97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1214

 

Introduced 02/08/11, by Rep. Al Riley

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Exempts special purpose extensions made by any taxing district for payment of that district's share of the amounts required to be contributed to any pension fund created under the Illinois Pension Code from the definition of "aggregate extension". Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 Property Tax Extension Limitation Law. As used
9in 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; and (p) made by any taxing district for
18payment of that district's share of the amounts required to be
19contributed to any pension fund created under the Illinois
20Pension 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 the
24handicapped under Section 5-8 of the Park District Code or
25Section 11-95-14 of the Illinois Municipal Code; (o) made by
26the Chicago Park District for recreational programs for the

 

 

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1handicapped under subsection (c) of Section 7.06 of the Chicago
2Park 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;
6and (q) made by Ford Heights School District 169 under Section
717-9.02 of the School Code; and (r) made by any taxing district
8for payment of that district's share of the amounts required to
9be contributed to any pension fund created under the Illinois
10Pension 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

 

 

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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 the handicapped under Section
125-8 of the Park District Code or Section 11-95-14 of the
13Illinois 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; and (n) made by any taxing
20district for payment of that district's share of the amounts
21required to be contributed to any pension fund created under
22the Illinois Pension Code.
23    "Aggregate extension" for all taxing districts to which
24this Law applies in accordance with paragraph (2) of subsection
25(e) of Section 18-213 means the annual corporate extension for
26the taxing district and those special purpose extensions that

 

 

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

 

 

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1into before the effective date of this amendatory Act of 1997;
2(h) made for payments of principal and interest on limited
3bonds, as defined in Section 3 of the Local Government Debt
4Reform Act, in an amount not to exceed the debt service
5extension base less the amount in items (b), (c), and (e) of
6this definition for non-referendum obligations, except
7obligations initially issued pursuant to referendum; (i) made
8for payments of principal and interest on bonds issued under
9Section 15 of the Local Government Debt Reform Act; (j) made
10for a qualified airport authority to pay interest or principal
11on general obligation bonds issued for the purpose of paying
12obligations due under, or financing airport facilities
13required to be acquired, constructed, installed or equipped
14pursuant to, contracts entered into before March 1, 1996 (but
15not including any amendments to such a contract taking effect
16on or after that date); (k) made to fund expenses of providing
17joint recreational programs for the handicapped under Section
185-8 of the Park District Code or Section 11-95-14 of the
19Illinois Municipal Code; and (l) made for contributions to a
20firefighter's pension fund created under Article 4 of the
21Illinois Pension Code, to the extent of the amount certified
22under item (5) of Section 4-134 of the Illinois Pension Code;
23and (m) made by any taxing district for payment of that
24district's share of the amounts required to be contributed to
25any pension fund created under the Illinois Pension Code.
26    "Debt service extension base" means an amount equal to that

 

 

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

 

 

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1year commencing with the later of (i) the 2009 levy year or
2(ii) the first levy year in which this Law becomes applicable
3to the taxing district, by the lesser of 5% or the percentage
4increase in the Consumer Price Index during the 12-month
5calendar year preceding the levy year. The debt service
6extension base may be established or increased as provided
7under Section 18-212. "Excluded non-referendum bonds" means
8(i) bonds authorized by Public Act 88-503 and issued under
9Section 20a of the Chicago Park District Act for aquarium and
10museum projects; (ii) bonds issued under Section 15 of the
11Local Government Debt Reform Act; or (iii) refunding
12obligations issued to refund or to continue to refund
13obligations initially issued pursuant to referendum.
14    "Special purpose extensions" include, but are not limited
15to, extensions for levies made on an annual basis for
16unemployment and workers' compensation, self-insurance,
17contributions to pension plans, and extensions made pursuant to
18Section 6-601 of the Illinois Highway Code for a road
19district's permanent road fund whether levied annually or not.
20The extension for a special service area is not included in the
21aggregate extension.
22    "Aggregate extension base" means the taxing district's
23last preceding aggregate extension as adjusted under Sections
2418-135, 18-215, and 18-230. An adjustment under Section 18-135
25shall be made for the 2007 levy year and all subsequent levy
26years whenever one or more counties within which a taxing

 

 

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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.
15    "Levy year" has the same meaning as "year" under Section
161-155.
17    "New property" means (i) the assessed value, after final
18board of review or board of appeals action, of new improvements
19or additions to existing improvements on any parcel of real
20property that increase the assessed value of that real property
21during the levy year multiplied by the equalization factor
22issued by the Department under Section 17-30, (ii) the assessed
23value, after final board of review or board of appeals action,
24of real property not exempt from real estate taxation, which
25real property was exempt from real estate taxation for any
26portion of the immediately preceding levy year, multiplied by

 

 

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1the equalization factor issued by the Department under Section
217-30, including the assessed value, upon final stabilization
3of occupancy after new construction is complete, of any real
4property located within the boundaries of an otherwise or
5previously exempt military reservation that is intended for
6residential use and owned by or leased to a private corporation
7or other entity, and (iii) in counties that classify in
8accordance with Section 4 of Article IX of the Illinois
9Constitution, an incentive property's additional assessed
10value resulting from a scheduled increase in the level of
11assessment as applied to the first year final board of review
12market value. In addition, the county clerk in a county
13containing a population of 3,000,000 or more shall include in
14the 1997 recovered tax increment value for any school district,
15any recovered tax increment value that was applicable to the
161995 tax year calculations.
17    "Qualified airport authority" means an airport authority
18organized under the Airport Authorities Act and located in a
19county bordering on the State of Wisconsin and having a
20population in excess of 200,000 and not greater than 500,000.
21    "Recovered tax increment value" means, except as otherwise
22provided in this paragraph, the amount of the current year's
23equalized assessed value, in the first year after a
24municipality terminates the designation of an area as a
25redevelopment project area previously established under the
26Tax Increment Allocation Development Act in the Illinois

 

 

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1Municipal Code, previously established under the Industrial
2Jobs Recovery Law in the Illinois Municipal Code, previously
3established under the Economic Development Project Area Tax
4Increment Act of 1995, or previously established under the
5Economic Development Area Tax Increment Allocation Act, of each
6taxable lot, block, tract, or parcel of real property in the
7redevelopment project area over and above the initial equalized
8assessed value of each property in the redevelopment project
9area. For the taxes which are extended for the 1997 levy year,
10the recovered tax increment value for a non-home rule taxing
11district that first became subject to this Law for the 1995
12levy year because a majority of its 1994 equalized assessed
13value was in an affected county or counties shall be increased
14if a municipality terminated the designation of an area in 1993
15as a redevelopment project area previously established under
16the Tax Increment Allocation Development Act in the Illinois
17Municipal Code, previously established under the Industrial
18Jobs Recovery Law in the Illinois Municipal Code, or previously
19established under the Economic Development Area Tax Increment
20Allocation Act, by an amount equal to the 1994 equalized
21assessed value of each taxable lot, block, tract, or parcel of
22real property in the redevelopment project area over and above
23the initial equalized assessed value of each property in the
24redevelopment project area. In the first year after a
25municipality removes a taxable lot, block, tract, or parcel of
26real property from a redevelopment project area established

 

 

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1under the Tax Increment Allocation Development Act in the
2Illinois Municipal Code, the Industrial Jobs Recovery Law in
3the Illinois Municipal Code, or the Economic Development Area
4Tax Increment Allocation Act, "recovered tax increment value"
5means the amount of the current year's equalized assessed value
6of each taxable lot, block, tract, or parcel of real property
7removed from the redevelopment project area over and above the
8initial equalized assessed value of that real property before
9removal from the redevelopment project area.
10    Except as otherwise provided in this Section, "limiting
11rate" means a fraction the numerator of which is the last
12preceding aggregate extension base times an amount equal to one
13plus the extension limitation defined in this Section and the
14denominator of which is the current year's equalized assessed
15value of all real property in the territory under the
16jurisdiction of the taxing district during the prior levy year.
17For those taxing districts that reduced their aggregate
18extension for the last preceding levy year, the highest
19aggregate extension in any of the last 3 preceding levy years
20shall be used for the purpose of computing the limiting rate.
21The denominator shall not include new property or the recovered
22tax increment value. If a new rate, a rate decrease, or a
23limiting rate increase has been approved at an election held
24after March 21, 2006, then (i) the otherwise applicable
25limiting rate shall be increased by the amount of the new rate
26or shall be reduced by the amount of the rate decrease, as the

 

 

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1case may be, or (ii) in the case of a limiting rate increase,
2the limiting rate shall be equal to the rate set forth in the
3proposition approved by the voters for each of the years
4specified in the proposition, after which the limiting rate of
5the taxing district shall be calculated as otherwise provided.
6(Source: P.A. 95-90, eff. 1-1-08; 95-331, eff. 8-21-07; 95-404,
7eff. 1-1-08; 95-876, eff. 8-21-08; 96-501, eff. 8-14-09;
896-517, eff. 8-14-09; 96-1000, eff. 7-2-10; 96-1202, eff.
97-22-10.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.