97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1341

 

Introduced 2/9/2011, by Rep. JoAnn D. Osmond

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185

    Amends the Property Tax Code. Defines "debt service extension base" for school districts (i) that were first subject to the Code in 1991 or 1995 and whose extension for the 1994 levy year for the payment of principal and interest on bonds issued by the school district without referendum (but not including excluded non-referendum bonds) was less than 51% of the amount for the 1991 levy year constituting an extension for payment of principal and interest on bonds issued by the school district without referendum (but not including excluded non-referendum bonds) or (ii) that were first subject to the Code in 1991 or 1995 and had no extensions for either the 1994 or the 1991 levy year for the payment of principal and interest on non-referendum bonds (other than excluded non-referendum bonds). Effective immediately.


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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 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.
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). Beginning in levy year 2011, for school
13districts (i) that were first subject to this Code in 1991 or
141995 and whose extension for the 1994 levy year for the payment
15of principal and interest on bonds issued by the school
16district without referendum (but not including excluded
17non-referendum bonds) was less than 51% of the amount for the
181991 levy year constituting an extension for payment of
19principal and interest on bonds issued by the school district
20without referendum (but not including excluded non-referendum
21bonds) or (ii) that were first subject to this Code in 1991 or
221995 and had no extensions for either the 1994 or the 1991 levy
23year for the payment of principal and interest on
24non-referendum bonds (other than excluded non-referendum
25bonds), "debt service extension base" means an amount equal to
26the greater of (A) that portion of the extension for the 1991

 

 

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1levy year constituting an extension for payment of principal
2and interest on bonds issued by the school district without
3referendum (but not including excluded non-referendum bonds)
4or (B) an amount equal to 2% of the school district's Total
5Direct Disbursements/Expenditures for all of the funds as shown
6on line 17 on page 7 of the School District/Joint Agreement
7Annual Financial Report form for the fiscal year ending June
830, 2009, submitted to the Illinois State Board of Education. A
9debt service extension base established or increased at any
10time pursuant to any provision of this Law, except Section
1118-212, shall be increased each year commencing with the later
12of (i) the 2009 levy year or (ii) the first levy year in which
13this Law becomes applicable to the taxing district, by the
14lesser of 5% or the percentage increase in the Consumer Price
15Index during the 12-month calendar year preceding the levy
16year. The debt service extension base may be established or
17increased as provided under Section 18-212. "Excluded
18non-referendum bonds" means (i) bonds authorized by Public Act
1988-503 and issued under Section 20a of the Chicago Park
20District Act for aquarium and museum projects; (ii) bonds
21issued under Section 15 of the Local Government Debt Reform
22Act; or (iii) refunding obligations issued to refund or to
23continue to refund obligations initially issued pursuant to
24referendum.
25    "Special purpose extensions" include, but are not limited
26to, extensions for levies made on an annual basis for

 

 

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1unemployment and workers' compensation, self-insurance,
2contributions to pension plans, and extensions made pursuant to
3Section 6-601 of the Illinois Highway Code for a road
4district's permanent road fund whether levied annually or not.
5The extension for a special service area is not included in the
6aggregate extension.
7    "Aggregate extension base" means the taxing district's
8last preceding aggregate extension as adjusted under Sections
918-135, 18-215, and 18-230. An adjustment under Section 18-135
10shall be made for the 2007 levy year and all subsequent levy
11years whenever one or more counties within which a taxing
12district is located (i) used estimated valuations or rates when
13extending taxes in the taxing district for the last preceding
14levy year that resulted in the over or under extension of
15taxes, or (ii) increased or decreased the tax extension for the
16last preceding levy year as required by Section 18-135(c).
17Whenever an adjustment is required under Section 18-135, the
18aggregate extension base of the taxing district shall be equal
19to the amount that the aggregate extension of the taxing
20district would have been for the last preceding levy year if
21either or both (i) actual, rather than estimated, valuations or
22rates had been used to calculate the extension of taxes for the
23last levy year, or (ii) the tax extension for the last
24preceding levy year had not been adjusted as required by
25subsection (c) of Section 18-135.
26    "Levy year" has the same meaning as "year" under Section

 

 

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11-155.
2    "New property" means (i) the assessed value, after final
3board of review or board of appeals action, of new improvements
4or additions to existing improvements on any parcel of real
5property that increase the assessed value of that real property
6during the levy year multiplied by the equalization factor
7issued by the Department under Section 17-30, (ii) the assessed
8value, after final board of review or board of appeals action,
9of real property not exempt from real estate taxation, which
10real property was exempt from real estate taxation for any
11portion of the immediately preceding levy year, multiplied by
12the equalization factor issued by the Department under Section
1317-30, including the assessed value, upon final stabilization
14of occupancy after new construction is complete, of any real
15property located within the boundaries of an otherwise or
16previously exempt military reservation that is intended for
17residential use and owned by or leased to a private corporation
18or other entity, and (iii) in counties that classify in
19accordance with Section 4 of Article IX of the Illinois
20Constitution, an incentive property's additional assessed
21value resulting from a scheduled increase in the level of
22assessment as applied to the first year final board of review
23market value. In addition, the county clerk in a county
24containing a population of 3,000,000 or more shall include in
25the 1997 recovered tax increment value for any school district,
26any recovered tax increment value that was applicable to the

 

 

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11995 tax year calculations.
2    "Qualified airport authority" means an airport authority
3organized under the Airport Authorities Act and located in a
4county bordering on the State of Wisconsin and having a
5population in excess of 200,000 and not greater than 500,000.
6    "Recovered tax increment value" means, except as otherwise
7provided in this paragraph, the amount of the current year's
8equalized assessed value, in the first year after a
9municipality terminates the designation of an area as a
10redevelopment project area previously established under the
11Tax Increment Allocation Development Act in the Illinois
12Municipal Code, previously established under the Industrial
13Jobs Recovery Law in the Illinois Municipal Code, previously
14established under the Economic Development Project Area Tax
15Increment Act of 1995, or previously established under the
16Economic Development Area Tax Increment Allocation Act, of each
17taxable lot, block, tract, or parcel of real property in the
18redevelopment project area over and above the initial equalized
19assessed value of each property in the redevelopment project
20area. For the taxes which are extended for the 1997 levy year,
21the recovered tax increment value for a non-home rule taxing
22district that first became subject to this Law for the 1995
23levy year because a majority of its 1994 equalized assessed
24value was in an affected county or counties shall be increased
25if a municipality terminated the designation of an area in 1993
26as a redevelopment project area previously established under

 

 

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

 

 

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1jurisdiction of the taxing district during the prior levy year.
2For those taxing districts that reduced their aggregate
3extension for the last preceding levy year, the highest
4aggregate extension in any of the last 3 preceding levy years
5shall be used for the purpose of computing the limiting rate.
6The denominator shall not include new property or the recovered
7tax increment value. If a new rate, a rate decrease, or a
8limiting rate increase has been approved at an election held
9after March 21, 2006, then (i) the otherwise applicable
10limiting rate shall be increased by the amount of the new rate
11or shall be reduced by the amount of the rate decrease, as the
12case may be, or (ii) in the case of a limiting rate increase,
13the limiting rate shall be equal to the rate set forth in the
14proposition approved by the voters for each of the years
15specified in the proposition, after which the limiting rate of
16the taxing district shall be calculated as otherwise provided.
17(Source: P.A. 95-90, eff. 1-1-08; 95-331, eff. 8-21-07; 95-404,
18eff. 1-1-08; 95-876, eff. 8-21-08; 96-501, eff. 8-14-09;
1996-517, eff. 8-14-09; 96-1000, eff. 7-2-10; 96-1202, eff.
207-22-10.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.