103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3177

 

Introduced 2/17/2023, by Rep. Tom Weber

 

SYNOPSIS AS INTRODUCED:
 
New Act
35 ILCS 200/18-185
35 ILCS 200/18-212
105 ILCS 5/17-3.4a new
105 ILCS 5/34-52.5 new

    Creates the Taxpayer Protection Act. Provides that, on and after the effective date of the Act, for bonds or incurred debt issued through a referendum by a unit of local government or school district, the bonds or incurred debt shall not be extended or reissued unless authorized by a referendum. Provides that a unit of local government or school district shall not submit the question concerning the extension or reissuance of a bond or incurring debt to voters in a referendum until at least one year has passed since the retirement of the bond or debt approved by a referendum. Provides that, on and after the effective date of the Act, a unit of local government or school district shall not submit a question concerning the issuance of a bond or incurring debt to the voters in a referendum until at least one year has passed since that unit or district last proposed a question or proposition concerning the issuance of bonds or incurring debt in a referendum. Limits home rule powers. Amends the Property Tax Code. Provides that there shall not be a service extension base annual increase unless increased by referendum. Amends the School Code. Provides that no later than 30 days before a school district submits to the voters of that district a question on whether to issue bonds or increase the school district's property tax rate, the school district must send informational material to each resident of voting age in the school district; defines "informational material". Specifies what must be included in the informational material Effective immediately.


LRB103 29944 HLH 56359 b

 

 

A BILL FOR

 

HB3177LRB103 29944 HLH 56359 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Taxpayer Protection Act.
 
6    Section 5. Purpose. The purpose of this Act is to address
7the following items:
8        (1) To ensure that bonds or debts authorized by
9    referendums cannot be renewed.
10        (2) To require all governmental agencies to allow one
11    year between one referendum bond ending and one referendum
12    bond starting to allow taxpayers to see how bonds affect
13    their taxes and the savings they would incur if there was
14    not a bond.
 
15    Section 10. Definitions. As used in this Act:
16    "Bond" has the meaning given to that term in the Local
17Government Debt Reform Act.
18    "Governmental unit" means a unit of local government or
19school district.
 
20    Section 15. Issuance of bonds or incurring debt by
21referendum; one-year wait.

 

 

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1    (a) Notwithstanding any other provision of law, on and
2after the effective date of this Act, for bonds or incurred
3debt issued through a referendum by a governmental unit, the
4bonds or incurred debt shall not be extended or reissued
5unless authorized by a separate referendum. A government unit
6shall not submit the question concerning the extension or
7reissuance of a bond or incurring debt to voters in a
8referendum until at least one year has passed since the
9retirement of the bond or incurred debt approved by a
10referendum.
11    (b) Notwithstanding any other provision of law, on and
12after the effective date of this Act, a government unit shall
13not submit a question concerning the issuance of a bond or
14incurring debt to the voters in a referendum until at least one
15year has passed since that government unit last proposed a
16question or proposition concerning the issuance of bonds or
17incurring debt in a referendum.
 
18    Section 20. Home rule. The regulation of issuing,
19incurring, extending, or reissuing bonds and debt as contained
20in this Act are exclusive powers and functions of the State. A
21home rule unit may not regulate such matters. This Act is a
22denial and limitation of home rule powers and functions under
23subsection (h) of Section 6 of Article VII of the Illinois
24Constitution.
 

 

 

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1    Section 90. The Property Tax Code is amended by changing
2Sections 18-185 and 18-212 as follows:
 
3    (35 ILCS 200/18-185)
4    Sec. 18-185. Short title; definitions. This Division 5
5may be cited as the Property Tax Extension Limitation Law. As
6used in this Division 5:
7    "Consumer Price Index" means the Consumer Price Index for
8All Urban Consumers for all items published by the United
9States Department of Labor.
10    "Extension limitation" means (a) the lesser of 5% or the
11percentage increase in the Consumer Price Index during the
1212-month calendar year preceding the levy year or (b) the rate
13of increase approved by voters under Section 18-205.
14    "Affected county" means a county of 3,000,000 or more
15inhabitants or a county contiguous to a county of 3,000,000 or
16more inhabitants.
17    "Taxing district" has the same meaning provided in Section
181-150, except as otherwise provided in this Section. For the
191991 through 1994 levy years only, "taxing district" includes
20only each non-home rule taxing district having the majority of
21its 1990 equalized assessed value within any county or
22counties contiguous to a county with 3,000,000 or more
23inhabitants. Beginning with the 1995 levy year, "taxing
24district" includes only each non-home rule taxing district
25subject to this Law before the 1995 levy year and each non-home

 

 

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1rule taxing district not subject to this Law before the 1995
2levy year having the majority of its 1994 equalized assessed
3value in an affected county or counties. Beginning with the
4levy year in which this Law becomes applicable to a taxing
5district as provided in Section 18-213, "taxing district" also
6includes those taxing districts made subject to this Law as
7provided in Section 18-213.
8    "Aggregate extension" for taxing districts to which this
9Law applied before the 1995 levy year means the annual
10corporate extension for the taxing district and those special
11purpose extensions that are made annually for the taxing
12district, excluding special purpose extensions: (a) made for
13the taxing district to pay interest or principal on general
14obligation bonds that were approved by referendum; (b) made
15for any taxing district to pay interest or principal on
16general obligation bonds issued before October 1, 1991; (c)
17made for any taxing district to pay interest or principal on
18bonds issued to refund or continue to refund those bonds
19issued before October 1, 1991; (d) made for any taxing
20district to pay interest or principal on bonds issued to
21refund or continue to refund bonds issued after October 1,
221991 that were approved by referendum; (e) made for any taxing
23district to pay interest or principal on revenue bonds issued
24before October 1, 1991 for payment of which a property tax levy
25or the full faith and credit of the unit of local government is
26pledged; however, a tax for the payment of interest or

 

 

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1principal on those bonds shall be made only after the
2governing body of the unit of local government finds that all
3other sources for payment are insufficient to make those
4payments; (f) made for payments under a building commission
5lease when the lease payments are for the retirement of bonds
6issued by the commission before October 1, 1991, to pay for the
7building project; (g) made for payments due under installment
8contracts entered into before October 1, 1991; (h) made for
9payments of principal and interest on bonds issued under the
10Metropolitan Water Reclamation District Act to finance
11construction projects initiated before October 1, 1991; (i)
12made for payments of principal and interest on limited bonds,
13as defined in Section 3 of the Local Government Debt Reform
14Act, in an amount not to exceed the debt service extension base
15less the amount in items (b), (c), (e), and (h) of this
16definition for non-referendum obligations, except obligations
17initially issued pursuant to referendum; (j) made for payments
18of principal and interest on bonds issued under Section 15 of
19the Local Government Debt Reform Act; (k) made by a school
20district that participates in the Special Education District
21of Lake County, created by special education joint agreement
22under Section 10-22.31 of the School Code, for payment of the
23school district's share of the amounts required to be
24contributed by the Special Education District of Lake County
25to the Illinois Municipal Retirement Fund under Article 7 of
26the Illinois Pension Code; the amount of any extension under

 

 

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1this item (k) shall be certified by the school district to the
2county clerk; (l) made to fund expenses of providing joint
3recreational programs for persons with disabilities under
4Section 5-8 of the Park District Code or Section 11-95-14 of
5the Illinois Municipal Code; (m) made for temporary relocation
6loan repayment purposes pursuant to Sections 2-3.77 and
717-2.2d of the School Code; (n) made for payment of principal
8and interest on any bonds issued under the authority of
9Section 17-2.2d of the School Code; (o) made for contributions
10to a firefighter's pension fund created under Article 4 of the
11Illinois Pension Code, to the extent of the amount certified
12under item (5) of Section 4-134 of the Illinois Pension Code;
13and (p) made for road purposes in the first year after a
14township assumes the rights, powers, duties, assets, property,
15liabilities, obligations, and responsibilities of a road
16district abolished under the provisions of Section 6-133 of
17the Illinois Highway Code.
18    "Aggregate extension" for the taxing districts to which
19this Law did not apply before the 1995 levy year (except taxing
20districts subject to this Law in accordance with Section
2118-213) means the annual corporate extension for the taxing
22district and those special purpose extensions that are made
23annually for the taxing district, excluding special purpose
24extensions: (a) made for the taxing district to pay interest
25or principal on general obligation bonds that were approved by
26referendum; (b) made for any taxing district to pay interest

 

 

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1or principal on general obligation bonds issued before March
21, 1995; (c) made for any taxing district to pay interest or
3principal on bonds issued to refund or continue to refund
4those bonds issued before March 1, 1995; (d) made for any
5taxing district to pay interest or principal on bonds issued
6to refund or continue to refund bonds issued after March 1,
71995 that were approved by referendum; (e) made for any taxing
8district to pay interest or principal on revenue bonds issued
9before March 1, 1995 for payment of which a property tax levy
10or the full faith and credit of the unit of local government is
11pledged; however, a tax for the payment of interest or
12principal on those bonds shall be made only after the
13governing body of the unit of local government finds that all
14other sources for payment are insufficient to make those
15payments; (f) made for payments under a building commission
16lease when the lease payments are for the retirement of bonds
17issued by the commission before March 1, 1995 to pay for the
18building project; (g) made for payments due under installment
19contracts entered into before March 1, 1995; (h) made for
20payments of principal and interest on bonds issued under the
21Metropolitan Water Reclamation District Act to finance
22construction projects initiated before October 1, 1991; (h-4)
23made for stormwater management purposes by the Metropolitan
24Water Reclamation District of Greater Chicago under Section 12
25of the Metropolitan Water Reclamation District Act; (h-8) made
26for payments of principal and interest on bonds issued under

 

 

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1Section 9.6a of the Metropolitan Water Reclamation District
2Act to make contributions to the pension fund established
3under Article 13 of the Illinois Pension Code; (i) made for
4payments of principal and interest on limited bonds, as
5defined in Section 3 of the Local Government Debt Reform Act,
6in an amount not to exceed the debt service extension base less
7the amount in items (b), (c), and (e) of this definition for
8non-referendum obligations, except obligations initially
9issued pursuant to referendum and bonds described in
10subsections (h) and (h-8) of this definition; (j) made for
11payments of principal and interest on bonds issued under
12Section 15 of the Local Government Debt Reform Act; (k) made
13for payments of principal and interest on bonds authorized by
14Public Act 88-503 and issued under Section 20a of the Chicago
15Park District Act for aquarium or museum projects and bonds
16issued under Section 20a of the Chicago Park District Act for
17the purpose of making contributions to the pension fund
18established under Article 12 of the Illinois Pension Code; (l)
19made for payments of principal and interest on bonds
20authorized by Public Act 87-1191 or 93-601 and (i) issued
21pursuant to Section 21.2 of the Cook County Forest Preserve
22District Act, (ii) issued under Section 42 of the Cook County
23Forest Preserve District Act for zoological park projects, or
24(iii) issued under Section 44.1 of the Cook County Forest
25Preserve District Act for botanical gardens projects; (m) made
26pursuant to Section 34-53.5 of the School Code, whether levied

 

 

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1annually or not; (n) made to fund expenses of providing joint
2recreational programs for persons with disabilities under
3Section 5-8 of the Park District Code or Section 11-95-14 of
4the Illinois Municipal Code; (o) made by the Chicago Park
5District for recreational programs for persons with
6disabilities under subsection (c) of Section 7.06 of the
7Chicago Park District Act; (p) made for contributions to a
8firefighter's pension fund created under Article 4 of the
9Illinois Pension Code, to the extent of the amount certified
10under item (5) of Section 4-134 of the Illinois Pension Code;
11(q) made by Ford Heights School District 169 under Section
1217-9.02 of the School Code; and (r) made for the purpose of
13making employer contributions to the Public School Teachers'
14Pension and Retirement Fund of Chicago under Section 34-53 of
15the School Code.
16    "Aggregate extension" for all taxing districts to which
17this Law applies in accordance with Section 18-213, except for
18those taxing districts subject to paragraph (2) of subsection
19(e) of Section 18-213, means the annual corporate extension
20for the taxing district and those special purpose extensions
21that are made annually for the taxing district, excluding
22special purpose extensions: (a) made for the taxing district
23to pay interest or principal on general obligation bonds that
24were approved by referendum; (b) made for any taxing district
25to pay interest or principal on general obligation bonds
26issued before the date on which the referendum making this Law

 

 

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1applicable to the taxing district is held; (c) made for any
2taxing district to pay interest or principal on bonds issued
3to refund or continue to refund those bonds issued before the
4date on which the referendum making this Law applicable to the
5taxing district is held; (d) made for any taxing district to
6pay interest or principal on bonds issued to refund or
7continue to refund bonds issued after the date on which the
8referendum making this Law applicable to the taxing district
9is held if the bonds were approved by referendum after the date
10on which the referendum making this Law applicable to the
11taxing district is held; (e) made for any taxing district to
12pay interest or principal on revenue bonds issued before the
13date on which the referendum making this Law applicable to the
14taxing district is held for payment of which a property tax
15levy or the full faith and credit of the unit of local
16government is pledged; however, a tax for the payment of
17interest or principal on those bonds shall be made only after
18the governing body of the unit of local government finds that
19all other sources for payment are insufficient to make those
20payments; (f) made for payments under a building commission
21lease when the lease payments are for the retirement of bonds
22issued by the commission before the date on which the
23referendum making this Law applicable to the taxing district
24is held to pay for the building project; (g) made for payments
25due under installment contracts entered into before the date
26on which the referendum making this Law applicable to the

 

 

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1taxing district is held; (h) made for payments of principal
2and interest on limited bonds, as defined in Section 3 of the
3Local Government Debt Reform Act, in an amount not to exceed
4the debt service extension base less the amount in items (b),
5(c), and (e) of this definition for non-referendum
6obligations, except obligations initially issued pursuant to
7referendum; (i) made for payments of principal and interest on
8bonds issued under Section 15 of the Local Government Debt
9Reform Act; (j) made for a qualified airport authority to pay
10interest or principal on general obligation bonds issued for
11the purpose of paying obligations due under, or financing
12airport facilities required to be acquired, constructed,
13installed or equipped pursuant to, contracts entered into
14before March 1, 1996 (but not including any amendments to such
15a contract taking effect on or after that date); (k) made to
16fund expenses of providing joint recreational programs for
17persons with disabilities under Section 5-8 of the Park
18District Code or Section 11-95-14 of the Illinois Municipal
19Code; (l) made for contributions to a firefighter's pension
20fund created under Article 4 of the Illinois Pension Code, to
21the extent of the amount certified under item (5) of Section
224-134 of the Illinois Pension Code; and (m) made for the taxing
23district to pay interest or principal on general obligation
24bonds issued pursuant to Section 19-3.10 of the School Code.
25    "Aggregate extension" for all taxing districts to which
26this Law applies in accordance with paragraph (2) of

 

 

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1subsection (e) of Section 18-213 means the annual corporate
2extension for the taxing district and those special purpose
3extensions that are made annually for the taxing district,
4excluding special purpose extensions: (a) made for the taxing
5district to pay interest or principal on general obligation
6bonds that were approved by referendum; (b) made for any
7taxing district to pay interest or principal on general
8obligation bonds issued before March 7, 1997 (the effective
9date of Public Act 89-718); (c) made for any taxing district to
10pay interest or principal on bonds issued to refund or
11continue to refund those bonds issued before March 7, 1997
12(the effective date of Public Act 89-718); (d) made for any
13taxing district to pay interest or principal on bonds issued
14to refund or continue to refund bonds issued after March 7,
151997 (the effective date of Public Act 89-718) if the bonds
16were approved by referendum after March 7, 1997 (the effective
17date of Public Act 89-718); (e) made for any taxing district to
18pay interest or principal on revenue bonds issued before March
197, 1997 (the effective date of Public Act 89-718) for payment
20of which a property tax levy or the full faith and credit of
21the unit of local government is pledged; however, a tax for the
22payment of interest or principal on those bonds shall be made
23only after the governing body of the unit of local government
24finds that all other sources for payment are insufficient to
25make those payments; (f) made for payments under a building
26commission lease when the lease payments are for the

 

 

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1retirement of bonds issued by the commission before March 7,
21997 (the effective date of Public Act 89-718) to pay for the
3building project; (g) made for payments due under installment
4contracts entered into before March 7, 1997 (the effective
5date of Public Act 89-718); (h) made for payments of principal
6and interest on limited bonds, as defined in Section 3 of the
7Local Government Debt Reform Act, in an amount not to exceed
8the debt service extension base less the amount in items (b),
9(c), and (e) of this definition for non-referendum
10obligations, except obligations initially issued pursuant to
11referendum; (i) made for payments of principal and interest on
12bonds issued under Section 15 of the Local Government Debt
13Reform Act; (j) made for a qualified airport authority to pay
14interest or principal on general obligation bonds issued for
15the purpose of paying obligations due under, or financing
16airport facilities required to be acquired, constructed,
17installed or equipped pursuant to, contracts entered into
18before March 1, 1996 (but not including any amendments to such
19a contract taking effect on or after that date); (k) made to
20fund expenses of providing joint recreational programs for
21persons with disabilities under Section 5-8 of the Park
22District Code or Section 11-95-14 of the Illinois Municipal
23Code; and (l) made for contributions to a firefighter's
24pension fund created under Article 4 of the Illinois Pension
25Code, to the extent of the amount certified under item (5) of
26Section 4-134 of the Illinois Pension Code.

 

 

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1    "Debt service extension base" means an amount equal to
2that portion of the extension for a taxing district for the
31994 levy year, or for those taxing districts subject to this
4Law in accordance with Section 18-213, except for those
5subject to paragraph (2) of subsection (e) of Section 18-213,
6for the levy year in which the referendum making this Law
7applicable to the taxing district is held, or for those taxing
8districts subject to this Law in accordance with paragraph (2)
9of subsection (e) of Section 18-213 for the 1996 levy year,
10constituting an extension for payment of principal and
11interest on bonds issued by the taxing district without
12referendum, but not including excluded non-referendum bonds.
13For park districts (i) that were first subject to this Law in
141991 or 1995 and (ii) whose extension for the 1994 levy year
15for the payment of principal and interest on bonds issued by
16the park district without referendum (but not including
17excluded non-referendum bonds) was less than 51% of the amount
18for the 1991 levy year constituting an extension for payment
19of principal and interest on bonds issued by the park district
20without referendum (but not including excluded non-referendum
21bonds), "debt service extension base" means an amount equal to
22that portion of the extension for the 1991 levy year
23constituting an extension for payment of principal and
24interest on bonds issued by the park district without
25referendum (but not including excluded non-referendum bonds).
26A debt service extension base established or increased at any

 

 

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1time pursuant to any provision of this Law, except Section
218-212, shall be increased each year commencing with the later
3of: (i) the 2009 levy year; or (ii) the first levy year in
4which this Law becomes applicable to the taxing district, by
5(A) prior to the effective date of this amendatory Act of the
6103rd General Assembly, the lesser of 5% or the percentage
7increase in the Consumer Price Index during the 12-month
8calendar year preceding the levy year, and (B) on and after the
9effective date of this amendatory Act of the 103rd General
10Assembly, 0% or the rate of increase approved by the voters
11under Section 18-212. The debt service extension base may be
12established or increased as provided under Section 18-212.
13"Excluded non-referendum bonds" means (i) bonds authorized by
14Public Act 88-503 and issued under Section 20a of the Chicago
15Park District Act for aquarium and museum projects; (ii) bonds
16issued under Section 15 of the Local Government Debt Reform
17Act; or (iii) refunding obligations issued to refund or to
18continue to refund obligations initially issued pursuant to
19referendum.
20    "Special purpose extensions" include, but are not limited
21to, extensions for levies made on an annual basis for
22unemployment and workers' compensation, self-insurance,
23contributions to pension plans, and extensions made pursuant
24to Section 6-601 of the Illinois Highway Code for a road
25district's permanent road fund whether levied annually or not.
26The extension for a special service area is not included in the

 

 

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1aggregate extension.
2    "Aggregate extension base" means the taxing district's
3last preceding aggregate extension as adjusted under Sections
418-135, 18-215, 18-230, 18-206, and 18-233. Beginning with
5levy year 2022, for taxing districts that are specified in
6Section 18-190.7, the taxing district's aggregate extension
7base shall be calculated as provided in Section 18-190.7. An
8adjustment under Section 18-135 shall be made for the 2007
9levy year and all subsequent levy years whenever one or more
10counties within which a taxing district is located (i) used
11estimated valuations or rates when extending taxes in the
12taxing district for the last preceding levy year that resulted
13in the over or under extension of taxes, or (ii) increased or
14decreased the tax extension for the last preceding levy year
15as required by Section 18-135(c). Whenever an adjustment is
16required under Section 18-135, the aggregate extension base of
17the taxing district shall be equal to the amount that the
18aggregate extension of the taxing district would have been for
19the last preceding levy year if either or both (i) actual,
20rather than estimated, valuations or rates had been used to
21calculate the extension of taxes for the last levy year, or
22(ii) the tax extension for the last preceding levy year had not
23been adjusted as required by subsection (c) of Section 18-135.
24    Notwithstanding any other provision of law, for levy year
252012, the aggregate extension base for West Northfield School
26District No. 31 in Cook County shall be $12,654,592.

 

 

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1    Notwithstanding any other provision of law, for levy year
22022, the aggregate extension base of a home equity assurance
3program that levied at least $1,000,000 in property taxes in
4levy year 2019 or 2020 under the Home Equity Assurance Act
5shall be the amount that the program's aggregate extension
6base for levy year 2021 would have been if the program had
7levied a property tax for levy year 2021.
8    "Levy year" has the same meaning as "year" under Section
91-155.
10    "New property" means (i) the assessed value, after final
11board of review or board of appeals action, of new
12improvements or additions to existing improvements on any
13parcel of real property that increase the assessed value of
14that real property during the levy year multiplied by the
15equalization factor issued by the Department under Section
1617-30, (ii) the assessed value, after final board of review or
17board of appeals action, of real property not exempt from real
18estate taxation, which real property was exempt from real
19estate taxation for any portion of the immediately preceding
20levy year, multiplied by the equalization factor issued by the
21Department under Section 17-30, including the assessed value,
22upon final stabilization of occupancy after new construction
23is complete, of any real property located within the
24boundaries of an otherwise or previously exempt military
25reservation that is intended for residential use and owned by
26or leased to a private corporation or other entity, (iii) in

 

 

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

 

 

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

 

 

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

 

 

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1case may be, or (ii) in the case of a limiting rate increase,
2the limiting rate shall be equal to the rate set forth in the
3proposition approved by the voters for each of the years
4specified in the proposition, after which the limiting rate of
5the taxing district shall be calculated as otherwise provided.
6In the case of a taxing district that obtained referendum
7approval for an increased limiting rate on March 20, 2012, the
8limiting rate for tax year 2012 shall be the rate that
9generates the approximate total amount of taxes extendable for
10that tax year, as set forth in the proposition approved by the
11voters; this rate shall be the final rate applied by the county
12clerk for the aggregate of all capped funds of the district for
13tax year 2012.
14(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
15102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff.
164-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22; revised
178-29-22.)
 
18    (35 ILCS 200/18-212)
19    Sec. 18-212. Referendum on debt service extension base. A
20taxing district may establish or increase its debt service
21extension base if (i) that taxing district holds a referendum
22before the date on which the levy must be filed with the county
23clerk of the county or counties in which the taxing district is
24situated and (ii) a majority of voters voting on the issue
25approves the establishment of or increase in the debt service

 

 

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1extension base. A debt service extension base established or
2increased by a referendum held pursuant to this Section after
3February 2, 2010 and prior to the effective date of this
4amendatory Act of the 103rd General Assembly, shall be
5increased each year, commencing with the first levy year
6beginning after the date of the referendum, by the lesser of 5%
7or the percentage increase in the Consumer Price Index during
8the 12-month calendar year preceding the levy year if the
9optional language concerning the annual increase is included
10in the question submitted to the electors of the taxing
11district. On and after the effective date of this amendatory
12Act of the 103rd General Assembly, the date service extension
13base annual increase amount shall be 0% or the rate of increase
14approved by the voters under this Section. Referenda under
15this Section shall be conducted at a regularly scheduled
16election in accordance with the Election Code. The governing
17body of the taxing district shall certify the question to the
18proper election authorities who shall submit the question to
19the electors of the taxing district in substantially the
20following form:
21    "Shall the debt service extension base under the Property
22    Tax Extension Limitation Law for ... (taxing district
23    name) ... for payment of principal and interest on limited
24    bonds be .... ((established at $ ....) . (or) (increased
25    from $ .... to $ ....)) .. for the ..... levy year and all
26    subsequent levy years (optional language: , such debt

 

 

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1    service extension base to be increased each year by the
2    lesser of 5% or the percentage increase in the Consumer
3    Price Index during the 12-month calendar year preceding
4    the levy year)?"
5    Votes on the question shall be recorded as "Yes" or "No".
6    If a majority of voters voting on the issue approves the
7establishment of or increase in the debt service extension
8base, the establishment of or increase in the debt service
9extension base shall be applicable for the levy years
10specified.
11(Source: P.A. 96-1202, eff. 7-22-10.)
 
12    Section 95. The School Code is amended by adding Sections
1317-3.4a and 34-52.5 as follows:
 
14    (105 ILCS 5/17-3.4a new)
15    Sec. 17-3.4a. Tax increase; informational material.
16    (a) In this Section, "informational material" means a
17one-page fact sheet distributed via U.S. mail to all residents
18of a school district. A school district may determine the form
19of the fact sheet.
20    (b) No later than 30 days before a school district submits
21to the voters of that district a question on whether to issue
22bonds or increase the school district's property tax rate, the
23school district must send informational material to each
24resident of voting age in the school district. The

 

 

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1informational material must include all of the following, if
2applicable:
3        (1) A description of the project for which the bonds
4    will be issued.
5        (2) A description of the estimated expenditures
6    associated with the increase in the property tax rate.
7        (3) An estimate of the number of years during which
8    the bonds will be outstanding.
9        (4) An estimate of the total debt service to be paid on
10    the bonds, including principal, interest, and the costs of
11    issuing the bonds.
12        (5) All potential outcomes related to the property
13    taxes of a median-priced house in the district for both if
14    the referendum passes and if the referendum fails.
 
15    (105 ILCS 5/34-52.5 new)
16    Sec. 34-52.5. Tax increase; informational material.
17    (a) In this Section, "informational material" means a
18one-page fact sheet distributed via U.S. mail to all residents
19of the school district. The school district may determine the
20form of the fact sheet.
21    (b) No later than 30 days before the school district
22submits to the voters of the district a question on whether to
23issue bonds or increase the school district's property tax
24rate, the school district must send informational material to
25each resident of voting age in the school district. The

 

 

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1informational material must include all of the following, if
2applicable:
3        (1) A description of the project for which the bonds
4    will be issued.
5        (2) A description of the estimated expenditures
6    associated with the increase in the property tax rate.
7        (3) An estimate of the number of years during which
8    the bonds will be outstanding.
9        (4) An estimate of the total debt service to be paid on
10    the bonds, including principal, interest, and the costs of
11    issuing the bonds.
12        (5) All potential outcomes related to the property
13    taxes of a median-priced house in the district for both if
14    the referendum passes and if the referendum fails.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.