093_SB1490

 
                                     LRB093 04818 SJM 04874 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 of
17    this Code.
18        "Affected county" means a county  of  3,000,000  or  more
19    inhabitants  or  a county contiguous to a county of 3,000,000
20    or more inhabitants.
21        "Taxing  district"  has  the  same  meaning  provided  in
22    Section 1-150, except as otherwise provided in this  Section.
23    For  the 1991 through 1994 levy years only, "taxing district"
24    includes only each non-home rule taxing district  having  the
25    majority  of  its  1990  equalized  assessed value within any
26    county or counties contiguous to a county with  3,000,000  or
27    more inhabitants.  Beginning with the 1995 levy year, "taxing
28    district"  includes  only  each non-home rule taxing district
29    subject to this Law  before  the  1995  levy  year  and  each
30    non-home  rule taxing district not subject to this Law before
31    the 1995 levy year having the majority of its 1994  equalized
 
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 1    assessed  value in an affected county or counties.  Beginning
 2    with the levy year in which this Law becomes applicable to  a
 3    taxing  district  as  provided  in  Section  18-213,  "taxing
 4    district"  also  includes those taxing districts made subject
 5    to this Law as provided in Section 18-213.
 6        "Aggregate extension" for taxing districts to which  this
 7    Law  applied  before  the  1995  levy  year  means the annual
 8    corporate extension for the taxing district and those special
 9    purpose extensions that are  made  annually  for  the  taxing
10    district,  excluding special purpose extensions: (a) made for
11    the taxing district to pay interest or principal  on  general
12    obligation  bonds  that were approved by referendum; (b) made
13    for any taxing district  to  pay  interest  or  principal  on
14    general  obligation  bonds issued before October 1, 1991; (c)
15    made for any taxing district to pay interest or principal  on
16    bonds  issued  to  refund  or  continue to refund those bonds
17    issued before October  1,  1991;  (d)  made  for  any  taxing
18    district  to  pay  interest  or  principal on bonds issued to
19    refund or continue to refund bonds issued  after  October  1,
20    1991  that  were  approved  by  referendum;  (e) made for any
21    taxing district to pay interest or principal on revenue bonds
22    issued before October 1, 1991 for payment of which a property
23    tax levy or the full faith and credit of the  unit  of  local
24    government  is  pledged;  however,  a  tax for the payment of
25    interest or principal on those bonds shall be made only after
26    the governing body of the unit of local government finds that
27    all other sources for payment are insufficient to make  those
28    payments;  (f)  made for payments under a building commission
29    lease when the lease payments are for the retirement of bonds
30    issued by the commission before October 1, 1991, to  pay  for
31    the  building  project;  (g)  made  for  payments  due  under
32    installment  contracts  entered  into before October 1, 1991;
33    (h) made for payments of  principal  and  interest  on  bonds
34    issued  under the Metropolitan Water Reclamation District Act
 
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 1    to finance construction projects initiated before October  1,
 2    1991;  (i)  made  for  payments  of principal and interest on
 3    limited  bonds,  as  defined  in  Section  3  of  the   Local
 4    Government  Debt  Reform  Act, in an amount not to exceed the
 5    debt service extension base less the  amount  in  items  (b),
 6    (c),  (e),  and  (h)  of  this  definition for non-referendum
 7    obligations, except obligations initially issued pursuant  to
 8    referendum;  (j)  made for payments of principal and interest
 9    on bonds issued under Section 15 of the Local Government Debt
10    Reform  Act;  and  (k)  made  by  a  school   district   that
11    participates  in  the  Special  Education  District  of  Lake
12    County,  created  by  special education joint agreement under
13    Section 10-22.31 of the  School  Code,  for  payment  of  the
14    school  district's  share  of  the  amounts  required  to  be
15    contributed  by the Special Education District of Lake County
16    to the Illinois Municipal Retirement Fund under Article 7  of
17    the  Illinois Pension Code; the amount of any extension under
18    this item (k) shall be certified by the  school  district  to
19    the county clerk.
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.
 
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 1        "Aggregate extension" for all taxing districts  to  which
 2    this  Law  applies  in accordance with Section 18-213, except
 3    for those  taxing  districts  subject  to  paragraph  (2)  of
 4    subsection  (e) of Section 18-213, means the annual corporate
 5    extension for the taxing district and those  special  purpose
 6    extensions  that  are  made annually for the taxing district,
 7    excluding special purpose extensions: (a) made for the taxing
 8    district to pay interest or principal on  general  obligation
 9    bonds  that  were  approved  by  referendum; (b) made for any
10    taxing district to  pay  interest  or  principal  on  general
11    obligation   bonds  issued  before  the  date  on  which  the
12    referendum making this Law applicable to the taxing  district
13    is  held; (c) made for any taxing district to pay interest or
14    principal on bonds issued to refund  or  continue  to  refund
15    those  bonds  issued  before the date on which the referendum
16    making this Law applicable to the taxing  district  is  held;
17    (d) made for any taxing district to pay interest or principal
18    on  bonds issued to refund or continue to refund bonds issued
19    after the date  on  which  the  referendum  making  this  Law
20    applicable  to  the taxing district is held if the bonds were
21    approved by referendum after the date on which the referendum
22    making this Law applicable to the taxing  district  is  held;
23    (e) made for any taxing district to pay interest or principal
24    on  revenue  bonds  issued  before  the  date  on  which  the
25    referendum  making this Law applicable to the taxing district
26    is held for payment of which a property tax levy or the  full
27    faith  and credit of the unit of local government is pledged;
28    however, a tax for the payment of interest  or  principal  on
29    those  bonds  shall  be made only after the governing body of
30    the unit of local government finds that all other sources for
31    payment are insufficient to make those payments; (f) made for
32    payments under a building commission  lease  when  the  lease
33    payments  are  for  the  retirement  of  bonds  issued by the
34    commission before the date on  which  the  referendum  making
 
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 1    this Law applicable to the taxing district is held to pay for
 2    the  building  project;  (g)  made  for  payments  due  under
 3    installment  contracts  entered into before the date on which
 4    the referendum making  this  Law  applicable  to  the  taxing
 5    district  is  held;  (h)  made  for payments of principal and
 6    interest on limited bonds, as defined in  Section  3  of  the
 7    Local  Government Debt Reform Act, in an amount not to exceed
 8    the debt service extension base less the amount in items (b),
 9    (c),  and  (e)  of   this   definition   for   non-referendum
10    obligations,  except obligations initially issued pursuant to
11    referendum; (i) made for payments of principal  and  interest
12    on bonds issued under Section 15 of the Local Government Debt
13    Reform Act; and (j) made for a qualified airport authority to
14    pay  interest or principal on general obligation bonds issued
15    for the purpose of paying obligations due under, or financing
16    airport facilities  required  to  be  acquired,  constructed,
17    installed  or  equipped  pursuant  to, contracts entered into
18    before March 1, 1996 (but not  including  any  amendments  to
19    such a contract taking effect on or after that date).
20        "Aggregate  extension"  for all taxing districts to which
21    this  Law  applies  in  accordance  with  paragraph  (2)   of
22    subsection  (e)  of Section 18-213 means the annual corporate
23    extension for the taxing district and those  special  purpose
24    extensions  that  are  made annually for the taxing district,
25    excluding special purpose extensions: (a) made for the taxing
26    district to pay interest or principal on  general  obligation
27    bonds  that  were  approved  by  referendum; (b) made for any
28    taxing district to  pay  interest  or  principal  on  general
29    obligation  bonds  issued  before  the effective date of this
30    amendatory Act of 1997; (c) made for any taxing  district  to
31    pay  interest  or  principal  on  bonds  issued  to refund or
32    continue to refund those bonds issued  before  the  effective
33    date  of this amendatory Act of 1997; (d) made for any taxing
34    district to pay interest or  principal  on  bonds  issued  to
 
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 1    refund or continue to refund bonds issued after the effective
 2    date  of  this  amendatory  Act  of  1997  if  the bonds were
 3    approved by referendum  after  the  effective  date  of  this
 4    amendatory  Act  of 1997; (e) made for any taxing district to
 5    pay interest or principal on revenue bonds issued before  the
 6    effective  date of this amendatory Act of 1997 for payment of
 7    which a property tax levy or the full faith and credit of the
 8    unit of local government is pledged; however, a tax  for  the
 9    payment of interest or principal on those bonds shall be made
10    only after the governing body of the unit of local government
11    finds  that all other sources for payment are insufficient to
12    make those payments; (f) made for payments under  a  building
13    commission   lease  when  the  lease  payments  are  for  the
14    retirement of bonds  issued  by  the  commission  before  the
15    effective  date of this amendatory Act of 1997 to pay for the
16    building project; (g) made for payments due under installment
17    contracts entered into before  the  effective  date  of  this
18    amendatory  Act  of  1997; (h) 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;  (i)  made for payments of principal and interest
25    on bonds issued under Section 15 of the Local Government Debt
26    Reform Act; and (j) made for a qualified airport authority to
27    pay interest or principal on general obligation bonds  issued
28    for the purpose of paying obligations due under, or financing
29    airport  facilities  required  to  be  acquired, constructed,
30    installed or equipped pursuant  to,  contracts  entered  into
31    before  March  1,  1996  (but not including any amendments to
32    such a contract taking effect on or after that date).
33        "Debt service extension base" means an  amount  equal  to
34    that  portion  of the extension for a taxing district for the
 
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 1    1994 levy year, or for those taxing districts subject to this
 2    Law in accordance  with  Section  18-213,  except  for  those
 3    subject to paragraph (2) of subsection (e) of Section 18-213,
 4    for  the  levy  year  in which the referendum making this Law
 5    applicable to the taxing  district  is  held,  or  for  those
 6    taxing  districts  subject  to  this  Law  in accordance with
 7    paragraph (2) of subsection (e) of  Section  18-213  for  the
 8    1996  levy  year,  constituting  an  extension for payment of
 9    principal and interest on bonds issued by the taxing district
10    without referendum, but not including (i) bonds authorized by
11    Public Act 88-503 and issued under Section 20a of the Chicago
12    Park District Act for  aquarium  and  museum  projects;  (ii)
13    bonds  issued  under  Section 15 of the Local Government Debt
14    Reform Act; or (iii) refunding obligations issued  to  refund
15    or   to  continue  to  refund  obligations  initially  issued
16    pursuant to referendum. The debt service extension  base  may
17    be established or increased as provided under Section 18-212.
18        "Special purpose extensions" include, but are not limited
19    to,  extensions  for  levies  made  on  an  annual  basis for
20    unemployment  and  workers'   compensation,   self-insurance,
21    contributions  to pension plans, and extensions made pursuant
22    to Section 6-601 of the Illinois  Highway  Code  for  a  road
23    district's  permanent  road  fund  whether levied annually or
24    not.  The  extension  for  a  special  service  area  is  not
25    included in the aggregate extension.
26        "Aggregate  extension  base"  means the taxing district's
27    last preceding aggregate extension as adjusted under Sections
28    18-215 through 18-230.
29        "Levy year" has the same meaning as "year" under  Section
30    1-155.
31        "New  property" means (i) the assessed value, after final
32    board  of  review  or  board  of  appeals  action,   of   new
33    improvements  or  additions  to  existing improvements on any
34    parcel of real property that increase the assessed  value  of
 
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 1    that  real  property  during  the levy year multiplied by the
 2    equalization factor issued by the  Department  under  Section
 3    17-30  and  (ii)  the  assessed  value,  after final board of
 4    review or board of  appeals  action,  of  real  property  not
 5    exempt  from  real  estate  taxation, which real property was
 6    exempt from real estate  taxation  for  any  portion  of  the
 7    immediately   preceding   levy   year,   multiplied   by  the
 8    equalization factor issued by the  Department  under  Section
 9    17-30. In addition, the county clerk in a county containing a
10    population  of  3,000,000  or  more shall include in the 1997
11    recovered tax increment value for any  school  district,  any
12    recovered tax increment value that was applicable to the 1995
13    tax year calculations.
14        "Qualified  airport authority" means an airport authority
15    organized under the Airport Authorities Act and located in  a
16    county  bordering  on  the  State  of  Wisconsin and having a
17    population in excess of 200,000 and not greater than 500,000.
18        "Recovered  tax  increment  value"   means,   except   as
19    otherwise  provided  in  this  paragraph,  the  amount of the
20    current year's equalized assessed value, in  the  first  year
21    after a municipality terminates the designation of an area as
22    a redevelopment project area previously established under the
23    Tax  Increment  Allocation  Development  Act  in the Illinois
24    Municipal Code, previously established under  the  Industrial
25    Jobs   Recovery  Law  in  the  Illinois  Municipal  Code,  or
26    previously established under the  Economic  Development  Area
27    Tax  Increment  Allocation  Act,  of each taxable lot, block,
28    tract, or  parcel  of  real  property  in  the  redevelopment
29    project  area  over  and above the initial equalized assessed
30    value of each property in the redevelopment project area. For
31    the taxes which are extended for  the  1997  levy  year,  the
32    recovered  tax  increment  value  for  a non-home rule taxing
33    district that first became subject to this Law for  the  1995
34    levy  year  because a majority of its 1994 equalized assessed
 
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 1    value  was  in  an  affected  county  or  counties  shall  be
 2    increased if a municipality terminated the designation of  an
 3    area  in  1993  as  a  redevelopment  project area previously
 4    established under the Tax  Increment  Allocation  Development
 5    Act  in  the  Illinois Municipal Code, previously established
 6    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
 7    Municipal  Code, or previously established under the Economic
 8    Development Area Tax Increment Allocation Act, by  an  amount
 9    equal  to  the  1994 equalized assessed value of each taxable
10    lot,  block,  tract,  or  parcel  of  real  property  in  the
11    redevelopment  project  area  over  and  above  the   initial
12    equalized   assessed   value   of   each   property   in  the
13    redevelopment  project  area.  In  the  first  year  after  a
14    municipality removes a taxable lot, block, tract,  or  parcel
15    of   real   property   from   a  redevelopment  project  area
16    established under the Tax  Increment  Allocation  Development
17    Act  in  the  Illinois  Municipal  Code,  the Industrial Jobs
18    Recovery Law in the Illinois Municipal Code, or the  Economic
19    Development Area Tax Increment Allocation Act, "recovered tax
20    increment  value"  means  the  amount  of  the current year's
21    equalized assessed value of each taxable lot,  block,  tract,
22    or  parcel  of  real  property removed from the redevelopment
23    project area over and above the  initial  equalized  assessed
24    value   of   that  real  property  before  removal  from  the
25    redevelopment project area.
26        Except as otherwise provided in this  Section,  "limiting
27    rate"  means  a  fraction  the numerator of which is the last
28    preceding aggregate extension base times an amount  equal  to
29    one plus the extension limitation defined in this Section and
30    the  denominator  of  which  is  the current year's equalized
31    assessed value of all real property in  the  territory  under
32    the jurisdiction of the taxing district during the prior levy
33    year.    For   those  taxing  districts  that  reduced  their
34    aggregate extension for the last  preceding  levy  year,  the
 
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 1    highest  aggregate  extension  in any of the last 3 preceding
 2    levy years shall be used for the  purpose  of  computing  the
 3    limiting   rate.   The  denominator  shall  not  include  new
 4    property.  The denominator shall not  include  the  recovered
 5    tax increment value.
 6    (Source:  P.A.  91-357,  eff.  7-29-99; 91-478, eff. 11-1-99;
 7    92-547, eff. 6-13-02.)