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91_HB0868
LRB9101257PTsb
1 AN ACT concerning taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Local Government Debt Reform Act is
5 amended by changing Section 15.01 as follows:
6 (30 ILCS 350/15.01)
7 Sec. 15.01. Limited bonds. A governmental unit is
8 authorized to issue limited bonds payable from the debt
9 service extension base, as defined in the Property Tax
10 Extension Limitation Law, as provided in this amendatory Act
11 of 1995. Bonds authorized by Public Act 88-503 and issued
12 under Section 20a of the Chicago Park District Act for
13 aquarium or museum projects shall not be issued as limited
14 bonds. A governmental unit issuing limited bonds authorized
15 by this Section shall provide in the bond ordinance that the
16 bonds are issued as limited bonds and are also issued
17 pursuant to applicable law, other than this amendatory Act of
18 1995, enabling the governmental unit to issue bonds. This
19 amendatory Act of 1995 shall not change the rate, amount,
20 purposes, limitations, source of funds for payment of
21 principal or interest, or method of payment or defeasance of
22 the bonds that a governmental unit may issue under any
23 applicable law; provided, that limited bonds that are
24 otherwise to be issued as general obligation bonds may be
25 payable solely from the debt service extension base. This
26 amendatory Act of 1995 provides no additional authority to
27 any governmental unit to issue bonds that the governmental
28 unit is not otherwise authorized to issue by a law other than
29 this amendatory Act of 1995.
30 Notwithstanding any other provision to the contrary, if a
31 taxing district holds a referendum in accordance with Section
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1 18-192 of the Property Tax Extension Limitation Law in the
2 Property Tax Code and the referendum is approved, then
3 limited bonds may no longer be issued by the taxing district.
4
5 (Source: P.A. 89-385, eff. 8-18-95; 89-449, eff. 6-1-96.)
6 Section 10. The Property Tax Code is amended by changing
7 Sections 18-185 and 18-212 and adding Section 18-192 as
8 follows:
9 (35 ILCS 200/18-185)
10 Sec. 18-185. Short title; definitions. This Division 5
11 Section and Sections 18-190 through 18-245 may be cited as
12 the Property Tax Extension Limitation Law. As used in this
13 Division 5 Sections 18-190 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
32 subject to this Law before the 1995 levy year and each
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1 non-home rule taxing district not subject to this Law before
2 the 1995 levy year having the majority of its 1994 equalized
3 assessed value in an affected county or counties. Beginning
4 with the levy year in which this Law becomes applicable to a
5 taxing district as provided in Section 18-213, "taxing
6 district" also includes those taxing districts made subject
7 to this Law as provided in Section 18-213.
8 "Aggregate extension" for taxing districts to which this
9 Law applied before the 1995 levy year means the annual
10 corporate extension for the taxing district and those special
11 purpose extensions that are made annually for the taxing
12 district, excluding special purpose extensions: (a) made for
13 the taxing district to pay interest or principal on general
14 obligation bonds that were approved by referendum; (b) made
15 for any taxing district to pay interest or principal on
16 general obligation bonds issued before October 1, 1991; (c)
17 made for any taxing district to pay interest or principal on
18 bonds issued to refund or continue to refund those bonds
19 issued before October 1, 1991; (d) made for any taxing
20 district to pay interest or principal on bonds issued to
21 refund or continue to refund bonds issued after October 1,
22 1991 that were approved by referendum; (e) made for any
23 taxing district to pay interest or principal on revenue bonds
24 issued before October 1, 1991 for payment of which a property
25 tax levy or the full faith and credit of the unit of local
26 government is pledged; however, a tax for the payment of
27 interest or principal on those bonds shall be made only after
28 the governing body of the unit of local government finds that
29 all other sources for payment are insufficient to make those
30 payments; (f) made for payments under a building commission
31 lease when the lease payments are for the retirement of bonds
32 issued by the commission before October 1, 1991, to pay for
33 the building project; (g) made for payments due under
34 installment contracts entered into before October 1, 1991;
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1 (h) made for payments of principal and interest on bonds
2 issued under the Metropolitan Water Reclamation District Act
3 to finance construction projects initiated before October 1,
4 1991; (i) made for payments of principal and interest on
5 limited bonds, as defined in Section 3 of the Local
6 Government Debt Reform Act, in an amount not to exceed the
7 debt service extension base less the amount in items (b),
8 (c), (e), and (h) of this definition for non-referendum
9 obligations, except obligations initially issued pursuant to
10 referendum; (j) made for payments of principal and interest
11 on bonds issued under Section 15 of the Local Government Debt
12 Reform Act; and (k) made by a school district that
13 participates in the Special Education District of Lake
14 County, created by special education joint agreement under
15 Section 10-22.31 of the School Code, for payment of the
16 school district's share of the amounts required to be
17 contributed by the Special Education District of Lake County
18 to the Illinois Municipal Retirement Fund under Article 7 of
19 the Illinois Pension Code; the amount of any extension under
20 this item (k) shall be certified by the school district to
21 the county clerk. Notwithstanding any other provision to the
22 contrary, if a taxing district holds a referendum under
23 Section 18-192 and the referendum is approved, the special
24 extensions made by that taxing district for the purposes
25 specified in items (i) and (j) of this definition shall,
26 beginning January 1 following the election, no longer be
27 excluded from the "aggregate extension".
28 "Aggregate extension" for the taxing districts to which
29 this Law did not apply before the 1995 levy year (except
30 taxing districts subject to this Law in accordance with
31 Section 18-213) means the annual corporate extension for the
32 taxing district and those special purpose extensions that are
33 made annually for the taxing district, excluding special
34 purpose extensions: (a) made for the taxing district to pay
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1 interest or principal on general obligation bonds that were
2 approved by referendum; (b) made for any taxing district to
3 pay interest or principal on general obligation bonds issued
4 before March 1, 1995; (c) made for any taxing district to pay
5 interest or principal on bonds issued to refund or continue
6 to refund those bonds issued before March 1, 1995; (d) made
7 for any taxing district to pay interest or principal on bonds
8 issued to refund or continue to refund bonds issued after
9 March 1, 1995 that were approved by referendum; (e) made for
10 any taxing district to pay interest or principal on revenue
11 bonds issued before March 1, 1995 for payment of which a
12 property tax levy or the full faith and credit of the unit of
13 local government is pledged; however, a tax for the payment
14 of interest or principal on those bonds shall be made only
15 after the governing body of the unit of local government
16 finds that all other sources for payment are insufficient to
17 make those payments; (f) made for payments under a building
18 commission lease when the lease payments are for the
19 retirement of bonds issued by the commission before March 1,
20 1995 to pay for the building project; (g) made for payments
21 due under installment contracts entered into before March 1,
22 1995; (h) made for payments of principal and interest on
23 bonds issued under the Metropolitan Water Reclamation
24 District Act to finance construction projects initiated
25 before October 1, 1991; (i) made for payments of principal
26 and interest on limited bonds, as defined in Section 3 of the
27 Local Government Debt Reform Act, in an amount not to exceed
28 the debt service extension base less the amount in items (b),
29 (c), and (e) of this definition for non-referendum
30 obligations, except obligations initially issued pursuant to
31 referendum and bonds described in subsection (h) of this
32 definition; (j) made for payments of principal and interest
33 on bonds issued under Section 15 of the Local Government Debt
34 Reform Act; (k) made for payments of principal and interest
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1 on bonds authorized by Public Act 88-503 and issued under
2 Section 20a of the Chicago Park District Act for aquarium or
3 museum projects; and (l) made for payments of principal and
4 interest on bonds authorized by Public Act 87-1191 and issued
5 under Section 42 of the Cook County Forest Preserve District
6 Act for zoological park projects. Notwithstanding any other
7 provision to the contrary, if a taxing district holds a
8 referendum under Section 18-192 and the referendum is
9 approved, the special extensions made by that taxing district
10 for the purposes specified in items (i) and (j) of this
11 definition shall, beginning January 1 following the election,
12 no longer be excluded from the "aggregate extension".
13 "Aggregate extension" for all taxing districts to which
14 this Law applies in accordance with Section 18-213, except
15 for those taxing districts subject to paragraph (2) of
16 subsection (e) of Section 18-213, means the annual corporate
17 extension for the taxing district and those special purpose
18 extensions that are made annually for the taxing district,
19 excluding special purpose extensions: (a) made for the taxing
20 district to pay interest or principal on general obligation
21 bonds that were approved by referendum; (b) made for any
22 taxing district to pay interest or principal on general
23 obligation bonds issued before the date on which the
24 referendum making this Law applicable to the taxing district
25 is held; (c) made for any taxing district to pay interest or
26 principal on bonds issued to refund or continue to refund
27 those bonds issued before the date on which the referendum
28 making this Law applicable to the taxing district is held;
29 (d) made for any taxing district to pay interest or principal
30 on bonds issued to refund or continue to refund bonds issued
31 after the date on which the referendum making this Law
32 applicable to the taxing district is held if the bonds were
33 approved by referendum after the date on which the referendum
34 making this Law applicable to the taxing district is held;
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1 (e) made for any taxing district to pay interest or principal
2 on revenue bonds issued before the date on which the
3 referendum making this Law applicable to the taxing district
4 is held for payment of which a property tax levy or the full
5 faith and credit of the unit of local government is pledged;
6 however, a tax for the payment of interest or principal on
7 those bonds shall be made only after the governing body of
8 the unit of local government finds that all other sources for
9 payment are insufficient to make those payments; (f) made for
10 payments under a building commission lease when the lease
11 payments are for the retirement of bonds issued by the
12 commission before the date on which the referendum making
13 this Law applicable to the taxing district is held to pay for
14 the building project; (g) made for payments due under
15 installment contracts entered into before the date on which
16 the referendum making this Law applicable to the taxing
17 district is held; (h) made for payments of principal and
18 interest on limited bonds, as defined in Section 3 of the
19 Local Government Debt Reform Act, in an amount not to exceed
20 the debt service extension base less the amount in items (b),
21 (c), and (e) of this definition for non-referendum
22 obligations, except obligations initially issued pursuant to
23 referendum; (i) made for payments of principal and interest
24 on bonds issued under Section 15 of the Local Government Debt
25 Reform Act; and (j) made for a qualified airport authority to
26 pay interest or principal on general obligation bonds issued
27 for the purpose of paying obligations due under, or financing
28 airport facilities required to be acquired, constructed,
29 installed or equipped pursuant to, contracts entered into
30 before March 1, 1996 (but not including any amendments to
31 such a contract taking effect on or after that date).
32 Notwithstanding any other provision to the contrary, if a
33 taxing district holds a referendum under Section 18-192 and
34 the referendum is approved, the special extensions made by
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1 that taxing district for the purposes specified in items (h)
2 and (i) of this definition shall, beginning January 1
3 following the election, no longer be excluded from the
4 "aggregate extension".
5 "Aggregate extension" for all taxing districts to which
6 this Law applies in accordance with paragraph (2) of
7 subsection (e) of Section 18-213 means the annual corporate
8 extension for the taxing district and those special purpose
9 extensions that are made annually for the taxing district,
10 excluding special purpose extensions: (a) made for the taxing
11 district to pay interest or principal on general obligation
12 bonds that were approved by referendum; (b) made for any
13 taxing district to pay interest or principal on general
14 obligation bonds issued before the effective date of this
15 amendatory Act of 1997; (c) made for any taxing district to
16 pay interest or principal on bonds issued to refund or
17 continue to refund those bonds issued before the effective
18 date of this amendatory Act of 1997; (d) made for any taxing
19 district to pay interest or principal on bonds issued to
20 refund or continue to refund bonds issued after the effective
21 date of this amendatory Act of 1997 if the bonds were
22 approved by referendum after the effective date of this
23 amendatory Act of 1997; (e) made for any taxing district to
24 pay interest or principal on revenue bonds issued before the
25 effective date of this amendatory Act of 1997 for payment of
26 which a property tax levy or the full faith and credit of the
27 unit of local government is pledged; however, a tax for the
28 payment of interest or principal on those bonds shall be made
29 only after the governing body of the unit of local government
30 finds that all other sources for payment are insufficient to
31 make those payments; (f) made for payments under a building
32 commission lease when the lease payments are for the
33 retirement of bonds issued by the commission before the
34 effective date of this amendatory Act of 1997 to pay for the
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1 building project; (g) made for payments due under installment
2 contracts entered into before the effective date of this
3 amendatory Act of 1997; (h) made for payments of principal
4 and interest on limited bonds, as defined in Section 3 of the
5 Local Government Debt Reform Act, in an amount not to exceed
6 the debt service extension base less the amount in items (b),
7 (c), and (e) of this definition for non-referendum
8 obligations, except obligations initially issued pursuant to
9 referendum; (i) made for payments of principal and interest
10 on bonds issued under Section 15 of the Local Government Debt
11 Reform Act; and (j) made for a qualified airport authority to
12 pay interest or principal on general obligation bonds issued
13 for the purpose of paying obligations due under, or financing
14 airport facilities required to be acquired, constructed,
15 installed or equipped pursuant to, contracts entered into
16 before March 1, 1996 (but not including any amendments to
17 such a contract taking effect on or after that date).
18 Notwithstanding any other provision to the contrary, if a
19 taxing district holds a referendum under Section 18-192 and
20 the referendum is approved, the special extensions made by
21 that taxing district for the purposes specified in items (h)
22 and (i) of this definition shall, beginning January 1
23 following the election, no longer be excluded from the
24 "aggregate extension".
25 "Debt service extension base" means an amount equal to
26 that portion of the extension for a taxing district for the
27 1994 levy year, or for those taxing districts subject to this
28 Law in accordance with Section 18-213, except for those
29 subject to paragraph (2) of subsection (e) of Section 18-213,
30 for the levy year in which the referendum making this Law
31 applicable to the taxing district is held, or for those
32 taxing districts subject to this Law in accordance with
33 paragraph (2) of subsection (e) of Section 18-213 for the
34 1996 levy year, constituting an extension for payment of
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1 principal and interest on bonds issued by the taxing district
2 without referendum, but not including (i) bonds authorized by
3 Public Act 88-503 and issued under Section 20a of the Chicago
4 Park District Act for aquarium and museum projects; (ii)
5 bonds issued under Section 15 of the Local Government Debt
6 Reform Act; or (iii) refunding obligations issued to refund
7 or to continue to refund obligations initially issued
8 pursuant to referendum. The debt service extension base may
9 be established or increased as provided under Section 18-212.
10 This definition does not apply to a taxing district that
11 holds a referendum under Section 18-192 and the referendum is
12 approved.
13 "Special purpose extensions" include, but are not limited
14 to, extensions for levies made on an annual basis for
15 unemployment and workers' compensation, self-insurance,
16 contributions to pension plans, and extensions made pursuant
17 to Section 6-601 of the Illinois Highway Code for a road
18 district's permanent road fund whether levied annually or
19 not. The extension for a special service area is not
20 included in the aggregate extension.
21 "Aggregate extension base" means the taxing district's
22 last preceding aggregate extension as adjusted under Sections
23 18-215 through 18-230.
24 "Levy year" has the same meaning as "year" under Section
25 1-155.
26 "New property" means (i) the assessed value, after final
27 board of review or board of appeals action, of new
28 improvements or additions to existing improvements on any
29 parcel of real property that increase the assessed value of
30 that real property during the levy year multiplied by the
31 equalization factor issued by the Department under Section
32 17-30 and (ii) the assessed value, after final board of
33 review or board of appeals action, of real property not
34 exempt from real estate taxation, which real property was
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1 exempt from real estate taxation for any portion of the
2 immediately preceding levy year, multiplied by the
3 equalization factor issued by the Department under Section
4 17-30. In addition, the county clerk in a county containing
5 a population of 3,000,000 or more shall include in the 1997
6 recovered tax increment value for any school district, any
7 recovered tax increment value that was applicable to the 1995
8 tax year calculations.
9 "Qualified airport authority" means an airport authority
10 organized under the Airport Authorities Act and located in a
11 county bordering on the State of Wisconsin and having a
12 population in excess of 200,000 and not greater than 500,000.
13 "Recovered tax increment value" means the amount of the
14 current year's equalized assessed value, in the first year
15 after a municipality terminates the designation of an area as
16 a redevelopment project area previously established under the
17 Tax Increment Allocation Development Act in the Illinois
18 Municipal Code, previously established under the Industrial
19 Jobs Recovery Law in the Illinois Municipal Code, or
20 previously established under the Economic Development Area
21 Tax Increment Allocation Act, of each taxable lot, block,
22 tract, or parcel of real property in the redevelopment
23 project area over and above the initial equalized assessed
24 value of each property in the redevelopment project area.
25 For the taxes which are extended for the 1997 levy year, the
26 recovered tax increment value for a non-home rule taxing
27 district that first became subject to this Law for the 1995
28 levy year because a majority of its 1994 equalized assessed
29 value was in an affected county or counties shall be
30 increased if a municipality terminated the designation of an
31 area in 1993 as a redevelopment project area previously
32 established under the Tax Increment Allocation Development
33 Act in the Illinois Municipal Code, previously established
34 under the Industrial Jobs Recovery Law in the Illinois
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1 Municipal Code, or previously established under the Economic
2 Development Area Tax Increment Allocation Act, by an amount
3 equal to the 1994 equalized assessed value of each taxable
4 lot, block, tract, or parcel of real property in the
5 redevelopment project area over and above the initial
6 equalized assessed value of each property in the
7 redevelopment project area.
8 Except as otherwise provided in this Section, "limiting
9 rate" means a fraction the numerator of which is the last
10 preceding aggregate extension base times an amount equal to
11 one plus the extension limitation defined in this Section and
12 the denominator of which is the current year's equalized
13 assessed value of all real property in the territory under
14 the jurisdiction of the taxing district during the prior levy
15 year. For those taxing districts that reduced their
16 aggregate extension for the last preceding levy year, the
17 highest aggregate extension in any of the last 3 preceding
18 levy years shall be used for the purpose of computing the
19 limiting rate. The denominator shall not include new
20 property. The denominator shall not include the recovered
21 tax increment value.
22 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
23 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
24 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
25 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99;
26 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised
27 10-28-98.)
28 (35 ILCS 200/18-192 new)
29 Sec. 18-192. Referenda on limited and double-barrelled
30 bonds.
31 (a) The electors of a taxing district that is subject to
32 this Law, by petition and referendum, may elect to prohibit
33 the taxing district from issuing "limited" bonds and from
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1 excluding the extensions made for payments of principal and
2 interest of "limited" bonds and "double-barrelled" bonds from
3 the "aggregate extension" of the taxing district.
4 (b) A petition under this Section shall be signed by the
5 registered voters of the taxing district in a number equal to
6 at least 5% of the number of registered voters in the taxing
7 district. The petition must be filed with the county clerk
8 of each county in which the taxing district is situated not
9 less than 120 days before a general election to be eligible
10 for submission on the ballot at that general election.
11 (c) The petition shall request the submission of the
12 proposition at the next general election for the purpose of
13 voting for or against allowing the taxing district to
14 continue to issue "limited" bonds or continue to exclude the
15 extensions made for payments of principal and interest of
16 limited bonds and "double-barrelled" bonds from the
17 "aggregate extension" of the taxing district.
18 The question shall be in substantially the following
19 form:
20 Shall (name of taxing district) be required to limit
21 property taxes by taking away its authority to continue
22 issuing "limited" bonds and to exclude the extensions
23 made for payments of principal and interest of "limited"
24 bonds and "double-barrelled" bonds from "aggregate
25 extension" for purposes of the Property Tax Extension
26 Limitation Law?
27 Votes on the question shall be recorded as "yes" or "no".
28 (d) If no objection is filed to a petition under this
29 Section, or if an objection is filed and the electoral board
30 rules the petition sufficient, then the county clerks shall
31 order the proposition submitted to the electors of the taxing
32 district at the election specified in the petition. If part
33 of the taxing district is under the jurisdiction of a board
34 or boards of election commissioners, the county clerks shall
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1 submit a certified copy of the petition to each board of
2 election commissioners, which shall order the proposition
3 submitted to the electors of the taxing district within its
4 jurisdiction at the general election specified in the
5 petition.
6 (e) If the canvass of votes cast on a proposition under
7 this Section certifies that a majority of all ballots cast on
8 the proposition in the taxing district are in favor of the
9 proposition, the taxing district shall be prohibited from
10 issuing "limited" bonds and from excluding the extensions
11 made for payments of principal and interest of "limited" and
12 "double-barrelled" bonds from the "aggregate extension" of
13 the taxing district.
14 (f) Referenda held under this Section shall be conducted
15 at a general election in accordance with the Election Code.
16 (35 ILCS 200/18-212)
17 Sec. 18-212. Referendum on debt service extension base. A
18 taxing district may establish or increase its debt service
19 extension base if (i) that taxing district holds a referendum
20 before the date on which the levy must be filed with the
21 county clerk of the county or counties in which the taxing
22 district is situated and (ii) a majority of voters voting on
23 the issue approves the establishment of or increase in the
24 debt service extension base. Referenda under this Section
25 shall be conducted at a regularly scheduled election in
26 accordance with the Election Code. The governing body of the
27 taxing district shall certify the question to the proper
28 election authorities who shall submit the question to the
29 electors of the taxing district in substantially the
30 following form:
31 "Shall the debt service extension base under the Property
32 Tax Extension Limitation Law for ... (taxing district
33 name) ... for payment of principal and interest on
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1 limited bonds be .... ((established at $ ....) . (or)
2 (increased from $ .... to $ ....)) .. for the ..... levy
3 year and all subsequent levy years?"
4 Votes on the question shall be recorded as "Yes" or "No".
5 If a majority of voters voting on the issue approves the
6 establishment of or increase in the debt service extension
7 base, the establishment of or increase in the debt service
8 extension base shall be applicable for the levy years
9 specified.
10 The provisions of this Section do not apply to a taxing
11 district that holds a referendum in accordance with Section
12 18-192 and the referendum is approved.
13 (Source: P.A. 89-385, eff. 8-18-95.)