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90_SB0728
30 ILCS 105/5.449 new
30 ILCS 105/6z-42 new
30 ILCS 805/8.21 new
35 ILCS 5/201 from Ch. 120, par. 2-201
35 ILCS 5/901 from Ch. 120, par. 9-901
35 ILCS 200/9-210
35 ILCS 200/16-65
35 ILCS 200/17-5
35 ILCS 200/18-165
35 ILCS 200/18-185
35 ILCS 200/18-213
35 ILCS 200/18-242 new
Amends the Illinois Income Tax Act to increase the
individual rate to 4.5% and the corporate rate to 7.2% (now
3% and 4.8% respectively). Provides that the additional
revenue attributable to the increased rates shall be
deposited into the Property Tax Abatement Fund. Amends the
State Finance Act to create the Property Tax Abatement Fund.
Provides that proceeds in the Fund shall be disbursed to
various taxing districts in Illinois based on the ratio that
a district's property tax collections bear to total property
tax collections for all taxing districts. Amends the Property
Tax Code to require a taxing district's extension on
residential property only to be abated by $1 for every $1
received from the Property Tax Abatement Fund, except for
school districts whose taxes on residential property only are
abated $0.50 for every $1 received from the Fund. Provides
that the application of the equalizer shall not cause an
increase in the assessment of more than 5%. Amends the
Property Tax Extension Limitation Law in the Property Tax
Code to apply the Law statewide, including home rule units.
Preempts home rule. Exempts this Act from the requirements of
the State Mandates Act. Effective July 1, 1997.
LRB9003287KDcdA
LRB9003287KDcdA
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5 Sections 5.449 and 6z-42 as follows:
6 (30 ILCS 105/5.449 new)
7 Sec. 5.449. The Property Tax Abatement Fund.
8 (30 ILCS 105/6z-42 new)
9 Sec. 6z-42. Property Tax Abatement Fund; distributions.
10 On January 1 of each year, that percentage of the amount in
11 the Property Tax Abatement Fund that equals the percentage
12 that the amount of real property taxes extended in the
13 previous year by a taxing district bears to the total amount
14 of real property taxes extended by all taxing districts in
15 the State in the previous year shall be distributed from the
16 Fund to that taxing district. The Department of Revenue shall
17 calculate the percentage of the Fund to which each taxing
18 district in this State is entitled and report those
19 percentages to the Treasurer before December 15 of each year.
20 The Treasurer shall then distribute the moneys in the Fund to
21 the various taxing districts in the State according to those
22 percentages.
23 Section 10. The State Mandates Act is amended by adding
24 Section 8.21 as follows:
25 (30 ILCS 805/8.21 new)
26 Sec. 8.21. Notwithstanding Sections 6 and 8 of this Act,
27 no reimbursement by the State is required for the
28 implementation of any mandate created by this amendatory Act
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1 of 1997.
2 Section 15. The Illinois Income Tax Act is amended by
3 changing Sections 201 and 901 as follows:
4 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
5 Sec. 201. Tax Imposed.
6 (a) In general. A tax measured by net income is hereby
7 imposed on every individual, corporation, trust and estate
8 for each taxable year ending after July 31, 1969 on the
9 privilege of earning or receiving income in or as a resident
10 of this State. Such tax shall be in addition to all other
11 occupation or privilege taxes imposed by this State or by any
12 municipal corporation or political subdivision thereof.
13 (b) Rates. The tax imposed by subsection (a) of this
14 Section shall be determined as follows:
15 (1) In the case of an individual, trust or estate,
16 for taxable years ending prior to July 1, 1989, an amount
17 equal to 2 1/2% of the taxpayer's net income for the
18 taxable year.
19 (2) In the case of an individual, trust or estate,
20 for taxable years beginning prior to July 1, 1989 and
21 ending after June 30, 1989, an amount equal to the sum of
22 (i) 2 1/2% of the taxpayer's net income for the period
23 prior to July 1, 1989, as calculated under Section 202.3,
24 and (ii) 3% of the taxpayer's net income for the period
25 after June 30, 1989, as calculated under Section 202.3.
26 (3) In the case of an individual, trust or estate,
27 for taxable years beginning after June 30, 1989 and
28 ending before July 1, 1997, an amount equal to 3% of the
29 taxpayer's net income for the taxable year.
30 (3.2) In the case of an individual, trust, or
31 estate, for taxable years beginning prior to July 1, 1997
32 and ending after June 30,1997, an amount equal to the sum
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1 of (i) 3% of the taxpayer's net income for the period
2 prior to July 1, 1997 and (ii) 4.5% of the taxpayer's net
3 income for the period after June 30, 1997
4 (3.5) In the case of an individual, trust, or
5 estate, for taxable years beginning after June 30, 1997,
6 an amount equal to 4.5% of the taxpayer's net income for
7 the taxable year.
8 (4) (Blank).
9 (5) (Blank).
10 (6) In the case of a corporation, for taxable years
11 ending prior to July 1, 1989, an amount equal to 4% of
12 the taxpayer's net income for the taxable year.
13 (7) In the case of a corporation, for taxable years
14 beginning prior to July 1, 1989 and ending after June 30,
15 1989, an amount equal to the sum of (i) 4% of the
16 taxpayer's net income for the period prior to July 1,
17 1989, as calculated under Section 202.3, and (ii) 4.8% of
18 the taxpayer's net income for the period after June 30,
19 1989, as calculated under Section 202.3.
20 (8) In the case of a corporation, for taxable years
21 beginning after June 30, 1989 and ending before July 1,
22 1997, an amount equal to 4.8% of the taxpayer's net
23 income for the taxable year.
24 (8.5) In the cse of corporation, for taxable years
25 beginning prior to July 1, 1997 and ending after June 30,
26 1997, an amount equal to the sum of (i) 4.8% of the
27 taxpayer's net income for the period prior to July 1,
28 1997 and (ii) 7.2% of the taxpayer's net income for the
29 period after June 30, 1997.
30 (9) In the case of a corporation, for taxable years
31 beginning after June 30, 1997, an amount equal to 7.2% of
32 the taxpayer's net income for the taxable year.
33 (c) Beginning on July 1, 1979 and thereafter, in
34 addition to such income tax, there is also hereby imposed the
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1 Personal Property Tax Replacement Income Tax measured by net
2 income on every corporation (including Subchapter S
3 corporations), partnership and trust, for each taxable year
4 ending after June 30, 1979. Such taxes are imposed on the
5 privilege of earning or receiving income in or as a resident
6 of this State. The Personal Property Tax Replacement Income
7 Tax shall be in addition to the income tax imposed by
8 subsections (a) and (b) of this Section and in addition to
9 all other occupation or privilege taxes imposed by this State
10 or by any municipal corporation or political subdivision
11 thereof.
12 (d) Additional Personal Property Tax Replacement Income
13 Tax Rates. The personal property tax replacement income tax
14 imposed by this subsection and subsection (c) of this Section
15 in the case of a corporation, other than a Subchapter S
16 corporation, shall be an additional amount equal to 2.85% of
17 such taxpayer's net income for the taxable year, except that
18 beginning on January 1, 1981, and thereafter, the rate of
19 2.85% specified in this subsection shall be reduced to 2.5%,
20 and in the case of a partnership, trust or a Subchapter S
21 corporation shall be an additional amount equal to 1.5% of
22 such taxpayer's net income for the taxable year.
23 (e) Investment credit. A taxpayer shall be allowed a
24 credit against the Personal Property Tax Replacement Income
25 Tax for investment in qualified property.
26 (1) A taxpayer shall be allowed a credit equal to
27 .5% of the basis of qualified property placed in service
28 during the taxable year, provided such property is placed
29 in service on or after July 1, 1984. There shall be
30 allowed an additional credit equal to .5% of the basis of
31 qualified property placed in service during the taxable
32 year, provided such property is placed in service on or
33 after July 1, 1986, and the taxpayer's base employment
34 within Illinois has increased by 1% or more over the
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1 preceding year as determined by the taxpayer's employment
2 records filed with the Illinois Department of Employment
3 Security. Taxpayers who are new to Illinois shall be
4 deemed to have met the 1% growth in base employment for
5 the first year in which they file employment records with
6 the Illinois Department of Employment Security. The
7 provisions added to this Section by Public Act 85-1200
8 (and restored by Public Act 87-895) shall be construed as
9 declaratory of existing law and not as a new enactment.
10 If, in any year, the increase in base employment within
11 Illinois over the preceding year is less than 1%, the
12 additional credit shall be limited to that percentage
13 times a fraction, the numerator of which is .5% and the
14 denominator of which is 1%, but shall not exceed .5%.
15 The investment credit shall not be allowed to the extent
16 that it would reduce a taxpayer's liability in any tax
17 year below zero, nor may any credit for qualified
18 property be allowed for any year other than the year in
19 which the property was placed in service in Illinois. For
20 tax years ending on or after December 31, 1987, and on or
21 before December 31, 1988, the credit shall be allowed for
22 the tax year in which the property is placed in service,
23 or, if the amount of the credit exceeds the tax liability
24 for that year, whether it exceeds the original liability
25 or the liability as later amended, such excess may be
26 carried forward and applied to the tax liability of the 5
27 taxable years following the excess credit years if the
28 taxpayer (i) makes investments which cause the creation
29 of a minimum of 2,000 full-time equivalent jobs in
30 Illinois, (ii) is located in an enterprise zone
31 established pursuant to the Illinois Enterprise Zone Act
32 and (iii) is certified by the Department of Commerce and
33 Community Affairs as complying with the requirements
34 specified in clause (i) and (ii) by July 1, 1986. The
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1 Department of Commerce and Community Affairs shall notify
2 the Department of Revenue of all such certifications
3 immediately. For tax years ending after December 31,
4 1988, the credit shall be allowed for the tax year in
5 which the property is placed in service, or, if the
6 amount of the credit exceeds the tax liability for that
7 year, whether it exceeds the original liability or the
8 liability as later amended, such excess may be carried
9 forward and applied to the tax liability of the 5 taxable
10 years following the excess credit years. The credit shall
11 be applied to the earliest year for which there is a
12 liability. If there is credit from more than one tax year
13 that is available to offset a liability, earlier credit
14 shall be applied first.
15 (2) The term "qualified property" means property
16 which:
17 (A) is tangible, whether new or used,
18 including buildings and structural components of
19 buildings and signs that are real property, but not
20 including land or improvements to real property that
21 are not a structural component of a building such as
22 landscaping, sewer lines, local access roads,
23 fencing, parking lots, and other appurtenances;
24 (B) is depreciable pursuant to Section 167 of
25 the Internal Revenue Code, except that "3-year
26 property" as defined in Section 168(c)(2)(A) of that
27 Code is not eligible for the credit provided by this
28 subsection (e);
29 (C) is acquired by purchase as defined in
30 Section 179(d) of the Internal Revenue Code;
31 (D) is used in Illinois by a taxpayer who is
32 primarily engaged in manufacturing, or in mining
33 coal or fluorite, or in retailing; and
34 (E) has not previously been used in Illinois
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1 in such a manner and by such a person as would
2 qualify for the credit provided by this subsection
3 (e) or subsection (f).
4 (3) For purposes of this subsection (e),
5 "manufacturing" means the material staging and production
6 of tangible personal property by procedures commonly
7 regarded as manufacturing, processing, fabrication, or
8 assembling which changes some existing material into new
9 shapes, new qualities, or new combinations. For purposes
10 of this subsection (e) the term "mining" shall have the
11 same meaning as the term "mining" in Section 613(c) of
12 the Internal Revenue Code. For purposes of this
13 subsection (e), the term "retailing" means the sale of
14 tangible personal property or services rendered in
15 conjunction with the sale of tangible consumer goods or
16 commodities.
17 (4) The basis of qualified property shall be the
18 basis used to compute the depreciation deduction for
19 federal income tax purposes.
20 (5) If the basis of the property for federal income
21 tax depreciation purposes is increased after it has been
22 placed in service in Illinois by the taxpayer, the amount
23 of such increase shall be deemed property placed in
24 service on the date of such increase in basis.
25 (6) The term "placed in service" shall have the
26 same meaning as under Section 46 of the Internal Revenue
27 Code.
28 (7) If during any taxable year, any property ceases
29 to be qualified property in the hands of the taxpayer
30 within 48 months after being placed in service, or the
31 situs of any qualified property is moved outside Illinois
32 within 48 months after being placed in service, the
33 Personal Property Tax Replacement Income Tax for such
34 taxable year shall be increased. Such increase shall be
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1 determined by (i) recomputing the investment credit which
2 would have been allowed for the year in which credit for
3 such property was originally allowed by eliminating such
4 property from such computation and, (ii) subtracting such
5 recomputed credit from the amount of credit previously
6 allowed. For the purposes of this paragraph (7), a
7 reduction of the basis of qualified property resulting
8 from a redetermination of the purchase price shall be
9 deemed a disposition of qualified property to the extent
10 of such reduction.
11 (8) Unless the investment credit is extended by
12 law, the basis of qualified property shall not include
13 costs incurred after December 31, 2003, except for costs
14 incurred pursuant to a binding contract entered into on
15 or before December 31, 2003.
16 (f) Investment credit; Enterprise Zone.
17 (1) A taxpayer shall be allowed a credit against
18 the tax imposed by subsections (a) and (b) of this
19 Section for investment in qualified property which is
20 placed in service in an Enterprise Zone created pursuant
21 to the Illinois Enterprise Zone Act. For partners and for
22 shareholders of Subchapter S corporations, there shall be
23 allowed a credit under this subsection (f) to be
24 determined in accordance with the determination of income
25 and distributive share of income under Sections 702 and
26 704 and Subchapter S of the Internal Revenue Code. The
27 credit shall be .5% of the basis for such property. The
28 credit shall be available only in the taxable year in
29 which the property is placed in service in the Enterprise
30 Zone and shall not be allowed to the extent that it would
31 reduce a taxpayer's liability for the tax imposed by
32 subsections (a) and (b) of this Section to below zero.
33 For tax years ending on or after December 31, 1985, the
34 credit shall be allowed for the tax year in which the
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1 property is placed in service, or, if the amount of the
2 credit exceeds the tax liability for that year, whether
3 it exceeds the original liability or the liability as
4 later amended, such excess may be carried forward and
5 applied to the tax liability of the 5 taxable years
6 following the excess credit year. The credit shall be
7 applied to the earliest year for which there is a
8 liability. If there is credit from more than one tax year
9 that is available to offset a liability, the credit
10 accruing first in time shall be applied first.
11 (2) The term qualified property means property
12 which:
13 (A) is tangible, whether new or used,
14 including buildings and structural components of
15 buildings;
16 (B) is depreciable pursuant to Section 167 of
17 the Internal Revenue Code, except that "3-year
18 property" as defined in Section 168(c)(2)(A) of that
19 Code is not eligible for the credit provided by this
20 subsection (f);
21 (C) is acquired by purchase as defined in
22 Section 179(d) of the Internal Revenue Code;
23 (D) is used in the Enterprise Zone by the
24 taxpayer; and
25 (E) has not been previously used in Illinois
26 in such a manner and by such a person as would
27 qualify for the credit provided by this subsection
28 (f) or subsection (e).
29 (3) The basis of qualified property shall be the
30 basis used to compute the depreciation deduction for
31 federal income tax purposes.
32 (4) If the basis of the property for federal income
33 tax depreciation purposes is increased after it has been
34 placed in service in the Enterprise Zone by the taxpayer,
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1 the amount of such increase shall be deemed property
2 placed in service on the date of such increase in basis.
3 (5) The term "placed in service" shall have the
4 same meaning as under Section 46 of the Internal Revenue
5 Code.
6 (6) If during any taxable year, any property ceases
7 to be qualified property in the hands of the taxpayer
8 within 48 months after being placed in service, or the
9 situs of any qualified property is moved outside the
10 Enterprise Zone within 48 months after being placed in
11 service, the tax imposed under subsections (a) and (b) of
12 this Section for such taxable year shall be increased.
13 Such increase shall be determined by (i) recomputing the
14 investment credit which would have been allowed for the
15 year in which credit for such property was originally
16 allowed by eliminating such property from such
17 computation, and (ii) subtracting such recomputed credit
18 from the amount of credit previously allowed. For the
19 purposes of this paragraph (6), a reduction of the basis
20 of qualified property resulting from a redetermination of
21 the purchase price shall be deemed a disposition of
22 qualified property to the extent of such reduction.
23 (g) Jobs Tax Credit; Enterprise Zone and Foreign
24 Trade Zone or Sub-Zone.
25 (1) A taxpayer conducting a trade or business in an
26 enterprise zone or a High Impact Business designated by
27 the Department of Commerce and Community Affairs
28 conducting a trade or business in a federally designated
29 Foreign Trade Zone or Sub-Zone shall be allowed a credit
30 against the tax imposed by subsections (a) and (b) of
31 this Section in the amount of $500 per eligible employee
32 hired to work in the zone during the taxable year.
33 (2) To qualify for the credit:
34 (A) the taxpayer must hire 5 or more eligible
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1 employees to work in an enterprise zone or federally
2 designated Foreign Trade Zone or Sub-Zone during the
3 taxable year;
4 (B) the taxpayer's total employment within the
5 enterprise zone or federally designated Foreign
6 Trade Zone or Sub-Zone must increase by 5 or more
7 full-time employees beyond the total employed in
8 that zone at the end of the previous tax year for
9 which a jobs tax credit under this Section was
10 taken, or beyond the total employed by the taxpayer
11 as of December 31, 1985, whichever is later; and
12 (C) the eligible employees must be employed
13 180 consecutive days in order to be deemed hired for
14 purposes of this subsection.
15 (3) An "eligible employee" means an employee who
16 is:
17 (A) Certified by the Department of Commerce
18 and Community Affairs as "eligible for services"
19 pursuant to regulations promulgated in accordance
20 with Title II of the Job Training Partnership Act,
21 Training Services for the Disadvantaged or Title III
22 of the Job Training Partnership Act, Employment and
23 Training Assistance for Dislocated Workers Program.
24 (B) Hired after the enterprise zone or
25 federally designated Foreign Trade Zone or Sub-Zone
26 was designated or the trade or business was located
27 in that zone, whichever is later.
28 (C) Employed in the enterprise zone or Foreign
29 Trade Zone or Sub-Zone. An employee is employed in
30 an enterprise zone or federally designated Foreign
31 Trade Zone or Sub-Zone if his services are rendered
32 there or it is the base of operations for the
33 services performed.
34 (D) A full-time employee working 30 or more
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1 hours per week.
2 (4) For tax years ending on or after December 31,
3 1985 and prior to December 31, 1988, the credit shall be
4 allowed for the tax year in which the eligible employees
5 are hired. For tax years ending on or after December 31,
6 1988, the credit shall be allowed for the tax year
7 immediately following the tax year in which the eligible
8 employees are hired. If the amount of the credit exceeds
9 the tax liability for that year, whether it exceeds the
10 original liability or the liability as later amended,
11 such excess may be carried forward and applied to the tax
12 liability of the 5 taxable years following the excess
13 credit year. The credit shall be applied to the earliest
14 year for which there is a liability. If there is credit
15 from more than one tax year that is available to offset a
16 liability, earlier credit shall be applied first.
17 (5) The Department of Revenue shall promulgate such
18 rules and regulations as may be deemed necessary to carry
19 out the purposes of this subsection (g).
20 (6) The credit shall be available for eligible
21 employees hired on or after January 1, 1986.
22 (h) Investment credit; High Impact Business.
23 (1) Subject to subsection (b) of Section 5.5 of the
24 Illinois Enterprise Zone Act, a taxpayer shall be allowed
25 a credit against the tax imposed by subsections (a) and
26 (b) of this Section for investment in qualified property
27 which is placed in service by a Department of Commerce
28 and Community Affairs designated High Impact Business.
29 The credit shall be .5% of the basis for such property.
30 The credit shall not be available until the minimum
31 investments in qualified property set forth in Section
32 5.5 of the Illinois Enterprise Zone Act have been
33 satisfied and shall not be allowed to the extent that it
34 would reduce a taxpayer's liability for the tax imposed
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1 by subsections (a) and (b) of this Section to below zero.
2 The credit applicable to such minimum investments shall
3 be taken in the taxable year in which such minimum
4 investments have been completed. The credit for
5 additional investments beyond the minimum investment by a
6 designated high impact business shall be available only
7 in the taxable year in which the property is placed in
8 service and shall not be allowed to the extent that it
9 would reduce a taxpayer's liability for the tax imposed
10 by subsections (a) and (b) of this Section to below zero.
11 For tax years ending on or after December 31, 1987, the
12 credit shall be allowed for the tax year in which the
13 property is placed in service, or, if the amount of the
14 credit exceeds the tax liability for that year, whether
15 it exceeds the original liability or the liability as
16 later amended, such excess may be carried forward and
17 applied to the tax liability of the 5 taxable years
18 following the excess credit year. The credit shall be
19 applied to the earliest year for which there is a
20 liability. If there is credit from more than one tax
21 year that is available to offset a liability, the credit
22 accruing first in time shall be applied first.
23 Changes made in this subdivision (h)(1) by Public
24 Act 88-670 restore changes made by Public Act 85-1182 and
25 reflect existing law.
26 (2) The term qualified property means property
27 which:
28 (A) is tangible, whether new or used,
29 including buildings and structural components of
30 buildings;
31 (B) is depreciable pursuant to Section 167 of
32 the Internal Revenue Code, except that "3-year
33 property" as defined in Section 168(c)(2)(A) of that
34 Code is not eligible for the credit provided by this
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1 subsection (h);
2 (C) is acquired by purchase as defined in
3 Section 179(d) of the Internal Revenue Code; and
4 (D) is not eligible for the Enterprise Zone
5 Investment Credit provided by subsection (f) of this
6 Section.
7 (3) The basis of qualified property shall be the
8 basis used to compute the depreciation deduction for
9 federal income tax purposes.
10 (4) If the basis of the property for federal income
11 tax depreciation purposes is increased after it has been
12 placed in service in a federally designated Foreign Trade
13 Zone or Sub-Zone located in Illinois by the taxpayer, the
14 amount of such increase shall be deemed property placed
15 in service on the date of such increase in basis.
16 (5) The term "placed in service" shall have the
17 same meaning as under Section 46 of the Internal Revenue
18 Code.
19 (6) If during any taxable year ending on or before
20 December 31, 1996, any property ceases to be qualified
21 property in the hands of the taxpayer within 48 months
22 after being placed in service, or the situs of any
23 qualified property is moved outside Illinois within 48
24 months after being placed in service, the tax imposed
25 under subsections (a) and (b) of this Section for such
26 taxable year shall be increased. Such increase shall be
27 determined by (i) recomputing the investment credit which
28 would have been allowed for the year in which credit for
29 such property was originally allowed by eliminating such
30 property from such computation, and (ii) subtracting such
31 recomputed credit from the amount of credit previously
32 allowed. For the purposes of this paragraph (6), a
33 reduction of the basis of qualified property resulting
34 from a redetermination of the purchase price shall be
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1 deemed a disposition of qualified property to the extent
2 of such reduction.
3 (7) Beginning with tax years ending after December
4 31, 1996, if a taxpayer qualifies for the credit under
5 this subsection (h) and thereby is granted a tax
6 abatement and the taxpayer relocates its entire facility
7 in violation of the explicit terms and length of the
8 contract under Section 18-183 of the Property Tax Code,
9 the tax imposed under subsections (a) and (b) of this
10 Section shall be increased for the taxable year in which
11 the taxpayer relocated its facility by an amount equal to
12 the amount of credit received by the taxpayer under this
13 subsection (h).
14 (i) A credit shall be allowed against the tax imposed by
15 subsections (a) and (b) of this Section for the tax imposed
16 by subsections (c) and (d) of this Section. This credit
17 shall be computed by multiplying the tax imposed by
18 subsections (c) and (d) of this Section by a fraction, the
19 numerator of which is base income allocable to Illinois and
20 the denominator of which is Illinois base income, and further
21 multiplying the product by the tax rate imposed by
22 subsections (a) and (b) of this Section.
23 Any credit earned on or after December 31, 1986 under
24 this subsection which is unused in the year the credit is
25 computed because it exceeds the tax liability imposed by
26 subsections (a) and (b) for that year (whether it exceeds the
27 original liability or the liability as later amended) may be
28 carried forward and applied to the tax liability imposed by
29 subsections (a) and (b) of the 5 taxable years following the
30 excess credit year. This credit shall be applied first to
31 the earliest year for which there is a liability. If there
32 is a credit under this subsection from more than one tax year
33 that is available to offset a liability the earliest credit
34 arising under this subsection shall be applied first.
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1 If, during any taxable year ending on or after December
2 31, 1986, the tax imposed by subsections (c) and (d) of this
3 Section for which a taxpayer has claimed a credit under this
4 subsection (i) is reduced, the amount of credit for such tax
5 shall also be reduced. Such reduction shall be determined by
6 recomputing the credit to take into account the reduced tax
7 imposed by subsection (c) and (d). If any portion of the
8 reduced amount of credit has been carried to a different
9 taxable year, an amended return shall be filed for such
10 taxable year to reduce the amount of credit claimed.
11 (j) Training expense credit. Beginning with tax years
12 ending on or after December 31, 1986, a taxpayer shall be
13 allowed a credit against the tax imposed by subsection (a)
14 and (b) under this Section for all amounts paid or accrued,
15 on behalf of all persons employed by the taxpayer in Illinois
16 or Illinois residents employed outside of Illinois by a
17 taxpayer, for educational or vocational training in
18 semi-technical or technical fields or semi-skilled or skilled
19 fields, which were deducted from gross income in the
20 computation of taxable income. The credit against the tax
21 imposed by subsections (a) and (b) shall be 1.6% of such
22 training expenses. For partners and for shareholders of
23 subchapter S corporations, there shall be allowed a credit
24 under this subsection (j) to be determined in accordance with
25 the determination of income and distributive share of income
26 under Sections 702 and 704 and subchapter S of the Internal
27 Revenue Code.
28 Any credit allowed under this subsection which is unused
29 in the year the credit is earned may be carried forward to
30 each of the 5 taxable years following the year for which the
31 credit is first computed until it is used. This credit shall
32 be applied first to the earliest year for which there is a
33 liability. If there is a credit under this subsection from
34 more than one tax year that is available to offset a
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1 liability the earliest credit arising under this subsection
2 shall be applied first.
3 (k) Research and development credit.
4 Beginning with tax years ending after July 1, 1990, a
5 taxpayer shall be allowed a credit against the tax imposed by
6 subsections (a) and (b) of this Section for increasing
7 research activities in this State. The credit allowed
8 against the tax imposed by subsections (a) and (b) shall be
9 equal to 6 1/2% of the qualifying expenditures for increasing
10 research activities in this State.
11 For purposes of this subsection, "qualifying
12 expenditures" means the qualifying expenditures as defined
13 for the federal credit for increasing research activities
14 which would be allowable under Section 41 of the Internal
15 Revenue Code and which are conducted in this State,
16 "qualifying expenditures for increasing research activities
17 in this State" means the excess of qualifying expenditures
18 for the taxable year in which incurred over qualifying
19 expenditures for the base period, "qualifying expenditures
20 for the base period" means the average of the qualifying
21 expenditures for each year in the base period, and "base
22 period" means the 3 taxable years immediately preceding the
23 taxable year for which the determination is being made.
24 Any credit in excess of the tax liability for the taxable
25 year may be carried forward. A taxpayer may elect to have the
26 unused credit shown on its final completed return carried
27 over as a credit against the tax liability for the following
28 5 taxable years or until it has been fully used, whichever
29 occurs first.
30 If an unused credit is carried forward to a given year
31 from 2 or more earlier years, that credit arising in the
32 earliest year will be applied first against the tax liability
33 for the given year. If a tax liability for the given year
34 still remains, the credit from the next earliest year will
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1 then be applied, and so on, until all credits have been used
2 or no tax liability for the given year remains. Any
3 remaining unused credit or credits then will be carried
4 forward to the next following year in which a tax liability
5 is incurred, except that no credit can be carried forward to
6 a year which is more than 5 years after the year in which the
7 expense for which the credit is given was incurred.
8 Unless extended by law, the credit shall not include
9 costs incurred after December 31, 1999, except for costs
10 incurred pursuant to a binding contract entered into on or
11 before December 31, 1999.
12 (Source: P.A. 88-45; 88-89; 88-141; 88-547, eff. 6-30-94;
13 88-670, eff. 12-2-94; 89-235, eff. 8-4-95; 89-519, eff.
14 7-18-96; 89-591, eff. 8-1-96.)
15 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
16 Sec. 901. Collection Authority.
17 (a) In general.
18 The Department shall collect the taxes imposed by this
19 Act. The Department shall collect certified past due child
20 support amounts under Section 39b52 of the Civil
21 Administrative Code of Illinois. Except as provided in
22 subsections (c) and (e) of this Section, money collected
23 pursuant to subsections (a) and (b) of Section 201 of this
24 Act shall be paid into the General Revenue Fund in the State
25 treasury; money collected pursuant to subsections (c) and (d)
26 of Section 201 of this Act shall be paid into the Personal
27 Property Tax Replacement Fund, a special fund in the State
28 Treasury; and money collected under Section 39b52 of the
29 Civil Administrative Code of Illinois shall be paid into the
30 Child Support Enforcement Trust Fund, a special fund outside
31 the State Treasury.
32 (b) Local Governmental Distributive Fund.
33 Beginning August 1, 1969, and continuing through June 30,
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1 1994, the Treasurer shall transfer each month from the
2 General Revenue Fund to a special fund in the State treasury,
3 to be known as the "Local Government Distributive Fund", an
4 amount equal to 1/12 of the net revenue realized from the tax
5 imposed by subsections (a) and (b) of Section 201 of this Act
6 during the preceding month. Beginning July 1, 1994, and
7 continuing through June 30, 1995, the Treasurer shall
8 transfer each month from the General Revenue Fund to the
9 Local Government Distributive Fund an amount equal to 1/11 of
10 the net revenue realized from the tax imposed by subsections
11 (a) and (b) of Section 201 of this Act during the preceding
12 month. Beginning July 1, 1995, the Treasurer shall transfer
13 each month from the General Revenue Fund to the Local
14 Government Distributive Fund an amount equal to 1/10 of the
15 net revenue realized from the tax imposed by subsections (a)
16 and (b) of Section 201 of the Illinois Income Tax Act during
17 the preceding month. Net revenue realized for a month shall
18 be defined as the revenue from the tax imposed by subsections
19 (a) and (b) of Section 201 of this Act which is deposited in
20 the General Revenue Fund, the Educational Assistance Fund and
21 the Income Tax Surcharge Local Government Distributive Fund
22 during the month minus the amount paid out of the General
23 Revenue Fund in State warrants during that same month as
24 refunds to taxpayers for overpayment of liability under the
25 tax imposed by subsections (a) and (b) of Section 201 of this
26 Act.
27 (c) Deposits Into Income Tax Refund Fund.
28 (1) Beginning on January 1, 1989 and thereafter,
29 the Department shall deposit a percentage of the amounts
30 collected pursuant to subsections (a) and (b)(1), (2),
31 and (3), of Section 201 of this Act into a fund in the
32 State treasury known as the Income Tax Refund Fund. The
33 Department shall deposit 6% of such amounts during the
34 period beginning January 1, 1989 and ending on June 30,
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1 1989. Beginning with State fiscal year 1990 and for each
2 fiscal year thereafter, the percentage deposited into the
3 Income Tax Refund Fund during a fiscal year shall be the
4 Annual Percentage. The Annual Percentage shall be
5 calculated as a fraction, the numerator of which shall be
6 the amount of refunds approved for payment by the
7 Department during the preceding fiscal year as a result
8 of overpayment of tax liability under subsections (a) and
9 (b)(1), (2), and (3) of Section 201 of this Act plus the
10 amount of such refunds remaining approved but unpaid at
11 the end of the preceding fiscal year minus any surplus
12 which remains on deposit in the Income Tax Refund Fund at
13 the end of the preceding year, the denominator of which
14 shall be the amounts which will be collected pursuant to
15 subsections (a) and (b)(1), (2), and (3) of Section 201
16 of this Act during the preceding fiscal year. The
17 Director of Revenue shall certify the Annual Percentage
18 to the Comptroller on the last business day of the fiscal
19 year immediately preceding the fiscal year for which is
20 it to be effective.
21 (2) Beginning on January 1, 1989 and thereafter,
22 the Department shall deposit a percentage of the amounts
23 collected pursuant to subsections (a) and (b)(6), (7),
24 and (8), (c) and (d) of Section 201 of this Act into a
25 fund in the State treasury known as the Income Tax Refund
26 Fund. The Department shall deposit 18% of such amounts
27 during the period beginning January 1, 1989 and ending on
28 June 30, 1989. Beginning with State fiscal year 1990 and
29 for each fiscal year thereafter, the percentage deposited
30 into the Income Tax Refund Fund during a fiscal year
31 shall be the Annual Percentage. The Annual Percentage
32 shall be calculated as a fraction, the numerator of which
33 shall be the amount of refunds approved for payment by
34 the Department during the preceding fiscal year as a
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1 result of overpayment of tax liability under subsections
2 (a) and (b)(6), (7), and (8), (c) and (d) of Section 201
3 of this Act plus the amount of such refunds remaining
4 approved but unpaid at the end of the preceding fiscal
5 year, the denominator of which shall be the amounts which
6 will be collected pursuant to subsections (a) and (b)(6),
7 (7), and (8), (c) and (d) of Section 201 of this Act
8 during the preceding fiscal year. The Director of
9 Revenue shall certify the Annual Percentage to the
10 Comptroller on the last business day of the fiscal year
11 immediately preceding the fiscal year for which it is to
12 be effective.
13 (d) Expenditures from Income Tax Refund Fund.
14 (1) Beginning January 1, 1989, money in the Income
15 Tax Refund Fund shall be expended exclusively for the
16 purpose of paying refunds resulting from overpayment of
17 tax liability under Section 201 of this Act and for
18 making transfers pursuant to this subsection (d).
19 (2) The Director shall order payment of refunds
20 resulting from overpayment of tax liability under Section
21 201 of this Act from the Income Tax Refund Fund only to
22 the extent that amounts collected pursuant to Section 201
23 of this Act and transfers pursuant to this subsection (d)
24 have been deposited and retained in the Fund.
25 (3) On the last business day of each fiscal year,
26 the Director shall order transferred and the State
27 Treasurer and State Comptroller shall transfer from the
28 Income Tax Refund Fund to the Personal Property Tax
29 Replacement Fund an amount, certified by the Director to
30 the Comptroller, equal to the excess of the amount
31 collected pursuant to subsections (c) and (d) of Section
32 201 of this Act deposited into the Income Tax Refund Fund
33 during the fiscal year over the amount of refunds
34 resulting from overpayment of tax liability under
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1 subsections (c) and (d) of Section 201 of this Act paid
2 from the Income Tax Refund Fund during the fiscal year.
3 (4) On the last business day of each fiscal year,
4 the Director shall order transferred and the State
5 Treasurer and State Comptroller shall transfer from the
6 Personal Property Tax Replacement Fund to the Income Tax
7 Refund Fund an amount, certified by the Director to the
8 Comptroller, equal to the excess of the amount of refunds
9 resulting from overpayment of tax liability under
10 subsections (c) and (d) of Section 201 of this Act paid
11 from the Income Tax Refund Fund during the fiscal year
12 over the amount collected pursuant to subsections (c) and
13 (d) of Section 201 of this Act deposited into the Income
14 Tax Refund Fund during the fiscal year.
15 (5) This Act shall constitute an irrevocable and
16 continuing appropriation from the Income Tax Refund Fund
17 for the purpose of paying refunds upon the order of the
18 Director in accordance with the provisions of this
19 Section.
20 (e) Deposits into the Education Assistance Fund and the
21 Income Tax Surcharge Local Government Distributive Fund.
22 On July 1, 1991, and thereafter, of the amounts collected
23 pursuant to subsections (a) and (b) of Section 201 of this
24 Act, minus deposits into the Income Tax Refund Fund, the
25 Department shall deposit 7.3% into the Education Assistance
26 Fund in the State Treasury. Beginning July 1, 1991, and
27 continuing through January 31, 1993, of the amounts collected
28 pursuant to subsections (a) and (b) of Section 201 of the
29 Illinois Income Tax Act, minus deposits into the Income Tax
30 Refund Fund, the Department shall deposit 3.0% into the
31 Income Tax Surcharge Local Government Distributive Fund in
32 the State Treasury. Beginning February 1, 1993 and
33 continuing through June 30, 1993, of the amounts collected
34 pursuant to subsections (a) and (b) of Section 201 of the
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1 Illinois Income Tax Act, minus deposits into the Income Tax
2 Refund Fund, the Department shall deposit 4.4% into the
3 Income Tax Surcharge Local Government Distributive Fund in
4 the State Treasury. Beginning July 1, 1993, and continuing
5 through June 30, 1994, of the amounts collected under
6 subsections (a) and (b) of Section 201 of this Act, minus
7 deposits into the Income Tax Refund Fund, the Department
8 shall deposit 1.475% into the Income Tax Surcharge Local
9 Government Distributive Fund in the State Treasury.
10 (f) Beginning July 1, 1997, and thereafter, the
11 Treasurer shall transfer, from time to time, from the General
12 Revenue Fund to the Property Tax Abatement Fund, which is
13 created in the State treasury, the amount of tax collected
14 under subsections (a) and (b) of Section 201 of this Act,
15 minus deposits into the Income Tax Refund Fund, attributable
16 to that portion of the income tax rates in excess of 3% for
17 individuals and 4.8% for corporations.
18 (Source: P.A. 88-89; 89-6, eff. 12-31-95.)
19 Section 20. The Property Tax Code is amended by changing
20 Sections 9-210, 16-65, 17-5, 18-165, 18-185, and 18-213 and
21 adding Section 18-242 as follows:
22 (35 ILCS 200/9-210)
23 Sec. 9-210. Equalization by chief county assessment
24 officer; counties of less than 3,000,000. The chief county
25 assessment officer in a county with less than 3,000,000
26 inhabitants shall act as an equalizing authority for each
27 county in which he or she serves. The officer shall examine
28 the assessments in the county and shall equalize the
29 assessments by increasing or reducing the entire assessment
30 of property in the county or any area therein or of any class
31 of property, so that the assessments will be at 33 1/3% of
32 fair cash value. The equalization process and analysis
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1 described in this Section shall apply to all property except
2 farm and coal properties assessed under Sections 10-110
3 through 10-140 and 10-170 through 10-200.
4 For each township or assessment district in the county,
5 the supervisor of assessments shall annually determine the
6 percentage relationship between the estimated 33 1/3% of the
7 fair cash value of the property and the assessed valuations
8 at which the property is listed for each township,
9 multi-township or assessment district. To make this
10 analysis, he or she shall use property transfers, property
11 appraisals, and other means as he or she deems proper and
12 reasonable.
13 With the ratio determined for each township or assessment
14 district, the supervisor of assessments shall then determine
15 the percentage to be added to or deducted from the aggregate
16 assessments in each township or assessment district, other
17 than property assessed under Sections 10-110 through 10-140
18 and 10-170 through 10-200, in order to produce a ratio of
19 assessed value to fair cash value of 33 1/3%. However, in no
20 event shall the percentage be greater than 5%. That
21 percentage shall be issued as an equalization factor for each
22 township or assessment district within each county served by
23 the chief county assessment officer. The assessment officer
24 shall then change the assessment of each parcel of property
25 by application of the equalization factor.
26 (Source: P.A. 88-455; 88-670, eff. 12-2-94.)
27 (35 ILCS 200/16-65)
28 Sec. 16-65. Equalization process. The board of review
29 shall act as an equalizing authority, if after equalization
30 by the supervisor of assessments the equalized assessed value
31 of property in the county is not 33 1/3% of the total fair
32 cash value. The board shall, after notice and hearing as
33 required by Section 12-40, lower or raise the total assessed
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1 value of property in any assessment district within the
2 county so that the property, other than farm and coal
3 property assessed under Sections 10-110 through 10-140 and
4 Sections 10-170 through 10-200, will be assessed at 33 1/3%
5 of its fair cash value.
6 For each assessment district of the county, the board of
7 review shall annually determine the percentage relationship
8 between the valuations at which property other than farm and
9 coal property is listed and the estimated 33 1/3% of the fair
10 cash value of such property. To make this analysis, the
11 board shall use at least 25 property transfers, or a
12 combination of at least 25 property transfers and property
13 appraisals, such information as may be submitted by
14 interested taxing bodies, or any other means as it deems
15 proper and reasonable. If there are not 25 property
16 transfers available, or if these 25 property transfers do not
17 represent a fair sample of the types of properties and their
18 proportional distribution in the assessment district, the
19 board shall select a random sample of properties of a number
20 necessary to provide a combination of at least 25 property
21 transfers and property appraisals as much as possible
22 representative of the entire assessment district, and provide
23 for their appraisal. The township or multi-township assessor
24 shall be notified of and participate in the deliberations and
25 determinations.
26 With the ratio determined for each assessment district,
27 the board shall ascertain the amount to be added or deducted
28 from the aggregate assessment on property subject to local
29 assessment jurisdiction, other than farm and coal property,
30 to produce a ratio of assessed value to 33 1/3% of the fair
31 cash value equivalent to 100%. However, in determining the
32 amount to be added to the aggregate assessment on property
33 subject to local jurisdiction in order to produce a ratio of
34 assessed value to 33 1/3% of the fair cash value equivalent
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1 to 100%, the board shall not, in any one year, increase or
2 decrease the aggregate assessment of any assessment district
3 by more than 5% 25% of the equalized valuation of the
4 district for the previous year, except that additions,
5 deletions or depletions to the taxable property shall be
6 excluded in computing the 5% 25% limitation. The board shall
7 complete the equalization by the date prescribed in Section
8 16-35 for the board's adjournment, and, within 10 days
9 thereafter, shall report the results of its work under this
10 Section to the Department. At least 30 days prior to its
11 adjournment, the board shall publish a notice declaring
12 whether it intends to equalize assessments as provided in
13 this Section. The notice shall be published in a newspaper
14 of general circulation in the county. If the board fails to
15 report to the Department within the required time, or if the
16 report discloses that the board has failed to make a proper
17 and adequate equalization of assessments, the Department
18 shall direct, determine, and supervise the assessment so that
19 all assessments of property are relatively just and equal as
20 provided in Section 8-5.
21 (Source: P.A. 84-1343; 88-455.)
22 (35 ILCS 200/17-5)
23 Sec. 17-5. Equalization among counties. The Department
24 shall act as an equalizing authority. It shall examine the
25 abstracts of property assessed for taxation in the counties
26 and in the assessment districts in counties having assessment
27 districts, as returned by the county clerks, and shall
28 equalize the assessments between counties as provided in this
29 Code. Except as hereinafter provided, the Department shall
30 lower or raise the total assessed value of property in any
31 county as returned by the county clerk, other than property
32 assessed under Sections 10-110 through 10-140 and 10-170
33 through 10-200, so that the property will be assessed at 33
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1 1/3% of its fair cash value.
2 The Department shall annually determine the percentage
3 relationship, for each county of the State, between the
4 valuations at which locally-assessed property, other than
5 property assessed under the Sections 10-110 through 10-140
6 and 10-170 through 10-200, is listed by assessors and revised
7 by boards of review or boards of appeal, and the estimated 33
8 1/3% of the fair cash value of the property. To make this
9 analysis, the Department shall use property transfers,
10 property appraisals, and other means as it deems proper and
11 reasonable.
12 With the ratio determined for each county, the
13 Department shall then determine the percentage to be added to
14 or deducted from the aggregate reviewed assessment on
15 property subject to local assessment jurisdiction, other than
16 property assessed under the Sections cited above, to produce
17 a ratio of assessed value to 33 1/3% of the fair cash value
18 equivalent to 100%. However, in no event shall the percentage
19 be greater than 5%
20 If the Department determines that there are substantial
21 differences in the level of assessment among different
22 townships in the same county, it shall, upon the request of
23 the county executive or, in counties not having an elected
24 county executive, of the county board under a resolution
25 adopted by the board, apply separate township equalization
26 factors determined by the Department, in lieu of a single
27 equalization factor for the entire county, but this provision
28 does not apply within any county which elects a county
29 assessor under Sections 3-45 or 3-50.
30 (Source: P.A. 84-1343; 88-455.)
31 (35 ILCS 200/18-165)
32 Sec. 18-165. Abatement of taxes.
33 (a) Any taxing district, upon a majority vote of its
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1 governing authority, may, after the determination of the
2 assessed valuation of its property, order the clerk of that
3 county to abate any portion of its taxes on the following
4 types of property:
5 (1) Commercial and industrial.
6 (A) The property of any commercial or
7 industrial firm, including but not limited to the
8 property of any firm that is used for collecting,
9 separating, storing, or processing recyclable
10 materials, locating within the taxing district
11 during the immediately preceding year from another
12 state, territory, or country, or having been newly
13 created within this State during the immediately
14 preceding year, or expanding an existing facility.
15 The abatement shall not exceed a period of 10 years
16 and the aggregate amount of abated taxes for all
17 taxing districts combined shall not exceed
18 $3,000,000; or
19 (B) The property of any commercial or
20 industrial development of at least 500 acres having
21 been created within the taxing district. The
22 abatement shall not exceed a period of 20 years and
23 the aggregate amount of abated taxes for all taxing
24 districts combined shall not exceed $12,000,000.
25 (2) Horse racing. Any property in the taxing
26 district which is used for the racing of horses and upon
27 which capital improvements consisting of expansion,
28 improvement or replacement of existing facilities have
29 been made since July 1, 1987. The combined abatements
30 for such property from all taxing districts in any county
31 shall not exceed $5,000,000 annually and shall not exceed
32 a period of 10 years.
33 (3) Auto racing. Any property designed exclusively
34 for the racing of motor vehicles which became subject to
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1 property taxation after September 24, 1984 and is located
2 within a county with 225,000 or more but less than
3 300,000 inhabitants. Such abatement shall not exceed a
4 period of 10 years.
5 (b) Upon a majority vote of its governing authority, any
6 municipality may, after the determination of the assessed
7 valuation of its property, order the county clerk to abate
8 any portion of its taxes on any property that is located
9 within the corporate limits of the municipality in accordance
10 with Section 8-3-18 of the Illinois Municipal Code.
11 (c) Beginning with the 1997 levy year, the county clerk
12 shall abate the taxes levied on residential property only by
13 each taxing district, except school districts, by an amount
14 equal to the amount that the taxing district received from
15 the Property Tax Abatement Fund under Section 6z-42 of the
16 State Finance Act. Beginning with the 1997 levy year, the
17 county clerk shall abate the taxes levied on residential
18 property only by each school district by an amount equal to
19 50% of the amount that the school district received from the
20 Property Tax Abatement Fund under Section 6z-42 of the State
21 Finance Act.
22 (Source: P.A. 87-17; 87-477; 87-895; 88-389; 88-455; 88-657,
23 eff. 1-1-95; 88-670, eff. 12-2-94; 89-561, eff. 1-1-97.)
24 (35 ILCS 200/18-185)
25 Sec. 18-185. Short title; definitions. This Section and
26 Sections 18-190 through 18-245 may be cited as the Property
27 Tax Extension Limitation Law. As used in Sections 18-190
28 through 18-245:
29 "Consumer Price Index" means the Consumer Price Index for
30 All Urban Consumers for all items published by the United
31 States Department of Labor.
32 "Extension limitation" means (a) the lesser of 5% or the
33 percentage increase in the Consumer Price Index during the
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1 12-month calendar year preceding the levy year or (b) the
2 rate of increase approved by voters under Section 18-205.
3 "Affected county" means a county of 3,000,000 or more
4 inhabitants or a county contiguous to a county of 3,000,000
5 or more inhabitants.
6 "Taxing district" has the same meaning provided in
7 Section 1-150, except as otherwise provided in this Section.
8 For the 1991 through 1994 levy years only, "taxing district"
9 includes only each non-home rule taxing district having the
10 majority of its 1990 equalized assessed value within any
11 county or counties contiguous to a county with 3,000,000 or
12 more inhabitants. Beginning with the 1995 levy year until
13 the 1997 levy year, "taxing district" includes only each
14 non-home rule taxing district subject to this Law before the
15 1995 levy year and each non-home rule taxing district not
16 subject to this Law before the 1995 levy year having the
17 majority of its 1994 equalized assessed value in an affected
18 county or counties. Beginning with the 1997 levy year and
19 thereafter, "taxing district" includes taxing districts that
20 are home rule units or non-home rule units. Beginning with
21 the levy year in which this Law becomes applicable to a
22 taxing district as provided in Section 18-213, "taxing
23 district" also includes those taxing districts made subject
24 to this Law as provided in Section 18-213.
25 "Aggregate extension" for taxing districts to which this
26 Law applied before the 1995 levy year means the annual
27 corporate extension for the taxing district and those special
28 purpose extensions that are made annually for the taxing
29 district, excluding special purpose extensions: (a) made for
30 the taxing district to pay interest or principal on general
31 obligation bonds that were approved by referendum; (b) made
32 for any taxing district to pay interest or principal on
33 general obligation bonds issued before October 1, 1991; (c)
34 made for any taxing district to pay interest or principal on
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1 bonds issued to refund or continue to refund those bonds
2 issued before October 1, 1991; (d) made for any taxing
3 district to pay interest or principal on bonds issued to
4 refund or continue to refund bonds issued after October 1,
5 1991 that were approved by referendum; (e) made for any
6 taxing district to pay interest or principal on revenue bonds
7 issued before October 1, 1991 for payment of which a property
8 tax levy or the full faith and credit of the unit of local
9 government is pledged; however, a tax for the payment of
10 interest or principal on those bonds shall be made only after
11 the governing body of the unit of local government finds that
12 all other sources for payment are insufficient to make those
13 payments; (f) made for payments under a building commission
14 lease when the lease payments are for the retirement of bonds
15 issued by the commission before October 1, 1991, to pay for
16 the building project; (g) made for payments due under
17 installment contracts entered into before October 1, 1991;
18 (h) made for payments of principal and interest on bonds
19 issued under the Metropolitan Water Reclamation District Act
20 to finance construction projects initiated before October 1,
21 1991; (i) made for payments of principal and interest on
22 limited bonds, as defined in Section 3 of the Local
23 Government Debt Reform Act, in an amount not to exceed the
24 debt service extension base less the amount in items (b),
25 (c), (e), and (h) of this definition for non-referendum
26 obligations, except obligations initially issued pursuant to
27 referendum; and (j) made for payments of principal and
28 interest on bonds issued under Section 15 of the Local
29 Government Debt Reform Act.
30 "Aggregate extension" for the taxing districts to which
31 this Law did not apply before the 1995 levy year (except
32 taxing districts subject to this Law in accordance with
33 Section 18-213) means the annual corporate extension for the
34 taxing district and those special purpose extensions that are
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1 made annually for the taxing district, excluding special
2 purpose extensions: (a) made for the taxing district to pay
3 interest or principal on general obligation bonds that were
4 approved by referendum; (b) made for any taxing district to
5 pay interest or principal on general obligation bonds issued
6 before March 1, 1995; (c) made for any taxing district to pay
7 interest or principal on bonds issued to refund or continue
8 to refund those bonds issued before March 1, 1995; (d) made
9 for any taxing district to pay interest or principal on bonds
10 issued to refund or continue to refund bonds issued after
11 March 1, 1995 that were approved by referendum; (e) made for
12 any taxing district to pay interest or principal on revenue
13 bonds issued before March 1, 1995 for payment of which a
14 property tax levy or the full faith and credit of the unit of
15 local government is pledged; however, a tax for the payment
16 of interest or principal on those bonds shall be made only
17 after the governing body of the unit of local government
18 finds that all other sources for payment are insufficient to
19 make those payments; (f) made for payments under a building
20 commission lease when the lease payments are for the
21 retirement of bonds issued by the commission before March 1,
22 1995 to pay for the building project; (g) made for payments
23 due under installment contracts entered into before March 1,
24 1995; (h) made for payments of principal and interest on
25 bonds issued under the Metropolitan Water Reclamation
26 District Act to finance construction projects initiated
27 before October 1, 1991; (i) made for payments of principal
28 and interest on limited bonds, as defined in Section 3 of the
29 Local Government Debt Reform Act, in an amount not to exceed
30 the debt service extension base less the amount in items (b),
31 (c), (e), and (h) of this definition for non-referendum
32 obligations, except obligations initially issued pursuant to
33 referendum; (j) made for payments of principal and interest
34 on bonds issued under Section 15 of the Local Government Debt
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1 Reform Act; (k) made for payments of principal and interest
2 on bonds authorized by Public Act 88-503 and issued under
3 Section 20a of the Chicago Park District Act for aquarium or
4 museum projects; and (l) made for payments of principal and
5 interest on bonds authorized by Public Act 87-1191 and issued
6 under Section 42 of the Cook County Forest Preserve District
7 Act for zoological park projects.
8 "Aggregate extension" for all taxing districts to which
9 this Law applies in accordance with Section 18-213 means the
10 annual corporate extension for the taxing district and those
11 special purpose extensions that are made annually for the
12 taxing district, excluding special purpose extensions: (a)
13 made for the taxing district to pay interest or principal on
14 general obligation bonds that were approved by referendum;
15 (b) made for any taxing district to pay interest or principal
16 on general obligation bonds issued before the date on which
17 the referendum making this Law applicable to the taxing
18 district is held; (c) made for any taxing district to pay
19 interest or principal on bonds issued to refund or continue
20 to refund those bonds issued before the date on which the
21 referendum making this Law applicable to the taxing district
22 is held; (d) made for any taxing district to pay interest or
23 principal on bonds issued to refund or continue to refund
24 bonds issued after the date on which the referendum making
25 this Law applicable to the taxing district is held if the
26 bonds were approved by referendum after the date on which the
27 referendum making this Law applicable to the taxing district
28 is held; (e) made for any taxing district to pay interest or
29 principal on revenue bonds issued before the date on which
30 the referendum making this Law applicable to the taxing
31 district is held for payment of which a property tax levy or
32 the full faith and credit of the unit of local government is
33 pledged; however, a tax for the payment of interest or
34 principal on those bonds shall be made only after the
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1 governing body of the unit of local government finds that all
2 other sources for payment are insufficient to make those
3 payments; (f) made for payments under a building commission
4 lease when the lease payments are for the retirement of bonds
5 issued by the commission before the date on which the
6 referendum making this Law applicable to the taxing district
7 is held to pay for the building project; (g) made for
8 payments due under installment contracts entered into before
9 the date on which the referendum making this Law applicable
10 to the taxing district is held; (h) made for payments of
11 principal and interest on limited bonds, as defined in
12 Section 3 of the Local Government Debt Reform Act, in an
13 amount not to exceed the debt service extension base less the
14 amount in items (b), (c), and (e) of this definition for
15 non-referendum obligations, except obligations initially
16 issued pursuant to referendum; (i) made for payments of
17 principal and interest on bonds issued under Section 15 of
18 the Local Government Debt Reform Act; and (j) made for a
19 qualified airport authority to pay interest or principal on
20 general obligation bonds issued for the purpose of paying
21 obligations due under, or financing airport facilities
22 required to be acquired, constructed, installed or equipped
23 pursuant to, contracts entered into before March 1, 1996 (but
24 not including any amendments to such a contract taking effect
25 on or after that date).
26 "Aggregate extension" for the taxing districts that
27 become subject to this Law pursuant to this amendatory Act of
28 1997 means the annual corporate extension for the taxing
29 district and those special purpose extensions that are made
30 annually for the taxing district, excluding special purpose
31 extensions: (a) made for the taxing district to pay interest
32 or principal on general obligation bonds that were approved
33 by referendum; (b) made for any taxing district to pay
34 interest or principal on general obligation bonds issued
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1 before the effective date of this amendatory Act of 1997; (c)
2 made for any taxing district to pay interest or principal on
3 bonds issued to refund or continue to refund those bonds
4 issued before the effective date of this amendatory Act of
5 1997; (d) made for any taxing district to pay interest or
6 principal on bonds issued to refund or continue to refund
7 bonds issued after the effective date of this amendatory Act
8 of 1997 that were approved by referendum; (e) made for any
9 taxing district to pay interest or principal on revenue bonds
10 issued before the effective date of this amendatory Act of
11 1997 for payment of which a property tax levy or the full
12 faith and credit of the unit of local government is pledged;
13 however, a tax for the payment of interest or principal on
14 those bonds shall be made only after the governing body of
15 the unit of local government finds that all other sources for
16 payment are insufficient to make those payments; (f) made for
17 payments under a building commission lease when the lease
18 payments are for the retirement of bonds issued by the
19 commission before the effective date of this amendatory Act
20 of 1997 to pay for the building project; (g) made for
21 payments due under installment contracts entered into before
22 the effective date of this amendatory Act of 1997; (h) made
23 for payments of principal and interest on bonds issued under
24 the Metropolitan Water Reclamation District Act to finance
25 construction projects initiated before October 1, 1991; (i)
26 made for payments of principal and interest on limited bonds,
27 as defined in Section 3 of the Local Government Debt Reform
28 Act, in an amount not to exceed the debt service extension
29 base less the amount in items (b), (c), (e), and (h) of this
30 definition for non-referendum obligations, except obligations
31 initially issued pursuant to referendum; (j) made for
32 payments of principal and interest on bonds issued under
33 Section 15 of the Local Government Debt Reform Act; (k) made
34 for payments of principal and interest on bonds authorized by
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1 Public Act 88-503 and issued under Section 20a of the Chicago
2 Park District Act for aquarium or museum projects; and (l)
3 made for payments of principal and interest on bonds
4 authorized by Public Act 87-1191 and issued under Section 42
5 of the Cook County Forest Preserve District Act for
6 zoological park projects.
7 "Debt service extension base" means an amount equal to
8 that portion of the extension for a taxing district for the
9 1994 levy year, or for those taxing districts subject to this
10 Law in accordance with Section 18-213 for the levy year in
11 which the referendum making this Law applicable to the taxing
12 district is held, constituting an extension for payment of
13 principal and interest on bonds issued by the taxing district
14 without referendum, but not including (i) bonds authorized by
15 Public Act 88-503 and issued under Section 20a of the Chicago
16 Park District Act for aquarium and museum projects; (ii)
17 bonds issued under Section 15 of the Local Government Debt
18 Reform Act; or (iii) refunding obligations issued to refund
19 or to continue to refund obligations initially issued
20 pursuant to referendum. The debt service extension base may
21 be established or increased as provided under Section 18-212.
22 "Special purpose extensions" include, but are not limited
23 to, extensions for levies made on an annual basis for
24 unemployment and workers' compensation, self-insurance,
25 contributions to pension plans, and extensions made pursuant
26 to Section 6-601 of the Illinois Highway Code for a road
27 district's permanent road fund whether levied annually or
28 not. The extension for a special service area is not
29 included in the aggregate extension.
30 "Aggregate extension base" means the taxing district's
31 last preceding aggregate extension as adjusted under Sections
32 18-215 through 18-230.
33 "Levy year" has the same meaning as "year" under Section
34 1-155.
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1 "New property" means (i) the assessed value, after final
2 board of review or board of appeals action, of new
3 improvements or additions to existing improvements on any
4 parcel of real property that increase the assessed value of
5 that real property during the levy year multiplied by the
6 equalization factor issued by the Department under Section
7 17-30 and (ii) the assessed value, after final board of
8 review or board of appeals action, of real property not
9 exempt from real estate taxation, which real property was
10 exempt from real estate taxation for any portion of the
11 immediately preceding levy year, multiplied by the
12 equalization factor issued by the Department under Section
13 17-30.
14 "Qualified airport authority" means an airport authority
15 organized under the Airport Authorities Act and located in a
16 county bordering on the State of Wisconsin and having a
17 population in excess of 200,000 and not greater than 500,000.
18 "Recovered tax increment value" means the amount of the
19 current year's equalized assessed value, in the first year
20 after a municipality terminates the designation of an area as
21 a redevelopment project area previously established under the
22 Tax Increment Allocation Development Act in the Illinois
23 Municipal Code, previously established under the Industrial
24 Jobs Recovery Law in the Illinois Municipal Code, or
25 previously established under the Economic Development Area
26 Tax Increment Allocation Act, of each taxable lot, block,
27 tract, or parcel of real property in the redevelopment
28 project area over and above the initial equalized assessed
29 value of each property in the 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
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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. 88-455; 89-1, eff. 2-12-95; 89-138, eff.
11 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
12 eff. 6-1-96; 89-510, eff. 7-11-96.)
13 (35 ILCS 200/18-213)
14 Sec. 18-213. Referenda on applicability of the Property
15 Tax Extension Limitation Law.
16 (a) The county board of a county that is not subject to
17 this Law may, by ordinance or resolution, submit to the
18 voters of the county the question of whether to make all
19 non-home rule taxing districts that have all or a portion of
20 their equalized assessed valuation situated in the county
21 subject to this Law in the manner set forth in this Section.
22 For purposes of this Section only:
23 "Taxing district" has the same meaning provided in
24 Section 1-150.
25 "Equalized assessed valuation" means the equalized
26 assessed valuation for a taxing district for the immediately
27 preceding levy year.
28 (b) The ordinance or resolution shall request the
29 submission of the proposition at any election, except a
30 consolidated primary election, for the purpose of voting for
31 or against making the Property Tax Extension Limitation Law
32 applicable to all non-home rule taxing districts that have
33 all or a portion of their equalized assessed valuation
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1 situated in the county.
2 The question shall be placed on a separate ballot and
3 shall be in substantially the following form:
4 Shall the Property Tax Extension Limitation Law (35
5 ILCS 200/18-185 through 18-245), which limits annual
6 property tax extension increases, apply to non-home rule
7 taxing districts with all or a portion of their equalized
8 assessed valuation located in (name of county)?
9 Votes on the question shall be recorded as "yes" or "no".
10 (c) The county clerk shall order the proposition
11 submitted to the electors of the county at the election
12 specified in the ordinance or resolution. If part of the
13 county is under the jurisdiction of a board or boards of
14 election commissioners, the county clerk shall submit a
15 certified copy of the ordinance or resolution to each board
16 of election commissioners, which shall order the proposition
17 submitted to the electors of the taxing district within its
18 jurisdiction at the election specified in the ordinance or
19 resolution.
20 (d) With respect to taxing districts having all of their
21 equalized assessed valuation located in the county, if a
22 majority of the votes cast on the proposition are in favor of
23 the proposition, then this Law becomes applicable to the
24 taxing district beginning on January 1 of the year following
25 the date of the referendum.
26 (e) With respect to taxing districts that do not have
27 all of their equalized assessed valuation located in a single
28 county, if each county in which any of the equalized assessed
29 valuation of the taxing district is located has held a
30 referendum under this Section at any election, except a
31 consolidated primary election, held in any year and if a
32 majority of the equalized assessed valuation of the taxing
33 district is located in one or more counties that have each
34 approved a referendum under this Section, then this Law shall
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1 become applicable to the taxing district on January 1 of the
2 year following the year in which the last referendum in a
3 county in which the taxing district has any equalized
4 assessed valuation is held. For the purposes of this Law,
5 the last referendum shall be deemed to be the referendum
6 making this Law applicable to the taxing district.
7 (f) Immediately after a referendum is held under this
8 Section, the county clerk of the county holding the
9 referendum shall give notice of the referendum having been
10 held and its results to all taxing districts that have all or
11 a portion of their equalized assessed valuation located in
12 the county, the county clerk of any other county in which any
13 of the equalized assessed valuation of any taxing district is
14 located, and the Department of Revenue. After the last
15 referendum affecting a multi-county taxing district is held,
16 the Department of Revenue shall determine whether the taxing
17 district is subject to this Law and, if so, shall notify the
18 taxing district and the county clerks of all of the counties
19 in which a portion of the equalized assessed valuation of the
20 taxing district is located that, beginning the following
21 January 1, the taxing district is subject to this Law.
22 (g) Referenda held under this Section shall be conducted
23 in accordance with the Election Code.
24 (h) This Section applies only to referenda held before
25 the effective date of this amendatory Act of 1997.
26 (Source: P.A. 89-510, eff. 7-11-96.)
27 (35 ILCS 200/18-242 new)
28 Sec. 18-242. Home rule limitation. Under subsection (g)
29 of Section 6 of Article VII of the Illinois Constitution,
30 this Law is a limitation of the power of any home rule unit
31 to levy ad valorem property taxes.
32 Section 99. Effective date. This Act takes effect July
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1 1, 1997.