093_HB2283

 
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 1        AN ACT regarding schools.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Property Tax Code is amended by  changing
 5    Section 18-185 as follows:

 6        (35 ILCS 200/18-185)
 7        Sec.  18-185.  Short title; definitions.  This Division 5
 8    may be cited as the Property Tax  Extension  Limitation  Law.
 9    As used in this Division 5:
10        "Consumer Price Index" means the Consumer Price Index for
11    All  Urban  Consumers  for  all items published by the United
12    States Department of Labor.
13        "Extension limitation" means (a) the lesser of 5% or  the
14    percentage  increase  in  the Consumer Price Index during the
15    12-month calendar year preceding the levy  year  or  (b)  the
16    rate of increase approved by voters under Section 18-205.
17        "Affected  county"  means  a  county of 3,000,000 or more
18    inhabitants or a county contiguous to a county  of  3,000,000
19    or more inhabitants.
20        "Taxing  district"  has  the  same  meaning  provided  in
21    Section  1-150, except as otherwise provided in this Section.
22    For the 1991 through 1994 levy years only, "taxing  district"
23    includes  only  each non-home rule taxing district having the
24    majority of its 1990  equalized  assessed  value  within  any
25    county  or  counties contiguous to a county with 3,000,000 or
26    more inhabitants.  Beginning with the 1995 levy year, "taxing
27    district" includes only each non-home  rule  taxing  district
28    subject  to  this  Law  before  the  1995  levy year and each
29    non-home rule taxing district not subject to this Law  before
30    the  1995 levy year having the majority of its 1994 equalized
31    assessed value in an affected county or counties.   Beginning
 
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 1    with  the levy year in which this Law becomes applicable to a
 2    taxing  district  as  provided  in  Section  18-213,  "taxing
 3    district" also includes those taxing districts  made  subject
 4    to this Law as provided in Section 18-213.
 5        "Aggregate  extension" for taxing districts to which this
 6    Law applied before  the  1995  levy  year  means  the  annual
 7    corporate extension for the taxing district and those special
 8    purpose  extensions  that  are  made  annually for the taxing
 9    district, excluding special purpose extensions: (a) made  for
10    the  taxing  district to pay interest or principal on general
11    obligation bonds that were approved by referendum;  (b)  made
12    for  any  taxing  district  to  pay  interest or principal on
13    general obligation bonds issued before October 1,  1991;  (c)
14    made  for any taxing district to pay interest or principal on
15    bonds issued to refund or  continue  to  refund  those  bonds
16    issued  before  October  1,  1991;  (d)  made  for any taxing
17    district to pay interest or  principal  on  bonds  issued  to
18    refund  or  continue  to refund bonds issued after October 1,
19    1991 that were approved  by  referendum;  (e)  made  for  any
20    taxing district to pay interest or principal on revenue bonds
21    issued before October 1, 1991 for payment of which a property
22    tax  levy  or  the full faith and credit of the unit of local
23    government is pledged; however, a  tax  for  the  payment  of
24    interest or principal on those bonds shall be made only after
25    the governing body of the unit of local government finds that
26    all  other sources for payment are insufficient to make those
27    payments; (f) made for payments under a  building  commission
28    lease when the lease payments are for the retirement of bonds
29    issued  by  the commission before October 1, 1991, to pay for
30    the  building  project;  (g)  made  for  payments  due  under
31    installment contracts entered into before  October  1,  1991;
32    (h)  made  for  payments  of  principal and interest on bonds
33    issued under the Metropolitan Water Reclamation District  Act
34    to  finance construction projects initiated before October 1,
 
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 1    1991; (i) made for payments  of  principal  and  interest  on
 2    limited   bonds,  as  defined  in  Section  3  of  the  Local
 3    Government Debt Reform Act, in an amount not  to  exceed  the
 4    debt  service  extension  base  less the amount in items (b),
 5    (c), (e), and  (h)  of  this  definition  for  non-referendum
 6    obligations,  except obligations initially issued pursuant to
 7    referendum; (j) made for payments of principal  and  interest
 8    on bonds issued under Section 15 of the Local Government Debt
 9    Reform   Act;   and  (k)  made  by  a  school  district  that
10    participates  in  the  Special  Education  District  of  Lake
11    County, created by special education  joint  agreement  under
12    Section  10-22.31  of  the  School  Code,  for payment of the
13    school  district's  share  of  the  amounts  required  to  be
14    contributed by the Special Education District of Lake  County
15    to  the Illinois Municipal Retirement Fund under Article 7 of
16    the Illinois Pension Code; the amount of any extension  under
17    this  item  (k)  shall be certified by the school district to
18    the county clerk; and (l) made pursuant to Section 17-2.9  of
19    the School Code, whether levied annually or not.
20        "Aggregate  extension"  for the taxing districts to which
21    this Law did not apply before  the  1995  levy  year  (except
22    taxing  districts  subject  to  this  Law  in accordance with
23    Section 18-213) means the annual corporate extension for  the
24    taxing district and those special purpose extensions that are
25    made  annually  for  the  taxing  district, excluding special
26    purpose extensions: (a) made for the taxing district  to  pay
27    interest  or  principal on general obligation bonds that were
28    approved by referendum; (b) made for any taxing  district  to
29    pay  interest or principal on general obligation bonds issued
30    before March 1, 1995; (c) made for any taxing district to pay
31    interest or principal on bonds issued to refund  or  continue
32    to  refund  those bonds issued before March 1, 1995; (d) made
33    for any taxing district to pay interest or principal on bonds
34    issued to refund or continue to  refund  bonds  issued  after
 
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 1    March  1, 1995 that were approved by referendum; (e) made for
 2    any taxing district to pay interest or principal  on  revenue
 3    bonds  issued  before  March  1,  1995 for payment of which a
 4    property tax levy or the full faith and credit of the unit of
 5    local government is pledged; however, a tax for  the  payment
 6    of  interest  or  principal on those bonds shall be made only
 7    after the governing body of  the  unit  of  local  government
 8    finds  that all other sources for payment are insufficient to
 9    make those payments; (f) made for payments under  a  building
10    commission   lease  when  the  lease  payments  are  for  the
11    retirement of bonds issued by the commission before March  1,
12    1995  to  pay for the building project; (g) made for payments
13    due under installment contracts entered into before March  1,
14    1995;  (h)  made  for  payments  of principal and interest on
15    bonds  issued  under  the  Metropolitan   Water   Reclamation
16    District  Act  to  finance  construction  projects  initiated
17    before  October  1,  1991; (i) made for payments of principal
18    and interest on limited bonds, as defined in Section 3 of the
19    Local Government Debt Reform Act, in an amount not to  exceed
20    the debt service extension base less the amount in items (b),
21    (c),   and   (e)   of   this  definition  for  non-referendum
22    obligations, except obligations initially issued pursuant  to
23    referendum  and  bonds  described  in  subsection (h) of this
24    definition; (j) made for payments of principal  and  interest
25    on bonds issued under Section 15 of the Local Government Debt
26    Reform  Act;  (k) made for payments of principal and interest
27    on bonds authorized by Public Act  88-503  and  issued  under
28    Section  20a of the Chicago Park District Act for aquarium or
29    museum projects; (l)  made  for  payments  of  principal  and
30    interest on bonds authorized by Public Act 87-1191 and issued
31    under  Section 42 of the Cook County Forest Preserve District
32    Act for zoological park projects; and (m)  made  pursuant  to
33    Section  34-53.5  of the School Code, whether levied annually
34    or not; and (n) made pursuant to Section 17-2.9 of the School
 
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 1    Code, whether levied annually or not.
 2        "Aggregate extension" for all taxing districts  to  which
 3    this  Law  applies  in accordance with Section 18-213, except
 4    for those  taxing  districts  subject  to  paragraph  (2)  of
 5    subsection  (e) of Section 18-213, means the annual corporate
 6    extension for the taxing district and those  special  purpose
 7    extensions  that  are  made annually for the taxing district,
 8    excluding special purpose extensions: (a) made for the taxing
 9    district to pay interest or principal on  general  obligation
10    bonds  that  were  approved  by  referendum; (b) made for any
11    taxing district to  pay  interest  or  principal  on  general
12    obligation   bonds  issued  before  the  date  on  which  the
13    referendum making this Law applicable to the taxing  district
14    is  held; (c) made for any taxing district to pay interest or
15    principal on bonds issued to refund  or  continue  to  refund
16    those  bonds  issued  before the date on which the referendum
17    making this Law applicable to the taxing  district  is  held;
18    (d) made for any taxing district to pay interest or principal
19    on  bonds issued to refund or continue to refund bonds issued
20    after the date  on  which  the  referendum  making  this  Law
21    applicable  to  the taxing district is held if the bonds were
22    approved by referendum after the date on which the referendum
23    making this Law applicable to the taxing  district  is  held;
24    (e) made for any taxing district to pay interest or principal
25    on  revenue  bonds  issued  before  the  date  on  which  the
26    referendum  making this Law applicable to the taxing district
27    is held for payment of which a property tax levy or the  full
28    faith  and credit of the unit of local government is pledged;
29    however, a tax for the payment of interest  or  principal  on
30    those  bonds  shall  be made only after the governing body of
31    the unit of local government finds that all other sources for
32    payment are insufficient to make those payments; (f) made for
33    payments under a building commission  lease  when  the  lease
34    payments  are  for  the  retirement  of  bonds  issued by the
 
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 1    commission before the date on  which  the  referendum  making
 2    this Law applicable to the taxing district is held to pay for
 3    the  building  project;  (g)  made  for  payments  due  under
 4    installment  contracts  entered into before the date on which
 5    the referendum making  this  Law  applicable  to  the  taxing
 6    district  is  held;  (h)  made  for payments of principal and
 7    interest on limited bonds, as defined in  Section  3  of  the
 8    Local  Government Debt Reform Act, in an amount not to exceed
 9    the debt service extension base less the amount in items (b),
10    (c),  and  (e)  of   this   definition   for   non-referendum
11    obligations,  except obligations initially issued pursuant to
12    referendum; (i) made for payments of principal  and  interest
13    on bonds issued under Section 15 of the Local Government Debt
14    Reform Act; and (j) made for a qualified airport authority to
15    pay  interest or principal on general obligation bonds issued
16    for the purpose of paying obligations due under, or financing
17    airport facilities  required  to  be  acquired,  constructed,
18    installed  or  equipped  pursuant  to, contracts entered into
19    before March 1, 1996 (but not  including  any  amendments  to
20    such a contract taking effect on or after that date); and (k)
21    made  pursuant  to Section 17-2.9 of the School Code, whether
22    levied annually or not.
23        "Aggregate extension" for all taxing districts  to  which
24    this   Law  applies  in  accordance  with  paragraph  (2)  of
25    subsection (e) of Section 18-213 means the  annual  corporate
26    extension  for  the taxing district and those special purpose
27    extensions that are made annually for  the  taxing  district,
28    excluding special purpose extensions: (a) made for the taxing
29    district  to  pay interest or principal on general obligation
30    bonds that were approved by  referendum;  (b)  made  for  any
31    taxing  district  to  pay  interest  or  principal on general
32    obligation bonds issued before the  effective  date  of  this
33    amendatory  Act  of 1997; (c) made for any taxing district to
34    pay interest or  principal  on  bonds  issued  to  refund  or
 
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 1    continue  to  refund  those bonds issued before the effective
 2    date of this amendatory Act of 1997; (d) made for any  taxing
 3    district  to  pay  interest  or  principal on bonds issued to
 4    refund or continue to refund bonds issued after the effective
 5    date of this  amendatory  Act  of  1997  if  the  bonds  were
 6    approved  by  referendum  after  the  effective  date of this
 7    amendatory Act of 1997; (e) made for any taxing  district  to
 8    pay  interest or principal on revenue bonds issued before the
 9    effective date of this amendatory Act of 1997 for payment  of
10    which a property tax levy or the full faith and credit of the
11    unit  of  local government is pledged; however, a tax for the
12    payment of interest or principal on those bonds shall be made
13    only after the governing body of the unit of local government
14    finds that all other sources for payment are insufficient  to
15    make  those  payments; (f) made for payments under a building
16    commission  lease  when  the  lease  payments  are  for   the
17    retirement  of  bonds  issued  by  the  commission before the
18    effective date of this amendatory Act of 1997 to pay for  the
19    building project; (g) made for payments due under installment
20    contracts  entered  into  before  the  effective date of this
21    amendatory Act of 1997; (h) made for  payments  of  principal
22    and interest on limited bonds, as defined in Section 3 of the
23    Local  Government Debt Reform Act, in an amount not to exceed
24    the debt service extension base less the amount in items (b),
25    (c),  and  (e)  of   this   definition   for   non-referendum
26    obligations,  except obligations initially issued pursuant to
27    referendum; (i) made for payments of principal  and  interest
28    on bonds issued under Section 15 of the Local Government Debt
29    Reform Act; and (j) made for a qualified airport authority to
30    pay  interest or principal on general obligation bonds issued
31    for the purpose of paying obligations due under, or financing
32    airport facilities  required  to  be  acquired,  constructed,
33    installed  or  equipped  pursuant  to, contracts entered into
34    before March 1, 1996 (but not  including  any  amendments  to
 
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 1    such a contract taking effect on or after that date); and (k)
 2    made  pursuant  to Section 17-2.9 of the School Code, whether
 3    levied annually or not.
 4        "Debt service extension base" means an  amount  equal  to
 5    that  portion  of the extension for a taxing district for the
 6    1994 levy year, or for those taxing districts subject to this
 7    Law in accordance  with  Section  18-213,  except  for  those
 8    subject to paragraph (2) of subsection (e) of Section 18-213,
 9    for  the  levy  year  in which the referendum making this Law
10    applicable to the taxing  district  is  held,  or  for  those
11    taxing  districts  subject  to  this  Law  in accordance with
12    paragraph (2) of subsection (e) of  Section  18-213  for  the
13    1996  levy  year,  constituting  an  extension for payment of
14    principal and interest on bonds issued by the taxing district
15    without referendum, but not including (i) bonds authorized by
16    Public Act 88-503 and issued under Section 20a of the Chicago
17    Park District Act for  aquarium  and  museum  projects;  (ii)
18    bonds  issued  under  Section 15 of the Local Government Debt
19    Reform Act; or (iii) refunding obligations issued  to  refund
20    or   to  continue  to  refund  obligations  initially  issued
21    pursuant to referendum. The debt service extension  base  may
22    be established or increased as provided under Section 18-212.
23        "Special purpose extensions" include, but are not limited
24    to,  extensions  for  levies  made  on  an  annual  basis for
25    unemployment  and  workers'   compensation,   self-insurance,
26    contributions  to pension plans, and extensions made pursuant
27    to Section 6-601 of the Illinois  Highway  Code  for  a  road
28    district's  permanent  road  fund  whether levied annually or
29    not.  The  extension  for  a  special  service  area  is  not
30    included in the aggregate extension.
31        "Aggregate  extension  base"  means the taxing district's
32    last preceding aggregate extension as adjusted under Sections
33    18-215 through 18-230.
34        "Levy year" has the same meaning as "year" under  Section
 
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 1    1-155.
 2        "New  property" means (i) the assessed value, after final
 3    board  of  review  or  board  of  appeals  action,   of   new
 4    improvements  or  additions  to  existing improvements on any
 5    parcel of real property that increase the assessed  value  of
 6    that  real  property  during  the levy year multiplied by the
 7    equalization factor issued by the  Department  under  Section
 8    17-30  and  (ii)  the  assessed  value,  after final board of
 9    review or board of  appeals  action,  of  real  property  not
10    exempt  from  real  estate  taxation, which real property was
11    exempt from real estate  taxation  for  any  portion  of  the
12    immediately   preceding   levy   year,   multiplied   by  the
13    equalization factor issued by the  Department  under  Section
14    17-30. In addition, the county clerk in a county containing a
15    population  of  3,000,000  or  more shall include in the 1997
16    recovered tax increment value for any  school  district,  any
17    recovered tax increment value that was applicable to the 1995
18    tax year calculations.
19        "Qualified  airport authority" means an airport authority
20    organized under the Airport Authorities Act and located in  a
21    county  bordering  on  the  State  of  Wisconsin and having a
22    population in excess of 200,000 and not greater than 500,000.
23        "Recovered  tax  increment  value"   means,   except   as
24    otherwise  provided  in  this  paragraph,  the  amount of the
25    current year's equalized assessed value, in  the  first  year
26    after a municipality terminates the designation of an area as
27    a redevelopment project area previously established under the
28    Tax  Increment  Allocation  Development  Act  in the Illinois
29    Municipal Code, previously established under  the  Industrial
30    Jobs   Recovery  Law  in  the  Illinois  Municipal  Code,  or
31    previously established under the  Economic  Development  Area
32    Tax  Increment  Allocation  Act,  of each taxable lot, block,
33    tract, or  parcel  of  real  property  in  the  redevelopment
34    project  area  over  and above the initial equalized assessed
 
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 1    value of each property in the redevelopment project area. For
 2    the taxes which are extended for  the  1997  levy  year,  the
 3    recovered  tax  increment  value  for  a non-home rule taxing
 4    district that first became subject to this Law for  the  1995
 5    levy  year  because a majority of its 1994 equalized assessed
 6    value  was  in  an  affected  county  or  counties  shall  be
 7    increased if a municipality terminated the designation of  an
 8    area  in  1993  as  a  redevelopment  project area previously
 9    established under the Tax  Increment  Allocation  Development
10    Act  in  the  Illinois Municipal Code, previously established
11    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
12    Municipal  Code, or previously established under the Economic
13    Development Area Tax Increment Allocation Act, by  an  amount
14    equal  to  the  1994 equalized assessed value of each taxable
15    lot,  block,  tract,  or  parcel  of  real  property  in  the
16    redevelopment  project  area  over  and  above  the   initial
17    equalized   assessed   value   of   each   property   in  the
18    redevelopment  project  area.  In  the  first  year  after  a
19    municipality removes a taxable lot, block, tract,  or  parcel
20    of   real   property   from   a  redevelopment  project  area
21    established under the Tax  Increment  Allocation  Development
22    Act  in  the  Illinois  Municipal  Code,  the Industrial Jobs
23    Recovery Law in the Illinois Municipal Code, or the  Economic
24    Development Area Tax Increment Allocation Act, "recovered tax
25    increment  value"  means  the  amount  of  the current year's
26    equalized assessed value of each taxable lot,  block,  tract,
27    or  parcel  of  real  property removed from the redevelopment
28    project area over and above the  initial  equalized  assessed
29    value   of   that  real  property  before  removal  from  the
30    redevelopment project area.
31        Except as otherwise provided in this  Section,  "limiting
32    rate"  means  a  fraction  the numerator of which is the last
33    preceding aggregate extension base times an amount  equal  to
34    one plus the extension limitation defined in this Section and
 
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 1    the  denominator  of  which  is  the current year's equalized
 2    assessed value of all real property in  the  territory  under
 3    the jurisdiction of the taxing district during the prior levy
 4    year.    For   those  taxing  districts  that  reduced  their
 5    aggregate extension for the last  preceding  levy  year,  the
 6    highest  aggregate  extension  in any of the last 3 preceding
 7    levy years shall be used for the  purpose  of  computing  the
 8    limiting   rate.   The  denominator  shall  not  include  new
 9    property.  The denominator shall not  include  the  recovered
10    tax increment value.
11    (Source:  P.A.  91-357,  eff.  7-29-99; 91-478, eff. 11-1-99;
12    92-547, eff. 6-13-02.)

13        Section 10. The School Code is amended by adding  Section
14    17-2.9 as follows:

15        (105 ILCS 5/17-2.9 new)
16        Sec. 17-2.9. Energy tax levy. If the utility costs in any
17    given fiscal year of a school district having a population of
18    less  than  500,000 inhabitants are estimated to exceed by at
19    least  20%  the  average  annual  utility  costs  for  the  3
20    preceding fiscal years, then the school board may levy,  upon
21    all   taxable   property  of  the  district,  an  energy  tax
22    sufficient to produce, when extended, the amount by which the
23    district's estimated utility costs for the fiscal year exceed
24    120% of the average annual utility costs for the 3  preceding
25    fiscal  years.  The utility cost figures shall be prepared by
26    the district auditor and included on the audit report to  the
27    district.  The  figures  from  the  auditor shall include the
28    district's total estimated costs  for  both  electricity  and
29    natural  gas. The figures shall accompany the energy tax levy
30    request made by the district  in  December  as  part  of  the
31    annual district levy request to the county clerk.