102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2872

 

Introduced 2/19/2021, by Rep. Mark Luft

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-212
35 ILCS 200/18-213
35 ILCS 200/18-214
35 ILCS 200/18-242 new
30 ILCS 805/8.45 new

    Amends the Property Tax Code. Provides that, beginning with the 2021 levy year, the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units. Provides that, beginning with the 2021 levy year, the extension limitation under the Property Tax Extension Limitation Law is 0% or the rate of increase approved by the voters. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB102 14641 HLH 19994 b

FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB2872LRB102 14641 HLH 19994 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 18-185, 18-205, 18-212, 18-213, and 18-214 and by
6adding Section 18-242 as follows:
 
7    (35 ILCS 200/18-185)
8    Sec. 18-185. Short title; definitions. This Division 5
9may be cited as the Property Tax Extension Limitation Law. As
10used in this Division 5:
11    "Consumer Price Index" means the Consumer Price Index for
12All Urban Consumers for all items published by the United
13States Department of Labor.
14    "Extension limitation", for levy years prior to 2021,
15means (a) the lesser of 5% or the percentage increase in the
16Consumer Price Index during the 12-month calendar year
17preceding the levy year or (b) the rate of increase approved by
18voters under Section 18-205.
19    "Extension limitation", beginning in levy year 2021, means
200% or the rate of increase approved by the voters under Section
2118-205.
22    "Affected county" means a county of 3,000,000 or more
23inhabitants or a county contiguous to a county of 3,000,000 or

 

 

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1more inhabitants.
2    "Taxing district" has the same meaning provided in Section
31-150, except as otherwise provided in this Section. For the
41991 through 1994 levy years only, "taxing district" includes
5only each non-home rule taxing district having the majority of
6its 1990 equalized assessed value within any county or
7counties contiguous to a county with 3,000,000 or more
8inhabitants. Beginning with the 1995 levy year and through the
92020 levy year, "taxing district" includes only each non-home
10rule taxing district subject to this Law before the 1995 levy
11year and each non-home rule taxing district not subject to
12this Law before the 1995 levy year having the majority of its
131994 equalized assessed value in an affected county or
14counties. Beginning with the levy year in which this Law
15becomes applicable to a taxing district as provided in Section
1618-213, "taxing district" also includes those taxing districts
17made subject to this Law as provided in Section 18-213.
18Beginning with the 2021 levy year, "taxing district" has the
19same meaning provided in Section 1-150 and includes home rule
20units.
21    "Aggregate extension" for taxing districts to which this
22Law applied before the 1995 levy year means the annual
23corporate extension for the taxing district and those special
24purpose extensions that are made annually for the taxing
25district, excluding special purpose extensions: (a) made for
26the taxing district to pay interest or principal on general

 

 

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1obligation bonds that were approved by referendum; (b) made
2for any taxing district to pay interest or principal on
3general obligation bonds issued before October 1, 1991; (c)
4made for any taxing district to pay interest or principal on
5bonds issued to refund or continue to refund those bonds
6issued before October 1, 1991; (d) made for any taxing
7district to pay interest or principal on bonds issued to
8refund or continue to refund bonds issued after October 1,
91991 that were approved by referendum; (e) made for any taxing
10district to pay interest or principal on revenue bonds issued
11before October 1, 1991 for payment of which a property tax levy
12or the full faith and credit of the unit of local government is
13pledged; however, a tax for the payment of interest or
14principal on those bonds shall be made only after the
15governing body of the unit of local government finds that all
16other sources for payment are insufficient to make those
17payments; (f) made for payments under a building commission
18lease when the lease payments are for the retirement of bonds
19issued by the commission before October 1, 1991, to pay for the
20building project; (g) made for payments due under installment
21contracts entered into before October 1, 1991; (h) made for
22payments of principal and interest on bonds issued under the
23Metropolitan Water Reclamation District Act to finance
24construction projects initiated before October 1, 1991; (i)
25made for payments of principal and interest on limited bonds,
26as defined in Section 3 of the Local Government Debt Reform

 

 

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1Act, in an amount not to exceed the debt service extension base
2less the amount in items (b), (c), (e), and (h) of this
3definition for non-referendum obligations, except obligations
4initially issued pursuant to referendum; (j) made for payments
5of principal and interest on bonds issued under Section 15 of
6the Local Government Debt Reform Act; (k) made by a school
7district that participates in the Special Education District
8of Lake County, created by special education joint agreement
9under Section 10-22.31 of the School Code, for payment of the
10school district's share of the amounts required to be
11contributed by the Special Education District of Lake County
12to the Illinois Municipal Retirement Fund under Article 7 of
13the Illinois Pension Code; the amount of any extension under
14this item (k) shall be certified by the school district to the
15county clerk; (l) made to fund expenses of providing joint
16recreational programs for persons with disabilities under
17Section 5-8 of the Park District Code or Section 11-95-14 of
18the Illinois Municipal Code; (m) made for temporary relocation
19loan repayment purposes pursuant to Sections 2-3.77 and
2017-2.2d of the School Code; (n) made for payment of principal
21and interest on any bonds issued under the authority of
22Section 17-2.2d of the School Code; (o) made for contributions
23to a firefighter's pension fund created under Article 4 of the
24Illinois Pension Code, to the extent of the amount certified
25under item (5) of Section 4-134 of the Illinois Pension Code;
26and (p) made for road purposes in the first year after a

 

 

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1township assumes the rights, powers, duties, assets, property,
2liabilities, obligations, and responsibilities of a road
3district abolished under the provisions of Section 6-133 of
4the Illinois Highway Code.
5    "Aggregate extension" for the taxing districts to which
6this Law did not apply before the 1995 levy year (except taxing
7districts subject to this Law in accordance with Section
818-213 or this amendatory Act of the 102nd General Assembly)
9means the annual corporate extension for the taxing district
10and those special purpose extensions that are made annually
11for the taxing district, excluding special purpose extensions:
12(a) made for the taxing district to pay interest or principal
13on general obligation bonds that were approved by referendum;
14(b) made for any taxing district to pay interest or principal
15on general obligation bonds issued before March 1, 1995; (c)
16made for any taxing district to pay interest or principal on
17bonds issued to refund or continue to refund those bonds
18issued before March 1, 1995; (d) made for any taxing district
19to pay interest or principal on bonds issued to refund or
20continue to refund bonds issued after March 1, 1995 that were
21approved by referendum; (e) made for any taxing district to
22pay interest or principal on revenue bonds issued before March
231, 1995 for payment of which a property tax levy or the full
24faith and credit of the unit of local government is pledged;
25however, a tax for the payment of interest or principal on
26those bonds shall be made only after the governing body of the

 

 

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1unit of local government finds that all other sources for
2payment are insufficient to make those payments; (f) made for
3payments under a building commission lease when the lease
4payments are for the retirement of bonds issued by the
5commission before March 1, 1995 to pay for the building
6project; (g) made for payments due under installment contracts
7entered into before March 1, 1995; (h) made for payments of
8principal and interest on bonds issued under the Metropolitan
9Water Reclamation District Act to finance construction
10projects initiated before October 1, 1991; (h-4) made for
11stormwater management purposes by the Metropolitan Water
12Reclamation District of Greater Chicago under Section 12 of
13the Metropolitan Water Reclamation District Act; (i) made for
14payments of principal and interest on limited bonds, as
15defined in Section 3 of the Local Government Debt Reform Act,
16in an amount not to exceed the debt service extension base less
17the amount in items (b), (c), and (e) of this definition for
18non-referendum obligations, except obligations initially
19issued pursuant to referendum and bonds described in
20subsection (h) of this definition; (j) made for payments of
21principal and interest on bonds issued under Section 15 of the
22Local Government Debt Reform Act; (k) made for payments of
23principal and interest on bonds authorized by Public Act
2488-503 and issued under Section 20a of the Chicago Park
25District Act for aquarium or museum projects; (l) made for
26payments of principal and interest on bonds authorized by

 

 

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1Public Act 87-1191 or 93-601 and (i) issued pursuant to
2Section 21.2 of the Cook County Forest Preserve District Act,
3(ii) issued under Section 42 of the Cook County Forest
4Preserve District Act for zoological park projects, or (iii)
5issued under Section 44.1 of the Cook County Forest Preserve
6District Act for botanical gardens projects; (m) made pursuant
7to Section 34-53.5 of the School Code, whether levied annually
8or not; (n) made to fund expenses of providing joint
9recreational programs for persons with disabilities under
10Section 5-8 of the Park District Code or Section 11-95-14 of
11the Illinois Municipal Code; (o) made by the Chicago Park
12District for recreational programs for persons with
13disabilities under subsection (c) of Section 7.06 of the
14Chicago Park District Act; (p) made for contributions to a
15firefighter's pension fund created under Article 4 of the
16Illinois Pension Code, to the extent of the amount certified
17under item (5) of Section 4-134 of the Illinois Pension Code;
18(q) made by Ford Heights School District 169 under Section
1917-9.02 of the School Code; and (r) made for the purpose of
20making employer contributions to the Public School Teachers'
21Pension and Retirement Fund of Chicago under Section 34-53 of
22the School Code.
23    "Aggregate extension" for all taxing districts to which
24this Law applies in accordance with Section 18-213, except for
25those taxing districts subject to paragraph (2) of subsection
26(e) of Section 18-213, means the annual corporate extension

 

 

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1for the taxing district and those special purpose extensions
2that are made annually for the taxing district, excluding
3special purpose extensions: (a) made for the taxing district
4to pay interest or principal on general obligation bonds that
5were approved by referendum; (b) made for any taxing district
6to pay interest or principal on general obligation bonds
7issued before the date on which the referendum making this Law
8applicable to the taxing district is held; (c) made for any
9taxing district to pay interest or principal on bonds issued
10to refund or continue to refund those bonds issued before the
11date on which the referendum making this Law applicable to the
12taxing district is held; (d) made for any taxing district to
13pay interest or principal on bonds issued to refund or
14continue to refund bonds issued after the date on which the
15referendum making this Law applicable to the taxing district
16is held if the bonds were approved by referendum after the date
17on which the referendum making this Law applicable to the
18taxing district is held; (e) made for any taxing district to
19pay interest or principal on revenue bonds issued before the
20date on which the referendum making this Law applicable to the
21taxing district is held for payment of which a property tax
22levy or the full faith and credit of the unit of local
23government is pledged; however, a tax for the payment of
24interest or principal on those bonds shall be made only after
25the governing body of the unit of local government finds that
26all other sources for payment are insufficient to make those

 

 

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1payments; (f) made for payments under a building commission
2lease when the lease payments are for the retirement of bonds
3issued by the commission before the date on which the
4referendum making this Law applicable to the taxing district
5is held to pay for the building project; (g) made for payments
6due under installment contracts entered into before the date
7on which the referendum making this Law applicable to the
8taxing district is held; (h) made for payments of principal
9and interest on limited bonds, as defined in Section 3 of the
10Local Government Debt Reform Act, in an amount not to exceed
11the debt service extension base less the amount in items (b),
12(c), and (e) of this definition for non-referendum
13obligations, except obligations initially issued pursuant to
14referendum; (i) made for payments of principal and interest on
15bonds issued under Section 15 of the Local Government Debt
16Reform Act; (j) made for a qualified airport authority to pay
17interest or principal on general obligation bonds issued for
18the purpose of paying obligations due under, or financing
19airport facilities required to be acquired, constructed,
20installed or equipped pursuant to, contracts entered into
21before March 1, 1996 (but not including any amendments to such
22a contract taking effect on or after that date); (k) made to
23fund expenses of providing joint recreational programs for
24persons with disabilities under Section 5-8 of the Park
25District Code or Section 11-95-14 of the Illinois Municipal
26Code; (l) made for contributions to a firefighter's pension

 

 

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1fund created under Article 4 of the Illinois Pension Code, to
2the extent of the amount certified under item (5) of Section
34-134 of the Illinois Pension Code; and (m) made for the taxing
4district to pay interest or principal on general obligation
5bonds issued pursuant to Section 19-3.10 of the School Code.
6    "Aggregate extension" for all taxing districts to which
7this Law applies in accordance with paragraph (2) of
8subsection (e) of Section 18-213 or this amendatory Act of the
9102nd General Assembly means the annual corporate extension
10for the taxing district and those special purpose extensions
11that are made annually for the taxing district, excluding
12special purpose extensions: (a) made for the taxing district
13to pay interest or principal on general obligation bonds that
14were approved by referendum; (b) made for any taxing district
15to pay interest or principal on general obligation bonds
16issued before March 7, 1997 (the effective date of Public Act
1789-718) this amendatory Act of 1997; (c) made for any taxing
18district to pay interest or principal on bonds issued to
19refund or continue to refund those bonds issued before March
207, 1997 (the effective date of Public Act 89-718) this
21amendatory Act of 1997; (d) made for any taxing district to pay
22interest or principal on bonds issued to refund or continue to
23refund bonds issued after March 7, 1997 (the effective date of
24Public Act 89-718) this amendatory Act of 1997 if the bonds
25were approved by referendum after March 7, 1997 (the effective
26date of Public Act 89-718) this amendatory Act of 1997; (e)

 

 

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1made for any taxing district to pay interest or principal on
2revenue bonds issued before March 7, 1997 (the effective date
3of Public Act 89-718) this amendatory Act of 1997 for payment
4of which a property tax levy or the full faith and credit of
5the unit of local government is pledged; however, a tax for the
6payment of interest or principal on those bonds shall be made
7only after the governing body of the unit of local government
8finds that all other sources for payment are insufficient to
9make those payments; (f) made for payments under a building
10commission lease when the lease payments are for the
11retirement of bonds issued by the commission before March 7,
121997 (the effective date of Public Act 89-718) this amendatory
13Act of 1997 to pay for the building project; (g) made for
14payments due under installment contracts entered into before
15March 7, 1997 (the effective date of Public Act 89-718) this
16amendatory Act of 1997; (h) made for payments of principal and
17interest on limited bonds, as defined in Section 3 of the Local
18Government Debt Reform Act, in an amount not to exceed the debt
19service extension base less the amount in items (b), (c), and
20(e) of this definition for non-referendum obligations, except
21obligations initially issued pursuant to referendum; (i) made
22for payments of principal and interest on bonds issued under
23Section 15 of the Local Government Debt Reform Act; (j) made
24for a qualified airport authority to pay interest or principal
25on general obligation bonds issued for the purpose of paying
26obligations due under, or financing airport facilities

 

 

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1required to be acquired, constructed, installed or equipped
2pursuant to, contracts entered into before March 1, 1996 (but
3not including any amendments to such a contract taking effect
4on or after that date); (k) made to fund expenses of providing
5joint recreational programs for persons with disabilities
6under Section 5-8 of the Park District Code or Section
711-95-14 of the Illinois Municipal Code; and (l) made for
8contributions to a firefighter's pension fund created under
9Article 4 of the Illinois Pension Code, to the extent of the
10amount certified under item (5) of Section 4-134 of the
11Illinois Pension Code.
12    "Debt service extension base" means an amount equal to
13that portion of the extension for a taxing district for the
141994 levy year, or for those taxing districts subject to this
15Law in accordance with Section 18-213, except for those
16subject to paragraph (2) of subsection (e) of Section 18-213,
17for the levy year in which the referendum making this Law
18applicable to the taxing district is held, or for those taxing
19districts subject to this Law in accordance with paragraph (2)
20of subsection (e) of Section 18-213 for the 1996 levy year,
21constituting an extension for payment of principal and
22interest on bonds issued by the taxing district without
23referendum, but not including excluded non-referendum bonds.
24For park districts (i) that were first subject to this Law in
251991 or 1995 and (ii) whose extension for the 1994 levy year
26for the payment of principal and interest on bonds issued by

 

 

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1the park district without referendum (but not including
2excluded non-referendum bonds) was less than 51% of the amount
3for the 1991 levy year constituting an extension for payment
4of principal and interest on bonds issued by the park district
5without referendum (but not including excluded non-referendum
6bonds), "debt service extension base" means an amount equal to
7that portion of the extension for the 1991 levy year
8constituting an extension for payment of principal and
9interest on bonds issued by the park district without
10referendum (but not including excluded non-referendum bonds).
11A debt service extension base established or increased at any
12time pursuant to any provision of this Law, except Section
1318-212, shall be increased each year commencing with the later
14of (i) the 2009 levy year or (ii) the first levy year in which
15this Law becomes applicable to the taxing district, by (A) for
16levy years prior to the 2021 levy year, the lesser of 5% or the
17percentage increase in the Consumer Price Index during the
1812-month calendar year preceding the levy year or (B)
19beginning with the 2021 levy year, 0%. The debt service
20extension base may be established or increased as provided
21under Section 18-212. "Excluded non-referendum bonds" means
22(i) bonds authorized by Public Act 88-503 and issued under
23Section 20a of the Chicago Park District Act for aquarium and
24museum projects; (ii) bonds issued under Section 15 of the
25Local Government Debt Reform Act; or (iii) refunding
26obligations issued to refund or to continue to refund

 

 

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1obligations initially issued pursuant to referendum.
2    "Special purpose extensions" include, but are not limited
3to, extensions for levies made on an annual basis for
4unemployment and workers' compensation, self-insurance,
5contributions to pension plans, and extensions made pursuant
6to Section 6-601 of the Illinois Highway Code for a road
7district's permanent road fund whether levied annually or not.
8The extension for a special service area is not included in the
9aggregate extension.
10    "Aggregate extension base" means the taxing district's
11last preceding aggregate extension as adjusted under Sections
1218-135, 18-215, 18-230, and 18-206. An adjustment under
13Section 18-135 shall be made for the 2007 levy year and all
14subsequent levy years whenever one or more counties within
15which a taxing district is located (i) used estimated
16valuations or rates when extending taxes in the taxing
17district for the last preceding levy year that resulted in the
18over or under extension of taxes, or (ii) increased or
19decreased the tax extension for the last preceding levy year
20as required by Section 18-135(c). Whenever an adjustment is
21required under Section 18-135, the aggregate extension base of
22the taxing district shall be equal to the amount that the
23aggregate extension of the taxing district would have been for
24the last preceding levy year if either or both (i) actual,
25rather than estimated, valuations or rates had been used to
26calculate the extension of taxes for the last levy year, or

 

 

HB2872- 15 -LRB102 14641 HLH 19994 b

1(ii) the tax extension for the last preceding levy year had not
2been adjusted as required by subsection (c) of Section 18-135.
3    Notwithstanding any other provision of law, for levy year
42012, the aggregate extension base for West Northfield School
5District No. 31 in Cook County shall be $12,654,592.
6    "Levy year" has the same meaning as "year" under Section
71-155.
8    "New property" means (i) the assessed value, after final
9board of review or board of appeals action, of new
10improvements or additions to existing improvements on any
11parcel of real property that increase the assessed value of
12that real property during the levy year multiplied by the
13equalization factor issued by the Department under Section
1417-30, (ii) the assessed value, after final board of review or
15board of appeals action, of real property not exempt from real
16estate taxation, which real property was exempt from real
17estate taxation for any portion of the immediately preceding
18levy year, multiplied by the equalization factor issued by the
19Department under Section 17-30, including the assessed value,
20upon final stabilization of occupancy after new construction
21is complete, of any real property located within the
22boundaries of an otherwise or previously exempt military
23reservation that is intended for residential use and owned by
24or leased to a private corporation or other entity, (iii) in
25counties that classify in accordance with Section 4 of Article
26IX of the Illinois Constitution, an incentive property's

 

 

HB2872- 16 -LRB102 14641 HLH 19994 b

1additional assessed value resulting from a scheduled increase
2in the level of assessment as applied to the first year final
3board of review market value, and (iv) any increase in
4assessed value due to oil or gas production from an oil or gas
5well required to be permitted under the Hydraulic Fracturing
6Regulatory Act that was not produced in or accounted for
7during the previous levy year. In addition, the county clerk
8in a county containing a population of 3,000,000 or more shall
9include in the 1997 recovered tax increment value for any
10school district, any recovered tax increment value that was
11applicable to the 1995 tax year calculations.
12    "Qualified airport authority" means an airport authority
13organized under the Airport Authorities Act and located in a
14county bordering on the State of Wisconsin and having a
15population in excess of 200,000 and not greater than 500,000.
16    "Recovered tax increment value" means, except as otherwise
17provided in this paragraph, the amount of the current year's
18equalized assessed value, in the first year after a
19municipality terminates the designation of an area as a
20redevelopment project area previously established under the
21Tax Increment Allocation Redevelopment Development Act in the
22Illinois Municipal Code, previously established under the
23Industrial Jobs Recovery Law in the Illinois Municipal Code,
24previously established under the Economic Development Project
25Area Tax Increment Act of 1995, or previously established
26under the Economic Development Area Tax Increment Allocation

 

 

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1Act, of each taxable lot, block, tract, or parcel of real
2property in the redevelopment project area over and above the
3initial equalized assessed value of each property in the
4redevelopment project area. For the taxes which are extended
5for the 1997 levy year, the recovered tax increment value for a
6non-home rule taxing district that first became subject to
7this Law for the 1995 levy year because a majority of its 1994
8equalized assessed value was in an affected county or counties
9shall be increased if a municipality terminated the
10designation of an area in 1993 as a redevelopment project area
11previously established under the Tax Increment Allocation
12Redevelopment Development Act in the Illinois Municipal Code,
13previously established under the Industrial Jobs Recovery Law
14in the Illinois Municipal Code, or previously established
15under the Economic Development Area Tax Increment Allocation
16Act, by an amount equal to the 1994 equalized assessed value of
17each taxable lot, block, tract, or parcel of real property in
18the redevelopment project area over and above the initial
19equalized assessed value of each property in the redevelopment
20project area. In the first year after a municipality removes a
21taxable lot, block, tract, or parcel of real property from a
22redevelopment project area established under the Tax Increment
23Allocation Redevelopment Development Act in the Illinois
24Municipal Code, the Industrial Jobs Recovery Law in the
25Illinois Municipal Code, or the Economic Development Area Tax
26Increment Allocation Act, "recovered tax increment value"

 

 

HB2872- 18 -LRB102 14641 HLH 19994 b

1means the amount of the current year's equalized assessed
2value of each taxable lot, block, tract, or parcel of real
3property removed from the redevelopment project area over and
4above the initial equalized assessed value of that real
5property before removal from the redevelopment project area.
6    Except as otherwise provided in this Section, "limiting
7rate" means a fraction the numerator of which is the last
8preceding aggregate extension base times an amount equal to
9one plus the extension limitation defined in this Section and
10the denominator of which is the current year's equalized
11assessed value of all real property in the territory under the
12jurisdiction of the taxing district during the prior levy
13year. For those taxing districts that reduced their aggregate
14extension for the last preceding levy year, except for school
15districts that reduced their extension for educational
16purposes pursuant to Section 18-206, the highest aggregate
17extension in any of the last 3 preceding levy years shall be
18used for the purpose of computing the limiting rate. The
19denominator shall not include new property or the recovered
20tax increment value. If a new rate, a rate decrease, or a
21limiting rate increase has been approved at an election held
22after March 21, 2006, then (i) the otherwise applicable
23limiting rate shall be increased by the amount of the new rate
24or shall be reduced by the amount of the rate decrease, as the
25case may be, or (ii) in the case of a limiting rate increase,
26the limiting rate shall be equal to the rate set forth in the

 

 

HB2872- 19 -LRB102 14641 HLH 19994 b

1proposition approved by the voters for each of the years
2specified in the proposition, after which the limiting rate of
3the taxing district shall be calculated as otherwise provided.
4In the case of a taxing district that obtained referendum
5approval for an increased limiting rate on March 20, 2012, the
6limiting rate for tax year 2012 shall be the rate that
7generates the approximate total amount of taxes extendable for
8that tax year, as set forth in the proposition approved by the
9voters; this rate shall be the final rate applied by the county
10clerk for the aggregate of all capped funds of the district for
11tax year 2012.
12(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
13100-465, eff. 8-31-17; revised 8-12-19.)
 
14    (35 ILCS 200/18-205)
15    Sec. 18-205. Referendum to increase the extension
16limitation. A taxing district is limited to an extension
17limitation as defined in Section 18-185 of 5% or the
18percentage increase in the Consumer Price Index during the
1912-month calendar year preceding the levy year, whichever is
20less. A taxing district may increase its extension limitation
21for one or more levy years if that taxing district holds a
22referendum before the levy date for the first levy year at
23which a majority of voters voting on the issue approves
24adoption of a higher extension limitation. Referenda shall be
25conducted at a regularly scheduled election in accordance with

 

 

HB2872- 20 -LRB102 14641 HLH 19994 b

1the Election Code. The question shall be presented in
2substantially the following manner for all elections held
3after March 21, 2006:
4        Shall the extension limitation under the Property Tax
5    Extension Limitation Law for (insert the legal name,
6    number, if any, and county or counties of the taxing
7    district and geographic or other common name by which a
8    school or community college district is known and referred
9    to), Illinois, be increased from (extension limitation
10    under Section 18-185) the lesser of 5% or the percentage
11    increase in the Consumer Price Index over the prior levy
12    year to (insert the percentage of the proposed increase)%
13    per year for (insert each levy year for which the
14    increased extension limitation will apply)?
15The votes must be recorded as "Yes" or "No".
16If a majority of voters voting on the issue approves the
17adoption of the increase, the increase shall be applicable for
18each levy year specified.
19    The ballot for any question submitted pursuant to this
20Section shall have printed thereon, but not as a part of the
21question submitted, only the following supplemental
22information (which shall be supplied to the election authority
23by the taxing district) in substantially the following form:
24        (1) For the (insert the first levy year for which the
25    increased extension limitation will be applicable) levy
26    year the approximate amount of the additional tax

 

 

HB2872- 21 -LRB102 14641 HLH 19994 b

1    extendable against property containing a single family
2    residence and having a fair market value at the time of the
3    referendum of $100,000 is estimated to be $....
4        (2) Based upon an average annual percentage increase
5    (or decrease) in the market value of such property of ...%
6    (insert percentage equal to the average annual percentage
7    increase or decrease for the prior 3 levy years, at the
8    time the submission of the question is initiated by the
9    taxing district, in the amount of (A) the equalized
10    assessed value of the taxable property in the taxing
11    district less (B) the new property included in the
12    equalized assessed value), the approximate amount of the
13    additional tax extendable against such property for the
14    ... levy year is estimated to be $... and for the ... levy
15    year is estimated to be $....
16    Paragraph (2) shall be included only if the increased
17extension limitation will be applicable for more than one year
18and shall list each levy year for which the increased
19extension limitation will be applicable. The additional tax
20shown for each levy year shall be the approximate dollar
21amount of the increase over the amount of the most recently
22completed extension at the time the submission of the question
23is initiated by the taxing district. The approximate amount of
24the additional tax extendable shown in paragraphs (1) and (2)
25shall be calculated by multiplying $100,000 (the fair market
26value of the property without regard to any property tax

 

 

HB2872- 22 -LRB102 14641 HLH 19994 b

1exemptions) by (i) the percentage level of assessment
2prescribed for that property by statute, or by ordinance of
3the county board in counties that classify property for
4purposes of taxation in accordance with Section 4 of Article
5IX of the Illinois Constitution; (ii) the most recent final
6equalization factor certified to the county clerk by the
7Department of Revenue at the time the taxing district
8initiates the submission of the proposition to the electors;
9(iii) the last known aggregate extension base of the taxing
10district at the time the submission of the question is
11initiated by the taxing district; and (iv) the difference
12between the percentage increase proposed in the question and
13(A) the lesser of 5% or the percentage increase in the Consumer
14Price Index for the prior levy year (or an estimate of the
15percentage increase for the prior levy year if the increase is
16unavailable at the time the submission of the question is
17initiated by the taxing district) or (B) 0%, as applicable;
18and dividing the result by the last known equalized assessed
19value of the taxing district at the time the submission of the
20question is initiated by the taxing district. This amendatory
21Act of the 97th General Assembly is intended to clarify the
22existing requirements of this Section, and shall not be
23construed to validate any prior non-compliant referendum
24language. Any notice required to be published in connection
25with the submission of the question shall also contain this
26supplemental information and shall not contain any other

 

 

HB2872- 23 -LRB102 14641 HLH 19994 b

1supplemental information. Any error, miscalculation, or
2inaccuracy in computing any amount set forth on the ballot or
3in the notice that is not deliberate shall not invalidate or
4affect the validity of any proposition approved. Notice of the
5referendum shall be published and posted as otherwise required
6by law, and the submission of the question shall be initiated
7as provided by law.
8(Source: P.A. 97-1087, eff. 8-24-12.)
 
9    (35 ILCS 200/18-212)
10    Sec. 18-212. Referendum on debt service extension base. A
11taxing district may establish or increase its debt service
12extension base if (i) that taxing district holds a referendum
13before the date on which the levy must be filed with the county
14clerk of the county or counties in which the taxing district is
15situated and (ii) a majority of voters voting on the issue
16approves the establishment of or increase in the debt service
17extension base. A debt service extension base established or
18increased by a referendum held pursuant to this Section after
19February 2, 2010 and prior to the effective date of this
20amendatory Act of the 102nd General Assembly, shall be
21increased each year, commencing with the first levy year
22beginning after the date of the referendum, by the lesser of 5%
23or the percentage increase in the Consumer Price Index during
24the 12-month calendar year preceding the levy year if the
25optional language concerning the annual increase is included

 

 

HB2872- 24 -LRB102 14641 HLH 19994 b

1in the question submitted to the electors of the taxing
2district. Referenda under this Section shall be conducted at a
3regularly scheduled election in accordance with the Election
4Code. The governing body of the taxing district shall certify
5the question to the proper election authorities who shall
6submit the question to the electors of the taxing district in
7substantially the following form:
8    "Shall the debt service extension base under the Property
9    Tax Extension Limitation Law for ... (taxing district
10    name) ... for payment of principal and interest on limited
11    bonds be .... ((established at $ ....) . (or) (increased
12    from $ .... to $ ....)) .. for the ..... levy year and all
13    subsequent levy years (optional language: , such debt
14    service extension base to be increased each year by the
15    lesser of 5% or the percentage increase in the Consumer
16    Price Index during the 12-month calendar year preceding
17    the levy year)?"
18    Votes on the question shall be recorded as "Yes" or "No".
19    If a majority of voters voting on the issue approves the
20establishment of or increase in the debt service extension
21base, the establishment of or increase in the debt service
22extension base shall be applicable for the levy years
23specified.
24(Source: P.A. 96-1202, eff. 7-22-10.)
 
25    (35 ILCS 200/18-213)

 

 

HB2872- 25 -LRB102 14641 HLH 19994 b

1    Sec. 18-213. Referenda on applicability of the Property
2Tax Extension Limitation Law.
3    (a) The provisions of this Section do not apply to a taxing
4district subject to this Law because a majority of its 1990
5equalized assessed value is in a county or counties contiguous
6to a county of 3,000,000 or more inhabitants, or because a
7majority of its 1994 equalized assessed value is in an
8affected county and the taxing district was not subject to
9this Law before the 1995 levy year.
10    (b) Prior to taxable year 2021, the The county board of a
11county that is not subject to this Law may, by ordinance or
12resolution, submit to the voters of the county the question of
13whether to make all non-home rule taxing districts that have
14all or a portion of their equalized assessed valuation
15situated in the county subject to this Law in the manner set
16forth in this Section.
17    For purposes of this Section only:
18    "Taxing district" has the same meaning provided in Section
191-150.
20    "Equalized assessed valuation" means the equalized
21assessed valuation for a taxing district for the immediately
22preceding levy year.
23    (c) The ordinance or resolution shall request the
24submission of the proposition at any election, except a
25consolidated primary election, for the purpose of voting for
26or against making the Property Tax Extension Limitation Law

 

 

HB2872- 26 -LRB102 14641 HLH 19994 b

1applicable to all non-home rule taxing districts that have all
2or a portion of their equalized assessed valuation situated in
3the county.
4    The question shall be placed on a separate ballot and
5shall be in substantially the following form:
6        Shall the Property Tax Extension Limitation Law (35
7    ILCS 200/18-185 through 18-245), which limits annual
8    property tax extension increases, apply to non-home rule
9    taxing districts with all or a portion of their equalized
10    assessed valuation located in (name of county)?
11Votes on the question shall be recorded as "yes" or "no".
12    (d) The county clerk shall order the proposition submitted
13to the electors of the county at the election specified in the
14ordinance or resolution. If part of the county is under the
15jurisdiction of a board or boards of election commissioners,
16the county clerk shall submit a certified copy of the
17ordinance or resolution to each board of election
18commissioners, which shall order the proposition submitted to
19the electors of the taxing district within its jurisdiction at
20the election specified in the ordinance or resolution.
21    (e) (1) With respect to taxing districts having all of
22    their equalized assessed valuation located in the county,
23    if a majority of the votes cast on the proposition are in
24    favor of the proposition, then this Law becomes applicable
25    to the taxing district beginning on January 1 of the year
26    following the date of the referendum.

 

 

HB2872- 27 -LRB102 14641 HLH 19994 b

1        (2) With respect to taxing districts that meet all the
2    following conditions this Law shall become applicable to
3    the taxing district beginning on January 1, 1997. The
4    districts to which this paragraph (2) is applicable
5            (A) do not have all of their equalized assessed
6        valuation located in a single county,
7            (B) have equalized assessed valuation in an
8        affected county,
9            (C) meet the condition that each county, other
10        than an affected county, in which any of the equalized
11        assessed valuation of the taxing district is located
12        has held a referendum under this Section at any
13        election, except a consolidated primary election, held
14        prior to the effective date of this amendatory Act of
15        1997, and
16            (D) have a majority of the district's equalized
17        assessed valuation located in one or more counties in
18        each of which the voters have approved a referendum
19        under this Section prior to the effective date of this
20        amendatory Act of 1997. For purposes of this Section,
21        in determining whether a majority of the equalized
22        assessed valuation of the taxing district is located
23        in one or more counties in which the voters have
24        approved a referendum under this Section, the
25        equalized assessed valuation of the taxing district in
26        any affected county shall be included with the

 

 

HB2872- 28 -LRB102 14641 HLH 19994 b

1        equalized assessed value of the taxing district in
2        counties in which the voters have approved the
3        referendum.
4        (3) With respect to taxing districts that do not have
5    all of their equalized assessed valuation located in a
6    single county and to which paragraph (2) of subsection (e)
7    is not applicable, if each county other than an affected
8    county in which any of the equalized assessed valuation of
9    the taxing district is located has held a referendum under
10    this Section at any election, except a consolidated
11    primary election, held in any year and if a majority of the
12    equalized assessed valuation of the taxing district is
13    located in one or more counties that have each approved a
14    referendum under this Section, then this Law shall become
15    applicable to the taxing district on January 1 of the year
16    following the year in which the last referendum in a
17    county in which the taxing district has any equalized
18    assessed valuation is held. For the purposes of this Law,
19    the last referendum shall be deemed to be the referendum
20    making this Law applicable to the taxing district. For
21    purposes of this Section, in determining whether a
22    majority of the equalized assessed valuation of the taxing
23    district is located in one or more counties that have
24    approved a referendum under this Section, the equalized
25    assessed valuation of the taxing district in any affected
26    county shall be included with the equalized assessed value

 

 

HB2872- 29 -LRB102 14641 HLH 19994 b

1    of the taxing district in counties that have approved the
2    referendum.
3    (f) Immediately after a referendum is held under this
4Section, the county clerk of the county holding the referendum
5shall give notice of the referendum having been held and its
6results to all taxing districts that have all or a portion of
7their equalized assessed valuation located in the county, the
8county clerk of any other county in which any of the equalized
9assessed valuation of any taxing district is located, and the
10Department of Revenue. After the last referendum affecting a
11multi-county taxing district is held, the Department of
12Revenue shall determine whether the taxing district is subject
13to this Law and, if so, shall notify the taxing district and
14the county clerks of all of the counties in which a portion of
15the equalized assessed valuation of the taxing district is
16located that, beginning the following January 1, the taxing
17district is subject to this Law. For each taxing district
18subject to paragraph (2) of subsection (e) of this Section,
19the Department of Revenue shall notify the taxing district and
20the county clerks of all of the counties in which a portion of
21the equalized assessed valuation of the taxing district is
22located that, beginning January 1, 1997, the taxing district
23is subject to this Law.
24    (g) Referenda held under this Section shall be conducted
25in accordance with the Election Code.
26(Source: P.A. 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.)
 

 

 

HB2872- 30 -LRB102 14641 HLH 19994 b

1    (35 ILCS 200/18-214)
2    Sec. 18-214. Referenda on removal of the applicability of
3the Property Tax Extension Limitation Law to non-home rule
4taxing districts.
5    (a) The provisions of this Section do not apply to a taxing
6district that is subject to this Law because a majority of its
71990 equalized assessed value is in a county or counties
8contiguous to a county of 3,000,000 or more inhabitants, or
9because a majority of its 1994 equalized assessed value is in
10an affected county and the taxing district was not subject to
11this Law before the 1995 levy year.
12    (b) For purposes of this Section only:
13    "Taxing district" means any non-home rule taxing district
14that became subject to this Law under Section 18-213 of this
15Law.
16    "Equalized assessed valuation" means the equalized
17assessed valuation for a taxing district for the immediately
18preceding levy year.
19    (c) The county board of a county that became subject to
20this Law by a referendum approved by the voters of the county
21under Section 18-213 may, by ordinance or resolution, in the
22manner set forth in this Section, submit to the voters of the
23county the question of whether this Law applies to all
24non-home rule taxing districts that have all or a portion of
25their equalized assessed valuation situated in the county in

 

 

HB2872- 31 -LRB102 14641 HLH 19994 b

1the manner set forth in this Section.
2    (d) The ordinance or resolution shall request the
3submission of the proposition at any election, except a
4consolidated primary election, for the purpose of voting for
5or against the continued application of the Property Tax
6Extension Limitation Law to all non-home rule taxing districts
7that have all or a portion of their equalized assessed
8valuation situated in the county.
9    The question shall be placed on a separate ballot and
10shall be in substantially the following form:
11        Shall the Property Tax Extension Limitation Law (35
12    ILCS 200/18-185 through 35 ILCS 200/18-245), which limits
13    annual property tax extension increases, apply to non-home
14    rule taxing districts with all or a portion of their
15    equalized assessed valuation located in (name of county)?
16Votes on the question shall be recorded as "yes" or "no".
17    (e) The county clerk shall order the proposition submitted
18to the electors of the county at the election specified in the
19ordinance or resolution. If part of the county is under the
20jurisdiction of a board or boards of election commissioners,
21the county clerk shall submit a certified copy of the
22ordinance or resolution to each board of election
23commissioners, which shall order the proposition submitted to
24the electors of the taxing district within its jurisdiction at
25the election specified in the ordinance or resolution.
26    (f) With respect to taxing districts having all of their

 

 

HB2872- 32 -LRB102 14641 HLH 19994 b

1equalized assessed valuation located in one county, if a
2majority of the votes cast on the proposition are against the
3proposition, then this Law shall not apply to the taxing
4district beginning on January 1 of the year following the date
5of the referendum.
6    (g) With respect to taxing districts that do not have all
7of their equalized assessed valuation located in a single
8county, if both of the following conditions are met, then this
9Law shall no longer apply to the taxing district beginning on
10January 1 of the year following the date of the referendum.
11        (1) Each county in which the district has any
12    equalized assessed valuation must either, (i) have held a
13    referendum under this Section, (ii) be an affected county,
14    or (iii) have held a referendum under Section 18-213 at
15    which the voters rejected the proposition at the most
16    recent election at which the question was on the ballot in
17    the county.
18        (2) The majority of the equalized assessed valuation
19    of the taxing district, other than any equalized assessed
20    valuation in an affected county, is in one or more
21    counties in which the voters rejected the proposition. For
22    purposes of this Section, in determining whether a
23    majority of the equalized assessed valuation of the taxing
24    district is located in one or more counties in which the
25    voters have rejected the proposition under this Section,
26    the equalized assessed valuation of any taxing district in

 

 

HB2872- 33 -LRB102 14641 HLH 19994 b

1    a county which has held a referendum under Section 18-213
2    at which the voters rejected that proposition, at the most
3    recent election at which the question was on the ballot in
4    the county, will be included with the equalized assessed
5    value of the taxing district in counties in which the
6    voters have rejected the referendum held under this
7    Section.
8    (h) Immediately after a referendum is held under this
9Section, the county clerk of the county holding the referendum
10shall give notice of the referendum having been held and its
11results to all taxing districts that have all or a portion of
12their equalized assessed valuation located in the county, the
13county clerk of any other county in which any of the equalized
14assessed valuation of any such taxing district is located, and
15the Department of Revenue. After the last referendum affecting
16a multi-county taxing district is held, the Department of
17Revenue shall determine whether the taxing district is no
18longer subject to this Law and, if the taxing district is no
19longer subject to this Law, the Department of Revenue shall
20notify the taxing district and the county clerks of all of the
21counties in which a portion of the equalized assessed
22valuation of the taxing district is located that, beginning on
23January 1 of the year following the date of the last
24referendum, the taxing district is no longer subject to this
25Law.
26    (i) Notwithstanding any other provision of law, no

 

 

HB2872- 34 -LRB102 14641 HLH 19994 b

1referendum may be submitted under this Section for taxable
2year 2021 or thereafter.
3(Source: P.A. 89-718, eff. 3-7-97.)
 
4    (35 ILCS 200/18-242 new)
5    Sec. 18-242. Home rule. This Division 5 is a limitation,
6under subsection (g) of Section 6 of Article VII of the
7Illinois Constitution, on the power of home rule units to tax.
 
8    Section 90. The State Mandates Act is amended by adding
9Section 8.45 as follows:
 
10    (30 ILCS 805/8.45 new)
11    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
128 of this Act, no reimbursement by the State is required for
13the implementation of any mandate created by this amendatory
14Act of the 102nd General Assembly.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.