State of Illinois
90th General Assembly
Legislation

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90_HB3647

      35 ILCS 200/18-185
          Amends the Property Tax Extension Limitation Law  in  the
      Property  Tax  Code. Provides that in addition to its current
      meaning, "debt service extension base" means an amount  equal
      to  that  portion  of the extension for any park district for
      the 1991 levy year constituting an extension for  payment  of
      principal  and  interest on bonds issued by the park district
      without referendum, but not including excluded non-referendum
      bonds, but only for those park districts (i) that were  first
      subject  to  this  Law  in 1991 or 1995 and (ii) either whose
      extension for the 1994 levy year  (A)  did  not  include  any
      amount  for  the  payment  of principal and interest on bonds
      issued  without  referendum  (but  not   including   excluded
      non-referendum  bonds) or (B) was less than 51% of the amount
      equal to that portion of the extension for the park  district
      for  the  1991  levy  year  constituting an extension for the
      payment of principal and interest on  bonds  issued   by  the
      park  district without referendum (but not including excluded
      non-referendum  bonds).  Defines   "excluded   non-referendum
      bonds".  Effective immediately.
                                                     LRB9010601KDks
                                               LRB9010601KDks
 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        (This  Section  may contain text from a Public Act with a
 9    delayed effective date)
10        Sec. 18-185.  Short title; definitions.  This Section and
11    Sections 18-190 through 18-245 may be cited as  the  Property
12    Tax  Extension  Limitation  Law.   As used in Sections 18-190
13    through 18-245:
14        "Consumer Price Index" means the Consumer Price Index for
15    All Urban Consumers for all items  published  by  the  United
16    States Department of Labor.
17        "Extension  limitation" means (a) the lesser of 5% or the
18    percentage increase in the Consumer Price  Index  during  the
19    12-month  calendar  year  preceding  the levy year or (b) the
20    rate of increase approved by voters under Section 18-205.
21        "Affected county" means a county  of  3,000,000  or  more
22    inhabitants  or  a county contiguous to a county of 3,000,000
23    or more inhabitants.
24        "Taxing  district"  has  the  same  meaning  provided  in
25    Section 1-150, except as otherwise provided in this  Section.
26    For  the 1991 through 1994 levy years only, "taxing district"
27    includes only each non-home rule taxing district  having  the
28    majority  of  its  1990  equalized  assessed value within any
29    county or counties contiguous to a county with  3,000,000  or
30    more inhabitants.  Beginning with the 1995 levy year, "taxing
31    district"  includes  only  each non-home rule taxing district
                            -2-                LRB9010601KDks
 1    subject to this Law  before  the  1995  levy  year  and  each
 2    non-home  rule taxing district not subject to this Law before
 3    the 1995 levy year having the majority of its 1994  equalized
 4    assessed  value in an affected county or counties.  Beginning
 5    with the levy year in which this Law becomes applicable to  a
 6    taxing  district  as  provided  in  Section  18-213,  "taxing
 7    district"  also  includes those taxing districts made subject
 8    to this Law as provided in Section 18-213.
 9        "Aggregate extension" for taxing districts to which  this
10    Law  applied  before  the  1995  levy  year  means the annual
11    corporate extension for the taxing district and those special
12    purpose extensions that are  made  annually  for  the  taxing
13    district,  excluding special purpose extensions: (a) made for
14    the taxing district to pay interest or principal  on  general
15    obligation  bonds  that were approved by referendum; (b) made
16    for any taxing district  to  pay  interest  or  principal  on
17    general  obligation  bonds issued before October 1, 1991; (c)
18    made for any taxing district to pay interest or principal  on
19    bonds  issued  to  refund  or  continue to refund those bonds
20    issued before October  1,  1991;  (d)  made  for  any  taxing
21    district  to  pay  interest  or  principal on bonds issued to
22    refund or continue to refund bonds issued  after  October  1,
23    1991  that  were  approved  by  referendum;  (e) made for any
24    taxing district to pay interest or principal on revenue bonds
25    issued before October 1, 1991 for payment of which a property
26    tax levy or the full faith and credit of the  unit  of  local
27    government  is  pledged;  however,  a  tax for the payment of
28    interest or principal on those bonds shall be made only after
29    the governing body of the unit of local government finds that
30    all 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 October 1, 1991, to  pay  for
34    the  building  project;  (g)  made  for  payments  due  under
                            -3-                LRB9010601KDks
 1    installment  contracts  entered  into before October 1, 1991;
 2    (h) made for payments of  principal  and  interest  on  bonds
 3    issued  under the Metropolitan Water Reclamation District Act
 4    to finance construction projects initiated before October  1,
 5    1991;  (i)  made  for  payments  of principal and interest on
 6    limited  bonds,  as  defined  in  Section  3  of  the   Local
 7    Government  Debt  Reform  Act, in an amount not to exceed the
 8    debt service extension base less the  amount  in  items  (b),
 9    (c),  (e),  and  (h)  of  this  definition for non-referendum
10    obligations, except obligations initially issued pursuant  to
11    referendum;  (j)  made for payments of principal and interest
12    on bonds issued under Section 15 of the Local Government Debt
13    Reform  Act;  and  (k)  made  by  a  school   district   that
14    participates  in  the  Special  Education  District  of  Lake
15    County,  created  by  special education joint agreement under
16    Section 10-22.31 of the  School  Code,  for  payment  of  the
17    school  district's  share  of  the  amounts  required  to  be
18    contributed  by the Special Education District of Lake County
19    to the Illinois Municipal Retirement Fund under Article 7  of
20    the  Illinois Pension Code; the amount of any extension under
21    this item (k) shall be certified by the  school  district  to
22    the county clerk.
23        "Aggregate  extension"  for the taxing districts to which
24    this Law did not apply before  the  1995  levy  year  (except
25    taxing  districts  subject  to  this  Law  in accordance with
26    Section 18-213) means the annual corporate extension for  the
27    taxing district and those special purpose extensions that are
28    made  annually  for  the  taxing  district, excluding special
29    purpose extensions: (a) made for the taxing district  to  pay
30    interest  or  principal on general obligation bonds that were
31    approved by referendum; (b) made for any taxing  district  to
32    pay  interest or principal on general obligation bonds issued
33    before March 1, 1995; (c) made for any taxing district to pay
34    interest or principal on bonds issued to refund  or  continue
                            -4-                LRB9010601KDks
 1    to  refund  those bonds issued before March 1, 1995; (d) made
 2    for any taxing district to pay interest or principal on bonds
 3    issued to refund or continue to  refund  bonds  issued  after
 4    March  1, 1995 that were approved by referendum; (e) made for
 5    any taxing district to pay interest or principal  on  revenue
 6    bonds  issued  before  March  1,  1995 for payment of which a
 7    property tax levy or the full faith and credit of the unit of
 8    local government is pledged; however, a tax for  the  payment
 9    of  interest  or  principal on those bonds shall be made only
10    after the governing body of  the  unit  of  local  government
11    finds  that all other sources for payment are insufficient to
12    make those payments; (f) made for payments under  a  building
13    commission   lease  when  the  lease  payments  are  for  the
14    retirement of bonds issued by the commission before March  1,
15    1995  to  pay for the building project; (g) made for payments
16    due under installment contracts entered into before March  1,
17    1995;  (h)  made  for  payments  of principal and interest on
18    bonds  issued  under  the  Metropolitan   Water   Reclamation
19    District  Act  to  finance  construction  projects  initiated
20    before  October  1,  1991; (i) made for payments of principal
21    and interest on limited bonds, as defined in Section 3 of the
22    Local Government Debt Reform Act, in an amount not to  exceed
23    the debt service extension base less the amount in items (b),
24    (c),   and   (e)   of   this  definition  for  non-referendum
25    obligations, except obligations initially issued pursuant  to
26    referendum  and  bonds  described  in  subsection (h) of this
27    definition; (j) made for payments of principal  and  interest
28    on bonds issued under Section 15 of the Local Government Debt
29    Reform  Act;  (k) made for payments of principal and interest
30    on bonds authorized by Public Act  88-503  and  issued  under
31    Section  20a of the Chicago Park District Act for aquarium or
32    museum projects; and (l) made for payments of  principal  and
33    interest on bonds authorized by Public Act 87-1191 and issued
34    under  Section 42 of the Cook County Forest Preserve District
                            -5-                LRB9010601KDks
 1    Act for zoological park projects.
 2        "Aggregate extension" for all taxing districts  to  which
 3    this  Law  applies  in accordance with Section 18-213, except
 4    for those  taxing  districts  subject  to  paragraph  (2)  of
 5    subsection  (e) of Section 18-213, means the annual corporate
 6    extension for the taxing district and those  special  purpose
 7    extensions  that  are  made annually for the taxing district,
 8    excluding special purpose extensions: (a) made for the taxing
 9    district to pay interest or principal on  general  obligation
10    bonds  that  were  approved  by  referendum; (b) made for any
11    taxing district to  pay  interest  or  principal  on  general
12    obligation   bonds  issued  before  the  date  on  which  the
13    referendum making this Law applicable to the taxing  district
14    is  held; (c) made for any taxing district to pay interest or
15    principal on bonds issued to refund  or  continue  to  refund
16    those  bonds  issued  before the date on which the referendum
17    making this Law applicable to the taxing  district  is  held;
18    (d) made for any taxing district to pay interest or principal
19    on  bonds issued to refund or continue to refund bonds issued
20    after the date  on  which  the  referendum  making  this  Law
21    applicable  to  the taxing district is held if the bonds were
22    approved by referendum after the date on which the referendum
23    making this Law applicable to the taxing  district  is  held;
24    (e) made for any taxing district to pay interest or principal
25    on  revenue  bonds  issued  before  the  date  on  which  the
26    referendum  making this Law applicable to the taxing district
27    is held for payment of which a property tax levy or the  full
28    faith  and credit of the unit of local government is pledged;
29    however, a tax for the payment of interest  or  principal  on
30    those  bonds  shall  be made only after the governing body of
31    the unit of local government finds that all other sources for
32    payment are insufficient to make those payments; (f) made for
33    payments under a building commission  lease  when  the  lease
34    payments  are  for  the  retirement  of  bonds  issued by the
                            -6-                LRB9010601KDks
 1    commission before the date on  which  the  referendum  making
 2    this Law applicable to the taxing district is held to pay for
 3    the  building  project;  (g)  made  for  payments  due  under
 4    installment  contracts  entered into before the date on which
 5    the referendum making  this  Law  applicable  to  the  taxing
 6    district  is  held;  (h)  made  for payments of principal and
 7    interest on limited bonds, as defined in  Section  3  of  the
 8    Local  Government Debt Reform Act, in an amount not to exceed
 9    the debt service extension base less the amount in items (b),
10    (c),  and  (e)  of   this   definition   for   non-referendum
11    obligations,  except obligations initially issued pursuant to
12    referendum; (i) made for payments of principal  and  interest
13    on bonds issued under Section 15 of the Local Government Debt
14    Reform Act; and (j) made for a qualified airport authority to
15    pay  interest or principal on general obligation bonds issued
16    for the purpose of paying obligations due under, or financing
17    airport facilities  required  to  be  acquired,  constructed,
18    installed  or  equipped  pursuant  to, contracts entered into
19    before March 1, 1996 (but not  including  any  amendments  to
20    such a contract taking effect on or after that date).
21        "Aggregate  extension"  for all taxing districts to which
22    this  Law  applies  in  accordance  with  paragraph  (2)   of
23    subsection  (e)  of Section 18-213 means the annual corporate
24    extension for the taxing district and those  special  purpose
25    extensions  that  are  made annually for the taxing district,
26    excluding special purpose extensions: (a) made for the taxing
27    district to pay interest or principal on  general  obligation
28    bonds  that  were  approved  by  referendum; (b) made for any
29    taxing district to  pay  interest  or  principal  on  general
30    obligation  bonds  issued  before  the effective date of this
31    amendatory Act of 1997; (c) made for any taxing  district  to
32    pay  interest  or  principal  on  bonds  issued  to refund or
33    continue to refund those bonds issued  before  the  effective
34    date  of this amendatory Act of 1997; (d) made for any taxing
                            -7-                LRB9010601KDks
 1    district to pay interest or  principal  on  bonds  issued  to
 2    refund or continue to refund bonds issued after the effective
 3    date  of  this  amendatory  Act  of  1997  if  the bonds were
 4    approved by referendum  after  the  effective  date  of  this
 5    amendatory  Act  of 1997; (e) made for any taxing district to
 6    pay interest or principal on revenue bonds issued before  the
 7    effective  date of this amendatory Act of 1997 for payment of
 8    which a property tax levy or the full faith and credit of the
 9    unit of local government is pledged; however, a tax  for  the
10    payment of interest or principal on those bonds shall be made
11    only after the governing body of the unit of local government
12    finds  that all other sources for payment are insufficient to
13    make those payments; (f) made for payments under  a  building
14    commission   lease  when  the  lease  payments  are  for  the
15    retirement of bonds  issued  by  the  commission  before  the
16    effective  date of this amendatory Act of 1997 to pay for the
17    building project; (g) made for payments due under installment
18    contracts entered into before  the  effective  date  of  this
19    amendatory  Act  of  1997; (h) made for payments of principal
20    and interest on limited bonds, as defined in Section 3 of the
21    Local Government Debt Reform Act, in an amount not to  exceed
22    the debt service extension base less the amount in items (b),
23    (c),   and   (e)   of   this  definition  for  non-referendum
24    obligations, except obligations initially issued pursuant  to
25    referendum;  (i)  made for payments of principal and interest
26    on bonds issued under Section 15 of the Local Government Debt
27    Reform Act; and (j) made for a qualified airport authority to
28    pay interest or principal on general obligation bonds  issued
29    for the purpose of paying obligations due under, or financing
30    airport  facilities  required  to  be  acquired, constructed,
31    installed or equipped pursuant  to,  contracts  entered  into
32    before  March  1,  1996  (but not including any amendments to
33    such a contract taking effect on or after that date).
34        "Debt service extension base" means the amount calculated
                            -8-                LRB9010601KDks
 1    under parts (a) or (b) as follows:  (a) an  amount  equal  to
 2    that  portion  of the extension for a taxing district for the
 3    1994 levy year, or for those taxing districts subject to this
 4    Law in accordance  with  Section  18-213,  except  for  those
 5    subject to paragraph (2) of subsection (e) of Section 18-213,
 6    for  the  levy  year  in which the referendum making this Law
 7    applicable to the taxing  district  is  held,  or  for  those
 8    taxing  districts  subject  to  this  Law  in accordance with
 9    paragraph (2) of subsection (e) of  Section  18-213  for  the
10    1996  levy  year,  constituting  an  extension for payment of
11    principal and interest on bonds issued by the taxing district
12    without referendum, but not including excluded non-referendum
13    bonds; or  (b)  an  amount  equal  to  that  portion  of  the
14    extension  for  any  park  district  for  the  1991 levy year
15    constituting  an  extension  for  payment  of  principal  and
16    interest  on  bonds  issued  by  the  park  district  without
17    referendum, but not including excluded non-referendum  bonds,
18    but only for those park districts (i) that were first subject
19    to  this  Law in 1991 or 1995 and (ii) either whose extension
20    for the 1994 levy year (A) did not include any amount for the
21    payment of principal and interest  on  bonds  issued  without
22    referendum  (but not including excluded non-referendum bonds)
23    or (B) was less than 51% of the amount equal to that  portion
24    of the extension for the park district for the 1991 levy year
25    constituting  an  extension  for the payment of principal and
26    interest on bonds  issued    by  the  park  district  without
27    referendum (but not including excluded non-referendum bonds).
28    The  debt  service  extension  base  may  be  established  or
29    increased as provided under Section 18-212.
30        "Excluded   non-referendum   bonds"   means   (i)   bonds
31    authorized  by Public Act 88-503 and issued under Section 20a
32    of the Chicago Park District  Act  for  aquarium  and  museum
33    projects;  (ii)  bonds  issued  under Section 15 of the Local
34    Government Debt Reform Act; or  (iii)  refunding  obligations
                            -9-                LRB9010601KDks
 1    issued  to  refund  or  to  continue  to  refund  obligations
 2    initially  issued  pursuant  to referendum.  The debt service
 3    extension base may be established or  increased  as  provided
 4    under Section 18-212.
 5        "Special purpose extensions" include, but are not limited
 6    to,  extensions  for  levies  made  on  an  annual  basis for
 7    unemployment  and  workers'   compensation,   self-insurance,
 8    contributions  to pension plans, and extensions made pursuant
 9    to Section 6-601 of the Illinois  Highway  Code  for  a  road
10    district's  permanent  road  fund  whether levied annually or
11    not.  The  extension  for  a  special  service  area  is  not
12    included in the aggregate extension.
13        "Aggregate  extension  base"  means the taxing district's
14    last preceding aggregate extension as adjusted under Sections
15    18-215 through 18-230.
16        "Levy year" has the same meaning as "year" under  Section
17    1-155.
18        "New  property" means (i) the assessed value, after final
19    board  of  review  or  board  of  appeals  action,   of   new
20    improvements  or  additions  to  existing improvements on any
21    parcel of real property that increase the assessed  value  of
22    that  real  property  during  the levy year multiplied by the
23    equalization factor issued by the  Department  under  Section
24    17-30  and  (ii)  the  assessed  value,  after final board of
25    review or board of  appeals  action,  of  real  property  not
26    exempt  from  real  estate  taxation, which real property was
27    exempt from real estate  taxation  for  any  portion  of  the
28    immediately   preceding   levy   year,   multiplied   by  the
29    equalization factor issued by the  Department  under  Section
30    17-30.
31        "Qualified  airport authority" means an airport authority
32    organized under the Airport Authorities Act and located in  a
33    county  bordering  on  the  State  of  Wisconsin and having a
34    population in excess of 200,000 and not greater than 500,000.
                            -10-               LRB9010601KDks
 1        "Recovered tax increment value" means the amount  of  the
 2    current  year's  equalized  assessed value, in the first year
 3    after a municipality terminates the designation of an area as
 4    a redevelopment project area previously established under the
 5    Tax Increment Allocation  Development  Act  in  the  Illinois
 6    Municipal  Code,  previously established under the Industrial
 7    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
 8    previously  established  under  the Economic Development Area
 9    Tax Increment Allocation Act, of  each  taxable  lot,  block,
10    tract,  or  parcel  of  real  property  in  the redevelopment
11    project area over and above the  initial  equalized  assessed
12    value  of  each  property  in the redevelopment project area.
13    For the taxes which are extended for the 1997 levy year,  the
14    recovered  tax  increment  value  for  a non-home rule taxing
15    district that first became subject to this Law for  the  1995
16    levy  year  because a majority of its 1994 equalized assessed
17    value  was  in  an  affected  county  or  counties  shall  be
18    increased if a municipality terminated the designation of  an
19    area  in  1993  as  a  redevelopment  project area previously
20    established under the Tax  Increment  Allocation  Development
21    Act  in  the  Illinois Municipal Code, previously established
22    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
23    Municipal  Code, or previously established under the Economic
24    Development Area Tax Increment Allocation Act, by  an  amount
25    equal  to  the  1994 equalized assessed value of each taxable
26    lot,  block,  tract,  or  parcel  of  real  property  in  the
27    redevelopment  project  area  over  and  above  the   initial
28    equalized   assessed   value   of   each   property   in  the
29    redevelopment project area.
30        Except as otherwise provided in this  Section,  "limiting
31    rate"  means  a  fraction  the numerator of which is the last
32    preceding aggregate extension base times an amount  equal  to
33    one plus the extension limitation defined in this Section and
34    the  denominator  of  which  is  the current year's equalized
                            -11-               LRB9010601KDks
 1    assessed value of all real property in  the  territory  under
 2    the jurisdiction of the taxing district during the prior levy
 3    year.    For   those  taxing  districts  that  reduced  their
 4    aggregate extension for the last  preceding  levy  year,  the
 5    highest  aggregate  extension  in any of the last 3 preceding
 6    levy years shall be used for the  purpose  of  computing  the
 7    limiting   rate.   The  denominator  shall  not  include  new
 8    property.  The denominator shall not  include  the  recovered
 9    tax increment value.
10    (Source:  P.A.  89-1,  eff.  2-12-95;  89-138,  eff. 7-14-95;
11    89-385, eff.  8-18-95;  89-436,  eff.  1-1-96;  89-449,  eff.
12    6-1-96;  89-510,  eff.  7-11-96; 89-718, eff. 3-7-97; 90-485,
13    eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99.)
14        Section 99.  Effective date.  This Act takes effect  upon
15    becoming law.

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