State of Illinois
90th General Assembly
Legislation

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90_HB3027

      35 ILCS 200/18-55
      35 ILCS 200/18-56
      35 ILCS 200/18-60
      35 ILCS 200/18-65
      35 ILCS 200/18-66 new
      35 ILCS 200/18-70
      35 ILCS 200/18-80
      35 ILCS 200/18-85
      35 ILCS 200/18-90
      35 ILCS 200/18-105
      30 ILCS 805/8.22 new
          Amends the  Property  Tax  Code.   Revises  the  purposes
      Section of the Truth in Taxation Law in the Property Tax Code
      to  require taxing districts to hold public hearings on their
      intention to adopt an aggregate levy  and  to  publish  their
      intentions to adopt an aggregate levy in amounts more than 5%
      or  the  percentage  increase  in  the  Consumer Price Index,
      whichever is less, over the amount of property taxes extended
      or estimated to be extended, including any amount  abated  by
      the  taxing  district prior to such extension, upon the final
      aggregate levy of the preceding year.  Sets  a  uniform  date
      for   filing   appropriation  ordinances.  Amends  the  State
      Mandates Act to require implementation without reimbursement.
      Effective January 1, 1999.
                                                     LRB9008702KDpk
                                               LRB9008702KDpk
 1        AN ACT in relation to truth in taxation.
 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 18-55, 18-56, 18-60,  18-65,  18-70,  18-80,  18-85,
 6    18-90, and 18-105 and adding Section 18-66 as follows:
 7        (35 ILCS 200/18-55)
 8        Sec.  18-55.  Short  title and definitions.  This Section
 9    and Sections 18-56 18-60 through 18-95 may be  cited  as  the
10    Truth  in  Taxation  Law.   As  used  in Sections 18-56 18-60
11    through 18-95:
12        (a)  "taxing  district"  has  the  meaning  specified  in
13    Section 1-150 and includes home rule units;
14        (b)  "aggregate levy" means the annual corporate levy  of
15    the  taxing  district  and those special purpose levies which
16    are made annually (other than debt service levies and  levies
17    made  for  the  purpose  of  paying  amounts due under public
18    building commission leases);
19        (c)  "special  purpose  levies"  include,  but  are   not
20    limited  to, levies made on an annual basis for contributions
21    to pension plans, unemployment and worker's compensation,  or
22    self-insurance;
23        (d)  "debt  service"  means  levies  made  by  any taxing
24    district  pursuant   to   home   rule   authority,   statute,
25    referendum,  ordinance,  resolution, indenture, agreement, or
26    contract to retire the principal or pay  interest  on  bonds,
27    notes,   debentures  or  other  financial  instruments  which
28    evidence indebtedness;.
29        (e)  "Consumer Price Index" has the meaning specified  in
30    Section 18-185.
31    (Source: P.A. 86-957; 86-1475; 88-455.)
                            -2-                LRB9008702KDpk
 1        (35 ILCS 200/18-56)
 2        Sec. 18-56.   Legislative purposes.  The purposes of this
 3    Law  are  (i)  to  require  taxing districts to hold a public
 4    hearing on their intention to adopt an aggregate  levy  on  a
 5    day certain each year and (ii) to require taxing districts to
 6    disclose by publication their intention to adopt an aggregate
 7    levy  in  amounts  more than 5% or the percentage increase in
 8    the Consumer Price Index, whichever is less, over the  amount
 9    of  property  taxes  extended  or  estimated  to be extended,
10    including any amount abated by the taxing district  prior  to
11    such   extension,  upon  the  final  aggregate  levy  of  the
12    preceding year. Legislative purpose.  The purpose of this Law
13    is to require taxing districts to disclose by publication and
14    to hold a public hearing  on  their  intention  to  adopt  an
15    aggregate  levy  in  amounts  more than 105% of the amount of
16    property  taxes  extended  or  estimated  to   be   extended,
17    including  any  amount abated by the taxing district prior to
18    such  extension,  upon  the  final  aggregate  levy  of   the
19    preceding year.
20    (Source: P.A. 88-660, eff. 9-16-94.)
21        (35 ILCS 200/18-60)
22        Sec.  18-60.  Estimate  of  taxes to be levied.  Not less
23    than 30 20 days prior to the adoption of its aggregate  levy,
24    hereafter  referred  to as "levy", the corporate authority of
25    each taxing district shall determine the  amounts  of  money,
26    exclusive  of  any  portion  of that levy attributable to the
27    cost of  conducting  an  election  required  by  the  general
28    election  law,  hereafter  referred  to  as "election costs",
29    estimated to be necessary to be raised by taxation  for  that
30    year upon the taxable property in its district.
31    (Source: P.A. 82-102; 88-455.)
32        (35 ILCS 200/18-65)
                            -3-                LRB9008702KDpk
 1        Sec.  18-65.  Restriction  on  extension.   Until  it has
 2    complied with the  notice  and  hearing  provisions  of  this
 3    Article,  no  taxing  district  shall  levy  an  amount of ad
 4    valorem tax which is more than 105% of the amount,  exclusive
 5    of  election  costs,  which has been extended or is estimated
 6    will be extended,  plus  any  amount  abated  by  the  taxing
 7    district  before  extension, upon the final aggregate levy of
 8    the preceding year.
 9    (Source: P.A. 86-957; 88-455.)
10        (35 ILCS 200/18-66 new)
11        Sec. 18-66.  Intent to adopt an aggregate  levy;  hearing
12    required.   Upon  making  the estimate as provided in Section
13    18-60, the corporate authority shall hold a  hearing  on  its
14    intent  to  adopt  an  aggregate levy.  Except as hereinafter
15    provided, hearings shall be held according to  the  following
16    schedule.
17             (1)  First  Monday  in  December: Park districts and
18        municipalities.
19             (2)  First  Tuesday  in  December:  Townships,  road
20        districts, and all school districts  except  high  school
21        districts.
22             (3)  First   Wednesday   in  December:  High  school
23        districts and libraries.
24             (4)  First Thursday in December: Counties and forest
25        preserve districts.
26             (5)  First Friday  in  December:  All  other  taxing
27        districts.
28        All  hearings shall be open to the public.  The corporate
29    authority of the taxing district shall  explain  the  reasons
30    for  the  levy  and  any  proposed  increase and shall permit
31    persons desiring  to  be  heard  an  opportunity  to  present
32    testimony  within  such  reasonable  time  limits as it shall
33    determine.  The hearing shall not coincide with  the  hearing
                            -4-                LRB9008702KDpk
 1    on   the  proposed  budget.   The  corporate  authority  may,
 2    however, conduct any other business of the taxing district on
 3    the same day.  When separate notice of  the  hearing  is  not
 4    required  by  Sections 18-56, 18-75, and 18-80, notice of the
 5    time of the hearing shall be given in the  taxing  district's
 6    agenda  pursuant to Sections 2.02, 2.03, and 2.04 of the Open
 7    Meetings Act. Failure of a  taxing  district  to  convene  or
 8    complete  a  public  hearing  on  the  day prescribed in this
 9    Section due to physical perils such as natural  disasters  or
10    acts  of  God shall not constitute a failure to hold a public
11    hearing under this Act.  In this event, a taxing district may
12    either hold a separate public hearing  on  its  proposed  tax
13    levy,  or  place  the hearing on its proposed tax levy on the
14    agenda of the taxing district's next scheduled  meeting.   In
15    either  case,  a  taxing  district  shall  give notice of the
16    hearing pursuant to Sections 2.02, 2.03, and 2.04 of the Open
17    Meetings Act.
18        For the purpose of permitting the issuance of warrants or
19    notes in anticipation of the taxes to  be  levied,  a  taxing
20    district  may  hold  (on  any date prior to the first week in
21    December) a hearing on its intent to adopt an aggregate levy.
22    If the estimate of the aggregate levy is more than 5% or  the
23    percentage increase in the Consumer Price Index, whichever is
24    less,  over  the amount extended or estimated to be extended,
25    plus any amount abated by the corporate  authority  prior  to
26    the extension, upon the final aggregate levy of the preceding
27    year,  exclusive  of  election  costs, notice of this hearing
28    shall be given in the same  manner  as  provided  in  Section
29    18-80  of this Act.  If the estimate of the aggregate levy is
30    not more than 5% or the percentage increase in  the  Consumer
31    Price  Index,  whichever is less, over the amount extended or
32    estimated to be extended,  plus  any  amount  abated  by  the
33    corporate  authority  prior  to the extension, upon the final
34    aggregate levy of the preceding year, exclusive  of  election
                            -5-                LRB9008702KDpk
 1    costs,  the  reasonable  content  and timing of the notice of
 2    this hearing shall be determined by the  corporate  authority
 3    of  the  taxing  district.  This  earlier hearing shall be in
 4    addition to, and  not  instead  of,  the  mandatory  December
 5    hearing,  but  may be conducted in conjunction with a regular
 6    meeting of the taxing district.
 7        Any taxing district  with  a  fiscal  year  beginning  on
 8    December  1,  for  which  the hearing day requirement of this
 9    Section would conflict with the adoption of its tax levy  and
10    annual  appropriation ordinance, may hold a public hearing on
11    its proposed tax  levy  prior  to  and  instead  of  the  day
12    prescribed  in  this  Section.   Such public hearing shall be
13    restricted to the proposed tax levy and no other business  of
14    the taxing district shall be discussed or transacted.  Notice
15    of the hearing shall be given as provided in Section 18-80 of
16    this Act.
17        (35 ILCS 200/18-70)
18        Sec.  18-70.  More  than  5%  increase  or the percentage
19    increase in the Consumer  Price  Index,  whichever  is  less;
20    notice   and  hearing  required.   If  the  estimate  of  the
21    corporate authority made as provided in Section 18-60 is more
22    than 5% or the percentage  increase  in  the  Consumer  Price
23    Index, whichever is less, over 105% of the amount extended or
24    estimated  to  be  extended,  plus  any  amount abated by the
25    corporate  authority  prior  to  extension,  upon  the  final
26    aggregate levy of the preceding year, exclusive  of  election
27    costs,  the  corporate  authority shall give public notice of
28    and hold a public hearing on its intent to adopt an aggregate
29    levy in an amount which is more than  5%  or  the  percentage
30    increase in the Consumer Price Index, whichever is less, over
31    105%  of the amount extended or estimated to be extended upon
32    the final aggregate levy extensions, plus any amount  abated,
33    exclusive  of  election  costs,  for the preceding year.  The
                            -6-                LRB9008702KDpk
 1    hearing shall not coincide with the hearing on  the  proposed
 2    budget of the taxing district.
 3    (Source: P.A. 86-957; 88-455.)
 4        (35 ILCS 200/18-80)
 5        Sec.  18-80.  Time  and  form of notice. The notice shall
 6    appear not more than 14 days nor less than 7  days  prior  to
 7    the  date of the public hearing.  The notice shall be no less
 8    than 1/8 page in size, and the smallest type used shall be 12
 9    point and shall be enclosed in a black border  no  less  than
10    1/4 inch wide. The notice shall not be placed in that portion
11    of   the   newspaper   where  legal  notices  and  classified
12    advertisements appear. The notice shall be published  in  the
13    following form:
14        Notice   of   Proposed  Property  Tax  Increase  for  ...
15    (commonly known name of taxing district).
16        I.  A public hearing to approve a proposed  property  tax
17    levy  increase for ... (legal name of the taxing district)...
18    for ... (year) ... will be held on  ...  (date)  ...  at  ...
19    (time) ... at ... (location).
20        Any  person  desiring to appear at the public hearing and
21    present testimony to the  taxing  district  may  contact  ...
22    (name,  title, address and telephone number of an appropriate
23    official).
24        II.  The corporate and  special  purpose  property  taxes
25    extended  or  abated  for  ...  (preceding year) ... were ...
26    (dollar amount of the final aggregate levy as extended,  plus
27    the amount abated by the taxing district prior to extension).
28        The proposed corporate and special purpose property taxes
29    to  be  levied  for  ...  (current  year) ... are ... (dollar
30    amount of the proposed aggregate levy).   This  represents  a
31    ... (percentage) ... increase over the previous year.
32        III.  The  property  taxes  extended for debt service and
33    public building commission leases for  ...  (preceding  year)
                            -7-                LRB9008702KDpk
 1    ... were ... (dollar amount).
 2        The  estimated  property  taxes  to  be  levied  for debt
 3    service  and  public  building  commission  leases  for   ...
 4    (current  year) ... are ... (dollar amount).  This represents
 5    a ... (percentage increase or decrease) ... over the previous
 6    year.
 7        IV.  The total property taxes extended or abated for  ...
 8    (preceding year) ... were ... (dollar amount).
 9        The  estimated  total property taxes to be levied for ...
10    (current year) ... are ... (dollar amount).  This  represents
11    a ... (percentage increase or decrease) ... over the previous
12    year.
13        Any  notice  which includes any information not specified
14    and required by this Article shall be an invalid notice.
15        All hearings shall be open to the public.  The  corporate
16    authority  of  the  taxing district shall explain the reasons
17    for the proposed increase and shall permit  persons  desiring
18    to  be  heard  an  opportunity  to  present  testimony within
19    reasonable time limits as it determines.
20    (Source: P.A. 86-957; 88-455.)
21        (35 ILCS 200/18-85)
22        Sec. 18-85.  Notice  if  adopted  levy  exceeds  proposed
23    levy.    If  the  final  aggregate  tax  levy  resolution  or
24    ordinance adopted is more than 5% or the percentages increase
25    in the Consumer Price Index, whichever is less, over 105%  of
26    the  amount,  exclusive of election costs, which was extended
27    or is estimated to be extended, plus any amount abated by the
28    taxing district prior to extension, upon the final  aggregate
29    levy  of the preceding year and is in excess of the amount of
30    the proposed  levy  stated  in  the  notice  published  under
31    Section  18-70, or is more than 5% or the percentage increase
32    in the Consumer Price Index, whichever is less, over 105%  of
33    that  amount  and no notice was required under Section 18-70,
                            -8-                LRB9008702KDpk
 1    the corporate authority  shall  give  public  notice  of  its
 2    action  within  15  days  of  the adoption of the levy in the
 3    following form:
 4        Notice of Adopted Property Tax Increase for ... (commonly
 5    known name of taxing district).
 6        I.  The corporate  and  special  purpose  property  taxes
 7    extended  or  abated  for  ...  (preceding year) ... were ...
 8    (dollar amount of the final aggregate levy as extended).
 9        The adopted corporate and special purpose property  taxes
10    to  be  levied  for  ...  (current  year) ... are ... (dollar
11    amount of the proposed aggregate levy).   This  represents  a
12    ... (percentage) ... increase over the previous year.
13        II.  The  property  taxes  extended  for debt service and
14    public building commission leases for  ...  (preceding  year)
15    ... were ... (dollar amount).
16        The  estimated  property  taxes  to  be  levied  for debt
17    service  and  public  building  commission  leases  for   ...
18    (current  year) ... are ... (dollar amount).  This represents
19    a ... (percentage increase or decrease) ... over the previous
20    year.
21        III.  The total property taxes extended or abated for ...
22    (preceding year) ... were ... (dollar amount).
23        The estimated total property taxes to be levied  for  ...
24    (current  year) ... are ... (dollar amount).  This represents
25    a ... (percentage increase or decrease) ... over the previous
26    year.
27    (Source: P.A. 86-957; 88-455.)
28        (35 ILCS 200/18-90)
29        Sec. 18-90.  Limitation on  extension  of  county  clerk.
30    The  tax  levy resolution or ordinance approved in the manner
31    provided for in this Article shall be filed with  the  county
32    clerk  in  the  manner  and at the time otherwise provided by
33    law.  No amount more than 105% of the  amount,  exclusive  of
                            -9-                LRB9008702KDpk
 1    election costs, which has been extended or is estimated to be
 2    extended, plus any amount abated by the taxing district prior
 3    to  extension, upon the final aggregate levy of the preceding
 4    year shall be extended  unless  the  tax  levy  ordinance  or
 5    resolution is accompanied by a certification by the presiding
 6    officer of the corporate authority certifying compliance with
 7    or  inapplicability  of  the  provisions  of  Sections  18-60
 8    through  18-85.  An  amount  extended under Section 18-107 in
 9    1994 for a multi-township assessment district  that  did  not
10    file a certification of compliance with the Truth in Taxation
11    Law  may not exceed 105% of the amount, exclusive of election
12    costs, that was extended in 1993, plus a proportional  amount
13    abated  before  extension, upon the levy or portion of a levy
14    that is allocable to assessment  purposes  in  each  township
15    that is a member of that multi-township assessment district.
16    (Source: P.A. 88-455; 88-660, eff. 9-16-94.)
17        (35 ILCS 200/18-105)
18        Sec.  18-105.   Extension  exceeding authorized rate.  No
19    county clerk shall extend a tax levy imposed  by  any  taxing
20    district,  other  than a home rule unit, based on a rate that
21    exceeds the rate authorized by statute or referendum for that
22    taxing district. If a taxing  district  is  in  violation  of
23    Section  18-90,  no  county  clerk  shall  extend  the  final
24    aggregate  levy,  as  defined  in Section 18-55, in an amount
25    more than 105% of the final aggregate levy extended  for  the
26    preceding year.
27    (Source: P.A. 86-233; 86-953; 86-957; 86-1475; 87-17; 87-477;
28    87-895; 88-455.)
29        Section  10.  The State Mandates Act is amended by adding
30    Section 8.22 as follows:
31        (30 ILCS 805/8.22 new)
                            -10-               LRB9008702KDpk
 1        Sec. 8.22. Exempt mandate.   Notwithstanding  Sections  6
 2    and  8 of this Act, no reimbursement by the State is required
 3    for  the  implementation  of  any  mandate  created  by  this
 4    amendatory Act of 1998.
 5        Section 99.   Effective  date.   This  Act  takes  effect
 6    January 1, 1999.

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