State of Illinois
90th General Assembly
Legislation

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90_HB1427

      35 ILCS 200/18-185
          Amends the Property Tax Extension Limitation Law  in  the
      Property  Tax  Code.   Provides that any increase in assessed
      value  resulting  from  the  loss  of  the  Senior   Citizens
      Homestead  Exemption or the Senior Citizens Assessment Freeze
      Homestead Exemption shall be  included  in  determining  "new
      property".  Effective January 1, 1998.
                                                     LRB9003993KDks
                                               LRB9003993KDks
 1        AN ACT to amend the Property Tax Code by changing Section
 2    18-185.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Property Tax Code is amended by  changing
 6    Section 18-185 as follows:
 7        (35 ILCS 200/18-185)
 8        Sec. 18-185.  Short title; definitions.  This Section and
 9    Sections  18-190  through 18-245 may be cited as the Property
10    Tax Extension Limitation Law.  As  used  in  Sections  18-190
11    through 18-245:
12        "Consumer Price Index" means the Consumer Price Index for
13    All  Urban  Consumers  for  all items published by the United
14    States Department of Labor.
15        "Extension limitation" means (a) the lesser of 5% or  the
16    percentage  increase  in  the Consumer Price Index during the
17    12-month calendar year preceding the levy  year  or  (b)  the
18    rate of increase approved by voters under Section 18-205.
19        "Affected  county"  means  a  county of 3,000,000 or more
20    inhabitants or a county contiguous to a county  of  3,000,000
21    or more inhabitants.
22        "Taxing  district"  has  the  same  meaning  provided  in
23    Section  1-150, except as otherwise provided in this Section.
24    For the 1991 through 1994 levy years only, "taxing  district"
25    includes  only  each non-home rule taxing district having the
26    majority of its 1990  equalized  assessed  value  within  any
27    county  or  counties contiguous to a county with 3,000,000 or
28    more inhabitants.  Beginning with the 1995 levy year, "taxing
29    district" includes only each non-home  rule  taxing  district
30    subject  to  this  Law  before  the  1995  levy year and each
31    non-home rule taxing district not subject to this Law  before
                            -2-                LRB9003993KDks
 1    the  1995 levy year having the majority of its 1994 equalized
 2    assessed value in an affected county or counties.   Beginning
 3    with  the levy year in which this Law becomes applicable to a
 4    taxing  district  as  provided  in  Section  18-213,  "taxing
 5    district" also includes those taxing districts  made  subject
 6    to this Law as provided in Section 18-213.
 7        "Aggregate  extension" for taxing districts to which this
 8    Law applied before  the  1995  levy  year  means  the  annual
 9    corporate extension for the taxing district and those special
10    purpose  extensions  that  are  made  annually for the taxing
11    district, excluding special purpose extensions: (a) made  for
12    the  taxing  district to pay interest or principal on general
13    obligation bonds that were approved by referendum;  (b)  made
14    for  any  taxing  district  to  pay  interest or principal on
15    general obligation bonds issued before October 1,  1991;  (c)
16    made  for any taxing district to pay interest or principal on
17    bonds issued to refund or  continue  to  refund  those  bonds
18    issued  before  October  1,  1991;  (d)  made  for any taxing
19    district to pay interest or  principal  on  bonds  issued  to
20    refund  or  continue  to refund bonds issued after October 1,
21    1991 that were approved  by  referendum;  (e)  made  for  any
22    taxing district to pay interest or principal on revenue bonds
23    issued before October 1, 1991 for payment of which a property
24    tax  levy  or  the full faith and credit of the unit of local
25    government is pledged; however, a  tax  for  the  payment  of
26    interest or principal on those bonds shall be made only after
27    the governing body of the unit of local government finds that
28    all  other sources for payment are insufficient to make those
29    payments; (f) made for payments under a  building  commission
30    lease when the lease payments are for the retirement of bonds
31    issued  by  the commission before October 1, 1991, to pay for
32    the  building  project;  (g)  made  for  payments  due  under
33    installment contracts entered into before  October  1,  1991;
34    (h)  made  for  payments  of  principal and interest on bonds
                            -3-                LRB9003993KDks
 1    issued under the Metropolitan Water Reclamation District  Act
 2    to  finance construction projects initiated before October 1,
 3    1991; (i) made for payments  of  principal  and  interest  on
 4    limited   bonds,  as  defined  in  Section  3  of  the  Local
 5    Government Debt Reform Act, in an amount not  to  exceed  the
 6    debt  service  extension  base  less the amount in items (b),
 7    (c), (e), and  (h)  of  this  definition  for  non-referendum
 8    obligations,  except obligations initially issued pursuant to
 9    referendum; and  (j)  made  for  payments  of  principal  and
10    interest  on  bonds  issued  under  Section  15  of the Local
11    Government Debt Reform Act.
12        "Aggregate extension" for the taxing districts  to  which
13    this  Law  did  not  apply  before the 1995 levy year (except
14    taxing districts subject  to  this  Law  in  accordance  with
15    Section  18-213) means the annual corporate extension for the
16    taxing district and those special purpose extensions that are
17    made annually for  the  taxing  district,  excluding  special
18    purpose  extensions:  (a) made for the taxing district to pay
19    interest or principal on general obligation bonds  that  were
20    approved  by  referendum; (b) made for any taxing district to
21    pay interest or principal on general obligation bonds  issued
22    before March 1, 1995; (c) made for any taxing district to pay
23    interest  or  principal on bonds issued to refund or continue
24    to refund those bonds issued before March 1, 1995;  (d)  made
25    for any taxing district to pay interest or principal on bonds
26    issued  to  refund  or  continue to refund bonds issued after
27    March 1, 1995 that were approved by referendum; (e) made  for
28    any  taxing  district to pay interest or principal on revenue
29    bonds issued before March 1, 1995  for  payment  of  which  a
30    property tax levy or the full faith and credit of the unit of
31    local  government  is pledged; however, a tax for the payment
32    of interest or principal on those bonds shall  be  made  only
33    after  the  governing  body  of  the unit of local government
34    finds that all other sources for payment are insufficient  to
                            -4-                LRB9003993KDks
 1    make  those  payments; (f) made for payments under a building
 2    commission  lease  when  the  lease  payments  are  for   the
 3    retirement  of bonds issued by the commission before March 1,
 4    1995 to pay for the building project; (g) made  for  payments
 5    due  under installment contracts entered into before March 1,
 6    1995; (h) made for payments  of  principal  and  interest  on
 7    bonds   issued   under  the  Metropolitan  Water  Reclamation
 8    District  Act  to  finance  construction  projects  initiated
 9    before October 1, 1991; (i) made for  payments  of  principal
10    and interest on limited bonds, as defined in Section 3 of the
11    Local  Government Debt Reform Act, in an amount not to exceed
12    the debt service extension base less the amount in items (b),
13    (c), (e), and  (h)  of  this  definition  for  non-referendum
14    obligations,  except obligations initially issued pursuant to
15    referendum; (j) made for payments of principal  and  interest
16    on bonds issued under Section 15 of the Local Government Debt
17    Reform  Act;  (k) made for payments of principal and interest
18    on bonds authorized by Public Act  88-503  and  issued  under
19    Section  20a of the Chicago Park District Act for aquarium or
20    museum projects; and (l) made for payments of  principal  and
21    interest on bonds authorized by Public Act 87-1191 and issued
22    under  Section 42 of the Cook County Forest Preserve District
23    Act for zoological park projects.
24        "Aggregate extension" for all taxing districts  to  which
25    this  Law applies in accordance with Section 18-213 means the
26    annual corporate extension for the taxing district and  those
27    special  purpose  extensions  that  are made annually for the
28    taxing district, excluding special  purpose  extensions:  (a)
29    made  for the taxing district to pay interest or principal on
30    general obligation bonds that were  approved  by  referendum;
31    (b) made for any taxing district to pay interest or principal
32    on  general  obligation bonds issued before the date on which
33    the referendum making  this  Law  applicable  to  the  taxing
34    district  is  held;  (c)  made for any taxing district to pay
                            -5-                LRB9003993KDks
 1    interest or principal on bonds issued to refund  or  continue
 2    to  refund  those  bonds  issued before the date on which the
 3    referendum making this Law applicable to the taxing  district
 4    is  held; (d) made for any taxing district to pay interest or
 5    principal on bonds issued to refund  or  continue  to  refund
 6    bonds  issued  after  the date on which the referendum making
 7    this Law applicable to the taxing district  is  held  if  the
 8    bonds were approved by referendum after the date on which the
 9    referendum  making this Law applicable to the taxing district
10    is held; (e) made for any taxing district to pay interest  or
11    principal  on  revenue  bonds issued before the date on which
12    the referendum making  this  Law  applicable  to  the  taxing
13    district  is held for payment of which a property tax levy or
14    the full faith and credit of the unit of local government  is
15    pledged;  however,  a  tax  for  the  payment  of interest or
16    principal on  those  bonds  shall  be  made  only  after  the
17    governing body of the unit of local government finds that all
18    other  sources  for  payment  are  insufficient to make those
19    payments; (f) made for payments under a  building  commission
20    lease when the lease payments are for the retirement of bonds
21    issued  by  the  commission  before  the  date  on  which the
22    referendum making this Law applicable to the taxing  district
23    is  held  to  pay  for  the  building  project;  (g) made for
24    payments due under installment contracts entered into  before
25    the  date  on which the referendum making this Law applicable
26    to the taxing district is held;  (h)  made  for  payments  of
27    principal  and  interest  on  limited  bonds,  as  defined in
28    Section 3 of the Local Government  Debt  Reform  Act,  in  an
29    amount not to exceed the debt service extension base less the
30    amount  in  items  (b),  (c),  and (e) of this definition for
31    non-referendum  obligations,  except  obligations   initially
32    issued  pursuant  to  referendum;  (i)  made  for payments of
33    principal and interest on bonds issued under  Section  15  of
34    the  Local  Government  Debt  Reform  Act; and (j) made for a
                            -6-                LRB9003993KDks
 1    qualified airport authority to pay interest or  principal  on
 2    general  obligation  bonds  issued  for the purpose of paying
 3    obligations  due  under,  or  financing  airport   facilities
 4    required  to  be acquired, constructed, installed or equipped
 5    pursuant to, contracts entered into before March 1, 1996 (but
 6    not including any amendments to such a contract taking effect
 7    on or after that date).
 8        "Debt service extension base" means an  amount  equal  to
 9    that  portion  of the extension for a taxing district for the
10    1994 levy year, or for those taxing districts subject to this
11    Law in accordance with Section 18-213 for the  levy  year  in
12    which the referendum making this Law applicable to the taxing
13    district  is  held,  constituting an extension for payment of
14    principal and interest on bonds issued by the taxing district
15    without referendum, but not including (i) bonds authorized by
16    Public Act 88-503 and issued under Section 20a of the Chicago
17    Park District Act for  aquarium  and  museum  projects;  (ii)
18    bonds  issued  under  Section 15 of the Local Government Debt
19    Reform Act; or (iii) refunding obligations issued  to  refund
20    or   to  continue  to  refund  obligations  initially  issued
21    pursuant to referendum.  The debt service extension base  may
22    be established or increased as provided under Section 18-212.
23        "Special purpose extensions" include, but are not limited
24    to,  extensions  for  levies  made  on  an  annual  basis for
25    unemployment  and  workers'   compensation,   self-insurance,
26    contributions  to pension plans, and extensions made pursuant
27    to Section 6-601 of the Illinois  Highway  Code  for  a  road
28    district's  permanent  road  fund  whether levied annually or
29    not.  The  extension  for  a  special  service  area  is  not
30    included in the aggregate extension.
31        "Aggregate  extension  base"  means the taxing district's
32    last preceding aggregate extension as adjusted under Sections
33    18-215 through 18-230.
34        "Levy year" has the same meaning as "year" under  Section
                            -7-                LRB9003993KDks
 1    1-155.
 2        "New  property" means (i) the assessed value, after final
 3    board  of  review  or  board  of  appeals  action,   of   new
 4    improvements  or  additions  to  existing improvements on any
 5    parcel of real property that increase the assessed  value  of
 6    that  real  property  during  the levy year multiplied by the
 7    equalization factor issued by the  Department  under  Section
 8    17-30  and  (ii)  the  assessed  value,  after final board of
 9    review or board of  appeals  action,  of  real  property  not
10    exempt  from  real  estate  taxation, which real property was
11    exempt from real estate  taxation  for  any  portion  of  the
12    immediately  preceding  levy  year, including any increase in
13    assessed value resulting from the  loss  of  (1)  the  Senior
14    Citizens  Homestead  Exemption  provided in Section 15-170 or
15    (2) the Senior Citizens Assessment Freeze Homestead Exemption
16    provided in Section 15-172, multiplied  by  the  equalization
17    factor issued by the Department under Section 17-30.
18        "Qualified  airport authority" means an airport authority
19    organized under the Airport Authorities Act and located in  a
20    county  bordering  on  the  State  of  Wisconsin and having a
21    population in excess of 200,000 and not greater than 500,000.
22        "Recovered tax increment value" means the amount  of  the
23    current  year's  equalized  assessed value, in the first year
24    after a municipality terminates the designation of an area as
25    a redevelopment project area previously established under the
26    Tax Increment Allocation  Development  Act  in  the  Illinois
27    Municipal  Code,  previously established under the Industrial
28    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
29    previously  established  under  the Economic Development Area
30    Tax Increment Allocation Act, of  each  taxable  lot,  block,
31    tract,  or  parcel  of  real  property  in  the redevelopment
32    project area over and above the  initial  equalized  assessed
33    value of each property in the redevelopment project area.
34        Except  as  otherwise provided in this Section, "limiting
                            -8-                LRB9003993KDks
 1    rate" means a fraction the numerator of  which  is  the  last
 2    preceding  aggregate  extension base times an amount equal to
 3    one plus the extension limitation defined in this Section and
 4    the denominator of which  is  the  current  year's  equalized
 5    assessed  value  of  all real property in the territory under
 6    the jurisdiction of the taxing district during the prior levy
 7    year.   For  those  taxing  districts  that   reduced   their
 8    aggregate  extension  for  the  last preceding levy year, the
 9    highest aggregate extension in any of the  last  3  preceding
10    levy  years  shall  be  used for the purpose of computing the
11    limiting  rate.   The  denominator  shall  not  include   new
12    property.   The  denominator  shall not include the recovered
13    tax increment value.
14    (Source:  P.A.  88-455;  89-1,  eff.  2-12-95;  89-138,  eff.
15    7-14-95; 89-385, eff. 8-18-95; 89-436, eff.  1-1-96;  89-449,
16    eff. 6-1-96; 89-510, eff. 7-11-96.)
17        Section  99.  Effective  date.   This  Act  takes  effect
18    January 1, 1998.

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