101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5043

 

Introduced 2/18/2020, by Rep. Grant Wehrli

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-165
35 ILCS 200/18-185
35 ILCS 200/18-233 new

    Amends the Property Tax Code. Provides that any taxing district may abate any portion of its taxes in any given year when the initial levy request for that year has subsequently been found to be in excess of the funds required for that year. Provides that any such abatement shall be included in the district's aggregate extension base for purposes of the Property Tax Extension Limitation Law. Provides for a supplemental levy if the issuance of a certificate of error, a court order, or a final administrative decision of the Property Tax Appeal Board results in a refund from the taxing district of a portion of the property tax revenue distributed to the taxing district. Effective immediately.


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

 

 

A BILL FOR

 

HB5043LRB101 20586 HLH 70213 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
5Sections 18-165 and 18-185 and by adding Section 18-233 as
6follows:
 
7    (35 ILCS 200/18-165)
8    Sec. 18-165. Abatement of taxes.
9    (a) Any taxing district, upon a majority vote of its
10governing authority, may, after the determination of the
11assessed valuation of its property, order the clerk of that
12county to abate any portion of its taxes on the following types
13of property:
14        (1) Commercial and industrial.
15            (A) The property of any commercial or industrial
16        firm, including but not limited to the property of (i)
17        any firm that is used for collecting, separating,
18        storing, or processing recyclable materials, locating
19        within the taxing district during the immediately
20        preceding year from another state, territory, or
21        country, or having been newly created within this State
22        during the immediately preceding year, or expanding an
23        existing facility, or (ii) any firm that is used for

 

 

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1        the generation and transmission of electricity
2        locating within the taxing district during the
3        immediately preceding year or expanding its presence
4        within the taxing district during the immediately
5        preceding year by construction of a new electric
6        generating facility that uses natural gas as its fuel,
7        or any firm that is used for production operations at a
8        new, expanded, or reopened coal mine within the taxing
9        district, that has been certified as a High Impact
10        Business by the Illinois Department of Commerce and
11        Economic Opportunity. The property of any firm used for
12        the generation and transmission of electricity shall
13        include all property of the firm used for transmission
14        facilities as defined in Section 5.5 of the Illinois
15        Enterprise Zone Act. The abatement shall not exceed a
16        period of 10 years and the aggregate amount of abated
17        taxes for all taxing districts combined shall not
18        exceed $4,000,000.
19            (A-5) Any property in the taxing district of a new
20        electric generating facility, as defined in Section
21        605-332 of the Department of Commerce and Economic
22        Opportunity Law of the Civil Administrative Code of
23        Illinois. The abatement shall not exceed a period of 10
24        years. The abatement shall be subject to the following
25        limitations:
26                (i) if the equalized assessed valuation of the

 

 

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1            new electric generating facility is equal to or
2            greater than $25,000,000 but less than
3            $50,000,000, then the abatement may not exceed (i)
4            over the entire term of the abatement, 5% of the
5            taxing district's aggregate taxes from the new
6            electric generating facility and (ii) in any one
7            year of abatement, 20% of the taxing district's
8            taxes from the new electric generating facility;
9                (ii) if the equalized assessed valuation of
10            the new electric generating facility is equal to or
11            greater than $50,000,000 but less than
12            $75,000,000, then the abatement may not exceed (i)
13            over the entire term of the abatement, 10% of the
14            taxing district's aggregate taxes from the new
15            electric generating facility and (ii) in any one
16            year of abatement, 35% of the taxing district's
17            taxes from the new electric generating facility;
18                (iii) if the equalized assessed valuation of
19            the new electric generating facility is equal to or
20            greater than $75,000,000 but less than
21            $100,000,000, then the abatement may not exceed
22            (i) over the entire term of the abatement, 20% of
23            the taxing district's aggregate taxes from the new
24            electric generating facility and (ii) in any one
25            year of abatement, 50% of the taxing district's
26            taxes from the new electric generating facility;

 

 

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1                (iv) if the equalized assessed valuation of
2            the new electric generating facility is equal to or
3            greater than $100,000,000 but less than
4            $125,000,000, then the abatement may not exceed
5            (i) over the entire term of the abatement, 30% of
6            the taxing district's aggregate taxes from the new
7            electric generating facility and (ii) in any one
8            year of abatement, 60% of the taxing district's
9            taxes from the new electric generating facility;
10                (v) if the equalized assessed valuation of the
11            new electric generating facility is equal to or
12            greater than $125,000,000 but less than
13            $150,000,000, then the abatement may not exceed
14            (i) over the entire term of the abatement, 40% of
15            the taxing district's aggregate taxes from the new
16            electric generating facility and (ii) in any one
17            year of abatement, 60% of the taxing district's
18            taxes from the new electric generating facility;
19                (vi) if the equalized assessed valuation of
20            the new electric generating facility is equal to or
21            greater than $150,000,000, then the abatement may
22            not exceed (i) over the entire term of the
23            abatement, 50% of the taxing district's aggregate
24            taxes from the new electric generating facility
25            and (ii) in any one year of abatement, 60% of the
26            taxing district's taxes from the new electric

 

 

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1            generating facility.
2            The abatement is not effective unless the owner of
3        the new electric generating facility agrees to repay to
4        the taxing district all amounts previously abated,
5        together with interest computed at the rate and in the
6        manner provided for delinquent taxes, in the event that
7        the owner of the new electric generating facility
8        closes the new electric generating facility before the
9        expiration of the entire term of the abatement.
10            The authorization of taxing districts to abate
11        taxes under this subdivision (a)(1)(A-5) expires on
12        January 1, 2010.
13            (B) The property of any commercial or industrial
14        development of at least (i) 500 acres or (ii) 225 acres
15        in the case of a commercial or industrial development
16        that applies for and is granted designation as a High
17        Impact Business under paragraph (F) of item (3) of
18        subsection (a) of Section 5.5 of the Illinois
19        Enterprise Zone Act, having been created within the
20        taxing district. The abatement shall not exceed a
21        period of 20 years and the aggregate amount of abated
22        taxes for all taxing districts combined shall not
23        exceed $12,000,000.
24            (C) The property of any commercial or industrial
25        firm currently located in the taxing district that
26        expands a facility or its number of employees. The

 

 

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1        abatement shall not exceed a period of 10 years and the
2        aggregate amount of abated taxes for all taxing
3        districts combined shall not exceed $4,000,000. The
4        abatement period may be renewed at the option of the
5        taxing districts.
6        (2) Horse racing. Any property in the taxing district
7    which is used for the racing of horses and upon which
8    capital improvements consisting of expansion, improvement
9    or replacement of existing facilities have been made since
10    July 1, 1987. The combined abatements for such property
11    from all taxing districts in any county shall not exceed
12    $5,000,000 annually and shall not exceed a period of 10
13    years.
14        (3) Auto racing. Any property designed exclusively for
15    the racing of motor vehicles. Such abatement shall not
16    exceed a period of 10 years.
17        (4) Academic or research institute. The property of any
18    academic or research institute in the taxing district that
19    (i) is an exempt organization under paragraph (3) of
20    Section 501(c) of the Internal Revenue Code, (ii) operates
21    for the benefit of the public by actually and exclusively
22    performing scientific research and making the results of
23    the research available to the interested public on a
24    non-discriminatory basis, and (iii) employs more than 100
25    employees. An abatement granted under this paragraph shall
26    be for at least 15 years and the aggregate amount of abated

 

 

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1    taxes for all taxing districts combined shall not exceed
2    $5,000,000.
3        (5) Housing for older persons. Any property in the
4    taxing district that is devoted exclusively to affordable
5    housing for older households. For purposes of this
6    paragraph, "older households" means those households (i)
7    living in housing provided under any State or federal
8    program that the Department of Human Rights determines is
9    specifically designed and operated to assist elderly
10    persons and is solely occupied by persons 55 years of age
11    or older and (ii) whose annual income does not exceed 80%
12    of the area gross median income, adjusted for family size,
13    as such gross income and median income are determined from
14    time to time by the United States Department of Housing and
15    Urban Development. The abatement shall not exceed a period
16    of 15 years, and the aggregate amount of abated taxes for
17    all taxing districts shall not exceed $3,000,000.
18        (6) Historical society. For assessment years 1998
19    through 2018, the property of an historical society
20    qualifying as an exempt organization under Section
21    501(c)(3) of the federal Internal Revenue Code.
22        (7) Recreational facilities. Any property in the
23    taxing district (i) that is used for a municipal airport,
24    (ii) that is subject to a leasehold assessment under
25    Section 9-195 of this Code and (iii) which is sublet from a
26    park district that is leasing the property from a

 

 

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1    municipality, but only if the property is used exclusively
2    for recreational facilities or for parking lots used
3    exclusively for those facilities. The abatement shall not
4    exceed a period of 10 years.
5        (8) Relocated corporate headquarters. If approval
6    occurs within 5 years after the effective date of this
7    amendatory Act of the 92nd General Assembly, any property
8    or a portion of any property in a taxing district that is
9    used by an eligible business for a corporate headquarters
10    as defined in the Corporate Headquarters Relocation Act.
11    Instead of an abatement under this paragraph (8), a taxing
12    district may enter into an agreement with an eligible
13    business to make annual payments to that eligible business
14    in an amount not to exceed the property taxes paid directly
15    or indirectly by that eligible business to the taxing
16    district and any other taxing districts for premises
17    occupied pursuant to a written lease and may make those
18    payments without the need for an annual appropriation. No
19    school district, however, may enter into an agreement with,
20    or abate taxes for, an eligible business unless the
21    municipality in which the corporate headquarters is
22    located agrees to provide funding to the school district in
23    an amount equal to the amount abated or paid by the school
24    district as provided in this paragraph (8). Any abatement
25    ordered or agreement entered into under this paragraph (8)
26    may be effective for the entire term specified by the

 

 

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1    taxing district, except the term of the abatement or annual
2    payments may not exceed 20 years.
3        (9) United States Military Public/Private Residential
4    Developments. Each building, structure, or other
5    improvement designed, financed, constructed, renovated,
6    managed, operated, or maintained after January 1, 2006
7    under a "PPV Lease", as set forth under Division 14 of
8    Article 10, and any such PPV Lease.
9        (10) Property located in a business corridor that
10    qualifies for an abatement under Section 18-184.10.
11        (11) Under Section 11-15.4-25 of the Illinois
12    Municipal Code, property located within an urban
13    agricultural area that is used by a qualifying farmer for
14    processing, growing, raising, or otherwise producing
15    agricultural products.
16    (b) Upon a majority vote of its governing authority, any
17municipality may, after the determination of the assessed
18valuation of its property, order the county clerk to abate any
19portion of its taxes on any property that is located within the
20corporate limits of the municipality in accordance with Section
218-3-18 of the Illinois Municipal Code.
22    (c) Any taxing district may, upon a majority vote of its
23governing authority and after the determination of the assessed
24valuation of its property, order the clerk of that county to
25abate any portion of its taxes in any given year when the
26initial levy request for that year has subsequently been found

 

 

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1to be in excess of the funds required for that year. In
2counties subject to the Property Tax Extension Limitation Law,
3any such abatement of taxes under this subsection shall be
4included in the aggregate extension base for the subsequent tax
5year.
6(Source: P.A. 100-1133, eff. 1-1-19.)
 
7    (35 ILCS 200/18-185)
8    Sec. 18-185. Short title; definitions. This Division 5 may
9be cited as the Property Tax Extension Limitation Law. As used
10in this Division 5:
11    "Consumer Price Index" means the Consumer Price Index for
12All Urban Consumers for all items published by the United
13States Department of Labor.
14    "Extension limitation" means (a) the lesser of 5% or the
15percentage increase in the Consumer Price Index during the
1612-month calendar year preceding the levy year or (b) the rate
17of increase approved by voters under Section 18-205.
18    "Affected county" means a county of 3,000,000 or more
19inhabitants or a county contiguous to a county of 3,000,000 or
20more inhabitants.
21    "Taxing district" has the same meaning provided in Section
221-150, except as otherwise provided in this Section. For the
231991 through 1994 levy years only, "taxing district" includes
24only each non-home rule taxing district having the majority of
25its 1990 equalized assessed value within any county or counties

 

 

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1contiguous to a county with 3,000,000 or more inhabitants.
2Beginning with the 1995 levy year, "taxing district" includes
3only each non-home rule taxing district subject to this Law
4before the 1995 levy year and each non-home rule taxing
5district not subject to this Law before the 1995 levy year
6having the majority of its 1994 equalized assessed value in an
7affected county or counties. Beginning with the levy year in
8which this Law becomes applicable to a taxing district as
9provided in Section 18-213, "taxing district" also includes
10those taxing districts made subject to this Law as provided in
11Section 18-213.
12    "Aggregate extension" for taxing districts to which this
13Law applied before the 1995 levy year means the annual
14corporate extension for the taxing district and those special
15purpose extensions that are made annually for the taxing
16district, excluding special purpose extensions: (a) made for
17the taxing district to pay interest or principal on general
18obligation bonds that were approved by referendum; (b) made for
19any taxing district to pay interest or principal on general
20obligation bonds issued before October 1, 1991; (c) made for
21any taxing district to pay interest or principal on bonds
22issued to refund or continue to refund those bonds issued
23before October 1, 1991; (d) made for any taxing district to pay
24interest or principal on bonds issued to refund or continue to
25refund bonds issued after October 1, 1991 that were approved by
26referendum; (e) made for any taxing district to pay interest or

 

 

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1principal on revenue bonds issued before October 1, 1991 for
2payment of which a property tax levy or the full faith and
3credit of the unit of local government is pledged; however, a
4tax for the payment of interest or principal on those bonds
5shall be made only after the governing body of the unit of
6local government finds that all other sources for payment are
7insufficient to make those payments; (f) made for payments
8under a building commission lease when the lease payments are
9for the retirement of bonds issued by the commission before
10October 1, 1991, to pay for the building project; (g) made for
11payments due under installment contracts entered into before
12October 1, 1991; (h) made for payments of principal and
13interest on bonds issued under the Metropolitan Water
14Reclamation District Act to finance construction projects
15initiated before October 1, 1991; (i) made for payments of
16principal and interest on limited bonds, as defined in Section
173 of the Local Government Debt Reform Act, in an amount not to
18exceed the debt service extension base less the amount in items
19(b), (c), (e), and (h) of this definition for non-referendum
20obligations, except obligations initially issued pursuant to
21referendum; (j) made for payments of principal and interest on
22bonds issued under Section 15 of the Local Government Debt
23Reform Act; (k) made by a school district that participates in
24the Special Education District of Lake County, created by
25special education joint agreement under Section 10-22.31 of the
26School Code, for payment of the school district's share of the

 

 

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1amounts required to be contributed by the Special Education
2District of Lake County to the Illinois Municipal Retirement
3Fund under Article 7 of the Illinois Pension Code; the amount
4of any extension under this item (k) shall be certified by the
5school district to the county clerk; (l) made to fund expenses
6of providing joint recreational programs for persons with
7disabilities under Section 5-8 of the Park District Code or
8Section 11-95-14 of the Illinois Municipal Code; (m) made for
9temporary relocation loan repayment purposes pursuant to
10Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
11payment of principal and interest on any bonds issued under the
12authority of Section 17-2.2d of the School Code; (o) made for
13contributions to a firefighter's pension fund created under
14Article 4 of the Illinois Pension Code, to the extent of the
15amount certified under item (5) of Section 4-134 of the
16Illinois Pension Code; and (p) made for road purposes in the
17first year after a township assumes the rights, powers, duties,
18assets, property, liabilities, obligations, and
19responsibilities of a road district abolished under the
20provisions of Section 6-133 of the Illinois Highway Code.
21    "Aggregate extension" for the taxing districts to which
22this Law did not apply before the 1995 levy year (except taxing
23districts subject to this Law in accordance with Section
2418-213) means the annual corporate extension for the taxing
25district and those special purpose extensions that are made
26annually for the taxing district, excluding special purpose

 

 

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1extensions: (a) made for the taxing district to pay interest or
2principal on general obligation bonds that were approved by
3referendum; (b) made for any taxing district to pay interest or
4principal on general obligation bonds issued before March 1,
51995; (c) made for any taxing district to pay interest or
6principal on bonds issued to refund or continue to refund those
7bonds issued before March 1, 1995; (d) made for any taxing
8district to pay interest or principal on bonds issued to refund
9or continue to refund bonds issued after March 1, 1995 that
10were approved by referendum; (e) made for any taxing district
11to pay interest or principal on revenue bonds issued before
12March 1, 1995 for payment of which a property tax levy or the
13full faith and credit of the unit of local government is
14pledged; however, a tax for the payment of interest or
15principal on those bonds shall be made only after the governing
16body of the unit of local government finds that all other
17sources for payment are insufficient to make those payments;
18(f) made for payments under a building commission lease when
19the lease payments are for the retirement of bonds issued by
20the commission before March 1, 1995 to pay for the building
21project; (g) made for payments due under installment contracts
22entered into before March 1, 1995; (h) made for payments of
23principal and interest on bonds issued under the Metropolitan
24Water Reclamation District Act to finance construction
25projects initiated before October 1, 1991; (h-4) made for
26stormwater management purposes by the Metropolitan Water

 

 

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1Reclamation District of Greater Chicago under Section 12 of the
2Metropolitan Water Reclamation District Act; (i) made for
3payments of principal and interest on limited bonds, as defined
4in Section 3 of the Local Government Debt Reform Act, in an
5amount not to exceed the debt service extension base less the
6amount in items (b), (c), and (e) of this definition for
7non-referendum obligations, except obligations initially
8issued pursuant to referendum and bonds described in subsection
9(h) of this definition; (j) made for payments of principal and
10interest on bonds issued under Section 15 of the Local
11Government Debt Reform Act; (k) made for payments of principal
12and interest on bonds authorized by Public Act 88-503 and
13issued under Section 20a of the Chicago Park District Act for
14aquarium or museum projects; (l) made for payments of principal
15and interest on bonds authorized by Public Act 87-1191 or
1693-601 and (i) issued pursuant to Section 21.2 of the Cook
17County Forest Preserve District Act, (ii) issued under Section
1842 of the Cook County Forest Preserve District Act for
19zoological park projects, or (iii) issued under Section 44.1 of
20the Cook County Forest Preserve District Act for botanical
21gardens projects; (m) made pursuant to Section 34-53.5 of the
22School Code, whether levied annually or not; (n) made to fund
23expenses of providing joint recreational programs for persons
24with disabilities under Section 5-8 of the Park District Code
25or Section 11-95-14 of the Illinois Municipal Code; (o) made by
26the Chicago Park District for recreational programs for persons

 

 

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1with disabilities under subsection (c) of Section 7.06 of the
2Chicago Park District Act; (p) made for contributions to a
3firefighter's pension fund created under Article 4 of the
4Illinois Pension Code, to the extent of the amount certified
5under item (5) of Section 4-134 of the Illinois Pension Code;
6(q) made by Ford Heights School District 169 under Section
717-9.02 of the School Code; and (r) made for the purpose of
8making employer contributions to the Public School Teachers'
9Pension and Retirement Fund of Chicago under Section 34-53 of
10the School Code.
11    "Aggregate extension" for all taxing districts to which
12this Law applies in accordance with Section 18-213, except for
13those taxing districts subject to paragraph (2) of subsection
14(e) of Section 18-213, means the annual corporate extension for
15the taxing district and those special purpose extensions that
16are made annually for the taxing district, excluding special
17purpose extensions: (a) made for the taxing district to pay
18interest or principal on general obligation bonds that were
19approved by referendum; (b) made for any taxing district to pay
20interest or principal on general obligation bonds issued before
21the date on which the referendum making this Law applicable to
22the taxing district is held; (c) made for any taxing district
23to pay interest or principal on bonds issued to refund or
24continue to refund those bonds issued before the date on which
25the referendum making this Law applicable to the taxing
26district is held; (d) made for any taxing district to pay

 

 

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1interest or principal on bonds issued to refund or continue to
2refund bonds issued after the date on which the referendum
3making this Law applicable to the taxing district is held if
4the bonds were approved by referendum after the date on which
5the referendum making this Law applicable to the taxing
6district is held; (e) made for any taxing district to pay
7interest or principal on revenue bonds issued before the date
8on which the referendum making this Law applicable to the
9taxing district is held for payment of which a property tax
10levy or the full faith and credit of the unit of local
11government is pledged; however, a tax for the payment of
12interest or principal on those bonds shall be made only after
13the governing body of the unit of local government finds that
14all other sources for payment are insufficient to make those
15payments; (f) made for payments under a building commission
16lease when the lease payments are for the retirement of bonds
17issued by the commission before the date on which the
18referendum making this Law applicable to the taxing district is
19held to pay for the building project; (g) made for payments due
20under installment contracts entered into before the date on
21which the referendum making this Law applicable to the taxing
22district is held; (h) made for payments of principal and
23interest on limited bonds, as defined in Section 3 of the Local
24Government Debt Reform Act, in an amount not to exceed the debt
25service extension base less the amount in items (b), (c), and
26(e) of this definition for non-referendum obligations, except

 

 

HB5043- 18 -LRB101 20586 HLH 70213 b

1obligations initially issued pursuant to referendum; (i) made
2for payments of principal and interest on bonds issued under
3Section 15 of the Local Government Debt Reform Act; (j) made
4for a qualified airport authority to pay interest or principal
5on general obligation bonds issued for the purpose of paying
6obligations due under, or financing airport facilities
7required to be acquired, constructed, installed or equipped
8pursuant to, contracts entered into before March 1, 1996 (but
9not including any amendments to such a contract taking effect
10on or after that date); (k) made to fund expenses of providing
11joint recreational programs for persons with disabilities
12under Section 5-8 of the Park District Code or Section 11-95-14
13of the Illinois Municipal Code; (l) made for contributions to a
14firefighter's pension fund created under Article 4 of the
15Illinois Pension Code, to the extent of the amount certified
16under item (5) of Section 4-134 of the Illinois Pension Code;
17and (m) made for the taxing district to pay interest or
18principal on general obligation bonds issued pursuant to
19Section 19-3.10 of the School Code.
20    "Aggregate extension" for all taxing districts to which
21this Law applies in accordance with paragraph (2) of subsection
22(e) of Section 18-213 means the annual corporate extension for
23the taxing district and those special purpose extensions that
24are made annually for the taxing district, excluding special
25purpose extensions: (a) made for the taxing district to pay
26interest or principal on general obligation bonds that were

 

 

HB5043- 19 -LRB101 20586 HLH 70213 b

1approved by referendum; (b) made for any taxing district to pay
2interest or principal on general obligation bonds issued before
3March 7, 1997 (the effective date of Public Act 89-718) this
4amendatory Act of 1997; (c) made for any taxing district to pay
5interest or principal on bonds issued to refund or continue to
6refund those bonds issued before March 7, 1997 (the effective
7date of Public Act 89-718) this amendatory Act of 1997; (d)
8made for any taxing district to pay interest or principal on
9bonds issued to refund or continue to refund bonds issued after
10March 7, 1997 (the effective date of Public Act 89-718) this
11amendatory Act of 1997 if the bonds were approved by referendum
12after March 7, 1997 (the effective date of Public Act 89-718)
13this amendatory Act of 1997; (e) made for any taxing district
14to pay interest or principal on revenue bonds issued before
15March 7, 1997 (the effective date of Public Act 89-718) this
16amendatory Act of 1997 for payment of which a property tax levy
17or the full faith and credit of the unit of local government is
18pledged; however, a tax for the payment of interest or
19principal on those bonds shall be made only after the governing
20body of the unit of local government finds that all other
21sources for payment are insufficient to make those payments;
22(f) made for payments under a building commission lease when
23the lease payments are for the retirement of bonds issued by
24the commission before March 7, 1997 (the effective date of
25Public Act 89-718) this amendatory Act of 1997 to pay for the
26building project; (g) made for payments due under installment

 

 

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1contracts entered into before March 7, 1997 (the effective date
2of Public Act 89-718) this amendatory Act of 1997; (h) made for
3payments of principal and interest on limited bonds, as defined
4in Section 3 of the Local Government Debt Reform Act, in an
5amount not to exceed the debt service extension base less the
6amount in items (b), (c), and (e) of this definition for
7non-referendum obligations, except obligations initially
8issued pursuant to referendum; (i) made for payments of
9principal and interest on bonds issued under Section 15 of the
10Local Government Debt Reform Act; (j) made for a qualified
11airport authority to pay interest or principal on general
12obligation bonds issued for the purpose of paying obligations
13due under, or financing airport facilities required to be
14acquired, constructed, installed or equipped pursuant to,
15contracts entered into before March 1, 1996 (but not including
16any amendments to such a contract taking effect on or after
17that date); (k) made to fund expenses of providing joint
18recreational programs for persons with disabilities under
19Section 5-8 of the Park District Code or Section 11-95-14 of
20the Illinois Municipal Code; and (l) made for contributions to
21a firefighter's pension fund created under Article 4 of the
22Illinois Pension Code, to the extent of the amount certified
23under item (5) of Section 4-134 of the Illinois Pension Code.
24    "Debt service extension base" means an amount equal to that
25portion of the extension for a taxing district for the 1994
26levy year, or for those taxing districts subject to this Law in

 

 

HB5043- 21 -LRB101 20586 HLH 70213 b

1accordance with Section 18-213, except for those subject to
2paragraph (2) of subsection (e) of Section 18-213, for the levy
3year in which the referendum making this Law applicable to the
4taxing district is held, or for those taxing districts subject
5to this Law in accordance with paragraph (2) of subsection (e)
6of Section 18-213 for the 1996 levy year, constituting an
7extension for payment of principal and interest on bonds issued
8by the taxing district without referendum, but not including
9excluded non-referendum bonds. For park districts (i) that were
10first subject to this Law in 1991 or 1995 and (ii) whose
11extension for the 1994 levy year for the payment of principal
12and interest on bonds issued by the park district without
13referendum (but not including excluded non-referendum bonds)
14was less than 51% of the amount for the 1991 levy year
15constituting an extension for payment of principal and interest
16on bonds issued by the park district without referendum (but
17not including excluded non-referendum bonds), "debt service
18extension base" means an amount equal to that portion of the
19extension for the 1991 levy year constituting an extension for
20payment of principal and interest on bonds issued by the park
21district without referendum (but not including excluded
22non-referendum bonds). A debt service extension base
23established or increased at any time pursuant to any provision
24of this Law, except Section 18-212, shall be increased each
25year commencing with the later of (i) the 2009 levy year or
26(ii) the first levy year in which this Law becomes applicable

 

 

HB5043- 22 -LRB101 20586 HLH 70213 b

1to the taxing district, by the lesser of 5% or the percentage
2increase in the Consumer Price Index during the 12-month
3calendar year preceding the levy year. The debt service
4extension base may be established or increased as provided
5under Section 18-212. "Excluded non-referendum bonds" means
6(i) bonds authorized by Public Act 88-503 and issued under
7Section 20a of the Chicago Park District Act for aquarium and
8museum projects; (ii) bonds issued under Section 15 of the
9Local Government Debt Reform Act; or (iii) refunding
10obligations issued to refund or to continue to refund
11obligations initially issued pursuant to referendum.
12    "Special purpose extensions" include, but are not limited
13to, extensions for levies made on an annual basis for
14unemployment and workers' compensation, self-insurance,
15contributions to pension plans, and extensions made pursuant to
16Section 6-601 of the Illinois Highway Code for a road
17district's permanent road fund whether levied annually or not.
18The extension for a special service area is not included in the
19aggregate extension.
20    "Aggregate extension base" means the taxing district's
21last preceding aggregate extension, as adjusted under Sections
2218-135, 18-215, 18-230, and 18-206, and 18-233, plus the amount
23of any abatement granted in the last preceding levy year under
24subsection (c) of Section 18-165. An adjustment under Section
2518-135 shall be made for the 2007 levy year and all subsequent
26levy years whenever one or more counties within which a taxing

 

 

HB5043- 23 -LRB101 20586 HLH 70213 b

1district is located (i) used estimated valuations or rates when
2extending taxes in the taxing district for the last preceding
3levy year that resulted in the over or under extension of
4taxes, or (ii) increased or decreased the tax extension for the
5last preceding levy year as required by Section 18-135(c).
6Whenever an adjustment is required under Section 18-135, the
7aggregate extension base of the taxing district shall be equal
8to the amount that the aggregate extension of the taxing
9district would have been for the last preceding levy year if
10either or both (i) actual, rather than estimated, valuations or
11rates had been used to calculate the extension of taxes for the
12last levy year, or (ii) the tax extension for the last
13preceding levy year had not been adjusted as required by
14subsection (c) of Section 18-135. Whenever an adjustment is
15required under Section 18-233, the aggregate extension base of
16the taxing district shall be equal to the amount that the
17aggregate extension of the taxing district would have been for
18the last preceding levy year if the actual valuations and
19rates, as adjusted for the increases or reductions specified in
20Section 18-233, had been used to calculate the extension of
21taxes for the levy year in which the overextension or
22underextension occurred.
23    Notwithstanding any other provision of law, for levy year
242012, the aggregate extension base for West Northfield School
25District No. 31 in Cook County shall be $12,654,592.
26    "Levy year" has the same meaning as "year" under Section

 

 

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11-155.
2    "New property" means (i) the assessed value, after final
3board of review or board of appeals action, of new improvements
4or additions to existing improvements on any parcel of real
5property that increase the assessed value of that real property
6during the levy year multiplied by the equalization factor
7issued by the Department under Section 17-30, (ii) the assessed
8value, after final board of review or board of appeals action,
9of real property not exempt from real estate taxation, which
10real property was exempt from real estate taxation for any
11portion of the immediately preceding levy year, multiplied by
12the equalization factor issued by the Department under Section
1317-30, including the assessed value, upon final stabilization
14of occupancy after new construction is complete, of any real
15property located within the boundaries of an otherwise or
16previously exempt military reservation that is intended for
17residential use and owned by or leased to a private corporation
18or other entity, (iii) in counties that classify in accordance
19with Section 4 of Article IX of the Illinois Constitution, an
20incentive property's additional assessed value resulting from
21a scheduled increase in the level of assessment as applied to
22the first year final board of review market value, and (iv) any
23increase in assessed value due to oil or gas production from an
24oil or gas well required to be permitted under the Hydraulic
25Fracturing Regulatory Act that was not produced in or accounted
26for during the previous levy year. In addition, the county

 

 

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1clerk in a county containing a population of 3,000,000 or more
2shall include in the 1997 recovered tax increment value for any
3school district, any recovered tax increment value that was
4applicable to the 1995 tax year calculations.
5    "Qualified airport authority" means an airport authority
6organized under the Airport Authorities Act and located in a
7county bordering on the State of Wisconsin and having a
8population in excess of 200,000 and not greater than 500,000.
9    "Recovered tax increment value" means, except as otherwise
10provided in this paragraph, the amount of the current year's
11equalized assessed value, in the first year after a
12municipality terminates the designation of an area as a
13redevelopment project area previously established under the
14Tax Increment Allocation Redevelopment Development Act in the
15Illinois Municipal Code, previously established under the
16Industrial Jobs Recovery Law in the Illinois Municipal Code,
17previously established under the Economic Development Project
18Area Tax Increment Act of 1995, or previously established under
19the Economic Development Area Tax Increment Allocation Act, of
20each taxable lot, block, tract, or parcel of real property in
21the redevelopment project area over and above the initial
22equalized assessed value of each property in the redevelopment
23project area. For the taxes which are extended for the 1997
24levy year, the recovered tax increment value for a non-home
25rule taxing district that first became subject to this Law for
26the 1995 levy year because a majority of its 1994 equalized

 

 

HB5043- 26 -LRB101 20586 HLH 70213 b

1assessed value was in an affected county or counties shall be
2increased if a municipality terminated the designation of an
3area in 1993 as a redevelopment project area previously
4established under the Tax Increment Allocation Redevelopment
5Development Act in the Illinois Municipal Code, previously
6established under the Industrial Jobs Recovery Law in the
7Illinois Municipal Code, or previously established under the
8Economic Development Area Tax Increment Allocation Act, by an
9amount equal to the 1994 equalized assessed value of each
10taxable lot, block, tract, or parcel of real property in the
11redevelopment project area over and above the initial equalized
12assessed value of each property in the redevelopment project
13area. In the first year after a municipality removes a taxable
14lot, block, tract, or parcel of real property from a
15redevelopment project area established under the Tax Increment
16Allocation Redevelopment Development Act in the Illinois
17Municipal Code, the Industrial Jobs Recovery Law in the
18Illinois Municipal Code, or the Economic Development Area Tax
19Increment Allocation Act, "recovered tax increment value"
20means the amount of the current year's equalized assessed value
21of each taxable lot, block, tract, or parcel of real property
22removed from the redevelopment project area over and above the
23initial equalized assessed value of that real property before
24removal from the redevelopment project area.
25    Except as otherwise provided in this Section, "limiting
26rate" means a fraction the numerator of which is the last

 

 

HB5043- 27 -LRB101 20586 HLH 70213 b

1preceding aggregate extension base times an amount equal to one
2plus the extension limitation defined in this Section and the
3denominator of which is the current year's equalized assessed
4value of all real property in the territory under the
5jurisdiction of the taxing district during the prior levy year.
6For those taxing districts that reduced their aggregate
7extension for the last preceding levy year, except for school
8districts that reduced their extension for educational
9purposes pursuant to Section 18-206, the highest aggregate
10extension in any of the last 3 preceding levy years shall be
11used for the purpose of computing the limiting rate. The
12denominator shall not include new property or the recovered tax
13increment value. If a new rate, a rate decrease, or a limiting
14rate increase has been approved at an election held after March
1521, 2006, then (i) the otherwise applicable limiting rate shall
16be increased by the amount of the new rate or shall be reduced
17by the amount of the rate decrease, as the case may be, or (ii)
18in the case of a limiting rate increase, the limiting rate
19shall be equal to the rate set forth in the proposition
20approved by the voters for each of the years specified in the
21proposition, after which the limiting rate of the taxing
22district shall be calculated as otherwise provided. In the case
23of a taxing district that obtained referendum approval for an
24increased limiting rate on March 20, 2012, the limiting rate
25for tax year 2012 shall be the rate that generates the
26approximate total amount of taxes extendable for that tax year,

 

 

HB5043- 28 -LRB101 20586 HLH 70213 b

1as set forth in the proposition approved by the voters; this
2rate shall be the final rate applied by the county clerk for
3the aggregate of all capped funds of the district for tax year
42012.
5(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
6100-465, eff. 8-31-17; revised 8-12-19.)
 
7    (35 ILCS 200/18-233 new)
8    Sec. 18-233. Adjustments for certificates of error,
9certain court orders, or final administrative decisions of the
10Property Tax Appeal Board. Beginning in levy year 2020, a
11taxing district levy shall be increased by a prior year
12adjustment whenever an assessment decrease due to the issuance
13of a certificate of error, a court order issued pursuant to an
14assessment valuation complaint under Section 23-15, or a final
15administrative decision of the Property Tax Appeal Board
16results in a refund from the taxing district of a portion of
17the property tax revenue distributed to the taxing district.
18Whenever an adjustment is required under this Section, the
19aggregate levy of the taxing district shall be increased by a
20supplemental levy to recapture the property tax revenue lost by
21the refunds paid by the taxing district. The supplemental levy
22shall be applied by the county clerk annually to the taxing
23district's total levy in an amount determined by the county
24treasurer who shall certify to the county clerk the aggregate
25refunds paid by a taxing district for purposes of this Section.

 

 

HB5043- 29 -LRB101 20586 HLH 70213 b

1The supplemental levy may not exceed an amount equal to the
2aggregate refunds paid by the taxing district for the 12-month
3period prior to November 1 of each year. On or before November
415 of each year, the county treasurer shall certify the
5aggregate refunds paid by a taxing district during such
612-month period for purposes of this Section. For purposes of
7this Division, the taxing district's aggregate extension base
8shall not include the supplemental levy authorized under this
9Section.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.