093_HB0537

 
                                     LRB093 04315 SJM 04362 b

 1        AN ACT concerning taxes.

 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 by  a  county,  under  Section
19    5-1069.6  of  the  Counties Code, to pay the cost of employee
20    insurance benefits as provided in that Section.
21        "Aggregate extension" for the taxing districts  to  which
22    this  Law  did  not  apply  before the 1995 levy year (except
23    taxing districts subject  to  this  Law  in  accordance  with
24    Section  18-213) means the annual corporate extension for the
25    taxing district and those special purpose extensions that are
26    made annually for  the  taxing  district,  excluding  special
27    purpose  extensions:  (a) made for the taxing district to pay
28    interest or principal on general obligation bonds  that  were
29    approved  by  referendum; (b) made for any taxing district to
30    pay interest or principal on general obligation bonds  issued
31    before March 1, 1995; (c) made for any taxing district to pay
32    interest  or  principal on bonds issued to refund or continue
33    to refund those bonds issued before March 1, 1995;  (d)  made
34    for any taxing district to pay interest or principal on bonds
 
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 1    issued  to  refund  or  continue to refund bonds issued after
 2    March 1, 1995 that were approved by referendum; (e) made  for
 3    any  taxing  district to pay interest or principal on revenue
 4    bonds issued before March 1, 1995  for  payment  of  which  a
 5    property tax levy or the full faith and credit of the unit of
 6    local  government  is pledged; however, a tax for the payment
 7    of interest or principal on those bonds shall  be  made  only
 8    after  the  governing  body  of  the unit of local government
 9    finds that all other sources for payment are insufficient  to
10    make  those  payments; (f) made for payments under a building
11    commission  lease  when  the  lease  payments  are  for   the
12    retirement  of bonds issued by the commission before March 1,
13    1995 to pay for the building project; (g) made  for  payments
14    due  under installment contracts entered into before March 1,
15    1995; (h) made for payments  of  principal  and  interest  on
16    bonds   issued   under  the  Metropolitan  Water  Reclamation
17    District  Act  to  finance  construction  projects  initiated
18    before October 1, 1991; (i) made for  payments  of  principal
19    and interest on limited bonds, as defined in Section 3 of the
20    Local  Government Debt Reform Act, in an amount not to exceed
21    the debt service extension base less the amount in items (b),
22    (c),  and  (e)  of   this   definition   for   non-referendum
23    obligations,  except obligations initially issued pursuant to
24    referendum and bonds described  in  subsection  (h)  of  this
25    definition;  (j)  made for payments of principal and interest
26    on bonds issued under Section 15 of the Local Government Debt
27    Reform Act; (k) made for payments of principal  and  interest
28    on  bonds  authorized  by  Public Act 88-503 and issued under
29    Section 20a of the Chicago Park District Act for aquarium  or
30    museum  projects;  (l)  made  for  payments  of principal and
31    interest on bonds authorized by Public Act 87-1191 and issued
32    under Section 42 of the Cook County Forest Preserve  District
33    Act  for  zoological  park projects; and (m) made pursuant to
34    Section 34-53.5 of the School Code, whether  levied  annually
 
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 1    or  not;  and (n) made by a county, under Section 5-1069.6 of
 2    the Counties Code, to pay  the  cost  of  employee  insurance
 3    benefits as provided in that Section.
 4        "Aggregate  extension"  for all taxing districts to which
 5    this Law applies in accordance with  Section  18-213,  except
 6    for  those  taxing  districts  subject  to  paragraph  (2) of
 7    subsection (e) of Section 18-213, means the annual  corporate
 8    extension  for  the taxing district and those special purpose
 9    extensions that are made annually for  the  taxing  district,
10    excluding special purpose extensions: (a) made for the taxing
11    district  to  pay interest or principal on general obligation
12    bonds that were approved by  referendum;  (b)  made  for  any
13    taxing  district  to  pay  interest  or  principal on general
14    obligation  bonds  issued  before  the  date  on  which   the
15    referendum  making this Law applicable to the taxing district
16    is held; (c) made for any taxing district to pay interest  or
17    principal  on  bonds  issued  to refund or continue to refund
18    those bonds issued before the date on  which  the  referendum
19    making  this  Law  applicable to the taxing district is held;
20    (d) made for any taxing district to pay interest or principal
21    on bonds issued to refund or continue to refund bonds  issued
22    after  the  date  on  which  the  referendum  making this Law
23    applicable to the taxing district is held if the  bonds  were
24    approved by referendum after the date on which the referendum
25    making  this  Law  applicable to the taxing district is held;
26    (e) made for any taxing district to pay interest or principal
27    on  revenue  bonds  issued  before  the  date  on  which  the
28    referendum making this Law applicable to the taxing  district
29    is  held for payment of which a property tax levy or the full
30    faith and credit of the unit of local government is  pledged;
31    however,  a  tax  for the payment of interest or principal on
32    those bonds shall be made only after the  governing  body  of
33    the unit of local government finds that all other sources for
34    payment are insufficient to make those payments; (f) made for
 
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 1    payments  under  a  building  commission lease when the lease
 2    payments are for  the  retirement  of  bonds  issued  by  the
 3    commission  before  the  date  on which the referendum making
 4    this Law applicable to the taxing district is held to pay for
 5    the  building  project;  (g)  made  for  payments  due  under
 6    installment contracts entered into before the date  on  which
 7    the  referendum  making  this  Law  applicable  to the taxing
 8    district is held; (h) made  for  payments  of  principal  and
 9    interest  on  limited  bonds,  as defined in Section 3 of the
10    Local Government Debt Reform Act, in an amount not to  exceed
11    the debt service extension base less the amount in items (b),
12    (c),   and   (e)   of   this  definition  for  non-referendum
13    obligations, except obligations initially issued pursuant  to
14    referendum;  (i)  made for payments of principal and interest
15    on bonds issued under Section 15 of the Local Government Debt
16    Reform Act; and (j) made for a qualified airport authority to
17    pay interest or principal on general obligation bonds  issued
18    for the purpose of paying obligations due under, or financing
19    airport  facilities  required  to  be  acquired, constructed,
20    installed or equipped pursuant  to,  contracts  entered  into
21    before  March  1,  1996  (but not including any amendments to
22    such a contract taking effect on or after that date); and (k)
23    made by a county, under  Section  5-1069.6  of  the  Counties
24    Code,  to  pay  the  cost  of  employee insurance benefits as
25    provided in that Section.
26        "Aggregate extension" for all taxing districts  to  which
27    this   Law  applies  in  accordance  with  paragraph  (2)  of
28    subsection (e) of Section 18-213 means the  annual  corporate
29    extension  for  the taxing district and those special purpose
30    extensions that are made annually for  the  taxing  district,
31    excluding special purpose extensions: (a) made for the taxing
32    district  to  pay interest or principal on general obligation
33    bonds that were approved by  referendum;  (b)  made  for  any
34    taxing  district  to  pay  interest  or  principal on general
 
                            -7-      LRB093 04315 SJM 04362 b
 1    obligation bonds issued before the  effective  date  of  this
 2    amendatory  Act  of 1997; (c) made for any taxing district to
 3    pay interest or  principal  on  bonds  issued  to  refund  or
 4    continue  to  refund  those bonds issued before the effective
 5    date of this amendatory Act of 1997; (d) made for any  taxing
 6    district  to  pay  interest  or  principal on bonds issued to
 7    refund or continue to refund bonds issued after the effective
 8    date of this  amendatory  Act  of  1997  if  the  bonds  were
 9    approved  by  referendum  after  the  effective  date of this
10    amendatory Act of 1997; (e) made for any taxing  district  to
11    pay  interest or principal on revenue bonds issued before the
12    effective date of this amendatory Act of 1997 for payment  of
13    which a property tax levy or the full faith and credit of the
14    unit  of  local government is pledged; however, a tax for the
15    payment of interest or principal on those bonds shall be made
16    only after the governing body of the unit of local government
17    finds that all other sources for payment are insufficient  to
18    make  those  payments; (f) made for payments under a building
19    commission  lease  when  the  lease  payments  are  for   the
20    retirement  of  bonds  issued  by  the  commission before the
21    effective date of this amendatory Act of 1997 to pay for  the
22    building project; (g) made for payments due under installment
23    contracts  entered  into  before  the  effective date of this
24    amendatory Act of 1997; (h) made for  payments  of  principal
25    and interest on limited bonds, as defined in Section 3 of the
26    Local  Government Debt Reform Act, in an amount not to exceed
27    the debt service extension base less the amount in items (b),
28    (c),  and  (e)  of   this   definition   for   non-referendum
29    obligations,  except obligations initially issued pursuant to
30    referendum; (i) made for payments of principal  and  interest
31    on bonds issued under Section 15 of the Local Government Debt
32    Reform Act; and (j) made for a qualified airport authority to
33    pay  interest or principal on general obligation bonds issued
34    for the purpose of paying obligations due under, or financing
 
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 1    airport facilities  required  to  be  acquired,  constructed,
 2    installed  or  equipped  pursuant  to, contracts entered into
 3    before March 1, 1996 (but not  including  any  amendments  to
 4    such a contract taking effect on or after that date); and (k)
 5    made  by  a  county,  under  Section 5-1069.6 of the Counties
 6    Code, to pay the  cost  of  employee  insurance  benefits  as
 7    provided in that Section.
 8        "Debt  service  extension  base" means an amount equal to
 9    that portion of the extension for a taxing district  for  the
10    1994 levy year, or for those taxing districts subject to this
11    Law  in  accordance  with  Section  18-213,  except for those
12    subject to paragraph (2) of subsection (e) of Section 18-213,
13    for the levy year in which the  referendum  making  this  Law
14    applicable  to  the  taxing  district  is  held, or for those
15    taxing districts subject  to  this  Law  in  accordance  with
16    paragraph  (2)  of  subsection  (e) of Section 18-213 for the
17    1996 levy year, constituting  an  extension  for  payment  of
18    principal and interest on bonds issued by the taxing district
19    without referendum, but not including (i) bonds authorized by
20    Public Act 88-503 and issued under Section 20a of the Chicago
21    Park  District  Act  for  aquarium  and museum projects; (ii)
22    bonds issued under Section 15 of the  Local  Government  Debt
23    Reform  Act;  or (iii) refunding obligations issued to refund
24    or  to  continue  to  refund  obligations  initially   issued
25    pursuant  to  referendum. The debt service extension base may
26    be established or increased as provided under Section 18-212.
27        "Special purpose extensions" include, but are not limited
28    to, extensions  for  levies  made  on  an  annual  basis  for
29    unemployment   and   workers'  compensation,  self-insurance,
30    contributions to pension plans, and extensions made  pursuant
31    to  Section  6-601  of  the  Illinois Highway Code for a road
32    district's permanent road fund  whether  levied  annually  or
33    not.   The  extension  for  a  special  service  area  is not
34    included in the aggregate extension.
 
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 1        "Aggregate extension base" means  the  taxing  district's
 2    last preceding aggregate extension as adjusted under Sections
 3    18-215 through 18-230.
 4        "Levy  year" has the same meaning as "year" under Section
 5    1-155.
 6        "New property" means (i) the assessed value, after  final
 7    board   of   review  or  board  of  appeals  action,  of  new
 8    improvements or additions to  existing  improvements  on  any
 9    parcel  of  real property that increase the assessed value of
10    that real property during the levy  year  multiplied  by  the
11    equalization  factor  issued  by the Department under Section
12    17-30 and (ii) the  assessed  value,  after  final  board  of
13    review  or  board  of  appeals  action,  of real property not
14    exempt from real estate taxation,  which  real  property  was
15    exempt  from  real  estate  taxation  for  any portion of the
16    immediately  preceding   levy   year,   multiplied   by   the
17    equalization  factor  issued  by the Department under Section
18    17-30. In addition, the county clerk in a county containing a
19    population of 3,000,000 or more shall  include  in  the  1997
20    recovered  tax  increment  value for any school district, any
21    recovered tax increment value that was applicable to the 1995
22    tax year calculations.
23        "Qualified airport authority" means an airport  authority
24    organized  under the Airport Authorities Act and located in a
25    county bordering on the  State  of  Wisconsin  and  having  a
26    population in excess of 200,000 and not greater than 500,000.
27        "Recovered   tax   increment   value"  means,  except  as
28    otherwise provided in  this  paragraph,  the  amount  of  the
29    current  year's  equalized  assessed value, in the first year
30    after a municipality terminates the designation of an area as
31    a redevelopment project area previously established under the
32    Tax Increment Allocation  Development  Act  in  the  Illinois
33    Municipal  Code,  previously established under the Industrial
34    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
 
                            -10-     LRB093 04315 SJM 04362 b
 1    previously  established  under  the Economic Development Area
 2    Tax Increment Allocation Act, of  each  taxable  lot,  block,
 3    tract,  or  parcel  of  real  property  in  the redevelopment
 4    project area over and above the  initial  equalized  assessed
 5    value of each property in the redevelopment project area. For
 6    the  taxes  which  are  extended  for the 1997 levy year, the
 7    recovered tax increment value  for  a  non-home  rule  taxing
 8    district  that  first became subject to this Law for the 1995
 9    levy year because a majority of its 1994  equalized  assessed
10    value  was  in  an  affected  county  or  counties  shall  be
11    increased  if a municipality terminated the designation of an
12    area in 1993  as  a  redevelopment  project  area  previously
13    established  under  the  Tax Increment Allocation Development
14    Act in the Illinois Municipal  Code,  previously  established
15    under  the  Industrial  Jobs  Recovery  Law  in  the Illinois
16    Municipal Code, or previously established under the  Economic
17    Development  Area  Tax Increment Allocation Act, by an amount
18    equal to the 1994 equalized assessed value  of  each  taxable
19    lot,  block,  tract,  or  parcel  of  real  property  in  the
20    redevelopment   project  area  over  and  above  the  initial
21    equalized  assessed   value   of   each   property   in   the
22    redevelopment  project  area.  In  the  first  year  after  a
23    municipality  removes  a taxable lot, block, tract, or parcel
24    of  real  property  from   a   redevelopment   project   area
25    established  under  the  Tax Increment Allocation Development
26    Act in the  Illinois  Municipal  Code,  the  Industrial  Jobs
27    Recovery  Law in the Illinois Municipal Code, or the Economic
28    Development Area Tax Increment Allocation Act, "recovered tax
29    increment value" means  the  amount  of  the  current  year's
30    equalized  assessed  value of each taxable lot, block, tract,
31    or parcel of real property  removed  from  the  redevelopment
32    project  area  over  and above the initial equalized assessed
33    value  of  that  real  property  before  removal   from   the
34    redevelopment project area.
 
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 1        Except  as  otherwise provided in this Section, "limiting
 2    rate" means a fraction the numerator of  which  is  the  last
 3    preceding  aggregate  extension base times an amount equal to
 4    one plus the extension limitation defined in this Section and
 5    the denominator of which  is  the  current  year's  equalized
 6    assessed  value  of  all real property in the territory under
 7    the jurisdiction of the taxing district during the prior levy
 8    year.   For  those  taxing  districts  that   reduced   their
 9    aggregate  extension  for  the  last preceding levy year, the
10    highest aggregate extension in any of the  last  3  preceding
11    levy  years  shall  be  used for the purpose of computing the
12    limiting  rate.   The  denominator  shall  not  include   new
13    property.   The  denominator  shall not include the recovered
14    tax increment value.
15    (Source: P.A. 91-357, eff.  7-29-99;  91-478,  eff.  11-1-99;
16    92-547, eff. 6-13-02.)

17        Section  10.  The  Counties  Code  is  amended  by adding
18    Section 5-1069.6 as follows:

19        (55 ILCS 5/5-1069.6 new)
20        Sec.  5-1069.6.  Tax  levy  for   group   life,   health,
21    accident, hospital, and medical insurance.
22        (a)  A  county  may  annually levy and collect taxes upon
23    all taxable property within its territory at a rate that will
24    produce a sum that will be sufficient  to  pay  the  cost  of
25    providing,  for the benefit of employees of the county, group
26    life, health, accident, hospital, and medical  insurance,  or
27    any  one  or  any combination of those types of insurance, or
28    the cost to the county board to self-insure for  any  one  or
29    any  combination of those types of insurance, all as provided
30    in Section 5-1069.
31        (b)  Any tax levied under this Section  shall  be  levied
32    and  collected  in  like manner with the general taxes of the
 
                            -12-     LRB093 04315 SJM 04362 b
 1    county and shall be exclusive  of  and  in  addition  to  the
 2    amount  of  tax  that  the  county  is authorized to levy for
 3    general purposes under any statute that may limit the  amount
 4    of  tax  that  the  county may levy for general purposes. The
 5    county clerk of the county levying a tax under this  Section,
 6    in  reducing  tax  levies  under  the  provisions  of any Act
 7    concerning  the  levy  and  extension  of  taxes,  shall  not
 8    consider any tax provided for by this Section as  a  part  of
 9    the  general  tax  levy  for  the  purposes of the county nor
10    include that tax within any limitation of the percent of  the
11    assessed  valuation  upon  which  taxes  are  required  to be
12    extended for the county.
13        (d)  Taxes levied under this Section  are  excepted  from
14    and  shall not be included within the rate limitation imposed
15    by law on taxes levied for general corporate purposes by  the
16    county.
17        (e)  Revenues  derived  from  the  tax  levied under this
18    Section shall be paid to  the  treasurer  of  the  county  as
19    collected  and  used  for  the  purposes  of this Section. If
20    payments on account of those taxes  are  insufficient  during
21    any year to meet the purposes of this Section, the county may
22    issue  tax anticipation warrants against the current tax levy
23    in the manner provided by statute.