97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0510

 

Introduced 01/31/11, by Rep. Michael J. Madigan

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185

    Amends the Property Tax Code. Makes a technical change in a Section concerning the Property Tax Extension Limitation Law.


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A BILL FOR

 

HB0510LRB097 03331 HLH 43368 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 18-185 as follows:
 
6    (35 ILCS 200/18-185)
7    Sec. 18-185. Short title; definitions. This Division 5 may
8be cited as the the Property Tax Extension Limitation Law. As
9used in this Division 5:
10    "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13    "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year or (b) the rate
16of increase approved by voters under Section 18-205.
17    "Affected county" means a county of 3,000,000 or more
18inhabitants or a county contiguous to a county of 3,000,000 or
19more inhabitants.
20    "Taxing district" has the same meaning provided in Section
211-150, except as otherwise provided in this Section. For the
221991 through 1994 levy years only, "taxing district" includes
23only each non-home rule taxing district having the majority of

 

 

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1its 1990 equalized assessed value within any county or counties
2contiguous to a county with 3,000,000 or more inhabitants.
3Beginning with the 1995 levy year, "taxing district" includes
4only each non-home rule taxing district subject to this Law
5before the 1995 levy year and each non-home rule taxing
6district not subject to this Law before the 1995 levy year
7having the majority of its 1994 equalized assessed value in an
8affected county or counties. Beginning with the levy year in
9which this Law becomes applicable to a taxing district as
10provided in Section 18-213, "taxing district" also includes
11those taxing districts made subject to this Law as provided in
12Section 18-213.
13    "Aggregate extension" for taxing districts to which this
14Law applied before the 1995 levy year means the annual
15corporate extension for the taxing district and those special
16purpose extensions that are made annually for the taxing
17district, excluding special purpose extensions: (a) made for
18the taxing district to pay interest or principal on general
19obligation bonds that were approved by referendum; (b) made for
20any taxing district to pay interest or principal on general
21obligation bonds issued before October 1, 1991; (c) made for
22any taxing district to pay interest or principal on bonds
23issued to refund or continue to refund those bonds issued
24before October 1, 1991; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after October 1, 1991 that were approved by

 

 

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1referendum; (e) made for any taxing district to pay interest or
2principal on revenue bonds issued before October 1, 1991 for
3payment of which a property tax levy or the full faith and
4credit of the unit of local government is pledged; however, a
5tax for the payment of interest or principal on those bonds
6shall be made only after the governing body of the unit of
7local government finds that all other sources for payment are
8insufficient to make those payments; (f) made for payments
9under a building commission lease when the lease payments are
10for the retirement of bonds issued by the commission before
11October 1, 1991, to pay for the building project; (g) made for
12payments due under installment contracts entered into before
13October 1, 1991; (h) made for payments of principal and
14interest on bonds issued under the Metropolitan Water
15Reclamation District Act to finance construction projects
16initiated before October 1, 1991; (i) made for payments of
17principal and interest on limited bonds, as defined in Section
183 of the Local Government Debt Reform Act, in an amount not to
19exceed the debt service extension base less the amount in items
20(b), (c), (e), and (h) of this definition for non-referendum
21obligations, except obligations initially issued pursuant to
22referendum; (j) made for payments of principal and interest on
23bonds issued under Section 15 of the Local Government Debt
24Reform Act; (k) made by a school district that participates in
25the Special Education District of Lake County, created by
26special education joint agreement under Section 10-22.31 of the

 

 

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1School Code, for payment of the school district's share of the
2amounts required to be contributed by the Special Education
3District of Lake County to the Illinois Municipal Retirement
4Fund under Article 7 of the Illinois Pension Code; the amount
5of any extension under this item (k) shall be certified by the
6school district to the county clerk; (l) made to fund expenses
7of providing joint recreational programs for the handicapped
8under Section 5-8 of the Park District Code or Section 11-95-14
9of the Illinois Municipal Code; (m) made for temporary
10relocation loan repayment purposes pursuant to Sections 2-3.77
11and 17-2.2d of the School Code; (n) made for payment of
12principal and interest on any bonds issued under the authority
13of Section 17-2.2d of the School Code; and (o) made for
14contributions to a firefighter's pension fund created under
15Article 4 of the Illinois Pension Code, to the extent of the
16amount certified under item (5) of Section 4-134 of the
17Illinois Pension Code.
18    "Aggregate extension" for the taxing districts to which
19this Law did not apply before the 1995 levy year (except taxing
20districts subject to this Law in accordance with Section
2118-213) means the annual corporate extension for the taxing
22district and those special purpose extensions that are made
23annually for the taxing district, excluding special purpose
24extensions: (a) made for the taxing district to pay interest or
25principal on general obligation bonds that were approved by
26referendum; (b) made for any taxing district to pay interest or

 

 

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1principal on general obligation bonds issued before March 1,
21995; (c) made for any taxing district to pay interest or
3principal on bonds issued to refund or continue to refund those
4bonds issued before March 1, 1995; (d) made for any taxing
5district to pay interest or principal on bonds issued to refund
6or continue to refund bonds issued after March 1, 1995 that
7were approved by referendum; (e) made for any taxing district
8to pay interest or principal on revenue bonds issued before
9March 1, 1995 for payment of which a property tax levy or the
10full faith and credit of the unit of local government is
11pledged; however, a tax for the payment of interest or
12principal on those bonds shall be made only after the governing
13body of the unit of local government finds that all other
14sources for payment are insufficient to make those payments;
15(f) made for payments under a building commission lease when
16the lease payments are for the retirement of bonds issued by
17the commission before March 1, 1995 to pay for the building
18project; (g) made for payments due under installment contracts
19entered into before March 1, 1995; (h) made for payments of
20principal and interest on bonds issued under the Metropolitan
21Water Reclamation District Act to finance construction
22projects initiated before October 1, 1991; (h-4) made for
23stormwater management purposes by the Metropolitan Water
24Reclamation District of Greater Chicago under Section 12 of the
25Metropolitan Water Reclamation District Act; (i) made for
26payments of principal and interest on limited bonds, as defined

 

 

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1in Section 3 of the Local Government Debt Reform Act, in an
2amount not to exceed the debt service extension base less the
3amount in items (b), (c), and (e) of this definition for
4non-referendum obligations, except obligations initially
5issued pursuant to referendum and bonds described in subsection
6(h) of this definition; (j) made for payments of principal and
7interest on bonds issued under Section 15 of the Local
8Government Debt Reform Act; (k) made for payments of principal
9and interest on bonds authorized by Public Act 88-503 and
10issued under Section 20a of the Chicago Park District Act for
11aquarium or museum projects; (l) made for payments of principal
12and interest on bonds authorized by Public Act 87-1191 or
1393-601 and (i) issued pursuant to Section 21.2 of the Cook
14County Forest Preserve District Act, (ii) issued under Section
1542 of the Cook County Forest Preserve District Act for
16zoological park projects, or (iii) issued under Section 44.1 of
17the Cook County Forest Preserve District Act for botanical
18gardens projects; (m) made pursuant to Section 34-53.5 of the
19School Code, whether levied annually or not; (n) made to fund
20expenses of providing joint recreational programs for the
21handicapped under Section 5-8 of the Park District Code or
22Section 11-95-14 of the Illinois Municipal Code; (o) made by
23the Chicago Park District for recreational programs for the
24handicapped under subsection (c) of Section 7.06 of the Chicago
25Park District Act; (p) made for contributions to a
26firefighter's pension fund created under Article 4 of the

 

 

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1Illinois Pension Code, to the extent of the amount certified
2under item (5) of Section 4-134 of the Illinois Pension Code;
3and (q) made by Ford Heights School District 169 under Section
417-9.02 of the School Code.
5    "Aggregate extension" for all taxing districts to which
6this Law applies in accordance with Section 18-213, except for
7those taxing districts subject to paragraph (2) of subsection
8(e) of Section 18-213, means the annual corporate extension for
9the taxing district and those special purpose extensions that
10are made annually for the taxing district, excluding special
11purpose extensions: (a) made for the taxing district to pay
12interest or principal on general obligation bonds that were
13approved by referendum; (b) made for any taxing district to pay
14interest or principal on general obligation bonds issued before
15the date on which the referendum making this Law applicable to
16the taxing district is held; (c) made for any taxing district
17to pay interest or principal on bonds issued to refund or
18continue to refund those bonds issued before the date on which
19the referendum making this Law applicable to the taxing
20district is held; (d) made for any taxing district to pay
21interest or principal on bonds issued to refund or continue to
22refund bonds issued after the date on which the referendum
23making this Law applicable to the taxing district is held if
24the bonds were approved by referendum after the date on which
25the referendum making this Law applicable to the taxing
26district is held; (e) made for any taxing district to pay

 

 

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

 

 

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1required to be acquired, constructed, installed or equipped
2pursuant to, contracts entered into before March 1, 1996 (but
3not including any amendments to such a contract taking effect
4on or after that date); (k) made to fund expenses of providing
5joint recreational programs for the handicapped under Section
65-8 of the Park District Code or Section 11-95-14 of the
7Illinois Municipal Code; (l) made for contributions to a
8firefighter's pension fund created under Article 4 of the
9Illinois Pension Code, to the extent of the amount certified
10under item (5) of Section 4-134 of the Illinois Pension Code;
11and (m) made for the taxing district to pay interest or
12principal on general obligation bonds issued pursuant to
13Section 19-3.10 of the School Code.
14    "Aggregate extension" for all taxing districts to which
15this Law applies in accordance with paragraph (2) of subsection
16(e) of Section 18-213 means the annual corporate extension for
17the taxing district and those special purpose extensions that
18are made annually for the taxing district, excluding special
19purpose extensions: (a) made for the taxing district to pay
20interest or principal on general obligation bonds that were
21approved by referendum; (b) made for any taxing district to pay
22interest or principal on general obligation bonds issued before
23the effective date of this amendatory Act of 1997; (c) made for
24any taxing district to pay interest or principal on bonds
25issued to refund or continue to refund those bonds issued
26before the effective date of this amendatory Act of 1997; (d)

 

 

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1made for any taxing district to pay interest or principal on
2bonds issued to refund or continue to refund bonds issued after
3the effective date of this amendatory Act of 1997 if the bonds
4were approved by referendum after the effective date of this
5amendatory Act of 1997; (e) made for any taxing district to pay
6interest or principal on revenue bonds issued before the
7effective date of this amendatory Act of 1997 for payment of
8which a property tax levy or the full faith and credit of the
9unit of local government is pledged; however, a tax for the
10payment of interest or principal on those bonds shall be made
11only after the governing body of the unit of local government
12finds that all other sources for payment are insufficient to
13make those payments; (f) made for payments under a building
14commission lease when the lease payments are for the retirement
15of bonds issued by the commission before the effective date of
16this amendatory Act of 1997 to pay for the building project;
17(g) made for payments due under installment contracts entered
18into before the effective date of this amendatory Act of 1997;
19(h) made for payments of principal and interest on limited
20bonds, as defined in Section 3 of the Local Government Debt
21Reform Act, in an amount not to exceed the debt service
22extension base less the amount in items (b), (c), and (e) of
23this definition for non-referendum obligations, except
24obligations initially issued pursuant to referendum; (i) made
25for payments of principal and interest on bonds issued under
26Section 15 of the Local Government Debt Reform Act; (j) made

 

 

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1for a qualified airport authority to pay interest or principal
2on general obligation bonds issued for the purpose of paying
3obligations due under, or financing airport facilities
4required to be acquired, constructed, installed or equipped
5pursuant to, contracts entered into before March 1, 1996 (but
6not including any amendments to such a contract taking effect
7on or after that date); (k) made to fund expenses of providing
8joint recreational programs for the handicapped under Section
95-8 of the Park District Code or Section 11-95-14 of the
10Illinois Municipal Code; and (l) made for contributions to a
11firefighter's pension fund created under Article 4 of the
12Illinois Pension Code, to the extent of the amount certified
13under item (5) of Section 4-134 of the Illinois Pension Code.
14    "Debt service extension base" means an amount equal to that
15portion of the extension for a taxing district for the 1994
16levy year, or for those taxing districts subject to this Law in
17accordance with Section 18-213, except for those subject to
18paragraph (2) of subsection (e) of Section 18-213, for the levy
19year in which the referendum making this Law applicable to the
20taxing district is held, or for those taxing districts subject
21to this Law in accordance with paragraph (2) of subsection (e)
22of Section 18-213 for the 1996 levy year, constituting an
23extension for payment of principal and interest on bonds issued
24by the taxing district without referendum, but not including
25excluded non-referendum bonds. For park districts (i) that were
26first subject to this Law in 1991 or 1995 and (ii) whose

 

 

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1extension for the 1994 levy year for the payment of principal
2and interest on bonds issued by the park district without
3referendum (but not including excluded non-referendum bonds)
4was less than 51% of the amount for the 1991 levy year
5constituting an extension for payment of principal and interest
6on bonds issued by the park district without referendum (but
7not including excluded non-referendum bonds), "debt service
8extension base" means an amount equal to that portion of the
9extension for the 1991 levy year constituting an extension for
10payment of principal and interest on bonds issued by the park
11district without referendum (but not including excluded
12non-referendum bonds). A debt service extension base
13established or increased at any time pursuant to any provision
14of this Law, except Section 18-212, shall be increased each
15year commencing with the later of (i) the 2009 levy year or
16(ii) the first levy year in which this Law becomes applicable
17to the taxing district, by the lesser of 5% or the percentage
18increase in the Consumer Price Index during the 12-month
19calendar year preceding the levy year. The debt service
20extension base may be established or increased as provided
21under Section 18-212. "Excluded non-referendum bonds" means
22(i) bonds authorized by Public Act 88-503 and issued under
23Section 20a of the Chicago Park District Act for aquarium and
24museum projects; (ii) bonds issued under Section 15 of the
25Local Government Debt Reform Act; or (iii) refunding
26obligations issued to refund or to continue to refund

 

 

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1obligations initially issued pursuant to referendum.
2    "Special purpose extensions" include, but are not limited
3to, extensions for levies made on an annual basis for
4unemployment and workers' compensation, self-insurance,
5contributions to pension plans, and extensions made pursuant to
6Section 6-601 of the Illinois Highway Code for a road
7district's permanent road fund whether levied annually or not.
8The extension for a special service area is not included in the
9aggregate extension.
10    "Aggregate extension base" means the taxing district's
11last preceding aggregate extension as adjusted under Sections
1218-135, 18-215, and 18-230. An adjustment under Section 18-135
13shall be made for the 2007 levy year and all subsequent levy
14years whenever one or more counties within which a taxing
15district is located (i) used estimated valuations or rates when
16extending taxes in the taxing district for the last preceding
17levy year that resulted in the over or under extension of
18taxes, or (ii) increased or decreased the tax extension for the
19last preceding levy year as required by Section 18-135(c).
20Whenever an adjustment is required under Section 18-135, the
21aggregate extension base of the taxing district shall be equal
22to the amount that the aggregate extension of the taxing
23district would have been for the last preceding levy year if
24either or both (i) actual, rather than estimated, valuations or
25rates had been used to calculate the extension of taxes for the
26last levy year, or (ii) the tax extension for the last

 

 

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1preceding levy year had not been adjusted as required by
2subsection (c) of Section 18-135.
3    "Levy year" has the same meaning as "year" under Section
41-155.
5    "New property" means (i) the assessed value, after final
6board of review or board of appeals action, of new improvements
7or additions to existing improvements on any parcel of real
8property that increase the assessed value of that real property
9during the levy year multiplied by the equalization factor
10issued by the Department under Section 17-30, (ii) the assessed
11value, after final board of review or board of appeals action,
12of real property not exempt from real estate taxation, which
13real property was exempt from real estate taxation for any
14portion of the immediately preceding levy year, multiplied by
15the equalization factor issued by the Department under Section
1617-30, including the assessed value, upon final stabilization
17of occupancy after new construction is complete, of any real
18property located within the boundaries of an otherwise or
19previously exempt military reservation that is intended for
20residential use and owned by or leased to a private corporation
21or other entity, and (iii) in counties that classify in
22accordance with Section 4 of Article IX of the Illinois
23Constitution, an incentive property's additional assessed
24value resulting from a scheduled increase in the level of
25assessment as applied to the first year final board of review
26market value. In addition, the county clerk in a county

 

 

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1containing a population of 3,000,000 or more shall include in
2the 1997 recovered tax increment value for any school district,
3any recovered tax increment value that was applicable to the
41995 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 Development Act in the Illinois
15Municipal Code, previously established under the Industrial
16Jobs Recovery Law in the Illinois Municipal Code, previously
17established under the Economic Development Project Area Tax
18Increment Act of 1995, or previously established under the
19Economic Development Area Tax Increment Allocation Act, of each
20taxable lot, block, tract, or parcel of real property in the
21redevelopment project area over and above the initial equalized
22assessed value of each property in the redevelopment project
23area. For the taxes which are extended for the 1997 levy year,
24the recovered tax increment value for a non-home rule taxing
25district that first became subject to this Law for the 1995
26levy year because a majority of its 1994 equalized assessed

 

 

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

 

 

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1plus the extension limitation defined in this Section and the
2denominator of which is the current year's equalized assessed
3value of all real property in the territory under the
4jurisdiction of the taxing district during the prior levy year.
5For those taxing districts that reduced their aggregate
6extension for the last preceding levy year, the highest
7aggregate extension in any of the last 3 preceding levy years
8shall be used for the purpose of computing the limiting rate.
9The denominator shall not include new property or the recovered
10tax increment value. If a new rate, a rate decrease, or a
11limiting rate increase has been approved at an election held
12after March 21, 2006, then (i) the otherwise applicable
13limiting rate shall be increased by the amount of the new rate
14or shall be reduced by the amount of the rate decrease, as the
15case may be, or (ii) in the case of a limiting rate increase,
16the limiting rate shall be equal to the rate set forth in the
17proposition approved by the voters for each of the years
18specified in the proposition, after which the limiting rate of
19the taxing district shall be calculated as otherwise provided.
20(Source: P.A. 95-90, eff. 1-1-08; 95-331, eff. 8-21-07; 95-404,
21eff. 1-1-08; 95-876, eff. 8-21-08; 96-501, eff. 8-14-09;
2296-517, eff. 8-14-09; 96-1000, eff. 7-2-10; 96-1202, eff.
237-22-10.)