SB0345 EngrossedLRB098 04631 HLH 34659 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 18-190 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 any other provision of law, the levies
16authorized by Sections 21-110 and 21-110.1 of the Illinois
17Pension Code shall not be considered new rates; however,
18nothing in this amendatory Act of the 98th General Assembly
19authorizes a taxing district to increase its limiting rate
20without first obtaining referendum approval as provided in this
21Section. Notwithstanding the provisions, requirements, or
22limitations of any other law, any tax levied for the 2005 levy
23year and all subsequent levy years by any taxing district

 

 

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1subject to this Law may be extended at a rate exceeding the
2rate established for that tax by referendum or statute,
3provided that the rate does not exceed the statutory ceiling
4above which the tax is not authorized to be further increased
5either by referendum or in any other manner. Notwithstanding
6the provisions, requirements, or limitations of any other law,
7all taxing districts subject to this Law shall follow the
8provisions of this Section whenever seeking referenda approval
9after March 21, 2006 to (i) levy a new tax rate authorized by
10statute or (ii) increase the limiting rate applicable to the
11taxing district. All taxing districts subject to this Law are
12authorized to seek referendum approval of each proposition
13described and set forth in this Section.
14    The proposition seeking to obtain referendum approval to
15levy a new tax rate as authorized in clause (i) shall be in
16substantially the following form:
17        Shall ... (insert legal name, number, if any, and
18    county or counties of taxing district and geographic or
19    other common name by which a school or community college
20    district is known and referred to), Illinois, be authorized
21    to levy a new tax for ... purposes and have an additional
22    tax of ...% of the equalized assessed value of the taxable
23    property therein extended for such purposes?
24The votes must be recorded as "Yes" or "No".
25    The proposition seeking to obtain referendum approval to
26increase the limiting rate as authorized in clause (ii) shall

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    year prior to the levy year in which the limiting rate
2    increase is approved unless the extension of taxes for the
3    prior levy year occurs 30 days or less after the canvass of
4    the results of the referendum by the election authority in
5    any county in which the taxing district is located;
6        (D) in order for the limiting rate increase to be first
7    effective for the levy year prior to the levy year of the
8    referendum, the taxing district must certify its election
9    to have the limiting rate increase be effective for the
10    prior levy year to the clerk of each county in which the
11    taxing district is located not more than 2 days after the
12    date the results of the referendum are canvassed by the
13    election authority; and
14        (E) if the proposition provides for a limiting rate
15    increase, the increase may be effective regardless of
16    whether the proposition is approved before or after the
17    taxing district adopts or files its levy for any levy year.
18    Rates required to extend taxes on levies subject to a
19backdoor referendum in each year there is a levy are not new
20rates or rate increases under this Section if a levy has been
21made for the fund in one or more of the preceding 3 levy years.
22Changes made by this amendatory Act of 1997 to this Section in
23reference to rates required to extend taxes on levies subject
24to a backdoor referendum in each year there is a levy are
25declarative of existing law and not a new enactment.
26    (b) Whenever other applicable law authorizes a taxing

 

 

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1district subject to the limitation with respect to its
2aggregate extension provided for in this Law to issue bonds or
3other obligations either without referendum or subject to
4backdoor referendum, the taxing district may elect for each
5separate bond issuance to submit the question of the issuance
6of the bonds or obligations directly to the voters of the
7taxing district, and if the referendum passes the taxing
8district is not required to comply with any backdoor referendum
9procedures or requirements set forth in the other applicable
10law. The direct referendum shall be initiated by ordinance or
11resolution of the governing body of the taxing district, and
12the question shall be certified to the proper election
13authorities in accordance with the provisions of the Election
14Code.
15(Source: P.A. 96-764, eff. 8-25-09; 97-1087, eff. 8-24-12.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.