98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0394

 

Introduced 1/25/2013, 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.


LRB098 03213 HLH 33228 b

 

 

A BILL FOR

 

HB0394LRB098 03213 HLH 33228 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; (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 for road purposes in the
18first year after a township assumes the rights, powers, duties,
19assets, property, liabilities, obligations, and
20responsibilities of a road district abolished under the
21provisions of Section 6-133 of the Illinois Highway Code.
22    "Aggregate extension" for the taxing districts to which
23this Law did not apply before the 1995 levy year (except taxing
24districts subject to this Law in accordance with Section
2518-213) means the annual corporate extension for the taxing
26district and those special purpose extensions that are made

 

 

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1annually for the taxing district, excluding special purpose
2extensions: (a) made for the taxing district to pay interest or
3principal on general obligation bonds that were approved by
4referendum; (b) made for any taxing district to pay interest or
5principal on general obligation bonds issued before March 1,
61995; (c) made for any taxing district to pay interest or
7principal on bonds issued to refund or continue to refund those
8bonds issued before March 1, 1995; (d) made for any taxing
9district to pay interest or principal on bonds issued to refund
10or continue to refund bonds issued after March 1, 1995 that
11were approved by referendum; (e) made for any taxing district
12to pay interest or principal on revenue bonds issued before
13March 1, 1995 for payment of which a property tax levy or the
14full faith and credit of the unit of local government is
15pledged; however, a tax for the payment of interest or
16principal on those bonds shall be made only after the governing
17body of the unit of local government finds that all other
18sources for payment are insufficient to make those payments;
19(f) made for payments under a building commission lease when
20the lease payments are for the retirement of bonds issued by
21the commission before March 1, 1995 to pay for the building
22project; (g) made for payments due under installment contracts
23entered into before March 1, 1995; (h) made for payments of
24principal and interest on bonds issued under the Metropolitan
25Water Reclamation District Act to finance construction
26projects initiated before October 1, 1991; (h-4) made for

 

 

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1stormwater management purposes by the Metropolitan Water
2Reclamation District of Greater Chicago under Section 12 of the
3Metropolitan Water Reclamation District Act; (i) made for
4payments of principal and interest on limited bonds, as defined
5in Section 3 of the Local Government Debt Reform Act, in an
6amount not to exceed the debt service extension base less the
7amount in items (b), (c), and (e) of this definition for
8non-referendum obligations, except obligations initially
9issued pursuant to referendum and bonds described in subsection
10(h) of this definition; (j) made for payments of principal and
11interest on bonds issued under Section 15 of the Local
12Government Debt Reform Act; (k) made for payments of principal
13and interest on bonds authorized by Public Act 88-503 and
14issued under Section 20a of the Chicago Park District Act for
15aquarium or museum projects; (l) made for payments of principal
16and interest on bonds authorized by Public Act 87-1191 or
1793-601 and (i) issued pursuant to Section 21.2 of the Cook
18County Forest Preserve District Act, (ii) issued under Section
1942 of the Cook County Forest Preserve District Act for
20zoological park projects, or (iii) issued under Section 44.1 of
21the Cook County Forest Preserve District Act for botanical
22gardens projects; (m) made pursuant to Section 34-53.5 of the
23School Code, whether levied annually or not; (n) made to fund
24expenses of providing joint recreational programs for the
25handicapped under Section 5-8 of the Park District Code or
26Section 11-95-14 of the Illinois Municipal Code; (o) made by

 

 

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1the Chicago Park District for recreational programs for the
2handicapped under subsection (c) of Section 7.06 of the Chicago
3Park District Act; (p) made for contributions to a
4firefighter's pension fund created under Article 4 of the
5Illinois Pension Code, to the extent of the amount certified
6under item (5) of Section 4-134 of the Illinois Pension Code;
7and (q) made by Ford Heights School District 169 under Section
817-9.02 of the School Code.
9    "Aggregate extension" for all taxing districts to which
10this Law applies in accordance with Section 18-213, except for
11those taxing districts subject to paragraph (2) of subsection
12(e) of Section 18-213, means the annual corporate extension for
13the taxing district and those special purpose extensions that
14are made annually for the taxing district, excluding special
15purpose extensions: (a) made for the taxing district to pay
16interest or principal on general obligation bonds that were
17approved by referendum; (b) made for any taxing district to pay
18interest or principal on general obligation bonds issued before
19the date on which the referendum making this Law applicable to
20the taxing district is held; (c) made for any taxing district
21to pay interest or principal on bonds issued to refund or
22continue to refund those bonds issued before the date on which
23the referendum making this Law applicable to the taxing
24district is held; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after the date on which the referendum

 

 

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

 

 

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1Section 15 of the Local Government Debt Reform Act; (j) made
2for a qualified airport authority to pay interest or principal
3on general obligation bonds issued for the purpose of paying
4obligations due under, or financing airport facilities
5required to be acquired, constructed, installed or equipped
6pursuant to, contracts entered into before March 1, 1996 (but
7not including any amendments to such a contract taking effect
8on or after that date); (k) made to fund expenses of providing
9joint recreational programs for the handicapped under Section
105-8 of the Park District Code or Section 11-95-14 of the
11Illinois Municipal Code; (l) made for contributions to a
12firefighter's pension fund created under Article 4 of the
13Illinois Pension Code, to the extent of the amount certified
14under item (5) of Section 4-134 of the Illinois Pension Code;
15and (m) made for the taxing district to pay interest or
16principal on general obligation bonds issued pursuant to
17Section 19-3.10 of the School Code.
18    "Aggregate extension" for all taxing districts to which
19this Law applies in accordance with paragraph (2) of subsection
20(e) of Section 18-213 means the annual corporate extension for
21the taxing district and those special purpose extensions that
22are made annually for the taxing district, excluding special
23purpose extensions: (a) made for the taxing district to pay
24interest or principal on general obligation bonds that were
25approved by referendum; (b) made for any taxing district to pay
26interest or principal on general obligation bonds issued before

 

 

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

 

 

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1this definition for non-referendum obligations, except
2obligations initially issued pursuant to referendum; (i) made
3for payments of principal and interest on bonds issued under
4Section 15 of the Local Government Debt Reform Act; (j) made
5for a qualified airport authority to pay interest or principal
6on general obligation bonds issued for the purpose of paying
7obligations due under, or financing airport facilities
8required to be acquired, constructed, installed or equipped
9pursuant to, contracts entered into before March 1, 1996 (but
10not including any amendments to such a contract taking effect
11on or after that date); (k) made to fund expenses of providing
12joint recreational programs for the handicapped under Section
135-8 of the Park District Code or Section 11-95-14 of the
14Illinois Municipal Code; and (l) made for contributions to a
15firefighter's pension fund created under Article 4 of the
16Illinois Pension Code, to the extent of the amount certified
17under item (5) of Section 4-134 of the Illinois Pension Code.
18    "Debt service extension base" means an amount equal to that
19portion of the extension for a taxing district for the 1994
20levy year, or for those taxing districts subject to this Law in
21accordance with Section 18-213, except for those subject to
22paragraph (2) of subsection (e) of Section 18-213, for the levy
23year in which the referendum making this Law applicable to the
24taxing district is held, or for those taxing districts subject
25to this Law in accordance with paragraph (2) of subsection (e)
26of Section 18-213 for the 1996 levy year, constituting an

 

 

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1extension for payment of principal and interest on bonds issued
2by the taxing district without referendum, but not including
3excluded non-referendum bonds. For park districts (i) that were
4first subject to this Law in 1991 or 1995 and (ii) whose
5extension for the 1994 levy year for the payment of principal
6and interest on bonds issued by the park district without
7referendum (but not including excluded non-referendum bonds)
8was less than 51% of the amount for the 1991 levy year
9constituting an extension for payment of principal and interest
10on bonds issued by the park district without referendum (but
11not including excluded non-referendum bonds), "debt service
12extension base" means an amount equal to that portion of the
13extension for the 1991 levy year constituting an extension for
14payment of principal and interest on bonds issued by the park
15district without referendum (but not including excluded
16non-referendum bonds). A debt service extension base
17established or increased at any time pursuant to any provision
18of this Law, except Section 18-212, shall be increased each
19year commencing with the later of (i) the 2009 levy year or
20(ii) the first levy year in which this Law becomes applicable
21to the taxing district, by the lesser of 5% or the percentage
22increase in the Consumer Price Index during the 12-month
23calendar year preceding the levy year. The debt service
24extension base may be established or increased as provided
25under Section 18-212. "Excluded non-referendum bonds" means
26(i) bonds authorized by Public Act 88-503 and issued under

 

 

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1Section 20a of the Chicago Park District Act for aquarium and
2museum projects; (ii) bonds issued under Section 15 of the
3Local Government Debt Reform Act; or (iii) refunding
4obligations issued to refund or to continue to refund
5obligations initially issued pursuant to referendum.
6    "Special purpose extensions" include, but are not limited
7to, extensions for levies made on an annual basis for
8unemployment and workers' compensation, self-insurance,
9contributions to pension plans, and extensions made pursuant to
10Section 6-601 of the Illinois Highway Code for a road
11district's permanent road fund whether levied annually or not.
12The extension for a special service area is not included in the
13aggregate extension.
14    "Aggregate extension base" means the taxing district's
15last preceding aggregate extension as adjusted under Sections
1618-135, 18-215, and 18-230. An adjustment under Section 18-135
17shall be made for the 2007 levy year and all subsequent levy
18years whenever one or more counties within which a taxing
19district is located (i) used estimated valuations or rates when
20extending taxes in the taxing district for the last preceding
21levy year that resulted in the over or under extension of
22taxes, or (ii) increased or decreased the tax extension for the
23last preceding levy year as required by Section 18-135(c).
24Whenever an adjustment is required under Section 18-135, the
25aggregate extension base of the taxing district shall be equal
26to the amount that the aggregate extension of the taxing

 

 

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1district would have been for the last preceding levy year if
2either or both (i) actual, rather than estimated, valuations or
3rates had been used to calculate the extension of taxes for the
4last levy year, or (ii) the tax extension for the last
5preceding levy year had not been adjusted as required by
6subsection (c) of Section 18-135.
7    "Levy year" has the same meaning as "year" under Section
81-155.
9    "New property" means (i) the assessed value, after final
10board of review or board of appeals action, of new improvements
11or additions to existing improvements on any parcel of real
12property that increase the assessed value of that real property
13during the levy year multiplied by the equalization factor
14issued by the Department under Section 17-30, (ii) the assessed
15value, after final board of review or board of appeals action,
16of real property not exempt from real estate taxation, which
17real property was exempt from real estate taxation for any
18portion of the immediately preceding levy year, multiplied by
19the equalization factor issued by the Department under Section
2017-30, including the assessed value, upon final stabilization
21of occupancy after new construction is complete, of any real
22property located within the boundaries of an otherwise or
23previously exempt military reservation that is intended for
24residential use and owned by or leased to a private corporation
25or other entity, and (iii) in counties that classify in
26accordance with Section 4 of Article IX of the Illinois

 

 

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1Constitution, an incentive property's additional assessed
2value resulting from a scheduled increase in the level of
3assessment as applied to the first year final board of review
4market value. In addition, the county clerk in a county
5containing a population of 3,000,000 or more shall include in
6the 1997 recovered tax increment value for any school district,
7any recovered tax increment value that was applicable to the
81995 tax year calculations.
9    "Qualified airport authority" means an airport authority
10organized under the Airport Authorities Act and located in a
11county bordering on the State of Wisconsin and having a
12population in excess of 200,000 and not greater than 500,000.
13    "Recovered tax increment value" means, except as otherwise
14provided in this paragraph, the amount of the current year's
15equalized assessed value, in the first year after a
16municipality terminates the designation of an area as a
17redevelopment project area previously established under the
18Tax Increment Allocation Development Act in the Illinois
19Municipal Code, previously established under the Industrial
20Jobs Recovery Law in the Illinois Municipal Code, previously
21established under the Economic Development Project Area Tax
22Increment Act of 1995, or previously established under the
23Economic Development Area Tax Increment Allocation Act, of each
24taxable lot, block, tract, or parcel of real property in the
25redevelopment project area over and above the initial equalized
26assessed value of each property in the redevelopment project

 

 

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

 

 

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1removal from the redevelopment project area.
2    Except as otherwise provided in this Section, "limiting
3rate" means a fraction the numerator of which is the last
4preceding aggregate extension base times an amount equal to one
5plus the extension limitation defined in this Section and the
6denominator of which is the current year's equalized assessed
7value of all real property in the territory under the
8jurisdiction of the taxing district during the prior levy year.
9For those taxing districts that reduced their aggregate
10extension for the last preceding levy year, the highest
11aggregate extension in any of the last 3 preceding levy years
12shall be used for the purpose of computing the limiting rate.
13The denominator shall not include new property or the recovered
14tax increment value. If a new rate, a rate decrease, or a
15limiting rate increase has been approved at an election held
16after March 21, 2006, then (i) the otherwise applicable
17limiting rate shall be increased by the amount of the new rate
18or shall be reduced by the amount of the rate decrease, as the
19case may be, or (ii) in the case of a limiting rate increase,
20the limiting rate shall be equal to the rate set forth in the
21proposition approved by the voters for each of the years
22specified in the proposition, after which the limiting rate of
23the taxing district shall be calculated as otherwise provided.
24(Source: P.A. 96-501, eff. 8-14-09; 96-517, eff. 8-14-09;
2596-1000, eff. 7-2-10; 96-1202, eff. 7-22-10; 97-611, eff.
261-1-12.)