98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB0043

 

Introduced 1/16/2013, by Sen. Kimberly A. Lightford

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-190

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that language providing that a new rate may not exceed the statutory ceiling above which the tax is not authorized to be increased applies only for levy years 2005 through 2012.


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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 18-190 as follows:
 
6    (35 ILCS 200/18-190)
7    Sec. 18-190. Direct referendum; new rate or increased
8limiting rate.
9    (a) If a new rate is authorized by statute to be imposed
10without referendum or is subject to a backdoor referendum, as
11defined in Section 28-2 of the Election Code, the governing
12body of the affected taxing district before levying the new
13rate shall submit the new rate to direct referendum under the
14provisions of this Section and of Article 28 of the Election
15Code. Notwithstanding the provisions, requirements, or
16limitations of any other law, any tax levied for the 2005 levy
17year and all subsequent levy years by any taxing district
18subject to this Law may be extended at a rate exceeding the
19rate established for that tax by referendum or statute,
20provided that, for levy years 2005 through 2012, the rate may
21does not exceed the statutory ceiling above which the tax is
22not authorized to be further increased either by referendum or
23in any other manner. Notwithstanding the provisions,

 

 

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1requirements, or limitations of any other law, all taxing
2districts subject to this Law shall follow the provisions of
3this Section whenever seeking referenda approval after March
421, 2006 to (i) levy a new tax rate authorized by statute or
5(ii) increase the limiting rate applicable to the taxing
6district. All taxing districts subject to this Law are
7authorized to seek referendum approval of each proposition
8described and set forth in this Section.
9    The proposition seeking to obtain referendum approval to
10levy a new tax rate as authorized in clause (i) shall be in
11substantially the following form:
12        Shall ... (insert legal name, number, if any, and
13    county or counties of taxing district and geographic or
14    other common name by which a school or community college
15    district is known and referred to), Illinois, be authorized
16    to levy a new tax for ... purposes and have an additional
17    tax of ...% of the equalized assessed value of the taxable
18    property therein extended for such purposes?
19The votes must be recorded as "Yes" or "No".
20    The proposition seeking to obtain referendum approval to
21increase the limiting rate as authorized in clause (ii) shall
22be in substantially the following form:
23        Shall the limiting rate under the Property Tax
24    Extension Limitation Law for ... (insert legal name,
25    number, if any, and county or counties of taxing district
26    and geographic or other common name by which a school or

 

 

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1    community college district is known and referred to),
2    Illinois, be increased by an additional amount equal to
3    ...% above the limiting rate for the purpose of...(insert
4    purpose) for levy year ... (insert the most recent levy
5    year for which the limiting rate of the taxing district is
6    known at the time the submission of the proposition is
7    initiated by the taxing district) and be equal to ...% of
8    the equalized assessed value of the taxable property
9    therein for levy year(s) (insert each levy year for which
10    the increase will be applicable, which years must be
11    consecutive and may not exceed 4)?
12    The votes must be recorded as "Yes" or "No".
13    The ballot for any proposition submitted pursuant to this
14Section shall have printed thereon, but not as a part of the
15proposition submitted, only the following supplemental
16information (which shall be supplied to the election authority
17by the taxing district) in substantially the following form:
18        (1) The approximate amount of taxes extendable at the
19    most recently extended limiting rate is $..., and the
20    approximate amount of taxes extendable if the proposition
21    is approved is $....
22        (2) For the ... (insert the first levy year for which
23    the new rate or increased limiting rate will be applicable)
24    levy year the approximate amount of the additional tax
25    extendable against property containing a single family
26    residence and having a fair market value at the time of the

 

 

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1    referendum of $100,000 is estimated to be $....
2        (3) Based upon an average annual percentage increase
3    (or decrease) in the market value of such property of %...
4    (insert percentage equal to the average annual percentage
5    increase or decrease for the prior 3 levy years, at the
6    time the submission of the proposition is initiated by the
7    taxing district, in the amount of (A) the equalized
8    assessed value of the taxable property in the taxing
9    district less (B) the new property included in the
10    equalized assessed value), the approximate amount of the
11    additional tax extendable against such property for the ...
12    levy year is estimated to be $... and for the ... levy year
13    is estimated to be $ ....
14        (4) If the proposition is approved, the aggregate
15    extension for ... (insert each levy year for which the
16    increase will apply) will be determined by the limiting
17    rate set forth in the proposition, rather than the
18    otherwise applicable limiting rate calculated under the
19    provisions of the Property Tax Extension Limitation Law
20    (commonly known as the Property Tax Cap Law).
21The approximate amount of taxes extendable shown in paragraph
22(1) shall be computed upon the last known equalized assessed
23value of taxable property in the taxing district (at the time
24the submission of the proposition is initiated by the taxing
25district). Paragraph (3) shall be included only if the
26increased limiting rate will be applicable for more than one

 

 

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1levy year and shall list each levy year for which the increased
2limiting rate will be applicable. The additional tax shown for
3each levy year shall be the approximate dollar amount of the
4increase over the amount of the most recently completed
5extension at the time the submission of the proposition is
6initiated by the taxing district. The approximate amount of the
7additional taxes extendable shown in paragraphs (2) and (3)
8shall be calculated by multiplying $100,000 (the fair market
9value of the property without regard to any property tax
10exemptions) by (i) the percentage level of assessment
11prescribed for that property by statute, or by ordinance of the
12county board in counties that classify property for purposes of
13taxation in accordance with Section 4 of Article IX of the
14Illinois Constitution; (ii) the most recent final equalization
15factor certified to the county clerk by the Department of
16Revenue at the time the taxing district initiates the
17submission of the proposition to the electors; and (iii) either
18the new rate or the amount by which the limiting rate is to be
19increased. This amendatory Act of the 97th General Assembly is
20intended to clarify the existing requirements of this Section,
21and shall not be construed to validate any prior non-compliant
22referendum language. Paragraph (4) shall be included if the
23proposition concerns a limiting rate increase but shall not be
24included if the proposition concerns a new rate. Any notice
25required to be published in connection with the submission of
26the proposition shall also contain this supplemental

 

 

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1information and shall not contain any other supplemental
2information regarding the proposition. Any error,
3miscalculation, or inaccuracy in computing any amount set forth
4on the ballot and in the notice that is not deliberate shall
5not invalidate or affect the validity of any proposition
6approved. Notice of the referendum shall be published and
7posted as otherwise required by law, and the submission of the
8proposition shall be initiated as provided by law.
9    If a majority of all ballots cast on the proposition are in
10favor of the proposition, the following provisions shall be
11applicable to the extension of taxes for the taxing district:
12        (A) a new tax rate shall be first effective for the
13    levy year in which the new rate is approved;
14        (B) if the proposition provides for a new tax rate, the
15    taxing district is authorized to levy a tax after the
16    canvass of the results of the referendum by the election
17    authority for the purposes for which the tax is authorized;
18        (C) a limiting rate increase shall be first effective
19    for the levy year in which the limiting rate increase is
20    approved, provided that the taxing district may elect to
21    have a limiting rate increase be effective for the levy
22    year prior to the levy year in which the limiting rate
23    increase is approved unless the extension of taxes for the
24    prior levy year occurs 30 days or less after the canvass of
25    the results of the referendum by the election authority in
26    any county in which the taxing district is located;

 

 

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1        (D) in order for the limiting rate increase to be first
2    effective for the levy year prior to the levy year of the
3    referendum, the taxing district must certify its election
4    to have the limiting rate increase be effective for the
5    prior levy year to the clerk of each county in which the
6    taxing district is located not more than 2 days after the
7    date the results of the referendum are canvassed by the
8    election authority; and
9        (E) if the proposition provides for a limiting rate
10    increase, the increase may be effective regardless of
11    whether the proposition is approved before or after the
12    taxing district adopts or files its levy for any levy year.
13    Rates required to extend taxes on levies subject to a
14backdoor referendum in each year there is a levy are not new
15rates or rate increases under this Section if a levy has been
16made for the fund in one or more of the preceding 3 levy years.
17Changes made by this amendatory Act of 1997 to this Section in
18reference to rates required to extend taxes on levies subject
19to a backdoor referendum in each year there is a levy are
20declarative of existing law and not a new enactment.
21    (b) Whenever other applicable law authorizes a taxing
22district subject to the limitation with respect to its
23aggregate extension provided for in this Law to issue bonds or
24other obligations either without referendum or subject to
25backdoor referendum, the taxing district may elect for each
26separate bond issuance to submit the question of the issuance

 

 

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1of the bonds or obligations directly to the voters of the
2taxing district, and if the referendum passes the taxing
3district is not required to comply with any backdoor referendum
4procedures or requirements set forth in the other applicable
5law. The direct referendum shall be initiated by ordinance or
6resolution of the governing body of the taxing district, and
7the question shall be certified to the proper election
8authorities in accordance with the provisions of the Election
9Code.
10(Source: P.A. 96-764, eff. 8-25-09; 97-1087, eff. 8-24-12.)