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90_SB1388
35 ILCS 200/18-185
Amends the Property Tax Extension Limitation Law in the
Property Tax Code. Provides that for levy years before the
1998 levy year, those taxing districts that reduced their
aggregate extension for the last preceding levy year shall
use the highest aggregate extension in any of the last 3
preceding levy years for computing the limiting rate.
Provides that for the 1998 levy year and thereafter, if the
aggregate extension of a taxing district for a levy year is
less than the amount authorized under the Law, the difference
between the amount levied and the amount authorized may be
added to the numerator in the computation of the limiting
rate for any succeeding levy year. Effective January 1,
1999.
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1 AN ACT to amend the Property Tax Code by changing Section
2 18-185.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Property Tax Code is amended by changing
6 Section 18-185 as follows:
7 (35 ILCS 200/18-185)
8 (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
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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
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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
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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
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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
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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
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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 an amount equal to
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1 that portion of the extension for a taxing district for the
2 1994 levy year, or for those taxing districts subject to this
3 Law in accordance with Section 18-213, except for those
4 subject to paragraph (2) of subsection (e) of Section 18-213,
5 for the levy year in which the referendum making this Law
6 applicable to the taxing district is held, or for those
7 taxing districts subject to this Law in accordance with
8 paragraph (2) of subsection (e) of Section 18-213 for the
9 1996 levy year, constituting an extension for payment of
10 principal and interest on bonds issued by the taxing district
11 without referendum, but not including (i) bonds authorized by
12 Public Act 88-503 and issued under Section 20a of the Chicago
13 Park District Act for aquarium and museum projects; (ii)
14 bonds issued under Section 15 of the Local Government Debt
15 Reform Act; or (iii) refunding obligations issued to refund
16 or to continue to refund obligations initially issued
17 pursuant to referendum. The debt service extension base may
18 be established or increased as provided under Section 18-212.
19 "Special purpose extensions" include, but are not limited
20 to, extensions for levies made on an annual basis for
21 unemployment and workers' compensation, self-insurance,
22 contributions to pension plans, and extensions made pursuant
23 to Section 6-601 of the Illinois Highway Code for a road
24 district's permanent road fund whether levied annually or
25 not. The extension for a special service area is not
26 included in the aggregate extension.
27 "Aggregate extension base" means the taxing district's
28 last preceding aggregate extension as adjusted under Sections
29 18-215 through 18-230.
30 "Levy year" has the same meaning as "year" under Section
31 1-155.
32 "New property" means (i) the assessed value, after final
33 board of review or board of appeals action, of new
34 improvements or additions to existing improvements on any
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1 parcel of real property that increase the assessed value of
2 that real property during the levy year multiplied by the
3 equalization factor issued by the Department under Section
4 17-30 and (ii) the assessed value, after final board of
5 review or board of appeals action, of real property not
6 exempt from real estate taxation, which real property was
7 exempt from real estate taxation for any portion of the
8 immediately preceding levy year, multiplied by the
9 equalization factor issued by the Department under Section
10 17-30.
11 "Qualified airport authority" means an airport authority
12 organized under the Airport Authorities Act and located in a
13 county bordering on the State of Wisconsin and having a
14 population in excess of 200,000 and not greater than 500,000.
15 "Recovered tax increment value" means the amount of the
16 current year's equalized assessed value, in the first year
17 after a municipality terminates the designation of an area as
18 a redevelopment project area previously established under the
19 Tax Increment Allocation Development Act in the Illinois
20 Municipal Code, previously established under the Industrial
21 Jobs Recovery Law in the Illinois Municipal Code, or
22 previously established under the Economic Development Area
23 Tax Increment Allocation Act, of each taxable lot, block,
24 tract, or parcel of real property in the redevelopment
25 project area over and above the initial equalized assessed
26 value of each property in the redevelopment project area.
27 For the taxes which are extended for the 1997 levy year, the
28 recovered tax increment value for a non-home rule taxing
29 district that first became subject to this Law for the 1995
30 levy year because a majority of its 1994 equalized assessed
31 value was in an affected county or counties shall be
32 increased if a municipality terminated the designation of an
33 area in 1993 as a redevelopment project area previously
34 established under the Tax Increment Allocation Development
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1 Act in the Illinois Municipal Code, previously established
2 under the Industrial Jobs Recovery Law in the Illinois
3 Municipal Code, or previously established under the Economic
4 Development Area Tax Increment Allocation Act, by an amount
5 equal to the 1994 equalized assessed value of each taxable
6 lot, block, tract, or parcel of real property in the
7 redevelopment project area over and above the initial
8 equalized assessed value of each property in the
9 redevelopment project area.
10 Except as otherwise provided in this Section, "limiting
11 rate" means a fraction the numerator of which is the last
12 preceding aggregate extension base times an amount equal to
13 one plus the extension limitation defined in this Section and
14 the denominator of which is the current year's equalized
15 assessed value of all real property in the territory under
16 the jurisdiction of the taxing district during the prior levy
17 year. For levy years before the 1998 levy year, for those
18 taxing districts that reduced their aggregate extension for
19 the last preceding levy year, the highest aggregate extension
20 in any of the last 3 preceding levy years shall be used for
21 the purpose of computing the limiting rate. For the 1998 levy
22 year and thereafter, if the aggregate extension of a taxing
23 district for a levy year is less than the amount authorized
24 under this Law, the difference between the amount extended
25 and the amount authorized may be added to the numerator in
26 the computation of the limiting rate for any succeeding levy
27 year. The denominator shall not include new property. The
28 denominator shall not include the recovered tax increment
29 value.
30 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
31 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
32 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
33 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99.)
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1 Section 99. Effective date. This Act takes effect
2 January 1, 1999.