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90_HB2110
30 ILCS 350/15.01
35 ILCS 200/18-185
35 ILCS 200/18-192 new
35 ILCS 200/18-212
Amends the Local Government Debt Reform Act and the
Property Tax Extension Limitation Law in the Property Tax
Code. Provides that upon the filing of a petition signed by
at least 5% of the registered voters in a taxing district
subject to the Law, a referendum shall be held on the
question of whether to continue to allow the taxing district
(i) to issue "limited" bonds and (ii) to exclude the
extensions made for the payment and principal and interest of
"limited" bonds and "double-barrelled" bonds in the
"aggregate extension" of the taxing district. Provides that
if the referendum is approved, the taxing district may no
longer issue "limited" bonds or exclude the special
extensions in that taxing district made for payments of
principal and interest of "limited" bonds and
"double-barrelled" bonds from the "aggregate extension".
LRB9005147KDcd
LRB9005147KDcd
1 AN ACT concerning taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Local Government Debt Reform Act is
5 amended by changing Section 15.01 as follows:
6 (30 ILCS 350/15.01)
7 Sec. 15.01. Limited bonds. A governmental unit is
8 authorized to issue limited bonds payable from the debt
9 service extension base, as defined in the Property Tax
10 Extension Limitation Law, as provided in this amendatory Act
11 of 1995. Bonds authorized by Public Act 88-503 and issued
12 under Section 20a of the Chicago Park District Act for
13 aquarium or museum projects shall not be issued as limited
14 bonds. A governmental unit issuing limited bonds authorized
15 by this Section shall provide in the bond ordinance that the
16 bonds are issued as limited bonds and are also issued
17 pursuant to applicable law, other than this amendatory Act of
18 1995, enabling the governmental unit to issue bonds. This
19 amendatory Act of 1995 shall not change the rate, amount,
20 purposes, limitations, source of funds for payment of
21 principal or interest, or method of payment or defeasance of
22 the bonds that a governmental unit may issue under any
23 applicable law; provided, that limited bonds that are
24 otherwise to be issued as general obligation bonds may be
25 payable solely from the debt service extension base. This
26 amendatory Act of 1995 provides no additional authority to
27 any governmental unit to issue bonds that the governmental
28 unit is not otherwise authorized to issue by a law other than
29 this amendatory Act of 1995.
30 Notwithstanding any other provision to the contrary, if a
31 taxing district holds a referendum in accordance with Section
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1 18-192 of the Property Tax Extension Limitation Law in the
2 Property Tax Code and the referendum is approved, then
3 limited bonds may no longer be issued by the taxing district.
4 (Source: P.A. 89-385, eff. 8-18-95; 89-449, eff. 6-1-96.)
5 Section 10. The Property Tax Code is amended by changing
6 Sections 18-185 and 18-212 and adding Section 18-192 as
7 follows:
8 (35 ILCS 200/18-185)
9 Sec. 18-185. Short title; definitions. This Section and
10 Sections 18-190 through 18-245 may be cited as the Property
11 Tax Extension Limitation Law. As used in Sections 18-190
12 through 18-245:
13 "Consumer Price Index" means the Consumer Price Index for
14 All Urban Consumers for all items published by the United
15 States Department of Labor.
16 "Extension limitation" means (a) the lesser of 5% or the
17 percentage increase in the Consumer Price Index during the
18 12-month calendar year preceding the levy year or (b) the
19 rate of increase approved by voters under Section 18-205.
20 "Affected county" means a county of 3,000,000 or more
21 inhabitants or a county contiguous to a county of 3,000,000
22 or more inhabitants.
23 "Taxing district" has the same meaning provided in
24 Section 1-150, except as otherwise provided in this Section.
25 For the 1991 through 1994 levy years only, "taxing district"
26 includes only each non-home rule taxing district having the
27 majority of its 1990 equalized assessed value within any
28 county or counties contiguous to a county with 3,000,000 or
29 more inhabitants. Beginning with the 1995 levy year, "taxing
30 district" includes only each non-home rule taxing district
31 subject to this Law before the 1995 levy year and each
32 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. Notwithstanding any other
12 provision to the contrary, if a taxing district holds a
13 referendum under Section 18-192 and the referendum is
14 approved, the special extensions made by that taxing district
15 for the purposes specified in items (i) and (j) of this
16 definition shall, beginning January 1 following the election,
17 no longer be excluded from the "aggregate extension".
18 "Aggregate extension" for the taxing districts to which
19 this Law did not apply before the 1995 levy year (except
20 taxing districts subject to this Law in accordance with
21 Section 18-213) means the annual corporate extension for the
22 taxing district and those special purpose extensions that are
23 made annually for the taxing district, excluding special
24 purpose extensions: (a) made for the taxing district to pay
25 interest or principal on general obligation bonds that were
26 approved by referendum; (b) made for any taxing district to
27 pay interest or principal on general obligation bonds issued
28 before March 1, 1995; (c) made for any taxing district to pay
29 interest or principal on bonds issued to refund or continue
30 to refund those bonds issued before March 1, 1995; (d) made
31 for any taxing district to pay interest or principal on bonds
32 issued to refund or continue to refund bonds issued after
33 March 1, 1995 that were approved by referendum; (e) made for
34 any taxing district to pay interest or principal on revenue
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1 bonds issued before March 1, 1995 for payment of which a
2 property tax levy or the full faith and credit of the unit of
3 local government is pledged; however, a tax for the payment
4 of interest or principal on those bonds shall be made only
5 after the governing body of the unit of local government
6 finds that all other sources for payment are insufficient to
7 make those payments; (f) made for payments under a building
8 commission lease when the lease payments are for the
9 retirement of bonds issued by the commission before March 1,
10 1995 to pay for the building project; (g) made for payments
11 due under installment contracts entered into before March 1,
12 1995; (h) made for payments of principal and interest on
13 bonds issued under the Metropolitan Water Reclamation
14 District Act to finance construction projects initiated
15 before October 1, 1991; (i) made for payments of principal
16 and interest on limited bonds, as defined in Section 3 of the
17 Local Government Debt Reform Act, in an amount not to exceed
18 the debt service extension base less the amount in items (b),
19 (c), (e), and (h) of this definition for non-referendum
20 obligations, except obligations initially issued pursuant to
21 referendum; (j) made for payments of principal and interest
22 on bonds issued under Section 15 of the Local Government Debt
23 Reform Act; (k) made for payments of principal and interest
24 on bonds authorized by Public Act 88-503 and issued under
25 Section 20a of the Chicago Park District Act for aquarium or
26 museum projects; and (l) made for payments of principal and
27 interest on bonds authorized by Public Act 87-1191 and issued
28 under Section 42 of the Cook County Forest Preserve District
29 Act for zoological park projects. Notwithstanding any other
30 provision to the contrary, if a taxing district holds a
31 referendum under Section 18-192 and the referendum is
32 approved, the special extensions made by that taxing district
33 for the purposes specified in items (i) and (j) of this
34 definition shall, beginning January 1 following the election,
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1 no longer be excluded from the "aggregate extension".
2 "Aggregate extension" for all taxing districts to which
3 this Law applies in accordance with Section 18-213 means the
4 annual corporate extension for the taxing district and those
5 special purpose extensions that are made annually for the
6 taxing district, excluding special purpose extensions: (a)
7 made for the taxing district to pay interest or principal on
8 general obligation bonds that were approved by referendum;
9 (b) made for any taxing district to pay interest or principal
10 on general obligation bonds issued before the date on which
11 the referendum making this Law applicable to the taxing
12 district is held; (c) made for any taxing district to pay
13 interest or principal on bonds issued to refund or continue
14 to refund those bonds issued before the date on which the
15 referendum making this Law applicable to the taxing district
16 is held; (d) made for any taxing district to pay interest or
17 principal on bonds issued to refund or continue to refund
18 bonds issued after the date on which the referendum making
19 this Law applicable to the taxing district is held if the
20 bonds were approved by referendum after the date on which the
21 referendum making this Law applicable to the taxing district
22 is held; (e) made for any taxing district to pay interest or
23 principal on revenue bonds issued before the date on which
24 the referendum making this Law applicable to the taxing
25 district is held for payment of which a property tax levy or
26 the full faith and credit of the unit of local government is
27 pledged; however, a tax for the payment of interest or
28 principal on those bonds shall be made only after the
29 governing body of the unit of local government finds that all
30 other sources for payment are insufficient to make those
31 payments; (f) made for payments under a building commission
32 lease when the lease payments are for the retirement of bonds
33 issued by the commission before the date on which the
34 referendum making this Law applicable to the taxing district
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1 is held to pay for the building project; (g) made for
2 payments due under installment contracts entered into before
3 the date on which the referendum making this Law applicable
4 to the taxing district is held; (h) made for payments of
5 principal and interest on limited bonds, as defined in
6 Section 3 of the Local Government Debt Reform Act, in an
7 amount not to exceed the debt service extension base less the
8 amount in items (b), (c), and (e) of this definition for
9 non-referendum obligations, except obligations initially
10 issued pursuant to referendum; (i) made for payments of
11 principal and interest on bonds issued under Section 15 of
12 the Local Government Debt Reform Act; and (j) made for a
13 qualified airport authority to pay interest or principal on
14 general obligation bonds issued for the purpose of paying
15 obligations due under, or financing airport facilities
16 required to be acquired, constructed, installed or equipped
17 pursuant to, contracts entered into before March 1, 1996 (but
18 not including any amendments to such a contract taking effect
19 on or after that date). Notwithstanding any other provision
20 to the contrary, if a taxing district holds a referendum
21 under Section 18-192 and the referendum is approved, the
22 special extensions made by that taxing district for the
23 purposes specified in items (h) and (i) of this definition
24 shall, beginning January 1 following the election, no longer
25 be excluded from the "aggregate extension".
26 "Debt service extension base" means an amount equal to
27 that portion of the extension for a taxing district for the
28 1994 levy year, or for those taxing districts subject to this
29 Law in accordance with Section 18-213 for the levy year in
30 which the referendum making this Law applicable to the taxing
31 district is held, constituting an extension for payment of
32 principal and interest on bonds issued by the taxing district
33 without referendum, but not including (i) bonds authorized by
34 Public Act 88-503 and issued under Section 20a of the Chicago
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1 Park District Act for aquarium and museum projects; (ii)
2 bonds issued under Section 15 of the Local Government Debt
3 Reform Act; or (iii) refunding obligations issued to refund
4 or to continue to refund obligations initially issued
5 pursuant to referendum. The debt service extension base may
6 be established or increased as provided under Section 18-212.
7 This definition does not apply to a taxing district that
8 holds a referendum under Section 18-192 and the referendum is
9 approved.
10 "Special purpose extensions" include, but are not limited
11 to, extensions for levies made on an annual basis for
12 unemployment and workers' compensation, self-insurance,
13 contributions to pension plans, and extensions made pursuant
14 to Section 6-601 of the Illinois Highway Code for a road
15 district's permanent road fund whether levied annually or
16 not. The extension for a special service area is not
17 included in the aggregate extension.
18 "Aggregate extension base" means the taxing district's
19 last preceding aggregate extension as adjusted under Sections
20 18-215 through 18-230.
21 "Levy year" has the same meaning as "year" under Section
22 1-155.
23 "New property" means (i) the assessed value, after final
24 board of review or board of appeals action, of new
25 improvements or additions to existing improvements on any
26 parcel of real property that increase the assessed value of
27 that real property during the levy year multiplied by the
28 equalization factor issued by the Department under Section
29 17-30 and (ii) the assessed value, after final board of
30 review or board of appeals action, of real property not
31 exempt from real estate taxation, which real property was
32 exempt from real estate taxation for any portion of the
33 immediately preceding levy year, multiplied by the
34 equalization factor issued by the Department under Section
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1 17-30.
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 the amount of the
7 current year's equalized assessed value, in the first year
8 after a municipality terminates the designation of an area as
9 a redevelopment project area previously established under the
10 Tax Increment Allocation Development Act in the Illinois
11 Municipal Code, previously established under the Industrial
12 Jobs Recovery Law in the Illinois Municipal Code, or
13 previously established under the Economic Development Area
14 Tax Increment Allocation Act, of each taxable lot, block,
15 tract, or parcel of real property in the redevelopment
16 project area over and above the initial equalized assessed
17 value of each property in the redevelopment project area.
18 Except as otherwise provided in this Section, "limiting
19 rate" means a fraction the numerator of which is the last
20 preceding aggregate extension base times an amount equal to
21 one plus the extension limitation defined in this Section and
22 the denominator of which is the current year's equalized
23 assessed value of all real property in the territory under
24 the jurisdiction of the taxing district during the prior levy
25 year. For those taxing districts that reduced their
26 aggregate extension for the last preceding levy year, the
27 highest aggregate extension in any of the last 3 preceding
28 levy years shall be used for the purpose of computing the
29 limiting rate. The denominator shall not include new
30 property. The denominator shall not include the recovered
31 tax increment value.
32 (Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff.
33 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
34 eff. 6-1-96; 89-510, eff. 7-11-96.)
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1 (35 ILCS 200/18-192 new)
2 Sec. 18-192. Referenda on limited and double-barrelled
3 bonds.
4 (a) The electors of a taxing district that is subject to
5 this Law, by petition and referendum, may elect to prohibit
6 the taxing district from issuing "limited" bonds and from
7 excluding the extensions made for payments of principal and
8 interest of "limited" bonds and "double-barrelled" bonds from
9 the "aggregate extension" of the taxing district.
10 (b) A petition under this Section shall be signed by the
11 registered voters of the taxing district in a number equal to
12 at least 5% of the number of registered voters in the taxing
13 district. The petition must be filed with the county clerk
14 of each county in which the taxing district is situated not
15 less than 120 days before a general election to be eligible
16 for submission on the ballot at that general election.
17 (c) The petition shall request the submission of the
18 proposition at the next general election for the purpose of
19 voting for or against allowing the taxing district to
20 continue to issue "limited" bonds or continue to exclude the
21 extensions made for payments of principal and interest of
22 limited bonds and "double-barrelled" bonds from the
23 "aggregate extension" of the taxing district.
24 The question shall be in substantially the following
25 form:
26 Shall (name of taxing district) be required to limit
27 property taxes by taking away its authority to continue
28 issuing "limited" bonds and to exclude the extensions
29 made for payments of principal and interest of "limited"
30 bonds and "double-barrelled" bonds from "aggregate
31 extension" for purposes of the Property Tax Extension
32 Limitation Law?
33 Votes on the question shall be recorded as "yes" or "no".
34 (d) If no objection is filed to a petition under this
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1 Section, or if an objection is filed and the electoral board
2 rules the petition sufficient, then the county clerks shall
3 order the proposition submitted to the electors of the taxing
4 district at the election specified in the petition. If part
5 of the taxing district is under the jurisdiction of a board
6 or boards of election commissioners, the county clerks shall
7 submit a certified copy of the petition to each board of
8 election commissioners, which shall order the proposition
9 submitted to the electors of the taxing district within its
10 jurisdiction at the general election specified in the
11 petition.
12 (e) If the canvass of votes cast on a proposition under
13 this Section certifies that a majority of all ballots cast on
14 the proposition in the taxing district are in favor of the
15 proposition, the taxing district shall be prohibited from
16 issuing "limited" bonds and from excluding the extensions
17 made for payments of principal and interest of "limited" and
18 "double-barrelled" bonds from the "aggregate extension" of
19 the taxing district.
20 (f) Referenda held under this Section shall be conducted
21 at a general election in accordance with the Election Code.
22 (35 ILCS 200/18-212)
23 Sec. 18-212. Referendum on debt service extension base. A
24 taxing district may establish or increase its debt service
25 extension base if (i) that taxing district holds a referendum
26 before the date on which the levy must be filed with the
27 county clerk of the county or counties in which the taxing
28 district is situated and (ii) a majority of voters voting on
29 the issue approves the establishment of or increase in the
30 debt service extension base. Referenda under this Section
31 shall be conducted at a regularly scheduled election in
32 accordance with the Election Code. The governing body of the
33 taxing district shall certify the question to the proper
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1 election authorities who shall submit the question to the
2 electors of the taxing district in substantially the
3 following form:
4 "Shall the debt service extension base under the Property
5 Tax Extension Limitation Law for ... (taxing district
6 name) ... for payment of principal and interest on
7 limited bonds be .... ((established at $ ....) . (or)
8 (increased from $ .... to $ ....)) .. for the ..... levy
9 year and all subsequent levy years?"
10 Votes on the question shall be recorded as "Yes" or "No".
11 If a majority of voters voting on the issue approves the
12 establishment of or increase in the debt service extension
13 base, the establishment of or increase in the debt service
14 extension base shall be applicable for the levy years
15 specified.
16 The provisions of this Section do not apply to a taxing
17 district that holds a referendum held in accordance with
18 Section 18-192 and the referendum is approved.
19 (Source: P.A. 89-385, eff. 8-18-95.)