93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB3035

 

Introduced 2/6/2004, by Kimberly A. Lightford

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185
30 ILCS 805/8.28 new

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Exempts from the extension limitation those extensions made for contributions to the police pension fund, the firefighter's pension fund, the policemen's annuity and benefit fund, and the firemen's annuity and benefit fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

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 for contributions to the police pension fund under Section
18 3-125 of the Illinois Pension Code, the firefighter's pension
19 fund under Section 4-118 of the Illinois Pension Code, the
20 policemen's annuity and benefit fund under Section 5-168 of the
21 Illinois Pension Code, and the firemen's annuity and benefit
22 fund under Section 6-165 of the Illinois Pension Code.
23     "Aggregate extension" for the taxing districts to which
24 this Law did not apply before the 1995 levy year (except taxing
25 districts subject to this Law in accordance with Section
26 18-213) means the annual corporate extension for the taxing
27 district and those special purpose extensions that are made
28 annually for the taxing district, excluding special purpose
29 extensions: (a) made for the taxing district to pay interest or
30 principal on general obligation bonds that were approved by
31 referendum; (b) made for any taxing district to pay interest or
32 principal on general obligation bonds issued before March 1,
33 1995; (c) made for any taxing district to pay interest or
34 principal on bonds issued to refund or continue to refund those
35 bonds issued before March 1, 1995; (d) made for any taxing
36 district to pay interest or principal on bonds issued to refund

 

 

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

 

 

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1 (m) made pursuant to Section 34-53.5 of the School Code,
2 whether levied annually or not; (n) made to fund expenses of
3 providing joint recreational programs for the handicapped
4 under Section 5-8 of the Park District Code or Section 11-95-14
5 of the Illinois Municipal Code; and (o) made by the Chicago
6 Park District for recreational programs for the handicapped
7 under subsection (c) of Section 7.06 of the Chicago Park
8 District Act; and (p) made for contributions to the police
9 pension fund under Section 3-125 of the Illinois Pension Code,
10 the firefighter's pension fund under Section 4-118 of the
11 Illinois Pension Code, the policemen's annuity and benefit fund
12 under Section 5-168 of the Illinois Pension Code, and the
13 firemen's annuity and benefit fund under Section 6-165 of the
14 Illinois Pension Code.
15     "Aggregate extension" for all taxing districts to which
16 this Law applies in accordance with Section 18-213, except for
17 those taxing districts subject to paragraph (2) of subsection
18 (e) of Section 18-213, means the annual corporate extension for
19 the taxing district and those special purpose extensions that
20 are made annually for the taxing district, excluding special
21 purpose extensions: (a) made for the taxing district to pay
22 interest or principal on general obligation bonds that were
23 approved by referendum; (b) made for any taxing district to pay
24 interest or principal on general obligation bonds issued before
25 the date on which the referendum making this Law applicable to
26 the taxing district is held; (c) made for any taxing district
27 to pay interest or principal on bonds issued to refund or
28 continue to refund those bonds issued before the date on which
29 the referendum making this Law applicable to the taxing
30 district is held; (d) made for any taxing district to pay
31 interest or principal on bonds issued to refund or continue to
32 refund bonds issued after the date on which the referendum
33 making this Law applicable to the taxing district is held if
34 the bonds were approved by referendum after the date on which
35 the referendum making this Law applicable to the taxing
36 district is held; (e) made for any taxing district to pay

 

 

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1 interest or principal on revenue bonds issued before the date
2 on which the referendum making this Law applicable to the
3 taxing district is held for payment of which a property tax
4 levy or the full faith and credit of the unit of local
5 government is pledged; however, a tax for the payment of
6 interest or principal on those bonds shall be made only after
7 the governing body of the unit of local government finds that
8 all other sources for payment are insufficient to make those
9 payments; (f) made for payments under a building commission
10 lease when the lease payments are for the retirement of bonds
11 issued by the commission before the date on which the
12 referendum making this Law applicable to the taxing district is
13 held to pay for the building project; (g) made for payments due
14 under installment contracts entered into before the date on
15 which the referendum making this Law applicable to the taxing
16 district is held; (h) made for payments of principal and
17 interest on limited bonds, as defined in Section 3 of the Local
18 Government Debt Reform Act, in an amount not to exceed the debt
19 service extension base less the amount in items (b), (c), and
20 (e) of this definition for non-referendum obligations, except
21 obligations initially issued pursuant to referendum; (i) made
22 for payments of principal and interest on bonds issued under
23 Section 15 of the Local Government Debt Reform Act; (j) made
24 for a qualified airport authority to pay interest or principal
25 on general obligation bonds issued for the purpose of paying
26 obligations due under, or financing airport facilities
27 required to be acquired, constructed, installed or equipped
28 pursuant to, contracts entered into before March 1, 1996 (but
29 not including any amendments to such a contract taking effect
30 on or after that date); and (k) made to fund expenses of
31 providing joint recreational programs for the handicapped
32 under Section 5-8 of the Park District Code or Section 11-95-14
33 of the Illinois Municipal Code; and (l) made for contributions
34 to the police pension fund under Section 3-125 of the Illinois
35 Pension Code, the firefighter's pension fund under Section
36 4-118 of the Illinois Pension Code, the policemen's annuity and

 

 

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1 benefit fund under Section 5-168 of the Illinois Pension Code,
2 and the firemen's annuity and benefit fund under Section 6-165
3 of the Illinois Pension Code.
4     "Aggregate extension" for all taxing districts to which
5 this Law applies in accordance with paragraph (2) of subsection
6 (e) of Section 18-213 means the annual corporate extension for
7 the taxing district and those special purpose extensions that
8 are made annually for the taxing district, excluding special
9 purpose extensions: (a) made for the taxing district to pay
10 interest or principal on general obligation bonds that were
11 approved by referendum; (b) made for any taxing district to pay
12 interest or principal on general obligation bonds issued before
13 the effective date of this amendatory Act of 1997; (c) made for
14 any taxing district to pay interest or principal on bonds
15 issued to refund or continue to refund those bonds issued
16 before the effective date of this amendatory Act of 1997; (d)
17 made for any taxing district to pay interest or principal on
18 bonds issued to refund or continue to refund bonds issued after
19 the effective date of this amendatory Act of 1997 if the bonds
20 were approved by referendum after the effective date of this
21 amendatory Act of 1997; (e) made for any taxing district to pay
22 interest or principal on revenue bonds issued before the
23 effective date of this amendatory Act of 1997 for payment of
24 which a property tax levy or the full faith and credit of the
25 unit of local government is pledged; however, a tax for the
26 payment of interest or principal on those bonds shall be made
27 only after the governing body of the unit of local government
28 finds that all other sources for payment are insufficient to
29 make those payments; (f) made for payments under a building
30 commission lease when the lease payments are for the retirement
31 of bonds issued by the commission before the effective date of
32 this amendatory Act of 1997 to pay for the building project;
33 (g) made for payments due under installment contracts entered
34 into before the effective date of this amendatory Act of 1997;
35 (h) made for payments of principal and interest on limited
36 bonds, as defined in Section 3 of the Local Government Debt

 

 

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1 Reform Act, in an amount not to exceed the debt service
2 extension base less the amount in items (b), (c), and (e) of
3 this definition for non-referendum obligations, except
4 obligations initially issued pursuant to referendum; (i) made
5 for payments of principal and interest on bonds issued under
6 Section 15 of the Local Government Debt Reform Act; (j) made
7 for a qualified airport authority to pay interest or principal
8 on general obligation bonds issued for the purpose of paying
9 obligations due under, or financing airport facilities
10 required to be acquired, constructed, installed or equipped
11 pursuant to, contracts entered into before March 1, 1996 (but
12 not including any amendments to such a contract taking effect
13 on or after that date); and (k) made to fund expenses of
14 providing joint recreational programs for the handicapped
15 under Section 5-8 of the Park District Code or Section 11-95-14
16 of the Illinois Municipal Code; and (l) made for contributions
17 to the police pension fund under Section 3-125 of the Illinois
18 Pension Code, the firefighter's pension fund under Section
19 4-118 of the Illinois Pension Code, the policemen's annuity and
20 benefit fund under Section 5-168 of the Illinois Pension Code,
21 and the firemen's annuity and benefit fund under Section 6-165
22 of the Illinois Pension Code.
23     "Debt service extension base" means an amount equal to that
24 portion of the extension for a taxing district for the 1994
25 levy year, or for those taxing districts subject to this Law in
26 accordance with Section 18-213, except for those subject to
27 paragraph (2) of subsection (e) of Section 18-213, for the levy
28 year in which the referendum making this Law applicable to the
29 taxing district is held, or for those taxing districts subject
30 to this Law in accordance with paragraph (2) of subsection (e)
31 of Section 18-213 for the 1996 levy year, constituting an
32 extension for payment of principal and interest on bonds issued
33 by the taxing district without referendum, but not including
34 excluded non-referendum bonds. For park districts (i) that were
35 first subject to this Law in 1991 or 1995 and (ii) whose
36 extension for the 1994 levy year for the payment of principal

 

 

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1 and interest on bonds issued by the park district without
2 referendum (but not including excluded non-referendum bonds)
3 was less than 51% of the amount for the 1991 levy year
4 constituting an extension for payment of principal and interest
5 on bonds issued by the park district without referendum (but
6 not including excluded non-referendum bonds), "debt service
7 extension base" means an amount equal to that portion of the
8 extension for the 1991 levy year constituting an extension for
9 payment of principal and interest on bonds issued by the park
10 district without referendum (but not including excluded
11 non-referendum bonds). The debt service extension base may be
12 established or increased as provided under Section 18-212.
13 "Excluded non-referendum bonds" means (i) bonds authorized by
14 Public Act 88-503 and issued under Section 20a of the Chicago
15 Park District Act for aquarium and museum projects; (ii) bonds
16 issued under Section 15 of the Local Government Debt Reform
17 Act; or (iii) refunding obligations issued to refund or to
18 continue to refund obligations initially issued pursuant to
19 referendum.
20     "Special purpose extensions" include, but are not limited
21 to, extensions for levies made on an annual basis for
22 unemployment and workers' compensation, self-insurance,
23 contributions to pension plans, and extensions made pursuant to
24 Section 6-601 of the Illinois Highway Code for a road
25 district's permanent road fund whether levied annually or not.
26 The extension for a special service area is not included in the
27 aggregate extension.
28     "Aggregate extension base" means the taxing district's
29 last preceding aggregate extension as adjusted under Sections
30 18-215 through 18-230.
31     "Levy year" has the same meaning as "year" under Section
32 1-155.
33     "New property" means (i) the assessed value, after final
34 board of review or board of appeals action, of new improvements
35 or additions to existing improvements on any parcel of real
36 property that increase the assessed value of that real property

 

 

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1 during the levy year multiplied by the equalization factor
2 issued by the Department under Section 17-30, (ii) the assessed
3 value, after final board of review or board of appeals action,
4 of real property not exempt from real estate taxation, which
5 real property was exempt from real estate taxation for any
6 portion of the immediately preceding levy year, multiplied by
7 the equalization factor issued by the Department under Section
8 17-30, and (iii) in counties that classify in accordance with
9 Section 4 of Article IX of the Illinois Constitution, an
10 incentive property's additional assessed value resulting from
11 a scheduled increase in the level of assessment as applied to
12 the first year final board of review market value. In addition,
13 the county clerk in a county containing a population of
14 3,000,000 or more shall include in the 1997 recovered tax
15 increment value for any school district, any recovered tax
16 increment value that was applicable to the 1995 tax year
17 calculations.
18     "Qualified airport authority" means an airport authority
19 organized under the Airport Authorities Act and located in a
20 county bordering on the State of Wisconsin and having a
21 population in excess of 200,000 and not greater than 500,000.
22     "Recovered tax increment value" means, except as otherwise
23 provided in this paragraph, the amount of the current year's
24 equalized assessed value, in the first year after a
25 municipality terminates the designation of an area as a
26 redevelopment project area previously established under the
27 Tax Increment Allocation Development Act in the Illinois
28 Municipal Code, previously established under the Industrial
29 Jobs Recovery Law in the Illinois Municipal Code, or previously
30 established under the Economic Development Area Tax Increment
31 Allocation Act, of each taxable lot, block, tract, or parcel of
32 real property in the redevelopment project area over and above
33 the initial equalized assessed value of each property in the
34 redevelopment project area. For the taxes which are extended
35 for the 1997 levy year, the recovered tax increment value for a
36 non-home rule taxing district that first became subject to this

 

 

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1 Law for the 1995 levy year because a majority of its 1994
2 equalized assessed value was in an affected county or counties
3 shall be increased if a municipality terminated the designation
4 of an area in 1993 as a redevelopment project area previously
5 established under the Tax Increment Allocation Development Act
6 in the Illinois Municipal Code, previously established under
7 the Industrial Jobs Recovery Law in the Illinois Municipal
8 Code, or previously established under the Economic Development
9 Area Tax Increment Allocation Act, by an amount equal to the
10 1994 equalized assessed value of each taxable lot, block,
11 tract, or parcel of real property in the redevelopment project
12 area over and above the initial equalized assessed value of
13 each property in the redevelopment project area. In the first
14 year after a municipality removes a taxable lot, block, tract,
15 or parcel of real property from a redevelopment project area
16 established under the Tax Increment Allocation Development Act
17 in the Illinois Municipal Code, the Industrial Jobs Recovery
18 Law in the Illinois Municipal Code, or the Economic Development
19 Area Tax Increment Allocation Act, "recovered tax increment
20 value" means the amount of the current year's equalized
21 assessed value of each taxable lot, block, tract, or parcel of
22 real property removed from the redevelopment project area over
23 and above the initial equalized assessed value of that real
24 property before removal from the redevelopment project area.
25     Except as otherwise provided in this Section, "limiting
26 rate" means a fraction the numerator of which is the last
27 preceding aggregate extension base times an amount equal to one
28 plus the extension limitation defined in this Section and the
29 denominator of which is the current year's equalized assessed
30 value of all real property in the territory under the
31 jurisdiction of the taxing district during the prior levy year.
32 For those taxing districts that reduced their aggregate
33 extension for the last preceding levy year, the highest
34 aggregate extension in any of the last 3 preceding levy years
35 shall be used for the purpose of computing the limiting rate.
36 The denominator shall not include new property. The denominator

 

 

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1 shall not include the recovered tax increment value.
2 (Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
3 93-606, eff. 11-18-03; 93-612, eff. 11-18-03; revised
4 12-10-03.)
 
5     Section 90. The State Mandates Act is amended by adding
6 Section 8.28 as follows:
 
7     (30 ILCS 805/8.28 new)
8     Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
9 of this Act, no reimbursement by the State is required for the
10 implementation of any mandate created by this amendatory Act of
11 the 93rd General Assembly.
 
12     Section 99. Effective date. This Act takes effect upon
13 becoming law.