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Public Act 097-1087


 

Public Act 1087 97TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 097-1087
 
SB3314 EnrolledLRB097 19252 HLH 64495 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by changing
Sections 18-190 and 18-205 as follows:
 
    (35 ILCS 200/18-190)
    Sec. 18-190. Direct referendum; new rate or increased
limiting rate.
    (a) If a new rate is authorized by statute to be imposed
without referendum or is subject to a backdoor referendum, as
defined in Section 28-2 of the Election Code, the governing
body of the affected taxing district before levying the new
rate shall submit the new rate to direct referendum under the
provisions of this Section and of Article 28 of the Election
Code. Notwithstanding the provisions, requirements, or
limitations of any other law, any tax levied for the 2005 levy
year and all subsequent levy years by any taxing district
subject to this Law may be extended at a rate exceeding the
rate established for that tax by referendum or statute,
provided that the rate does not exceed the statutory ceiling
above which the tax is not authorized to be further increased
either by referendum or in any other manner. Notwithstanding
the provisions, requirements, or limitations of any other law,
all taxing districts subject to this Law shall follow the
provisions of this Section whenever seeking referenda approval
after March 21, 2006 to (i) levy a new tax rate authorized by
statute or (ii) increase the limiting rate applicable to the
taxing district. All taxing districts subject to this Law are
authorized to seek referendum approval of each proposition
described and set forth in this Section.
    The proposition seeking to obtain referendum approval to
levy a new tax rate as authorized in clause (i) shall be in
substantially the following form:
        Shall ... (insert legal name, number, if any, and
    county or counties of taxing district and geographic or
    other common name by which a school or community college
    district is known and referred to), Illinois, be authorized
    to levy a new tax for ... purposes and have an additional
    tax of ...% of the equalized assessed value of the taxable
    property therein extended for such purposes?
The votes must be recorded as "Yes" or "No".
    The proposition seeking to obtain referendum approval to
increase the limiting rate as authorized in clause (ii) shall
be in substantially the following form:
        Shall the limiting rate under the Property Tax
    Extension Limitation Law for ... (insert legal name,
    number, if any, and county or counties of taxing district
    and geographic or other common name by which a school or
    community college district is known and referred to),
    Illinois, be increased by an additional amount equal to
    ...% above the limiting rate for the purpose of...(insert
    purpose) for levy year ... (insert the most recent levy
    year for which the limiting rate of the taxing district is
    known at the time the submission of the proposition is
    initiated by the taxing district) and be equal to ...% of
    the equalized assessed value of the taxable property
    therein for levy year(s) (insert each levy year for which
    the increase will be applicable, which years must be
    consecutive and may not exceed 4)?
    The votes must be recorded as "Yes" or "No".
    The ballot for any proposition submitted pursuant to this
Section shall have printed thereon, but not as a part of the
proposition submitted, only the following supplemental
information (which shall be supplied to the election authority
by the taxing district) in substantially the following form:
        (1) The approximate amount of taxes extendable at the
    most recently extended limiting rate is $..., and the
    approximate amount of taxes extendable if the proposition
    is approved is $....
        (2) For the ... (insert the first levy year for which
    the new rate or increased limiting rate will be applicable)
    levy year the approximate amount of the additional tax
    extendable against property containing a single family
    residence and having a fair market value at the time of the
    referendum of $100,000 is estimated to be $....
        (3) Based upon an average annual percentage increase
    (or decrease) in the market value of such property of %...
    (insert percentage equal to the average annual percentage
    increase or decrease for the prior 3 levy years, at the
    time the submission of the proposition is initiated by the
    taxing district, in the amount of (A) the equalized
    assessed value of the taxable property in the taxing
    district less (B) the new property included in the
    equalized assessed value), the approximate amount of the
    additional tax extendable against such property for the ...
    levy year is estimated to be $... and for the ... levy year
    is estimated to be $ ....
        (4) If the proposition is approved, the aggregate
    extension for ... (insert each levy year for which the
    increase will apply) will be determined by the limiting
    rate set forth in the proposition, rather than the
    otherwise applicable limiting rate calculated under the
    provisions of the Property Tax Extension Limitation Law
    (commonly known as the Property Tax Cap Law).
The approximate amount of taxes extendable shown in paragraph
(1) shall be computed upon the last known equalized assessed
value of taxable property in the taxing district (at the time
the submission of the proposition is initiated by the taxing
district). Paragraph (3) shall be included only if the
increased limiting rate will be applicable for more than one
levy year and shall list each levy year for which the increased
limiting rate will be applicable. The additional tax shown for
each levy year shall be the approximate dollar amount of the
increase over the amount of the most recently completed
extension at the time the submission of the proposition is
initiated by the taxing district. The approximate amount of the
additional taxes extendable shown in paragraphs (2) and (3)
shall be calculated by multiplying $100,000 (the fair market
value of the property without regard to any property tax
exemptions) by (i) the percentage level of assessment
prescribed for that property by statute, or by ordinance of the
county board in counties that classify property for purposes of
taxation in accordance with Section 4 of Article IX of the
Illinois Constitution; (ii) the most recent final equalization
factor certified to the county clerk by the Department of
Revenue at the time the taxing district initiates the
submission of the proposition to the electors; and (iii) either
the new rate or the amount by which the limiting rate is to be
increased. This amendatory Act of the 97th General Assembly is
intended to clarify the existing requirements of this Section,
and shall not be construed to validate any prior non-compliant
referendum language. (i) without regard to any property tax
exemptions and (ii) based upon the percentage level of
assessment prescribed for such property by statute or by
ordinance of the county board in counties which classify
property for purposes of taxation in accordance with Section 4
of Article IX of the Constitution. Paragraph (4) shall be
included if the proposition concerns a limiting rate increase
but shall not be included if the proposition concerns a new
rate. Any notice required to be published in connection with
the submission of the proposition shall also contain this
supplemental information and shall not contain any other
supplemental information regarding the proposition. Any error,
miscalculation, or inaccuracy in computing any amount set forth
on the ballot and in the notice that is not deliberate shall
not invalidate or affect the validity of any proposition
approved. Notice of the referendum shall be published and
posted as otherwise required by law, and the submission of the
proposition shall be initiated as provided by law.
    If a majority of all ballots cast on the proposition are in
favor of the proposition, the following provisions shall be
applicable to the extension of taxes for the taxing district:
        (A) a new tax rate shall be first effective for the
    levy year in which the new rate is approved;
        (B) if the proposition provides for a new tax rate, the
    taxing district is authorized to levy a tax after the
    canvass of the results of the referendum by the election
    authority for the purposes for which the tax is authorized;
        (C) a limiting rate increase shall be first effective
    for the levy year in which the limiting rate increase is
    approved, provided that the taxing district may elect to
    have a limiting rate increase be effective for the levy
    year prior to the levy year in which the limiting rate
    increase is approved unless the extension of taxes for the
    prior levy year occurs 30 days or less after the canvass of
    the results of the referendum by the election authority in
    any county in which the taxing district is located;
        (D) in order for the limiting rate increase to be first
    effective for the levy year prior to the levy year of the
    referendum, the taxing district must certify its election
    to have the limiting rate increase be effective for the
    prior levy year to the clerk of each county in which the
    taxing district is located not more than 2 days after the
    date the results of the referendum are canvassed by the
    election authority; and
        (E) if the proposition provides for a limiting rate
    increase, the increase may be effective regardless of
    whether the proposition is approved before or after the
    taxing district adopts or files its levy for any levy year.
    Rates required to extend taxes on levies subject to a
backdoor referendum in each year there is a levy are not new
rates or rate increases under this Section if a levy has been
made for the fund in one or more of the preceding 3 levy years.
Changes made by this amendatory Act of 1997 to this Section in
reference to rates required to extend taxes on levies subject
to a backdoor referendum in each year there is a levy are
declarative of existing law and not a new enactment.
    (b) Whenever other applicable law authorizes a taxing
district subject to the limitation with respect to its
aggregate extension provided for in this Law to issue bonds or
other obligations either without referendum or subject to
backdoor referendum, the taxing district may elect for each
separate bond issuance to submit the question of the issuance
of the bonds or obligations directly to the voters of the
taxing district, and if the referendum passes the taxing
district is not required to comply with any backdoor referendum
procedures or requirements set forth in the other applicable
law. The direct referendum shall be initiated by ordinance or
resolution of the governing body of the taxing district, and
the question shall be certified to the proper election
authorities in accordance with the provisions of the Election
Code.
(Source: P.A. 96-764, eff. 8-25-09.)
 
    (35 ILCS 200/18-205)
    Sec. 18-205. Referendum to increase the extension
limitation. A taxing district is limited to an extension
limitation of 5% or the percentage increase in the Consumer
Price Index during the 12-month calendar year preceding the
levy year, whichever is less. A taxing district may increase
its extension limitation for one or more levy years if that
taxing district holds a referendum before the levy date for the
first levy year at which a majority of voters voting on the
issue approves adoption of a higher extension limitation.
Referenda shall be conducted at a regularly scheduled election
in accordance with the Election Code. The question shall be
presented in substantially the following manner for all
elections held after March 21, 2006:
        Shall the extension limitation under the Property Tax
    Extension Limitation Law for (insert the legal name,
    number, if any, and county or counties of the taxing
    district and geographic or other common name by which a
    school or community college district is known and referred
    to), Illinois, be increased from the lesser of 5% or the
    percentage increase in the Consumer Price Index over the
    prior levy year to (insert the percentage of the proposed
    increase)% per year for (insert each levy year for which
    the increased extension limitation will apply)?
The votes must be recorded as "Yes" or "No".
If a majority of voters voting on the issue approves the
adoption of the increase, the increase shall be applicable for
each levy year specified.
    The ballot for any question submitted pursuant to this
Section shall have printed thereon, but not as a part of the
question submitted, only the following supplemental
information (which shall be supplied to the election authority
by the taxing district) in substantially the following form:
        (1) For the (insert the first levy year for which the
    increased extension limitation will be applicable) levy
    year the approximate amount of the additional tax
    extendable against property containing a single family
    residence and having a fair market value at the time of the
    referendum of $100,000 is estimated to be $....
        (2) Based upon an average annual percentage increase
    (or decrease) in the market value of such property of ...%
    (insert percentage equal to the average annual percentage
    increase or decrease for the prior 3 levy years, at the
    time the submission of the question is initiated by the
    taxing district, in the amount of (A) the equalized
    assessed value of the taxable property in the taxing
    district less (B) the new property included in the
    equalized assessed value), the approximate amount of the
    additional tax extendable against such property for the ...
    levy year is estimated to be $... and for the ... levy year
    is estimated to be $....
    Paragraph (2) shall be included only if the increased
extension limitation will be applicable for more than one year
and shall list each levy year for which the increased extension
limitation will be applicable. The additional tax shown for
each levy year shall be the approximate dollar amount of the
increase over the amount of the most recently completed
extension at the time the submission of the question is
initiated by the taxing district. The approximate amount of the
additional tax extendable shown in paragraphs (1) and (2) shall
be calculated by multiplying $100,000 (the fair market value of
the property without regard to any property tax exemptions) by
(i) the percentage level of assessment prescribed for that
property by statute, or by ordinance of the county board in
counties that classify property for purposes of taxation in
accordance with Section 4 of Article IX of the Illinois
Constitution; (ii) the most recent final equalization factor
certified to the county clerk by the Department of Revenue at
the time the taxing district initiates the submission of the
proposition to the electors; (iii) the last known aggregate
extension base of the taxing district at the time the
submission of the question is initiated by the taxing district;
and (iv) the difference between the percentage increase
proposed in the question and the lesser of 5% or the percentage
increase in the Consumer Price Index for the prior levy year
(or an estimate of the percentage increase for the prior levy
year if the increase is unavailable at the time the submission
of the question is initiated by the taxing district); and
dividing the result by the last known equalized assessed value
of the taxing district at the time the submission of the
question is initiated by the taxing district. This amendatory
Act of the 97th General Assembly is intended to clarify the
existing requirements of this Section, and shall not be
construed to validate any prior non-compliant referendum
language. using (A) the lesser of 5% or the percentage increase
in the Consumer Price Index for the prior levy year (or an
estimate of the percentage increase for the prior levy year if
the increase is unavailable at the time the submission of the
question is initiated by the taxing district), (B) the
percentage increase proposed in the question, and (C) the last
known equalized assessed value and aggregate extension base of
the taxing district at the time the submission of the question
is initiated by the taxing district. The approximate amount of
the tax extendable shall be calculated (i) without regard to
any property tax exemptions and (ii) based upon the percentage
level of assessment prescribed for such property by statute or
by ordinance of the county board in counties which classify
property for purposes of taxation in accordance with Section 4
of Article IX of the Constitution. Any notice required to be
published in connection with the submission of the question
shall also contain this supplemental information and shall not
contain any other supplemental information. Any error,
miscalculation, or inaccuracy in computing any amount set forth
on the ballot or in the notice that is not deliberate shall not
invalidate or affect the validity of any proposition approved.
Notice of the referendum shall be published and posted as
otherwise required by law, and the submission of the question
shall be initiated as provided by law.
(Source: P.A. 94-976, eff. 6-30-06.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/24/2012