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90_HB1427eng
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
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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
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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
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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
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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
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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
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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
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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
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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.