93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB7010

 

Introduced 02/09/04, by Robin Kelly

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Exempts from the extension limitation those extensions made by a public library district for the establishment, maintenance, and support of a public library or libraries within the district or for contracting for library service. Effective October 1, 2004.


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

 

 

A BILL FOR

 

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1     AN ACT concerning taxes.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Property Tax Code is amended by changing
5 Section 18-185 as follows:
 
6     (35 ILCS 200/18-185)
7     Sec. 18-185. Short title; definitions. This Division 5 may
8 be cited as the Property Tax Extension Limitation Law. As used
9 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 rate
16 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 or
19 more inhabitants.
20     "Taxing district" has the same meaning provided in Section
21 1-150, except as otherwise provided in this Section. For the
22 1991 through 1994 levy years only, "taxing district" includes
23 only each non-home rule taxing district having the majority of
24 its 1990 equalized assessed value within any county or counties
25 contiguous to a county with 3,000,000 or more inhabitants.
26 Beginning with the 1995 levy year, "taxing district" includes
27 only each non-home rule taxing district subject to this Law
28 before the 1995 levy year and each non-home rule taxing
29 district not subject to this Law before the 1995 levy year
30 having the majority of its 1994 equalized assessed value in an
31 affected county or counties. Beginning with the levy year in
32 which this Law becomes applicable to a taxing district as

 

 

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1 provided in Section 18-213, "taxing district" also includes
2 those taxing districts made subject to this Law as provided in
3 Section 18-213.
4     "Aggregate extension" for taxing districts to which this
5 Law applied before the 1995 levy year means the annual
6 corporate extension for the taxing district and those special
7 purpose extensions that are made annually for the taxing
8 district, excluding special purpose extensions: (a) made for
9 the taxing district to pay interest or principal on general
10 obligation bonds that were approved by referendum; (b) made for
11 any taxing district to pay interest or principal on general
12 obligation bonds issued before October 1, 1991; (c) made for
13 any taxing district to pay interest or principal on bonds
14 issued to refund or continue to refund those bonds issued
15 before October 1, 1991; (d) made for any taxing district to pay
16 interest or principal on bonds issued to refund or continue to
17 refund bonds issued after October 1, 1991 that were approved by
18 referendum; (e) made for any taxing district to pay interest or
19 principal on revenue bonds issued before October 1, 1991 for
20 payment of which a property tax levy or the full faith and
21 credit of the unit of local government is pledged; however, a
22 tax for the payment of interest or principal on those bonds
23 shall be made only after the governing body of the unit of
24 local government finds that all other sources for payment are
25 insufficient to make those payments; (f) made for payments
26 under a building commission lease when the lease payments are
27 for the retirement of bonds issued by the commission before
28 October 1, 1991, to pay for the building project; (g) made for
29 payments due under installment contracts entered into before
30 October 1, 1991; (h) made for payments of principal and
31 interest on bonds issued under the Metropolitan Water
32 Reclamation District Act to finance construction projects
33 initiated before October 1, 1991; (i) made for payments of
34 principal and interest on limited bonds, as defined in Section
35 3 of the Local Government Debt Reform Act, in an amount not to
36 exceed the debt service extension base less the amount in items

 

 

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1 (b), (c), (e), and (h) of this definition for non-referendum
2 obligations, except obligations initially issued pursuant to
3 referendum; (j) made for payments of principal and interest on
4 bonds issued under Section 15 of the Local Government Debt
5 Reform Act; (k) made by a school district that participates in
6 the Special Education District of Lake County, created by
7 special education joint agreement under Section 10-22.31 of the
8 School Code, for payment of the school district's share of the
9 amounts required to be contributed by the Special Education
10 District of Lake County to the Illinois Municipal Retirement
11 Fund under Article 7 of the Illinois Pension Code; the amount
12 of any extension under this item (k) shall be certified by the
13 school district to the county clerk; and (l) made to fund
14 expenses of providing joint recreational programs for the
15 handicapped under Section 5-8 of the Park District Code or
16 Section 11-95-14 of the Illinois Municipal Code; and (m) made
17 by a public library district under subsection (a) of Section
18 35-5 of the Public Library District Act of 1991.
19     "Aggregate extension" for the taxing districts to which
20 this Law did not apply before the 1995 levy year (except taxing
21 districts subject to this Law in accordance with Section
22 18-213) means the annual corporate extension for the taxing
23 district and those special purpose extensions that are made
24 annually for the taxing district, excluding special purpose
25 extensions: (a) made for the taxing district to pay interest or
26 principal on general obligation bonds that were approved by
27 referendum; (b) made for any taxing district to pay interest or
28 principal on general obligation bonds issued before March 1,
29 1995; (c) made for any taxing district to pay interest or
30 principal on bonds issued to refund or continue to refund those
31 bonds issued before March 1, 1995; (d) made for any taxing
32 district to pay interest or principal on bonds issued to refund
33 or continue to refund bonds issued after March 1, 1995 that
34 were approved by referendum; (e) made for any taxing district
35 to pay interest or principal on revenue bonds issued before
36 March 1, 1995 for payment of which a property tax levy or the

 

 

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1 full faith and credit of the unit of local government is
2 pledged; however, a tax for the payment of interest or
3 principal on those bonds shall be made only after the governing
4 body of the unit of local government finds that all other
5 sources for payment are insufficient to make those payments;
6 (f) made for payments under a building commission lease when
7 the lease payments are for the retirement of bonds issued by
8 the commission before March 1, 1995 to pay for the building
9 project; (g) made for payments due under installment contracts
10 entered into before March 1, 1995; (h) made for payments of
11 principal and interest on bonds issued under the Metropolitan
12 Water Reclamation District Act to finance construction
13 projects initiated before October 1, 1991; (i) made for
14 payments of principal and interest on limited bonds, as defined
15 in Section 3 of the Local Government Debt Reform Act, in an
16 amount not to exceed the debt service extension base less the
17 amount in items (b), (c), and (e) of this definition for
18 non-referendum obligations, except obligations initially
19 issued pursuant to referendum and bonds described in subsection
20 (h) of this definition; (j) made for payments of principal and
21 interest on bonds issued under Section 15 of the Local
22 Government Debt Reform Act; (k) made for payments of principal
23 and interest on bonds authorized by Public Act 88-503 and
24 issued under Section 20a of the Chicago Park District Act for
25 aquarium or museum projects; (l) made for payments of principal
26 and interest on bonds authorized by Public Act 87-1191 or
27 93-601 this amendatory Act of the 93rd General Assembly and (i)
28 issued pursuant to Section 21.2 of the Cook County Forest
29 Preserve District Act, (ii) issued under Section 42 of the Cook
30 County Forest Preserve District Act for zoological park
31 projects, or (iii) issued under Section 44.1 of the Cook County
32 Forest Preserve District Act for botanical gardens projects;
33 (m) made pursuant to Section 34-53.5 of the School Code,
34 whether levied annually or not; (n) made to fund expenses of
35 providing joint recreational programs for the handicapped
36 under Section 5-8 of the Park District Code or Section 11-95-14

 

 

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1 of the Illinois Municipal Code; and (o) made by the Chicago
2 Park District for recreational programs for the handicapped
3 under subsection (c) of Section 7.06 of the Chicago Park
4 District Act; and (p) made by a public library district under
5 subsection (a) of Section 35-5 of the Public Library District
6 Act of 1991.
7     "Aggregate extension" for all taxing districts to which
8 this Law applies in accordance with Section 18-213, except for
9 those taxing districts subject to paragraph (2) of subsection
10 (e) of Section 18-213, means the annual corporate extension for
11 the taxing district and those special purpose extensions that
12 are made annually for the taxing district, excluding special
13 purpose extensions: (a) made for the taxing district to pay
14 interest or principal on general obligation bonds that were
15 approved by referendum; (b) made for any taxing district to pay
16 interest or principal on general obligation bonds issued before
17 the date on which the referendum making this Law applicable to
18 the taxing district is held; (c) made for any taxing district
19 to pay interest or principal on bonds issued to refund or
20 continue to refund those bonds issued before the date on which
21 the referendum making this Law applicable to the taxing
22 district is held; (d) made for any taxing district to pay
23 interest or principal on bonds issued to refund or continue to
24 refund bonds issued after the date on which the referendum
25 making this Law applicable to the taxing district is held if
26 the bonds were approved by referendum after the date on which
27 the referendum making this Law applicable to the taxing
28 district is held; (e) made for any taxing district to pay
29 interest or principal on revenue bonds issued before the date
30 on which the referendum making this Law applicable to the
31 taxing district is held for payment of which a property tax
32 levy or the full faith and credit of the unit of local
33 government is pledged; however, a tax for the payment of
34 interest or principal on those bonds shall be made only after
35 the governing body of the unit of local government finds that
36 all other sources for payment are insufficient to make those

 

 

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1 payments; (f) made for payments under a building commission
2 lease when the lease payments are for the retirement of bonds
3 issued by the commission before the date on which the
4 referendum making this Law applicable to the taxing district is
5 held to pay for the building project; (g) made for payments due
6 under installment contracts entered into before the date on
7 which the referendum making this Law applicable to the taxing
8 district is held; (h) made for payments of principal and
9 interest on limited bonds, as defined in Section 3 of the Local
10 Government Debt Reform Act, in an amount not to exceed the debt
11 service extension base less the amount in items (b), (c), and
12 (e) of this definition for non-referendum obligations, except
13 obligations initially issued pursuant to referendum; (i) made
14 for payments of principal and interest on bonds issued under
15 Section 15 of the Local Government Debt Reform Act; (j) made
16 for a qualified airport authority to pay interest or principal
17 on general obligation bonds issued for the purpose of paying
18 obligations due under, or financing airport facilities
19 required to be acquired, constructed, installed or equipped
20 pursuant to, contracts entered into before March 1, 1996 (but
21 not including any amendments to such a contract taking effect
22 on or after that date); and (k) made to fund expenses of
23 providing joint recreational programs for the handicapped
24 under Section 5-8 of the Park District Code or Section 11-95-14
25 of the Illinois Municipal Code; and (l) made by a public
26 library district under subsection (a) of Section 35-5 of the
27 Public Library District Act of 1991.
28     "Aggregate extension" for all taxing districts to which
29 this Law applies in accordance with paragraph (2) of subsection
30 (e) of Section 18-213 means the annual corporate extension for
31 the taxing district and those special purpose extensions that
32 are made annually for the taxing district, excluding special
33 purpose extensions: (a) made for the taxing district to pay
34 interest or principal on general obligation bonds that were
35 approved by referendum; (b) made for any taxing district to pay
36 interest or principal on general obligation bonds issued before

 

 

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1 the effective date of this amendatory Act of 1997; (c) made for
2 any taxing district to pay interest or principal on bonds
3 issued to refund or continue to refund those bonds issued
4 before the effective date of this amendatory Act of 1997; (d)
5 made for any taxing district to pay interest or principal on
6 bonds issued to refund or continue to refund bonds issued after
7 the effective date of this amendatory Act of 1997 if the bonds
8 were approved by referendum after the effective date of this
9 amendatory Act of 1997; (e) made for any taxing district to pay
10 interest or principal on revenue bonds issued before the
11 effective date of this amendatory Act of 1997 for payment of
12 which a property tax levy or the full faith and credit of the
13 unit of local government is pledged; however, a tax for the
14 payment of interest or principal on those bonds shall be made
15 only 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 retirement
19 of bonds issued by the commission before the effective date of
20 this amendatory Act of 1997 to pay for the building project;
21 (g) made for payments due under installment contracts entered
22 into before the effective date of this amendatory Act of 1997;
23 (h) made for payments of principal and interest on limited
24 bonds, as defined in Section 3 of the Local Government Debt
25 Reform Act, in an amount not to exceed the debt service
26 extension base less the amount in items (b), (c), and (e) of
27 this definition for non-referendum obligations, except
28 obligations initially issued pursuant to referendum; (i) made
29 for payments of principal and interest on bonds issued under
30 Section 15 of the Local Government Debt Reform Act; (j) made
31 for a qualified airport authority to pay interest or principal
32 on general obligation bonds issued for the purpose of paying
33 obligations due under, or financing airport facilities
34 required to be acquired, constructed, installed or equipped
35 pursuant to, contracts entered into before March 1, 1996 (but
36 not including any amendments to such a contract taking effect

 

 

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1 on or after that date); and (k) made to fund expenses of
2 providing joint recreational programs for the handicapped
3 under Section 5-8 of the Park District Code or Section 11-95-14
4 of the Illinois Municipal Code; and (l) made by a public
5 library district under subsection (a) of Section 35-5 of the
6 Public Library District Act of 1991.
7     "Debt service extension base" means an amount equal to that
8 portion of the extension for a taxing district for the 1994
9 levy year, or for those taxing districts subject to this Law in
10 accordance with Section 18-213, except for those subject to
11 paragraph (2) of subsection (e) of Section 18-213, for the levy
12 year in which the referendum making this Law applicable to the
13 taxing district is held, or for those taxing districts subject
14 to this Law in accordance with paragraph (2) of subsection (e)
15 of Section 18-213 for the 1996 levy year, constituting an
16 extension for payment of principal and interest on bonds issued
17 by the taxing district without referendum, but not including
18 excluded non-referendum bonds. For park districts (i) that were
19 first subject to this Law in 1991 or 1995 and (ii) whose
20 extension for the 1994 levy year for the payment of principal
21 and interest on bonds issued by the park district without
22 referendum (but not including excluded non-referendum bonds)
23 was less than 51% of the amount for the 1991 levy year
24 constituting an extension for payment of principal and interest
25 on bonds issued by the park district without referendum (but
26 not including excluded non-referendum bonds), "debt service
27 extension base" means an amount equal to that portion of the
28 extension for the 1991 levy year constituting an extension for
29 payment of principal and interest on bonds issued by the park
30 district without referendum (but not including excluded
31 non-referendum bonds). The debt service extension base may be
32 established or increased as provided under Section 18-212.
33 "Excluded non-referendum bonds" means (i) bonds authorized by
34 Public Act 88-503 and issued under Section 20a of the Chicago
35 Park District Act for aquarium and museum projects; (ii) bonds
36 issued under Section 15 of the Local Government Debt Reform

 

 

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1 Act; or (iii) refunding obligations issued to refund or to
2 continue to refund obligations initially issued pursuant to
3 referendum.
4     "Special purpose extensions" include, but are not limited
5 to, extensions for levies made on an annual basis for
6 unemployment and workers' compensation, self-insurance,
7 contributions to pension plans, and extensions made pursuant to
8 Section 6-601 of the Illinois Highway Code for a road
9 district's permanent road fund whether levied annually or not.
10 The extension for a special service area is not included in the
11 aggregate extension.
12     "Aggregate extension base" means the taxing district's
13 last preceding aggregate extension as adjusted under Sections
14 18-215 through 18-230.
15     "Levy year" has the same meaning as "year" under Section
16 1-155.
17     "New property" means (i) the assessed value, after final
18 board of review or board of appeals action, of new improvements
19 or additions to existing improvements on any parcel of real
20 property that increase the assessed value of that real property
21 during the levy year multiplied by the equalization factor
22 issued by the Department under Section 17-30, (ii) the assessed
23 value, after final board of review or board of appeals action,
24 of real property not exempt from real estate taxation, which
25 real property was exempt from real estate taxation for any
26 portion of the immediately preceding levy year, multiplied by
27 the equalization factor issued by the Department under Section
28 17-30, and (iii) in counties that classify in accordance with
29 Section 4 of Article IX of the Illinois Constitution, an
30 incentive property's additional assessed value resulting from
31 a scheduled increase in the level of assessment as applied to
32 the first year final board of review market value. In addition,
33 the county clerk in a county containing a population of
34 3,000,000 or more shall include in the 1997 recovered tax
35 increment value for any school district, any recovered tax
36 increment value that was applicable to the 1995 tax year

 

 

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1 calculations.
2     "Qualified airport authority" means an airport authority
3 organized under the Airport Authorities Act and located in a
4 county bordering on the State of Wisconsin and having a
5 population in excess of 200,000 and not greater than 500,000.
6     "Recovered tax increment value" means, except as otherwise
7 provided in this paragraph, the amount of the current year's
8 equalized assessed value, in the first year after a
9 municipality terminates the designation of an area as a
10 redevelopment project area previously established under the
11 Tax Increment Allocation Development Act in the Illinois
12 Municipal Code, previously established under the Industrial
13 Jobs Recovery Law in the Illinois Municipal Code, or previously
14 established under the Economic Development Area Tax Increment
15 Allocation Act, of each taxable lot, block, tract, or parcel of
16 real property in the redevelopment project area over and above
17 the initial equalized assessed value of each property in the
18 redevelopment project area. For the taxes which are extended
19 for the 1997 levy year, the recovered tax increment value for a
20 non-home rule taxing district that first became subject to this
21 Law for the 1995 levy year because a majority of its 1994
22 equalized assessed value was in an affected county or counties
23 shall be increased if a municipality terminated the designation
24 of an area in 1993 as a redevelopment project area previously
25 established under the Tax Increment Allocation Development Act
26 in the Illinois Municipal Code, previously established under
27 the Industrial Jobs Recovery Law in the Illinois Municipal
28 Code, or previously established under the Economic Development
29 Area Tax Increment Allocation Act, by an amount equal to the
30 1994 equalized assessed value of each taxable lot, block,
31 tract, or parcel of real property in the redevelopment project
32 area over and above the initial equalized assessed value of
33 each property in the redevelopment project area. In the first
34 year after a municipality removes a taxable lot, block, tract,
35 or parcel of real property from a redevelopment project area
36 established under the Tax Increment Allocation Development Act

 

 

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1 in the Illinois Municipal Code, the Industrial Jobs Recovery
2 Law in the Illinois Municipal Code, or the Economic Development
3 Area Tax Increment Allocation Act, "recovered tax increment
4 value" means the amount of the current year's equalized
5 assessed value of each taxable lot, block, tract, or parcel of
6 real property removed from the redevelopment project area over
7 and above the initial equalized assessed value of that real
8 property before removal from the redevelopment project area.
9     Except as otherwise provided in this Section, "limiting
10 rate" means a fraction the numerator of which is the last
11 preceding aggregate extension base times an amount equal to one
12 plus the extension limitation defined in this Section and the
13 denominator of which is the current year's equalized assessed
14 value of all real property in the territory under the
15 jurisdiction of the taxing district during the prior levy year.
16 For those taxing districts that reduced their aggregate
17 extension for the last preceding levy year, the highest
18 aggregate extension in any of the last 3 preceding levy years
19 shall be used for the purpose of computing the limiting rate.
20 The denominator shall not include new property. The denominator
21 shall not include the recovered tax increment value.
22 (Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
23 93-606, eff. 11-18-03; 93-612, eff. 11-18-03; revised
24 12-10-03.)
 
25     Section 99. Effective date. This Act takes effect on
26 October 1, 2004.