093_HC0020

 
                                     LRB093 07195 SJM 07350 e

 1                       HOUSE JOINT RESOLUTION
 2                      CONSTITUTIONAL AMENDMENT

 3        RESOLVED,  BY  THE  HOUSE  OF  REPRESENTATIVES   OF   THE
 4    NINETY-THIRD  GENERAL  ASSEMBLY OF THE STATE OF ILLINOIS, THE
 5    SENATE CONCURRING HEREIN, that there shall  be  submitted  to
 6    the  electors  of  the State for adoption or rejection at the
 7    general election next occurring at least 6 months  after  the
 8    adoption  of  this resolution a proposition to add Section 11
 9    of Article IX to the Illinois Constitution as follows:

10                             ARTICLE IX
11                               REVENUE

12        (ILCON Art. IX, Sec. 11 new)
13    SECTION 11. TAXPAYER'S BILL OF RIGHTS
14        (a) General provisions. The preferred  interpretation  of
15    this  Section shall reasonably restrain most of the growth of
16    government. All provisions are self-executing  and  severable
17    and   supersede   conflicting   State  Constitutional,  State
18    statutory, or other State or local provisions.  Other  limits
19    on  taxing  district  revenue,  spending,  and  debt  may  be
20    weakened only by future voter approval.
21        Individual or class action enforcement suits may be filed
22    and  shall  have  the  highest  civil priority of resolution.
23    Successful  plaintiffs  are  allowed  costs  and   reasonable
24    attorney  fees,  but  a  taxing district is not unless a suit
25    against it is ruled frivolous. Revenue  collected,  kept,  or
26    spent  illegally  beginning 4 full fiscal years before a suit
27    is filed shall be refunded with 10%  annual  simple  interest
28    from  the initial conduct. Subject to judicial review, taxing
29    districts may use any reasonable  method  for  refunds  under
30    this   Section,  including  temporary  tax  credits  or  rate
31    reductions. Refunds  need  not  be  proportional  when  prior
32    payments  are  impractical to identify or return. When annual
 
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 1    taxing district revenue  is  less  than  annual  payments  on
 2    general   obligation   bonds,   pensions,   and  final  court
 3    judgments, subdivision (d)(1) and  subsection  (g)  shall  be
 4    suspended to provide for the deficiency.
 5        (b) Definitions. As used in this Section:
 6        "Emergency"   excludes   economic   conditions,   revenue
 7    shortfalls,  or  taxing  district  salary  or  fringe benefit
 8    increases.
 9        "Fiscal  year  spending"  means   all   taxing   district
10    expenditures  and reserve increases except, as to both, those
11    for refunds made in the current or next fiscal year or  those
12    from   gifts,   federal   funds,   collections   for  another
13    government, pension contributions by  employees  and  pension
14    fund  earnings,  reserve  transfers  or  expenditures, damage
15    awards, or property sales.
16        "Inflation" means the percentage  change  in  the  United
17    States  Bureau  of  Labor Statistics Consumer Price Index for
18    all items, all urban consumers, or its successor index.
19        "Local growth" for a  non-school  district  means  a  net
20    percentage  change  in actual value of all real property in a
21    taxing district from construction of  taxable  real  property
22    improvements,  minus destruction of similar improvements, and
23    additions to, minus deletions from,  taxable  real  property.
24    For  a  school  district, "local growth" means the percentage
25    change in its student enrollment.
26        "Public question" means  any  question,  proposition,  or
27    measure  submitted  to the voters at an election dealing with
28    subject matter other  than  the  nomination  or  election  of
29    candidates and shall include, but is not limited to, any bond
30    or   tax   referendum,   and   questions   relating   to  the
31    Constitution.
32        "Taxing district" means the State or any  unit  of  local
33    government.
34        "Unit  of local government" means a county, municipality,
 
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 1    township, special  district,  school  district,  and  a  unit
 2    designated  as  a  unit  of  local  government  by law, which
 3    exercises limited governmental power or powers in respect  to
 4    limited governmental subjects.
 5        (c) Election provisions.
 6             (1) Public questions shall be decided at the general
 7        election,    general   primary   election,   consolidated
 8        election, or consolidated primary  election.  Except  for
 9        petitions,  bonded  debt,  or  constitutional provisions,
10        taxing districts may  consolidate  public  questions  and
11        voters  may approve a delay of up to 4 years in voting on
12        public questions. Taxing district  actions  taken  during
13        the delay shall not extend beyond that period.
14             (2)  At  least  30  days  before  a  public question
15        election, taxing districts shall mail at the least  cost,
16        and  as  a  package  where  taxing  districts with public
17        questions overlap, a titled  notice  or  set  of  notices
18        addressed  to  "All Registered Voters" at each address of
19        one or more active registered electors. Titles shall have
20        this order of preference: "NOTICE OF ELECTION TO INCREASE
21        TAXES/TO INCREASE DEBT/ON A PETITION/ON A  RESOLUTION  OR
22        ORDINANCE."  Except  for  taxing  district voter-approved
23        additions, notices shall include only:
24                  (A) The election  date,  hours,  ballot  title,
25             text,   and   local   election  office  address  and
26             telephone number.
27                  (B) For proposed taxing district tax or  bonded
28             debt  increases,  the  estimated  or actual total of
29             taxing district fiscal year spending for the current
30             year and each of the past 4 years, and  the  overall
31             percentage and dollar change.
32                  (C)  For  the  first  full  fiscal year of each
33             proposed  taxing  district  tax   increase,   taxing
34             district  estimates  of the maximum dollar amount of
 
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 1             each increase and of  taxing  district  fiscal  year
 2             spending without the increase.
 3                  (D)  For  proposed taxing district bonded debt,
 4             its principal amount and maximum  annual  and  total
 5             taxing  district  repayment  cost, and the principal
 6             balance of total current taxing district bonded debt
 7             and its maximum annual and  remaining  total  taxing
 8             district repayment cost.
 9                  (E)  Two  summaries,  up to 500 words each, one
10             for  and  one  against  the  proposal,  of   written
11             comments  filed  with  the  election  officer  on or
12             before 45 days before the election. No summary shall
13             mention names of persons or private groups, nor  any
14             endorsements of or resolutions against the proposal.
15             Petition representatives following these rules shall
16             write  this summary for their petition. The election
17             authority shall maintain  and  accurately  summarize
18             all other relevant written comments.
19             (3)  Except  by  later  voter  approval,  if  a  tax
20        increase  or fiscal year spending exceeds any estimate in
21        subdivision (c)(2)(C) for the same fiscal year,  the  tax
22        increase  is  thereafter reduced up to 100% in proportion
23        to the combined dollar excess, and  the  combined  excess
24        revenue refunded in the next fiscal year. Taxing district
25        bonded  debt  shall  not issue on terms that could exceed
26        its share of its maximum repayment costs  in  subdivision
27        (c)(2)(D). Ballot titles for tax or bonded debt increases
28        shall  begin, "SHALL (TAXING DISTRICT) TAXES BE INCREASED
29        (first, or if phased in, final, full fiscal  year  dollar
30        increase)  ANNUALLY...?" or "SHALL (TAXING DISTRICT) DEBT
31        BE INCREASED (principal amount), WITH A REPAYMENT COST OF
32        (maximum total taxing district cost), ...?"
33        (d) Required  elections.  Starting  at  the  consolidated
34    primary  election  in  2005, taxing districts must have voter
 
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 1    approval in advance for:
 2             (1) Unless subsection (a) or (f) applies, a new tax,
 3        a tax rate increase, a levy increase above that  for  the
 4        prior  year,  an  equalized assessed value ratio increase
 5        for a property class, the extension of an  expiring  tax,
 6        or a tax policy change directly causing a net tax revenue
 7        gain to any taxing district.
 8             (2)  Except  for  refinancing taxing district bonded
 9        debt at a lower interest rate or adding new employees  to
10        existing  taxing  district pension plans, creation of any
11        multiple-fiscal year direct or indirect  taxing  district
12        debt  or  other  financial  obligation whatsoever without
13        adequate present cash reserves  pledged  irrevocably  and
14        held for payments in all future fiscal years.
15        (e)  Emergency  reserves. To use for declared emergencies
16    only, each taxing district shall reserve for 2005 1% or more,
17    for 2006 2% or more, and for all later years 3%  or  more  of
18    its  fiscal  year  spending  excluding  bonded  debt service.
19    Unused reserves apply to the next year's reserve.
20        (f) Emergency taxes. This subsection (f)  grants  no  new
21    taxing   power.  Emergency  property  taxes  are  prohibited.
22    Emergency tax revenue is excluded for purposes of subsections
23    (c)(3) and (g), even if later ratified by  voters.  Emergency
24    taxes shall also meet all of the following conditions:
25             (1)  A  two-thirds  majority  of the members of each
26        house of the  General  Assembly  or  of  a  local  taxing
27        district's governing authority declares the emergency and
28        imposes the tax by separate recorded roll call votes.
29             (2)  Emergency tax revenue shall be spent only after
30        emergency reserves are depleted, and  shall  be  refunded
31        within  180 days after the emergency ends if not spent on
32        the emergency.
33             (3) A tax not approved on the next election date  60
34        days  or  more  after the declaration shall end with that
 
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 1        election month.
 2        (g) Spending limits.
 3             (1) The maximum annual percentage  change  in  State
 4        fiscal year spending equals inflation plus the percentage
 5        change  in  State  population in the prior calendar year,
 6        adjusted for revenue changes  approved  by  voters  after
 7        2003.  Population  shall  be determined by annual federal
 8        census estimates and the number shall be  adjusted  every
 9        decade to match the federal census.
10             (2)  The  maximum  annual  percentage change in each
11        local  taxing  district's  fiscal  year  spending  equals
12        inflation in the prior calendar year  plus  annual  local
13        growth,  adjusted  for revenue changes approved by voters
14        after 2003 and  subdivision  (h)(2)  and  subsection  (i)
15        reductions.
16             (3)  The  maximum  annual  percentage change in each
17        taxing district's property tax revenue  equals  inflation
18        in  the  prior  calendar  year  plus annual local growth,
19        adjusted for property tax  revenue  changes  approved  by
20        voters  after  2003 and subdivision (h)(2) and subsection
21        (i) reductions.
22             (4) If revenue from sources not excluded from fiscal
23        year spending exceeds these limits in  dollars  for  that
24        fiscal  year,  the  excess  shall be refunded in the next
25        fiscal year unless voters approve a revenue change as  an
26        offset.  Initial taxing district bases are current fiscal
27        year spending and 2003 property tax  collected  in  2004.
28        Future  creation  of  taxing  district  bonded debt shall
29        increase, and retiring  or  refinancing  taxing  district
30        bonded   debt  shall  lower,  fiscal  year  spending  and
31        property tax  revenue  by  the  annual  debt  service  so
32        funded.  Debt  service changes, reductions, refunds under
33        subsection (a) or subdivision (c)(3), and  voter-approved
34        revenue  changes  are  dollar amounts that are exceptions
 
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 1        to,  and  not  part  of,  any   taxing   district   base.
 2        Voter-approved  revenue changes do not require a tax rate
 3        change.
 4        (h) Revenue limits.
 5             (1) New or increased  transfer  tax  rates  on  real
 6        property  are  prohibited. No new State real property tax
 7        or local taxing district income  tax  shall  be  imposed.
 8        Neither  an  income  tax  rate  increase  nor a new State
 9        definition of taxable income shall apply before the  next
10        tax  year.  Any  income tax law change after July 1, 2004
11        shall also require all taxable net income to be taxed  at
12        one  rate, excluding refund tax credits or voter-approved
13        tax credits, with no added tax or surcharge.
14             (2) Regardless of reassessment frequency,  valuation
15        notices  shall  be  mailed  annually  and may be appealed
16        annually, with no presumption in  favor  of  any  pending
17        valuation. Past or future sales by a lender or government
18        shall  also  be considered as comparable market sales and
19        their sales prices kept as public records.  Actual  value
20        shall  be  stated on all property tax bills and valuation
21        notices and, for residential  real  property,  determined
22        solely by the market approach to appraisal.
23        (i)  State  mandates. Except for public education through
24    grade 12 or as required of a local taxing district by federal
25    law, a local taxing district may reduce or end its subsidy to
26    any program delegated to  it  by  the  General  Assembly  for
27    administration.  For  current programs, the State may require
28    90 days' notice and that the adjustment occur in a maximum of
29    3 equal annual installments.

30                              SCHEDULE
31        This Constitutional Amendment  takes  effect  upon  being
32    declared adopted in accordance with Section 7 of the Illinois
33    Constitutional Amendment Act.