100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2697

 

Introduced , by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-190
105 ILCS 5/17-2  from Ch. 122, par. 17-2

    Amends the School Code and the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a tax levied for educational purposes for the 2017 levy year and all subsequent levy years by any school district subject to the Property Tax Extension Limitation Law may be extended at a rate exceeding the rate established for educational purposes by referendum or statute, provided that the rate does not cause the school district to exceed its limiting rate under the Property Tax Extension Limitation Law for that levy year. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2697LRB100 09376 HLH 19538 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 18-190 as follows:
 
6    (35 ILCS 200/18-190)
7    Sec. 18-190. Direct referendum; new rate or increased
8limiting rate.
9    (a) If a new rate is authorized by statute to be imposed
10without referendum or is subject to a backdoor referendum, as
11defined in Section 28-2 of the Election Code, the governing
12body of the affected taxing district before levying the new
13rate shall submit the new rate to direct referendum under the
14provisions of this Section and of Article 28 of the Election
15Code. Notwithstanding any other provision of law, the levies
16authorized by Sections 21-110 and 21-110.1 of the Illinois
17Pension Code shall not be considered new rates; however,
18nothing in this amendatory Act of the 98th General Assembly
19authorizes a taxing district to increase its limiting rate or
20its aggregate extension without first obtaining referendum
21approval as provided in this Section. Notwithstanding the
22provisions, requirements, or limitations of any other law, any
23tax levied for the 2005 levy year and all subsequent levy years

 

 

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1by any taxing district subject to this Law may be extended at a
2rate exceeding the rate established for that tax by referendum
3or statute, provided that the rate does not exceed the
4statutory ceiling above which the tax is not authorized to be
5further increased either by referendum or in any other manner,
6except that any tax levied for educational purposes for the
72017 levy year and all subsequent levy years by any school
8district subject to this Law may be extended at a rate
9exceeding the rate established for educational purposes by
10referendum or statute, provided that the rate does not cause
11the school district to exceed its limiting rate for that levy
12year. Notwithstanding the provisions, requirements, or
13limitations of any other law, all taxing districts subject to
14this Law shall follow the provisions of this Section whenever
15seeking referenda approval after March 21, 2006 to (i) levy a
16new tax rate authorized by statute or (ii) increase the
17limiting rate applicable to the taxing district. All taxing
18districts subject to this Law are authorized to seek referendum
19approval of each proposition described and set forth in this
20Section.
21    The proposition seeking to obtain referendum approval to
22levy a new tax rate as authorized in clause (i) shall be in
23substantially the following form:
24        Shall ... (insert legal name, number, if any, and
25    county or counties of taxing district and geographic or
26    other common name by which a school or community college

 

 

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1    district is known and referred to), Illinois, be authorized
2    to levy a new tax for ... purposes and have an additional
3    tax of ...% of the equalized assessed value of the taxable
4    property therein extended for such purposes?
5The votes must be recorded as "Yes" or "No".
6    The proposition seeking to obtain referendum approval to
7increase the limiting rate as authorized in clause (ii) shall
8be in substantially the following form:
9        Shall the limiting rate under the Property Tax
10    Extension Limitation Law for ... (insert legal name,
11    number, if any, and county or counties of taxing district
12    and geographic or other common name by which a school or
13    community college district is known and referred to),
14    Illinois, be increased by an additional amount equal to
15    ...% above the limiting rate for the purpose of...(insert
16    purpose) for levy year ... (insert the most recent levy
17    year for which the limiting rate of the taxing district is
18    known at the time the submission of the proposition is
19    initiated by the taxing district) and be equal to ...% of
20    the equalized assessed value of the taxable property
21    therein for levy year(s) (insert each levy year for which
22    the increase will be applicable, which years must be
23    consecutive and may not exceed 4)?
24    The votes must be recorded as "Yes" or "No".
25    The ballot for any proposition submitted pursuant to this
26Section shall have printed thereon, but not as a part of the

 

 

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1proposition submitted, only the following supplemental
2information (which shall be supplied to the election authority
3by the taxing district) in substantially the following form:
4        (1) The approximate amount of taxes extendable at the
5    most recently extended limiting rate is $..., and the
6    approximate amount of taxes extendable if the proposition
7    is approved is $....
8        (2) For the ... (insert the first levy year for which
9    the new rate or increased limiting rate will be applicable)
10    levy year the approximate amount of the additional tax
11    extendable against property containing a single family
12    residence and having a fair market value at the time of the
13    referendum of $100,000 is estimated to be $....
14        (3) Based upon an average annual percentage increase
15    (or decrease) in the market value of such property of %...
16    (insert percentage equal to the average annual percentage
17    increase or decrease for the prior 3 levy years, at the
18    time the submission of the proposition is initiated by the
19    taxing district, in the amount of (A) the equalized
20    assessed value of the taxable property in the taxing
21    district less (B) the new property included in the
22    equalized assessed value), the approximate amount of the
23    additional tax extendable against such property for the ...
24    levy year is estimated to be $... and for the ... levy year
25    is estimated to be $ ....
26        (4) If the proposition is approved, the aggregate

 

 

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1    extension for ... (insert each levy year for which the
2    increase will apply) will be determined by the limiting
3    rate set forth in the proposition, rather than the
4    otherwise applicable limiting rate calculated under the
5    provisions of the Property Tax Extension Limitation Law
6    (commonly known as the Property Tax Cap Law).
7The approximate amount of taxes extendable shown in paragraph
8(1) shall be computed upon the last known equalized assessed
9value of taxable property in the taxing district (at the time
10the submission of the proposition is initiated by the taxing
11district). Paragraph (3) shall be included only if the
12increased limiting rate will be applicable for more than one
13levy year and shall list each levy year for which the increased
14limiting rate will be applicable. The additional tax shown for
15each levy year shall be the approximate dollar amount of the
16increase over the amount of the most recently completed
17extension at the time the submission of the proposition is
18initiated by the taxing district. The approximate amount of the
19additional taxes extendable shown in paragraphs (2) and (3)
20shall be calculated by multiplying $100,000 (the fair market
21value of the property without regard to any property tax
22exemptions) by (i) the percentage level of assessment
23prescribed for that property by statute, or by ordinance of the
24county board in counties that classify property for purposes of
25taxation in accordance with Section 4 of Article IX of the
26Illinois Constitution; (ii) the most recent final equalization

 

 

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1factor certified to the county clerk by the Department of
2Revenue at the time the taxing district initiates the
3submission of the proposition to the electors; and (iii) either
4the new rate or the amount by which the limiting rate is to be
5increased. This amendatory Act of the 97th General Assembly is
6intended to clarify the existing requirements of this Section,
7and shall not be construed to validate any prior non-compliant
8referendum language. Paragraph (4) shall be included if the
9proposition concerns a limiting rate increase but shall not be
10included if the proposition concerns a new rate. Any notice
11required to be published in connection with the submission of
12the proposition shall also contain this supplemental
13information and shall not contain any other supplemental
14information regarding the proposition. Any error,
15miscalculation, or inaccuracy in computing any amount set forth
16on the ballot and in the notice that is not deliberate shall
17not invalidate or affect the validity of any proposition
18approved. Notice of the referendum shall be published and
19posted as otherwise required by law, and the submission of the
20proposition shall be initiated as provided by law.
21    If a majority of all ballots cast on the proposition are in
22favor of the proposition, the following provisions shall be
23applicable to the extension of taxes for the taxing district:
24        (A) a new tax rate shall be first effective for the
25    levy year in which the new rate is approved;
26        (B) if the proposition provides for a new tax rate, the

 

 

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1    taxing district is authorized to levy a tax after the
2    canvass of the results of the referendum by the election
3    authority for the purposes for which the tax is authorized;
4        (C) a limiting rate increase shall be first effective
5    for the levy year in which the limiting rate increase is
6    approved, provided that the taxing district may elect to
7    have a limiting rate increase be effective for the levy
8    year prior to the levy year in which the limiting rate
9    increase is approved unless the extension of taxes for the
10    prior levy year occurs 30 days or less after the canvass of
11    the results of the referendum by the election authority in
12    any county in which the taxing district is located;
13        (D) in order for the limiting rate increase to be first
14    effective for the levy year prior to the levy year of the
15    referendum, the taxing district must certify its election
16    to have the limiting rate increase be effective for the
17    prior levy year to the clerk of each county in which the
18    taxing district is located not more than 2 days after the
19    date the results of the referendum are canvassed by the
20    election authority; and
21        (E) if the proposition provides for a limiting rate
22    increase, the increase may be effective regardless of
23    whether the proposition is approved before or after the
24    taxing district adopts or files its levy for any levy year.
25    Rates required to extend taxes on levies subject to a
26backdoor referendum in each year there is a levy are not new

 

 

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1rates or rate increases under this Section if a levy has been
2made for the fund in one or more of the preceding 3 levy years.
3Changes made by this amendatory Act of 1997 to this Section in
4reference to rates required to extend taxes on levies subject
5to a backdoor referendum in each year there is a levy are
6declarative of existing law and not a new enactment.
7    (b) Whenever other applicable law authorizes a taxing
8district subject to the limitation with respect to its
9aggregate extension provided for in this Law to issue bonds or
10other obligations either without referendum or subject to
11backdoor referendum, the taxing district may elect for each
12separate bond issuance to submit the question of the issuance
13of the bonds or obligations directly to the voters of the
14taxing district, and if the referendum passes the taxing
15district is not required to comply with any backdoor referendum
16procedures or requirements set forth in the other applicable
17law. The direct referendum shall be initiated by ordinance or
18resolution of the governing body of the taxing district, and
19the question shall be certified to the proper election
20authorities in accordance with the provisions of the Election
21Code.
22(Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)
 
23    Section 10. The School Code is amended by changing Section
2417-2 as follows:
 

 

 

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1    (105 ILCS 5/17-2)  (from Ch. 122, par. 17-2)
2    Sec. 17-2. Tax levies; purposes; rates. Except as otherwise
3provided in Articles 12 and 13 of this Act, and except as
4provided in Section 17-2.2e of this Act, the following maximum
5rates shall apply to all taxes levied after August 10, 1965, in
6districts having a population of less than 500,000 inhabitants,
7including those districts organized under Article 11 of the
8School Code. The school board of any district having a
9population of less than 500,000 inhabitants may levy a tax
10annually, at not to exceed the maximum rates and for the
11specified purposes, upon all the taxable property of the
12district at the value, as equalized or assessed by the
13Department of Revenue as follows:
14        (1) districts maintaining only grades 1 through 8, .92%
15    for educational purposes and .25% for operations and
16    maintenance purposes;
17        (2) districts maintaining only grades 9 through 12,
18    .92% for educational purposes and .25% for operations and
19    maintenance purposes;
20        (3) districts maintaining grades 1 through 12, 1.63%
21    for the 1985-86 school year, 1.68% for the 1986-87 school
22    year, 1.75% for the 1987-88 school year and 1.84% for the
23    1988-89 school year and thereafter for educational
24    purposes and .405% for the 1989-90 school year, .435% for
25    the 1990-91 school year, .465% for the 1991-92 school year,
26    and .50% for the 1992-93 school year and thereafter for

 

 

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1    operations and maintenance purposes;
2        (4) all districts, 0.75% for capital improvement
3    purposes (which is in addition to the levy for operations
4    and maintenance purposes), which tax is to be levied,
5    accumulated for not more than 6 years, and spent for
6    capital improvement purposes (including but not limited to
7    the construction of a new school building or buildings or
8    the purchase of school grounds on which any new school
9    building is to be constructed or located, or both) only in
10    accordance with Section 17-2.3 of this Act;
11        (5) districts maintaining only grades 1 through 8, .12%
12    for transportation purposes, provided that districts
13    maintaining only grades kindergarten through 8 which have
14    an enrollment of at least 2600 students may levy, subject
15    to Section 17-2.2, at not to exceed a maximum rate of .20%
16    for transportation purposes for any school year in which
17    the number of students requiring transportation in the
18    district exceeds by at least 2% the number of students
19    requiring transportation in the district during the
20    preceding school year, as verified in the district's claim
21    for pupil transportation and reimbursement and as
22    certified by the State Board of Education to the county
23    clerk of the county in which such district is located not
24    later than November 15 following the submission of such
25    claim; districts maintaining only grades 9 through 12, .12%
26    for transportation purposes; and districts maintaining

 

 

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1    grades 1 through 12, .14% for the 1985-86 school year, .16%
2    for the 1986-87 school year, .18% for the 1987-88 school
3    year and .20% for the 1988-89 school year and thereafter,
4    for transportation purposes;
5        (6) districts providing summer classes, .15% for
6    educational purposes, subject to Section 17-2.1 of this
7    Act.
8    Notwithstanding any other provision of law, a tax levied
9for educational purposes for the 2017 levy year and all
10subsequent levy years by any school district subject to the
11Property Tax Extension Limitation Law in the Property Tax Code
12may be extended at a rate exceeding the rate established for
13educational purposes by referendum or statute, provided that
14the rate does not cause the school district to exceed its
15limiting rate under the Property Tax Extension Limitation Law
16for that levy year.
17    Whenever any special charter school district operating
18grades 1 through 12, has organized or shall organize under the
19general school law, the district so organized may continue to
20levy taxes at not to exceed the rate at which taxes were last
21actually extended by the special charter district, except that
22if such rate at which taxes were last actually extended by such
23special charter district was less than the maximum rate for
24districts maintaining grades 1 through 12 authorized under this
25Section, such special charter district nevertheless may levy
26taxes at a rate not to exceed the maximum rate for districts

 

 

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1maintaining grades 1 through 12 authorized under this Section,
2and except that if any such district maintains only grades 1
3through 8, the board may levy, for educational purposes, at a
4rate not to exceed the maximum rate for elementary districts
5authorized under this Section.
6    Maximum rates before or after established in excess of
7those prescribed shall not be affected by the amendatory Act of
81965.
9(Source: P.A. 99-908, eff. 12-16-16.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.