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[ House Amendment 003 ] |
92_HB5734ham001 LRB9214200NTpkam 1 AMENDMENT TO HOUSE BILL 5734 2 AMENDMENT NO. . Amend House Bill 5734 by replacing 3 everything after the enacting clause with the following: 4 "Section 5. The Property Tax Code is amended by changing 5 Section 18-185 and adding Section 18-190.5 as follows: 6 (35 ILCS 200/18-185) 7 Sec. 18-185. Short title; definitions. This Division 5 8 may be cited as the Property Tax Extension Limitation Law. 9 As used in this Division 5: 10 "Consumer Price Index" means the Consumer Price Index for 11 All Urban Consumers for all items published by the United 12 States Department of Labor. 13 "Extension limitation" means (a) the lesser of 5% or the 14 percentage increase in the Consumer Price Index during the 15 12-month calendar year preceding the levy year or (b) the 16 rate of increase approved by voters under Section 18-205. 17 "Affected county" means a county of 3,000,000 or more 18 inhabitants or a county contiguous to a county of 3,000,000 19 or more inhabitants. 20 "Taxing district" has the same meaning provided in 21 Section 1-150, except as otherwise provided in this Section. 22 For the 1991 through 1994 levy years only, "taxing district" -2- LRB9214200NTpkam 1 includes only each non-home rule taxing district having the 2 majority of its 1990 equalized assessed value within any 3 county or counties contiguous to a county with 3,000,000 or 4 more inhabitants. Beginning with the 1995 levy year, "taxing 5 district" includes only each non-home rule taxing district 6 subject to this Law before the 1995 levy year and each 7 non-home rule taxing district not subject to this Law before 8 the 1995 levy year having the majority of its 1994 equalized 9 assessed value in an affected county or counties. Beginning 10 with the levy year in which this Law becomes applicable to a 11 taxing district as provided in Section 18-213, "taxing 12 district" also includes those taxing districts made subject 13 to this Law as provided in Section 18-213. 14 "Aggregate extension" for taxing districts to which this 15 Law applied before the 1995 levy year means the annual 16 corporate extension for the taxing district and those special 17 purpose extensions that are made annually for the taxing 18 district, excluding special purpose extensions: (a) made for 19 the taxing district to pay interest or principal on general 20 obligation bonds that were approved by referendum; (b) made 21 for any taxing district to pay interest or principal on 22 general obligation bonds issued before October 1, 1991; (c) 23 made for any taxing district to pay interest or principal on 24 bonds issued to refund or continue to refund those bonds 25 issued before October 1, 1991; (d) made for any taxing 26 district to pay interest or principal on bonds issued to 27 refund or continue to refund bonds issued after October 1, 28 1991 that were approved by referendum; (e) made for any 29 taxing district to pay interest or principal on revenue bonds 30 issued before October 1, 1991 for payment of which a property 31 tax levy or the full faith and credit of the unit of local 32 government is pledged; however, a tax for the payment of 33 interest or principal on those bonds shall be made only after 34 the governing body of the unit of local government finds that -3- LRB9214200NTpkam 1 all other sources for payment are insufficient to make those 2 payments; (f) made for payments under a building commission 3 lease when the lease payments are for the retirement of bonds 4 issued by the commission before October 1, 1991, to pay for 5 the building project; (g) made for payments due under 6 installment contracts entered into before October 1, 1991; 7 (h) made for payments of principal and interest on bonds 8 issued under the Metropolitan Water Reclamation District Act 9 to finance construction projects initiated before October 1, 10 1991; (i) made for payments of principal and interest on 11 limited bonds, as defined in Section 3 of the Local 12 Government Debt Reform Act, in an amount not to exceed the 13 debt service extension base less the amount in items (b), 14 (c), (e), and (h) of this definition for non-referendum 15 obligations, except obligations initially issued pursuant to 16 referendum; (j) made for payments of principal and interest 17 on bonds issued under Section 15 of the Local Government Debt 18 Reform Act; and (k) made by a school district that 19 participates in the Special Education District of Lake 20 County, created by special education joint agreement under 21 Section 10-22.31 of the School Code, for payment of the 22 school district's share of the amounts required to be 23 contributed by the Special Education District of Lake County 24 to the Illinois Municipal Retirement Fund under Article 7 of 25 the Illinois Pension Code; the amount of any extension under 26 this item (k) shall be certified by the school district to 27 the county clerk. 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 -4- LRB9214200NTpkam 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 -5- LRB9214200NTpkam 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; and (m) made pursuant to 7 Section 34-53.5 of the School Code, whether levied annually 8 or not. 9 "Aggregate extension" for all taxing districts to which 10 this Law applies in accordance with Section 18-213, except 11 for those taxing districts subject to paragraph (2) of 12 subsection (e) of Section 18-213, means the annual corporate 13 extension for the taxing district and those special purpose 14 extensions that are made annually for the taxing district, 15 excluding special purpose extensions: (a) made for the taxing 16 district to pay interest or principal on general obligation 17 bonds that were approved by referendum; (b) made for any 18 taxing district to pay interest or principal on general 19 obligation bonds issued before the date on which the 20 referendum making this Law applicable to the taxing district 21 is held; (c) made for any taxing district to pay interest or 22 principal on bonds issued to refund or continue to refund 23 those bonds issued before the date on which the referendum 24 making this Law applicable to the taxing district is held; 25 (d) made for any taxing district to pay interest or principal 26 on bonds issued to refund or continue to refund bonds issued 27 after the date on which the referendum making this Law 28 applicable to the taxing district is held if the bonds were 29 approved by referendum after the date on which the referendum 30 making this Law applicable to the taxing district is held; 31 (e) made for any taxing district to pay interest or principal 32 on revenue bonds issued before the date on which the 33 referendum making this Law applicable to the taxing district 34 is held for payment of which a property tax levy or the full -6- LRB9214200NTpkam 1 faith and credit of the unit of local government is pledged; 2 however, a tax for the payment of interest or principal on 3 those bonds shall be made only after the governing body of 4 the unit of local government finds that all other sources for 5 payment are insufficient to make those payments; (f) made for 6 payments under a building commission lease when the lease 7 payments are for the retirement of bonds issued by the 8 commission before the date on which the referendum making 9 this Law applicable to the taxing district is held to pay for 10 the building project; (g) made for payments due under 11 installment contracts entered into before the date on which 12 the referendum making this Law applicable to the taxing 13 district is held; (h) made for payments of principal and 14 interest on limited bonds, as defined in Section 3 of the 15 Local Government Debt Reform Act, in an amount not to exceed 16 the debt service extension base less the amount in items (b), 17 (c), and (e) of this definition for non-referendum 18 obligations, except obligations initially issued pursuant to 19 referendum; (i) made for payments of principal and interest 20 on bonds issued under Section 15 of the Local Government Debt 21 Reform Act; and (j) made for a qualified airport authority to 22 pay interest or principal on general obligation bonds issued 23 for the purpose of paying obligations due under, or financing 24 airport facilities required to be acquired, constructed, 25 installed or equipped pursuant to, contracts entered into 26 before March 1, 1996 (but not including any amendments to 27 such a contract taking effect on or after that date). 28 "Aggregate extension" for all taxing districts to which 29 this Law applies in accordance with paragraph (2) of 30 subsection (e) of Section 18-213 means the annual corporate 31 extension for the taxing district and those special purpose 32 extensions that are made annually for the taxing district, 33 excluding special purpose extensions: (a) made for the taxing 34 district to pay interest or principal on general obligation -7- LRB9214200NTpkam 1 bonds that were approved by referendum; (b) made for any 2 taxing district to pay interest or principal on general 3 obligation bonds issued before the effective date of this 4 amendatory Act of 1997; (c) made for any taxing district to 5 pay interest or principal on bonds issued to refund or 6 continue to refund those bonds issued before the effective 7 date of this amendatory Act of 1997; (d) made for any taxing 8 district to pay interest or principal on bonds issued to 9 refund or continue to refund bonds issued after the effective 10 date of this amendatory Act of 1997 if the bonds were 11 approved by referendum after the effective date of this 12 amendatory Act of 1997; (e) made for any taxing district to 13 pay interest or principal on revenue bonds issued before the 14 effective date of this amendatory Act of 1997 for payment of 15 which a property tax levy or the full faith and credit of the 16 unit of local government is pledged; however, a tax for the 17 payment of interest or principal on those bonds shall be made 18 only after the governing body of the unit of local government 19 finds that all other sources for payment are insufficient to 20 make those payments; (f) made for payments under a building 21 commission lease when the lease payments are for the 22 retirement of bonds issued by the commission before the 23 effective date of this amendatory Act of 1997 to pay for the 24 building project; (g) made for payments due under installment 25 contracts entered into before the effective date of this 26 amendatory Act of 1997; (h) made for payments of principal 27 and interest on limited bonds, as defined in Section 3 of the 28 Local Government Debt Reform Act, in an amount not to exceed 29 the debt service extension base less the amount in items (b), 30 (c), and (e) of this definition for non-referendum 31 obligations, except obligations initially issued pursuant to 32 referendum; (i) made for payments of principal and interest 33 on bonds issued under Section 15 of the Local Government Debt 34 Reform Act; and (j) made for a qualified airport authority to -8- LRB9214200NTpkam 1 pay interest or principal on general obligation bonds issued 2 for the purpose of paying obligations due under, or financing 3 airport facilities required to be acquired, constructed, 4 installed or equipped pursuant to, contracts entered into 5 before March 1, 1996 (but not including any amendments to 6 such a contract taking effect on or after that date). 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, except for those 11 subject to paragraph (2) of subsection (e) of Section 18-213, 12 for the levy year in which the referendum making this Law 13 applicable to the taxing district is held, or for those 14 taxing districts subject to this Law in accordance with 15 paragraph (2) of subsection (e) of Section 18-213 for the 16 1996 levy year, constituting an extension for payment of 17 principal and interest on bonds issued by the taxing district 18 without referendum, but not including (i) bonds authorized by 19 Public Act 88-503 and issued under Section 20a of the Chicago 20 Park District Act for aquarium and museum projects; (ii) 21 bonds issued under Section 15 of the Local Government Debt 22 Reform Act; or (iii) refunding obligations issued to refund 23 or to continue to refund obligations initially issued 24 pursuant to referendum. The debt service extension base may 25 be established or increased as provided under Section 18-212. 26 "Special purpose extensions" include, but are not limited 27 to, extensions for levies made on an annual basis for 28 unemployment and workers' compensation, self-insurance, 29 contributions to pension plans, and extensions made pursuant 30 to Section 6-601 of the Illinois Highway Code for a road 31 district's permanent road fund whether levied annually or 32 not. The extension for a special service area is not 33 included in the aggregate extension. 34 "Aggregate extension base" means the taxing district's -9- LRB9214200NTpkam 1 last preceding aggregate extension as adjusted under Sections 2 18-215 through 18-230. 3 "Levy year" has the same meaning as "year" under Section 4 1-155. 5 "New property" means (i) the assessed value, after final 6 board of review or board of appeals action, of new 7 improvements or additions to existing improvements on any 8 parcel of real property that increase the assessed value of 9 that real property during the levy year multiplied by the 10 equalization factor issued by the Department under Section 11 17-30 and (ii) the assessed value, after final board of 12 review or board of appeals action, of real property not 13 exempt from real estate taxation, which real property was 14 exempt from real estate taxation for any portion of the 15 immediately preceding levy year, multiplied by the 16 equalization factor issued by the Department under Section 17 17-30. In addition, the county clerk in a county containing 18 a population of 3,000,000 or more shall include in the 1997 19 recovered tax increment value for any school district, any 20 recovered tax increment value that was applicable to the 1995 21 tax year calculations. 22 "Qualified airport authority" means an airport authority 23 organized under the Airport Authorities Act and located in a 24 county bordering on the State of Wisconsin and having a 25 population in excess of 200,000 and not greater than 500,000. 26 "Recovered tax increment value" means, except as 27 otherwise provided in this paragraph, the amount of the 28 current year's equalized assessed value, in the first year 29 after a municipality terminates the designation of an area as 30 a redevelopment project area previously established under the 31 Tax Increment Allocation Development Act in the Illinois 32 Municipal Code, previously established under the Industrial 33 Jobs Recovery Law in the Illinois Municipal Code, or 34 previously established under the Economic Development Area -10- LRB9214200NTpkam 1 Tax Increment Allocation Act, of each taxable lot, block, 2 tract, or parcel of real property in the redevelopment 3 project area over and above the initial equalized assessed 4 value of each property in the redevelopment project area. 5 For the taxes which are extended for the 1997 levy year, the 6 recovered tax increment value for a non-home rule taxing 7 district that first became subject to this Law for the 1995 8 levy year because a majority of its 1994 equalized assessed 9 value was in an affected county or counties shall be 10 increased if a municipality terminated the designation of an 11 area in 1993 as a redevelopment project area previously 12 established under the Tax Increment Allocation Development 13 Act in the Illinois Municipal Code, previously established 14 under the Industrial Jobs Recovery Law in the Illinois 15 Municipal Code, or previously established under the Economic 16 Development Area Tax Increment Allocation Act, by an amount 17 equal to the 1994 equalized assessed value of each taxable 18 lot, block, tract, or parcel of real property in the 19 redevelopment project area over and above the initial 20 equalized assessed value of each property in the 21 redevelopment project area. In the first year after a 22 municipality removes a taxable lot, block, tract, or parcel 23 of real property from a redevelopment project area 24 established under the Tax Increment Allocation Development 25 Act in the Illinois Municipal Code, the Industrial Jobs 26 Recovery Law in the Illinois Municipal Code, or the Economic 27 Development Area Tax Increment Allocation Act, "recovered tax 28 increment value" means the amount of the current year's 29 equalized assessed value of each taxable lot, block, tract, 30 or parcel of real property removed from the redevelopment 31 project area over and above the initial equalized assessed 32 value of that real property before removal from the 33 redevelopment project area. 34 Except as otherwise provided in this Section, "limiting -11- LRB9214200NTpkam 1 rate" means a fraction the numerator of which is the last 2 preceding aggregate extension base times an amount equal to 3 one plus the extension limitation defined in this Section and 4 the denominator of which is the current year's equalized 5 assessed value of all real property in the territory under 6 the jurisdiction of the taxing district during the prior levy 7 year. For those taxing districts that reduced their 8 aggregate extension for the last preceding levy year, the 9 highest aggregate extension in any of the last 3 preceding 10 levy years shall be used for the purpose of computing the 11 limiting rate. The denominator shall not include new 12 property. The denominator shall not include the recovered 13 tax increment value. 14 (Source: P.A. 90-485, eff. 1-1-98; 90-511, eff. 8-22-97; 15 90-568, eff. 1-1-99; 90-616, eff. 7-10-98; 90-655, eff. 16 7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.) 17 (35 ILCS 200/18-190.5 new) 18 Sec. 18-190.5. School districts. The requirements of 19 Section 18-190 of this Code for a direct referendum on the 20 imposition of a new or increased tax rate do not apply to tax 21 levies that are not included in the aggregate extension for 22 those taxing districts to which this Law did not apply before 23 the 1995 levy year (except taxing districts subject to this 24 Law in accordance with Section 18-213 of this Code) pursuant 25 to clause (m) of Section 18-185 of this Code. 26 Section 10. The School Code is amended by adding Section 27 34-53.5 as follows: 28 (105 ILCS 5/34-53.5 new) 29 Sec. 34-53.5. Capital improvement tax levy; purpose; 30 maximum amount. 31 (a) For the purpose of providing a reliable source of -12- LRB9214200NTpkam 1 revenue for capital improvement purposes, including without 2 limitation (i) the construction and equipping of a new school 3 building or buildings or an addition or additions to an 4 existing school building or buildings, (ii) the purchase of 5 school grounds on which any new school building or an 6 addition to an existing school building is to be constructed 7 or located, (iii) both items (i) and (ii) of this subsection 8 (a), or (iv) the rehabilitation, renovation, and equipping of 9 an existing school building or buildings, the board may levy, 10 upon all taxable property of the school district, in calendar 11 year 2003, a capital improvement tax to produce, when 12 extended, an amount not to exceed the product attained by 13 multiplying (1) the percentage increase, if any, in the 14 Consumer Price Index for All Urban Consumers for all items 15 published by the United States Department of Labor for the 12 16 months ending 2 months prior to the month in which the levy 17 is adopted by (2) $142,500,000. For example, if the 18 percentage increase in the Consumer Price Index is 2.5%, then 19 the computation would be $142,500,000 x 0.025 = $3,562,500. 20 (b) In each calendar year from 2004 through 2030, the 21 board may levy a capital improvement tax to produce, when 22 extended, an amount not to exceed the sum of (1) the maximum 23 amount that could have been levied by the board in the 24 preceding calendar year pursuant to this Section and (2) the 25 product obtained by multiplying (A) the sum of (i) the 26 maximum amount that could have been levied by the board in 27 the preceding calendar year pursuant to this Section and (ii) 28 $142,500,000 by (B) the percentage increase, if any, in the 29 Consumer Price Index for All Urban Consumers for all items 30 published by the United States Department of Labor for the 12 31 months ending 2 months prior to the month in which the levy 32 is adopted. 33 (c) In calendar year 2031, the board may levy a capital 34 improvement tax to produce, when extended, an amount not to -13- LRB9214200NTpkam 1 exceed the sum of (1) the maximum amount that could have been 2 levied by the board in calendar year 2030 pursuant to this 3 Section, (2) $142,500,000, and (3) the product obtained by 4 multiplying (A) the sum of (i) the maximum amount that could 5 have been levied by the board in calendar year 2030 pursuant 6 to this Section and (ii) $142,500,000 by (B) the percentage 7 increase, if any, in the Consumer Price Index for All Urban 8 Consumers for all items published by the United States 9 Department of Labor for the 12 months ending 2 months prior 10 to the month in which the levy is adopted. 11 (d) In calendar year 2032 and each calendar year 12 thereafter, the board may levy a capital improvement tax to 13 produce, when extended, an amount not to exceed the sum of 14 (1) the maximum amount that could have been levied by the 15 board in the preceding calendar year pursuant to this Section 16 and (2) the product obtained by multiplying (A) the maximum 17 amount that could have been levied by the board in the 18 preceding calendar year pursuant to this Section by (B) the 19 percentage increase, if any, in the Consumer Price Index for 20 All Urban Consumers for all items published by the United 21 States Department of Labor for the 12 months ending 2 months 22 prior to the month in which the levy is adopted. 23 (e) An initial tax levy made by the board under this 24 Section must have the approval of the Chicago City Council, 25 by resolution, before the levy may be extended. The board 26 shall communicate its adoption of the initial tax levy by 27 delivering a certified copy of the levy resolution to the 28 Clerk of the City of Chicago. The Chicago City Council shall 29 have 60 days after receipt, by the Clerk of the City of 30 Chicago, of the certified resolution to approve or disapprove 31 the levy. The failure of the Chicago City Council to take 32 action to approve or disapprove the initial tax levy within 33 the 60-day period shall be deemed disapproval of the initial 34 tax levy. Upon the adoption of each subsequent levy by the -14- LRB9214200NTpkam 1 board under this Section, the board must notify the Chicago 2 City Council that the board has adopted the levy. 3 (f) The board may issue bonds, in accordance with the 4 Local Government Debt Reform Act, including Section 15 of 5 that Act, against any revenues to be collected from the 6 capital improvement tax in any year or years and may pledge, 7 pursuant to Section 13 of the Local Government Debt Reform 8 Act, those revenues as security for the payment of any such 9 bonds. 10 Section 99. Effective date. This Act takes effect upon 11 becoming law.".