 19 | | those taxing districts subject to
paragraph (2) of subsection | 20 | | (e) of Section 18-213, means the annual corporate
extension for | 21 | | the
taxing district and those special purpose extensions that | 22 | | are made annually for
the taxing district, excluding special | 23 | | purpose extensions: (a) made for the
taxing district to pay | 24 | | interest or principal on general obligation bonds that
were | 25 | | approved by referendum; (b) made for any taxing district to pay | 26 | | interest
or principal on general obligation bonds issued before |
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| 1 | | the date on which the
referendum making this
Law applicable to | 2 | | the taxing district is held; (c) made
for any taxing district | 3 | | to pay interest or principal on bonds issued to refund
or | 4 | | continue to refund those bonds issued before the date on which | 5 | | the
referendum making this Law
applicable to the taxing | 6 | | district is held;
(d) made for any
taxing district to pay | 7 | | interest or principal on bonds issued to refund or
continue to | 8 | | refund bonds issued after the date on which the referendum | 9 | | making
this Law
applicable to the taxing district is held if | 10 | | the bonds were approved by
referendum after the date on which | 11 | | the referendum making this Law
applicable to the taxing | 12 | | district is held; (e) made for any
taxing district to pay | 13 | | interest or principal on
revenue bonds issued before the date | 14 | | on which the referendum making this Law
applicable to the
| 15 | | taxing district is held for payment of which a property tax
| 16 | | levy or the full faith and credit of the unit of local | 17 | | government is pledged;
however, a tax for the payment of | 18 | | interest or principal on those bonds shall be
made only after | 19 | | the governing body of the unit of local government finds that
| 20 | | all other sources for payment are insufficient to make those | 21 | | payments; (f) made
for payments under a building commission | 22 | | lease when the lease payments are for
the retirement of bonds | 23 | | issued by the commission before the date on which the
| 24 | | referendum making this
Law applicable to the taxing district is | 25 | | held to
pay for the building project; (g) made for payments due | 26 | | under installment
contracts entered into before the date on |
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| 1 | | which the referendum making this Law
applicable to
the taxing | 2 | | district is held;
(h) made for payments
of principal and | 3 | | interest on limited bonds,
as defined in Section 3 of the Local | 4 | | Government Debt Reform Act, in an amount
not to exceed the debt | 5 | | service extension base less the amount in items (b),
(c), and | 6 | | (e) of this definition for non-referendum obligations, except
| 7 | | obligations initially issued pursuant to referendum; (i) made | 8 | | for payments
of
principal and interest on bonds issued under | 9 | | Section 15 of the Local Government
Debt Reform Act;
(j)
made | 10 | | for a qualified airport authority to pay interest or principal | 11 | | on
general obligation bonds issued for the purpose of paying | 12 | | obligations due
under, or financing airport facilities | 13 | | required to be acquired, constructed,
installed or equipped | 14 | | pursuant to, contracts entered into before March
1, 1996 (but | 15 | | not including any amendments to such a contract taking effect | 16 | | on
or after that date); (k) made to fund expenses of providing | 17 | | joint
recreational programs for persons with disabilities | 18 | | under Section 5-8 of
the
Park District Code or Section 11-95-14 | 19 | | of the Illinois Municipal Code; (l) made for contributions to a | 20 | | firefighter's pension fund created under Article 4 of the | 21 | | Illinois Pension Code, to the extent of the amount certified | 22 | | under item (5) of Section 4-134 of the Illinois Pension Code; | 23 | | and (m) made for the taxing district to pay interest or | 24 | | principal on general obligation bonds issued pursuant to | 25 | | Section 19-3.10 of the School Code.
| 26 | | "Aggregate extension" for all taxing districts to which |
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| 1 | | this Law applies in
accordance with paragraph (2) of subsection | 2 | | (e) of Section 18-213 or in
accordance with this amendatory Act | 3 | | of the 101st General Assembly 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 taxing | 9 | | district to pay interest
or principal on general obligation | 10 | | bonds issued before March 7, 1997 ( the effective date of Public | 11 | | Act 89-718)
this amendatory Act of 1997 ;
(c) made
for any | 12 | | taxing district to pay interest or principal on bonds issued to | 13 | | refund
or continue to refund those bonds issued before March 7, | 14 | | 1997 ( the effective date
of Public Act 89-718) this amendatory | 15 | | Act of 1997 ;
(d) made for any
taxing district to pay interest | 16 | | or principal on bonds issued to refund or
continue to refund | 17 | | bonds issued after March 7, 1997 ( the effective date of Public | 18 | | Act 89-718) this amendatory Act
of 1997 if the bonds were | 19 | | approved by referendum after March 7, 1997 ( the effective date | 20 | | of Public Act 89-718)
this amendatory Act of 1997 ;
(e) made for | 21 | | any
taxing district to pay interest or principal on
revenue | 22 | | bonds issued before March 7, 1997 ( the effective date of Public | 23 | | Act 89-718) this amendatory Act of 1997
for payment of which a | 24 | | property tax
levy or the full faith and credit of the unit of | 25 | | local government is pledged;
however, a tax for the payment of | 26 | | interest or principal on those bonds shall be
made only after |
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| 1 | | the governing body of the unit of local government finds that
| 2 | | all other sources for payment are insufficient to make those | 3 | | payments; (f) made
for payments under a building commission | 4 | | lease when the lease payments are for
the retirement of bonds | 5 | | issued by the commission before March 7, 1997 ( the effective | 6 | | date
of Public Act 89-718) this amendatory Act of 1997
to
pay | 7 | | for the building project; (g) made for payments due under | 8 | | installment
contracts entered into before March 7, 1997 ( the | 9 | | effective date of Public Act 89-718) this amendatory Act of
| 10 | | 1997 ;
(h) made for payments
of principal and interest on | 11 | | limited bonds,
as defined in Section 3 of the Local Government | 12 | | Debt Reform Act, in an amount
not to exceed the debt service | 13 | | extension base less the amount in items (b),
(c), and (e) of | 14 | | this definition for non-referendum obligations, except
| 15 | | obligations initially issued pursuant to referendum; (i) made | 16 | | for payments
of
principal and interest on bonds issued under | 17 | | Section 15 of the Local Government
Debt Reform Act;
(j)
made | 18 | | for a qualified airport authority to pay interest or principal | 19 | | on
general obligation bonds issued for the purpose of paying | 20 | | obligations due
under, or financing airport facilities | 21 | | required to be acquired, constructed,
installed or equipped | 22 | | pursuant to, contracts entered into before March
1, 1996 (but | 23 | | not including any amendments to such a contract taking effect | 24 | | on
or after that date); (k) made to fund expenses of providing | 25 | | joint
recreational programs for persons with disabilities | 26 | | under Section 5-8 of
the
Park District Code or Section 11-95-14 |
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| 1 | | of the Illinois Municipal Code; and (l) made for contributions | 2 | | to a firefighter's pension fund created under Article 4 of the | 3 | | Illinois Pension Code, to the extent of the amount certified | 4 | | under item (5) of Section 4-134 of the Illinois Pension Code.
| 5 | | "Debt service extension base" means an amount equal to that | 6 | | portion of the
extension for a taxing district for the 1994 | 7 | | levy year, or for those taxing
districts subject to this Law in | 8 | | accordance with Section 18-213, except for
those subject to | 9 | | paragraph (2) of subsection (e) of Section 18-213, for the
levy
| 10 | | year in which the referendum making this Law applicable to the | 11 | | taxing district
is held, or for those taxing districts subject | 12 | | to this Law in accordance with
paragraph (2) of subsection (e) | 13 | | of Section 18-213 for the 1996 levy year,
constituting an
| 14 | | extension for payment of principal and interest on bonds issued | 15 | | by the taxing
district without referendum, but not including | 16 | | excluded non-referendum bonds. For park districts (i) that were | 17 | | first
subject to this Law in 1991 or 1995 and (ii) whose | 18 | | extension for the 1994 levy
year for the payment of principal | 19 | | and interest on bonds issued by the park
district without | 20 | | referendum (but not including excluded non-referendum bonds)
| 21 | | was less than 51% of the amount for the 1991 levy year | 22 | | constituting an
extension for payment of principal and interest | 23 | | on bonds issued by the park
district without referendum (but | 24 | | not including excluded non-referendum bonds),
"debt service | 25 | | extension base" means an amount equal to that portion of the
| 26 | | extension for the 1991 levy year constituting an extension for |
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| 1 | | payment of
principal and interest on bonds issued by the park | 2 | | district without referendum
(but not including excluded | 3 | | non-referendum bonds). A debt service extension base | 4 | | established or increased at any time pursuant to any provision | 5 | | of this Law, except Section 18-212, shall be increased each | 6 | | year commencing with the later of (i) the 2009 levy year or | 7 | | (ii) the first levy year in which this Law becomes applicable | 8 | | to the taxing district, by the lesser of 3.5% 5% or the | 9 | | percentage increase in the Consumer Price Index during the | 10 | | 12-month calendar year preceding the levy year. The debt | 11 | | service extension
base may be established or increased as | 12 | | provided under Section 18-212.
"Excluded non-referendum bonds" | 13 | | means (i) bonds authorized by Public
Act 88-503 and issued | 14 | | under Section 20a of the Chicago Park District Act for
aquarium | 15 | | and museum projects; (ii) bonds issued under Section 15 of the
| 16 | | Local Government Debt Reform Act; or (iii) refunding | 17 | | obligations issued
to refund or to continue to refund | 18 | | obligations initially issued pursuant to
referendum.
| 19 | | "Special purpose extensions" include, but are not limited | 20 | | to, extensions
for levies made on an annual basis for | 21 | | unemployment and workers'
compensation, self-insurance, | 22 | | contributions to pension plans, and extensions
made pursuant to | 23 | | Section 6-601 of the Illinois Highway Code for a road
| 24 | | district's permanent road fund whether levied annually or not. | 25 | | The
extension for a special service area is not included in the
| 26 | | aggregate extension.
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| 1 | | "Aggregate extension base" means the taxing district's | 2 | | last preceding
aggregate extension as adjusted under Sections | 3 | | 18-135, 18-215,
18-230, and 18-206.
An adjustment under Section | 4 | | 18-135 shall be made for the 2007 levy year and all subsequent | 5 | | levy years whenever one or more counties within which a taxing | 6 | | district is located (i) used estimated valuations or rates when | 7 | | extending taxes in the taxing district for the last preceding | 8 | | levy year that resulted in the over or under extension of | 9 | | taxes, or (ii) increased or decreased the tax extension for the | 10 | | last preceding levy year as required by Section 18-135(c). | 11 | | Whenever an adjustment is required under Section 18-135, the | 12 | | aggregate extension base of the taxing district shall be equal | 13 | | to the amount that the aggregate extension of the taxing | 14 | | district would have been for the last preceding levy year if | 15 | | either or both (i) actual, rather than estimated, valuations or | 16 | | rates had been used to calculate the extension of taxes for the | 17 | | last levy year, or (ii) the tax extension for the last | 18 | | preceding levy year had not been adjusted as required by | 19 | | subsection (c) of Section 18-135.
| 20 | | Notwithstanding any other provision of law, for levy year | 21 | | 2012, the aggregate extension base for West Northfield School | 22 | | District No. 31 in Cook County shall be $12,654,592. | 23 | | "Levy year" has the same meaning as "year" under Section
| 24 | | 1-155.
| 25 | | "New property" means (i) the assessed value, after final | 26 | | board of review or
board of appeals action, of new improvements |
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| 1 | | or additions to existing
improvements on any parcel of real | 2 | | property that increase the assessed value of
that real property | 3 | | during the levy year multiplied by the equalization factor
| 4 | | issued by the Department under Section 17-30, (ii) the assessed | 5 | | value, after
final board of review or board of appeals action, | 6 | | of real property not exempt
from real estate taxation, which | 7 | | real property was exempt from real estate
taxation for any | 8 | | portion of the immediately preceding levy year, multiplied by
| 9 | | the equalization factor issued by the Department under Section | 10 | | 17-30, including the assessed value, upon final stabilization | 11 | | of occupancy after new construction is complete, of any real | 12 | | property located within the boundaries of an otherwise or | 13 | | previously exempt military reservation that is intended for | 14 | | residential use and owned by or leased to a private corporation | 15 | | or other entity,
(iii) in counties that classify in accordance | 16 | | with Section 4 of Article
IX of the
Illinois Constitution, an | 17 | | incentive property's additional assessed value
resulting from | 18 | | a
scheduled increase in the level of assessment as applied to | 19 | | the first year
final board of
review market value, and (iv) any | 20 | | increase in assessed value due to oil or gas production from an | 21 | | oil or gas well required to be permitted under the Hydraulic | 22 | | Fracturing Regulatory Act that was not produced in or accounted | 23 | | for during the previous levy year.
In addition, the county | 24 | | clerk in a county containing a population of
3,000,000 or more | 25 | | shall include in the 1997
recovered tax increment value for any | 26 | | school district, any recovered tax
increment value that was |
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| 1 | | applicable to the 1995 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 otherwise | 7 | | provided in this
paragraph, the amount of the current year's | 8 | | equalized assessed value, in the
first year after a | 9 | | municipality terminates
the designation of an area as a | 10 | | redevelopment project area previously
established under the | 11 | | Tax Increment Allocation Redevelopment Development Act in the | 12 | | Illinois
Municipal Code, previously established under the | 13 | | Industrial Jobs Recovery Law
in the Illinois Municipal Code, | 14 | | previously established under the Economic Development Project | 15 | | Area Tax Increment Act of 1995, or previously established under | 16 | | the Economic
Development Area Tax Increment Allocation Act, of | 17 | | each taxable lot, block,
tract, or parcel of real property in | 18 | | the redevelopment project area over and
above the initial | 19 | | equalized assessed value of each property in the
redevelopment | 20 | | project area.
For the taxes which are extended for the 1997 | 21 | | levy year, the recovered tax
increment value for a non-home | 22 | | rule taxing district that first became subject
to this Law for | 23 | | the 1995 levy year because a majority of its 1994 equalized
| 24 | | assessed value was in an affected county or counties shall be | 25 | | increased if a
municipality terminated the designation of an | 26 | | area in 1993 as a redevelopment
project area previously |
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| 1 | | established under the Tax Increment Allocation Redevelopment
| 2 | | Development Act in the Illinois Municipal Code, previously | 3 | | established under
the Industrial Jobs Recovery Law in the | 4 | | Illinois Municipal Code, or previously
established under the | 5 | | Economic Development Area Tax Increment Allocation Act,
by an | 6 | | amount equal to the 1994 equalized assessed value of each | 7 | | taxable lot,
block, tract, or parcel of real property in the | 8 | | redevelopment project area over
and above the initial equalized | 9 | | assessed value of each property in the
redevelopment project | 10 | | area.
In the first year after a municipality
removes a taxable | 11 | | lot, block, tract, or parcel of real property from a
| 12 | | redevelopment project area established under the Tax Increment | 13 | | Allocation Redevelopment
Development Act in the Illinois
| 14 | | Municipal Code, the Industrial Jobs Recovery Law
in the | 15 | | Illinois Municipal Code, or the Economic
Development Area Tax | 16 | | Increment Allocation Act, "recovered tax increment value"
| 17 | | means the amount of the current year's equalized assessed value | 18 | | of each taxable
lot, block, tract, or parcel of real property | 19 | | removed from the redevelopment
project area over and above the | 20 | | initial equalized assessed value of that real
property before | 21 | | removal from the redevelopment project area.
| 22 | | Except as otherwise provided in this Section, "limiting | 23 | | rate" means a
fraction the numerator of which is the last
| 24 | | preceding aggregate extension base times an amount equal to one | 25 | | plus the
extension limitation defined in this Section and the | 26 | | denominator of which
is the current year's equalized assessed |
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| 1 | | value of all real property in the
territory under the | 2 | | jurisdiction of the taxing district during the prior
levy year. | 3 | | For those taxing districts that reduced their aggregate
| 4 | | extension for the last preceding levy year, except for school | 5 | | districts that reduced their extension for educational | 6 | | purposes pursuant to Section 18-206, the highest aggregate | 7 | | extension
in any of the last 3 preceding levy years shall be | 8 | | used for the purpose of
computing the limiting rate. The | 9 | | denominator shall not include new
property or the recovered tax | 10 | | increment
value.
If a new rate, a rate decrease, or a limiting | 11 | | rate increase has been approved at an election held after March | 12 | | 21, 2006, then (i) the otherwise applicable limiting rate shall | 13 | | be increased by the amount of the new rate or shall be reduced | 14 | | by the amount of the rate decrease, as the case may be, or (ii) | 15 | | in the case of a limiting rate increase, the limiting rate | 16 | | shall be equal to the rate set forth
in the proposition | 17 | | approved by the voters for each of the years specified in the | 18 | | proposition, after
which the limiting rate of the taxing | 19 | | district shall be calculated as otherwise provided. In the case | 20 | | of a taxing district that obtained referendum approval for an | 21 | | increased limiting rate on March 20, 2012, the limiting rate | 22 | | for tax year 2012 shall be the rate that generates the | 23 | | approximate total amount of taxes extendable for that tax year, | 24 | | as set forth in the proposition approved by the voters; this | 25 | | rate shall be the final rate applied by the county clerk for | 26 | | the aggregate of all capped funds of the district for tax year |
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| 1 | | 2012.
| 2 | | The changes made to this Section by this amendatory Act of | 3 | | the 101st General Assembly apply beginning with levy year 2021. | 4 | | (Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17; | 5 | | 100-465, eff. 8-31-17; revised 8-12-19.)
| 6 | | (35 ILCS 200/18-205)
| 7 | | Sec. 18-205. Referendum to increase the extension | 8 | | limitation. A taxing
district is limited to an extension | 9 | | limitation of 3.5% 5% or the percentage increase
in the | 10 | | Consumer Price Index during the 12-month calendar year | 11 | | preceding the
levy year, whichever is less. A taxing district | 12 | | may increase its extension
limitation for one or more levy | 13 | | years if that taxing district holds a referendum
before the | 14 | | levy date for the first levy year at which a majority of voters | 15 | | voting on the issue approves
adoption of a higher extension | 16 | | limitation. Referenda shall be conducted at a
regularly | 17 | | scheduled election in accordance with the Election Code. The | 18 | | question shall be presented in
substantially the following | 19 | | manner for all elections held after March 21, 2006:
| 20 | | Shall the extension limitation under the Property Tax | 21 | | Extension Limitation Law for (insert the legal name, | 22 | | number, if any, and county or counties of the taxing | 23 | | district and geographic or other common name by which a | 24 | | school or community college district is known and referred | 25 | | to), Illinois, be increased from the lesser of 3.5% 5% or |
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| 1 | | the percentage increase in the Consumer Price Index over | 2 | | the prior levy year to (insert the percentage of the | 3 | | proposed increase)% per year for (insert each levy year for | 4 | | which the increased extension limitation will apply)? | 5 | | The votes must be recorded as "Yes" or "No".
| 6 | | If a majority of voters voting on the issue approves the | 7 | | adoption of
the increase, the increase shall be applicable for | 8 | | each
levy year specified.
| 9 | | The ballot for any question submitted pursuant to this | 10 | | Section shall have printed thereon, but not as a part of the | 11 | | question submitted, only the following supplemental | 12 | | information (which shall be supplied to the election authority | 13 | | by the taxing district) in substantially the following form: | 14 | | (1) For the (insert the first levy year for which the | 15 | | increased extension
limitation will be applicable) levy | 16 | | year the approximate amount of the additional tax
| 17 | | extendable against property containing a single family | 18 | | residence and having a fair market
value at the time of the | 19 | | referendum of $100,000 is estimated to be $.... | 20 | | (2) Based upon an average annual percentage increase | 21 | | (or decrease) in the
market value of such property of ...% | 22 | | (insert percentage equal to the average
annual percentage | 23 | | increase or decrease for the prior 3 levy years, at the | 24 | | time the
submission of the question is initiated by the | 25 | | taxing district, in the amount of (A) the
equalized | 26 | | assessed value of the taxable property in the taxing |
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| 1 | | district less (B) the new
property included in the | 2 | | equalized assessed value), the approximate amount of the
| 3 | | additional tax extendable against such property for the ... | 4 | | levy year is estimated to be
$... and for the ... levy year | 5 | | is estimated to be $.... | 6 | | Paragraph (2) shall be included only if the increased | 7 | | extension limitation will be applicable for more than one year | 8 | | and shall list each levy year for which the increased extension | 9 | | limitation will be applicable. The additional tax shown for | 10 | | each levy year shall be the approximate dollar amount of the | 11 | | increase over the amount of the most recently completed | 12 | | extension at the time the submission of the question is | 13 | | initiated by the taxing district. The approximate amount of the | 14 | | additional tax extendable shown in paragraphs (1) and (2) shall | 15 | | be calculated by multiplying $100,000 (the fair market value of | 16 | | the property without regard to any property tax exemptions) by | 17 | | (i) the percentage level of assessment prescribed for that | 18 | | property by statute, or by ordinance of the county board in | 19 | | counties that classify property for purposes of taxation in | 20 | | accordance with Section 4 of Article IX of the Illinois | 21 | | Constitution; (ii) the most recent final equalization factor | 22 | | certified to the county clerk by the Department of Revenue at | 23 | | the time the taxing district initiates the submission of the | 24 | | proposition to the electors; (iii) the last known aggregate | 25 | | extension base of the taxing district at the time the | 26 | | submission of the question is initiated by the taxing district; |
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| 1 | | and (iv) the difference between the percentage increase | 2 | | proposed in the question and the lesser of 3.5% 5% or the | 3 | | percentage increase in the Consumer Price Index for the prior | 4 | | levy year (or an estimate of the percentage increase for the | 5 | | prior levy year if the increase is unavailable at the time the | 6 | | submission of the question is initiated by the taxing | 7 | | district); and dividing the result by the last known equalized | 8 | | assessed value of the taxing district at the time the | 9 | | submission of the question is initiated by the taxing district. | 10 | | This amendatory Act of the 97th General Assembly is intended to | 11 | | clarify the existing requirements of this Section, and shall | 12 | | not be construed to validate any prior non-compliant referendum | 13 | | language. Any notice required to be published in connection | 14 | | with the submission of the question shall also contain this | 15 | | supplemental information and shall not contain any other | 16 | | supplemental information. Any error, miscalculation, or | 17 | | inaccuracy in computing any amount set forth on the ballot or | 18 | | in the notice that is not deliberate shall not invalidate or | 19 | | affect the validity of any proposition approved. Notice of the | 20 | | referendum shall be published and posted as otherwise required | 21 | | by law, and the submission of the question shall be initiated | 22 | | as provided by law.
| 23 | | The changes made to this Section by this amendatory Act of | 24 | | the 101st General Assembly apply beginning with levy year 2021. | 25 | | (Source: P.A. 97-1087, eff. 8-24-12.)
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| 1 | | (35 ILCS 200/18-212)
| 2 | | Sec. 18-212. Referendum on debt service extension base. A | 3 | | taxing district
may establish or increase its debt service | 4 | | extension base if
(i) that taxing district holds a referendum | 5 | | before the date on which the levy
must
be filed with the county | 6 | | clerk of the county or counties in which the taxing
district is | 7 | | situated and (ii) a majority of voters voting on the issue | 8 | | approves
the establishment of or increase in the debt service | 9 | | extension base. A debt service extension base established or | 10 | | increased by a referendum held pursuant to this Section after | 11 | | February 2, 2010, shall be increased each year, commencing with | 12 | | the first levy year beginning after the date of the referendum, | 13 | | by the lesser of 3.5% 5% or the percentage increase in the | 14 | | Consumer Price Index during the 12-month calendar year | 15 | | preceding the levy year if the optional language concerning the | 16 | | annual increase is included in the question submitted to the | 17 | | electors of the taxing district. Referenda
under
this
Section | 18 | | shall be conducted at a regularly scheduled election in | 19 | | accordance with
the Election Code. The governing body of the | 20 | | taxing district shall certify the
question to the proper | 21 | | election authorities who shall submit the question to
the | 22 | | electors of the taxing district in substantially the following | 23 | | form:
| 24 | | "Shall the debt service extension base under the Property | 25 | | Tax Extension
Limitation Law for ... (taxing district name) | 26 | | ...
for payment of principal and interest on limited bonds |
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| 1 | | be .... ((established at
$ ....) . (or) (increased
from $ | 2 | | .... to $ ....)) .. for the ..... levy year and all | 3 | | subsequent levy
years (optional language: , such debt | 4 | | service extension base to be increased each year by the | 5 | | lesser of 3.5% 5% or the percentage increase in the | 6 | | Consumer Price Index during the 12-month calendar year | 7 | | preceding the levy year)?"
| 8 | | Votes on the question shall be recorded as "Yes" or "No".
| 9 | | If a majority of voters voting on the issue approves the | 10 | | establishment of or
increase
in the debt service extension | 11 | | base, the establishment of or increase in the
debt
service | 12 | | extension base shall be applicable for the levy years | 13 | | specified.
| 14 | | The changes made to this Section by this amendatory Act of | 15 | | the 101st General Assembly apply beginning with levy year 2021. | 16 | | (Source: P.A. 96-1202, eff. 7-22-10.)
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