103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3644

 

Introduced 2/17/2023, by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-242 new
30 ILCS 805/8.47 new

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if, at the end of any levy year, a taxing district has reserves of 50% or more of its operating budget for that levy year, then, for the next levy year, "extension limitation" means 0% or the rate of increase approved by the voters. Preempts the power of home rule units to tax. Effective immediately.


LRB103 27670 HLH 54047 b

 

 

A BILL FOR

 

HB3644LRB103 27670 HLH 54047 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 and 18-205 and by adding Section 18-242 as
6follows:
 
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" means, except as otherwise provided
15in this Section, (a) the lesser of 5% or the percentage
16increase in the Consumer Price Index during the 12-month
17calendar year preceding the levy year or (b) the rate of
18increase approved by voters under Section 18-205.
19    If, at the end of any levy year, any taxing district, as
20defined in Section 1-150, has reserves of 50% or more of its
21operating budget for that levy year, then, for the next levy
22year, "extension limitation" means 0% or the rate of increase
23approved by the voters under Section 18-205.

 

 

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1    "Affected county" means a county of 3,000,000 or more
2inhabitants or a county contiguous to a county of 3,000,000 or
3more inhabitants.
4    "Taxing district" has the same meaning provided in Section
51-150, except as otherwise provided in this Section. For the
61991 through 1994 levy years only, "taxing district" includes
7only each non-home rule taxing district having the majority of
8its 1990 equalized assessed value within any county or
9counties contiguous to a county with 3,000,000 or more
10inhabitants. Beginning with the 1995 levy year, "taxing
11district" includes only each non-home rule taxing district
12subject to this Law before the 1995 levy year and each non-home
13rule taxing district not subject to this Law before the 1995
14levy year having the majority of its 1994 equalized assessed
15value in an affected county or counties. Beginning with the
16levy year in which this Law becomes applicable to a taxing
17district as provided in Section 18-213, "taxing district" also
18includes those taxing districts made subject to this Law as
19provided in Section 18-213. Beginning in levy year 2023,
20"taxing district" also means any taxing district, as defined
21in Section 1-150, that had reserves of 50% or more of its
22operating budget at the end of the immediately preceding levy
23year.
24    "Aggregate extension" for taxing districts to which this
25Law applied before the 1995 levy year means the annual
26corporate extension for the taxing district and those special

 

 

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1purpose extensions that are made annually for the taxing
2district, excluding special purpose extensions: (a) made for
3the taxing district to pay interest or principal on general
4obligation bonds that were approved by referendum; (b) made
5for any taxing district to pay interest or principal on
6general obligation bonds issued before October 1, 1991; (c)
7made for any taxing district to pay interest or principal on
8bonds issued to refund or continue to refund those bonds
9issued before October 1, 1991; (d) made for any taxing
10district to pay interest or principal on bonds issued to
11refund or continue to refund bonds issued after October 1,
121991 that were approved by referendum; (e) made for any taxing
13district to pay interest or principal on revenue bonds issued
14before October 1, 1991 for payment of which a property tax levy
15or the full faith and credit of the unit of local government is
16pledged; however, a tax for the payment of interest or
17principal on those bonds shall be made only after the
18governing body of the unit of local government finds that all
19other 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 October 1, 1991, to pay for the
23building project; (g) made for payments due under installment
24contracts entered into before October 1, 1991; (h) made for
25payments of principal and interest on bonds issued under the
26Metropolitan Water Reclamation District Act to finance

 

 

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1construction projects initiated before October 1, 1991; (i)
2made for payments of principal and interest on limited bonds,
3as defined in Section 3 of the Local Government Debt Reform
4Act, in an amount not to exceed the debt service extension base
5less the amount in items (b), (c), (e), and (h) of this
6definition for non-referendum obligations, except obligations
7initially issued pursuant to referendum; (j) made for payments
8of principal and interest on bonds issued under Section 15 of
9the Local Government Debt Reform Act; (k) made by a school
10district that participates in the Special Education District
11of Lake County, created by special education joint agreement
12under Section 10-22.31 of the School Code, for payment of the
13school district's share of the amounts required to be
14contributed by the Special Education District of Lake County
15to the Illinois Municipal Retirement Fund under Article 7 of
16the Illinois Pension Code; the amount of any extension under
17this item (k) shall be certified by the school district to the
18county clerk; (l) made to fund expenses of providing joint
19recreational programs for persons with disabilities under
20Section 5-8 of the Park District Code or Section 11-95-14 of
21the Illinois Municipal Code; (m) made for temporary relocation
22loan repayment purposes pursuant to Sections 2-3.77 and
2317-2.2d of the School Code; (n) made for payment of principal
24and interest on any bonds issued under the authority of
25Section 17-2.2d of the School Code; (o) made for contributions
26to a firefighter's pension fund created under Article 4 of the

 

 

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1Illinois Pension Code, to the extent of the amount certified
2under item (5) of Section 4-134 of the Illinois Pension Code;
3and (p) made for road purposes in the first year after a
4township assumes the rights, powers, duties, assets, property,
5liabilities, obligations, and responsibilities of a road
6district abolished under the provisions of Section 6-133 of
7the Illinois Highway Code.
8    "Aggregate extension" for the taxing districts to which
9this Law did not apply before the 1995 levy year (except taxing
10districts subject to this Law in accordance with Section
1118-213 or this amendatory Act of the 103rd General Assembly)
12means the annual corporate extension for the taxing district
13and those special purpose extensions that are made annually
14for the taxing district, excluding special purpose extensions:
15(a) made for the taxing district to pay interest or principal
16on general obligation bonds that were approved by referendum;
17(b) made for any taxing district to pay interest or principal
18on general obligation bonds issued before March 1, 1995; (c)
19made for any taxing district to pay interest or principal on
20bonds issued to refund or continue to refund those bonds
21issued before March 1, 1995; (d) made for any taxing district
22to pay interest or principal on bonds issued to refund or
23continue to refund bonds issued after March 1, 1995 that were
24approved by referendum; (e) made for any taxing district to
25pay interest or principal on revenue bonds issued before March
261, 1995 for payment of which a property tax levy or the full

 

 

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1faith and credit of the unit of local government is pledged;
2however, a tax for the payment of interest or principal on
3those bonds shall be made only after the governing body of the
4unit of local government finds that all other sources for
5payment are insufficient to make those payments; (f) made for
6payments under a building commission lease when the lease
7payments are for the retirement of bonds issued by the
8commission before March 1, 1995 to pay for the building
9project; (g) made for payments due under installment contracts
10entered into before March 1, 1995; (h) made for payments of
11principal and interest on bonds issued under the Metropolitan
12Water Reclamation District Act to finance construction
13projects initiated before October 1, 1991; (h-4) made for
14stormwater management purposes by the Metropolitan Water
15Reclamation District of Greater Chicago under Section 12 of
16the Metropolitan Water Reclamation District Act; (h-8) made
17for payments of principal and interest on bonds issued under
18Section 9.6a of the Metropolitan Water Reclamation District
19Act to make contributions to the pension fund established
20under Article 13 of the Illinois Pension Code; (i) made for
21payments of principal and interest on limited bonds, as
22defined in Section 3 of the Local Government Debt Reform Act,
23in an amount not to exceed the debt service extension base less
24the amount in items (b), (c), and (e) of this definition for
25non-referendum obligations, except obligations initially
26issued pursuant to referendum and bonds described in

 

 

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1subsections (h) and (h-8) of this definition; (j) made for
2payments of principal and interest on bonds issued under
3Section 15 of the Local Government Debt Reform Act; (k) made
4for payments of principal and interest on bonds authorized by
5Public Act 88-503 and issued under Section 20a of the Chicago
6Park District Act for aquarium or museum projects and bonds
7issued under Section 20a of the Chicago Park District Act for
8the purpose of making contributions to the pension fund
9established under Article 12 of the Illinois Pension Code; (l)
10made for payments of principal and interest on bonds
11authorized by Public Act 87-1191 or 93-601 and (i) issued
12pursuant to Section 21.2 of the Cook County Forest Preserve
13District Act, (ii) issued under Section 42 of the Cook County
14Forest Preserve District Act for zoological park projects, or
15(iii) issued under Section 44.1 of the Cook County Forest
16Preserve District Act for botanical gardens projects; (m) made
17pursuant to Section 34-53.5 of the School Code, whether levied
18annually or not; (n) made to fund expenses of providing joint
19recreational programs for persons with disabilities under
20Section 5-8 of the Park District Code or Section 11-95-14 of
21the Illinois Municipal Code; (o) made by the Chicago Park
22District for recreational programs for persons with
23disabilities under subsection (c) of Section 7.06 of the
24Chicago Park District Act; (p) made for contributions to a
25firefighter's pension fund created under Article 4 of the
26Illinois Pension Code, to the extent of the amount certified

 

 

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1under item (5) of Section 4-134 of the Illinois Pension Code;
2(q) made by Ford Heights School District 169 under Section
317-9.02 of the School Code; and (r) made for the purpose of
4making employer contributions to the Public School Teachers'
5Pension and Retirement Fund of Chicago under Section 34-53 of
6the School Code.
7    "Aggregate extension" for all taxing districts to which
8this Law applies in accordance with Section 18-213, except for
9those taxing districts subject to paragraph (2) of subsection
10(e) of Section 18-213, means the annual corporate extension
11for the taxing district and those special purpose extensions
12that are made annually for the taxing district, excluding
13special purpose extensions: (a) made for the taxing district
14to pay interest or principal on general obligation bonds that
15were approved by referendum; (b) made for any taxing district
16to pay interest or principal on general obligation bonds
17issued before the date on which the referendum making this Law
18applicable to the taxing district is held; (c) made for any
19taxing district to pay interest or principal on bonds issued
20to refund or continue to refund those bonds issued before the
21date on which the referendum making this Law applicable to the
22taxing district is held; (d) made for any taxing district to
23pay interest or principal on bonds issued to refund or
24continue to refund bonds issued after the date on which the
25referendum making this Law applicable to the taxing district
26is held if the bonds were approved by referendum after the date

 

 

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1on which the referendum making this Law applicable to the
2taxing district is held; (e) made for any taxing district to
3pay interest or principal on revenue bonds issued before the
4date on which the referendum making this Law applicable to the
5taxing district is held for payment of which a property tax
6levy or the full faith and credit of the unit of local
7government is pledged; however, a tax for the payment of
8interest or principal on those bonds shall be made only after
9the governing body of the unit of local government finds that
10all other sources for payment are insufficient to make those
11payments; (f) made for payments under a building commission
12lease when the lease payments are for the retirement of bonds
13issued by the commission before the date on which the
14referendum making this Law applicable to the taxing district
15is held to pay for the building project; (g) made for payments
16due under installment contracts entered into before the date
17on which the referendum making this Law applicable to the
18taxing district is held; (h) made for payments of principal
19and interest on limited bonds, as defined in Section 3 of the
20Local Government Debt Reform Act, in an amount not to exceed
21the debt service extension base less the amount in items (b),
22(c), and (e) of this definition for non-referendum
23obligations, except obligations initially issued pursuant to
24referendum; (i) made for payments of principal and interest on
25bonds issued under Section 15 of the Local Government Debt
26Reform Act; (j) made for a qualified airport authority to pay

 

 

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1interest or principal on general obligation bonds issued for
2the purpose of paying obligations due under, or financing
3airport facilities required to be acquired, constructed,
4installed or equipped pursuant to, contracts entered into
5before March 1, 1996 (but not including any amendments to such
6a contract taking effect on or after that date); (k) made to
7fund expenses of providing joint recreational programs for
8persons with disabilities under Section 5-8 of the Park
9District Code or Section 11-95-14 of the Illinois Municipal
10Code; (l) made for contributions to a firefighter's pension
11fund created under Article 4 of the Illinois Pension Code, to
12the extent of the amount certified under item (5) of Section
134-134 of the Illinois Pension Code; and (m) made for the taxing
14district to pay interest or principal on general obligation
15bonds issued pursuant to Section 19-3.10 of the School Code.
16    "Aggregate extension" for all taxing districts to which
17this Law applies in accordance with paragraph (2) of
18subsection (e) of Section 18-213 or this amendatory Act of the
19103rd General Assembly 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 March 7, 1997 (the effective date of Public Act

 

 

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189-718); (c) made for any taxing district to pay interest or
2principal on bonds issued to refund or continue to refund
3those bonds issued before March 7, 1997 (the effective date of
4Public Act 89-718); (d) made for any taxing district to pay
5interest or principal on bonds issued to refund or continue to
6refund bonds issued after March 7, 1997 (the effective date of
7Public Act 89-718) if the bonds were approved by referendum
8after March 7, 1997 (the effective date of Public Act 89-718);
9(e) made for any taxing district to pay interest or principal
10on revenue bonds issued before March 7, 1997 (the effective
11date of Public Act 89-718) for payment of which a property tax
12levy or the full faith and credit of the unit of local
13government is pledged; however, a tax for the payment of
14interest or principal on those bonds shall be made only after
15the governing body of the unit of local government finds that
16all other 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 March 7, 1997 (the effective
20date of Public Act 89-718) to pay for the building project; (g)
21made for payments due under installment contracts entered into
22before March 7, 1997 (the effective date of Public Act
2389-718); (h) made for payments of principal and interest on
24limited bonds, as defined in Section 3 of the Local Government
25Debt Reform Act, in an amount not to exceed the debt service
26extension base less the amount in items (b), (c), and (e) of

 

 

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1this definition for non-referendum obligations, except
2obligations initially issued pursuant to referendum; (i) made
3for payments of principal and interest on bonds issued under
4Section 15 of the Local Government Debt Reform Act; (j) made
5for a qualified airport authority to pay interest or principal
6on general obligation bonds issued for the purpose of paying
7obligations due under, or financing airport facilities
8required to be acquired, constructed, installed or equipped
9pursuant to, contracts entered into before March 1, 1996 (but
10not including any amendments to such a contract taking effect
11on or after that date); (k) made to fund expenses of providing
12joint recreational programs for persons with disabilities
13under Section 5-8 of the Park District Code or Section
1411-95-14 of the Illinois Municipal Code; and (l) made for
15contributions to a firefighter's pension fund created under
16Article 4 of the Illinois Pension Code, to the extent of the
17amount certified under item (5) of Section 4-134 of the
18Illinois Pension Code.
19    "Debt service extension base" means an amount equal to
20that portion of the extension for a taxing district for the
211994 levy year, or for those taxing districts subject to this
22Law in accordance with Section 18-213, except for those
23subject to paragraph (2) of subsection (e) of Section 18-213,
24for the levy year in which the referendum making this Law
25applicable to the taxing district is held, or for those taxing
26districts subject to this Law in accordance with paragraph (2)

 

 

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1of subsection (e) of Section 18-213 for the 1996 levy year,
2constituting an extension for payment of principal and
3interest on bonds issued by the taxing district without
4referendum, but not including excluded non-referendum bonds.
5For park districts (i) that were first subject to this Law in
61991 or 1995 and (ii) whose extension for the 1994 levy year
7for the payment of principal and interest on bonds issued by
8the park district without referendum (but not including
9excluded non-referendum bonds) was less than 51% of the amount
10for the 1991 levy year constituting an extension for payment
11of principal and interest on bonds issued by the park district
12without referendum (but not including excluded non-referendum
13bonds), "debt service extension base" means an amount equal to
14that portion of the extension for the 1991 levy year
15constituting an extension for payment of principal and
16interest on bonds issued by the park district without
17referendum (but not including excluded non-referendum bonds).
18A debt service extension base established or increased at any
19time pursuant to any provision of this Law, except Section
2018-212, shall be increased each year commencing with the later
21of (i) the 2009 levy year or (ii) the first levy year in which
22this Law becomes applicable to the taxing district, by the
23lesser of 5% or the percentage increase in the Consumer Price
24Index during the 12-month calendar year preceding the levy
25year. The debt service extension base may be established or
26increased as provided under Section 18-212. "Excluded

 

 

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1non-referendum bonds" means (i) bonds authorized by Public Act
288-503 and issued under Section 20a of the Chicago Park
3District Act for aquarium and museum projects; (ii) bonds
4issued under Section 15 of the Local Government Debt Reform
5Act; or (iii) refunding obligations issued to refund or to
6continue to refund obligations initially issued pursuant to
7referendum.
8    "Special purpose extensions" include, but are not limited
9to, extensions for levies made on an annual basis for
10unemployment and workers' compensation, self-insurance,
11contributions to pension plans, and extensions made pursuant
12to Section 6-601 of the Illinois Highway Code for a road
13district's permanent road fund whether levied annually or not.
14The extension for a special service area is not included in the
15aggregate extension.
16    "Aggregate extension base" means the taxing district's
17last preceding aggregate extension as adjusted under Sections
1818-135, 18-215, 18-230, 18-206, and 18-233. Beginning with
19levy year 2022, for taxing districts that are specified in
20Section 18-190.7, the taxing district's aggregate extension
21base shall be calculated as provided in Section 18-190.7. An
22adjustment under Section 18-135 shall be made for the 2007
23levy year and all subsequent levy years whenever one or more
24counties within which a taxing district is located (i) used
25estimated valuations or rates when extending taxes in the
26taxing district for the last preceding levy year that resulted

 

 

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1in the over or under extension of taxes, or (ii) increased or
2decreased the tax extension for the last preceding levy year
3as required by Section 18-135(c). Whenever an adjustment is
4required under Section 18-135, the aggregate extension base of
5the taxing district shall be equal to the amount that the
6aggregate extension of the taxing district would have been for
7the last preceding levy year if either or both (i) actual,
8rather than estimated, valuations or rates had been used to
9calculate the extension of taxes for the last levy year, or
10(ii) the tax extension for the last preceding levy year had not
11been adjusted as required by subsection (c) of Section 18-135.
12    Notwithstanding any other provision of law, for levy year
132012, the aggregate extension base for West Northfield School
14District No. 31 in Cook County shall be $12,654,592.
15    Notwithstanding any other provision of law, for levy year
162022, the aggregate extension base of a home equity assurance
17program that levied at least $1,000,000 in property taxes in
18levy year 2019 or 2020 under the Home Equity Assurance Act
19shall be the amount that the program's aggregate extension
20base for levy year 2021 would have been if the program had
21levied a property tax for levy year 2021.
22    "Levy year" has the same meaning as "year" under Section
231-155.
24    "New property" means (i) the assessed value, after final
25board of review or board of appeals action, of new
26improvements or additions to existing improvements on any

 

 

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1parcel of real property that increase the assessed value of
2that real property during the levy year multiplied by the
3equalization factor issued by the Department under Section
417-30, (ii) the assessed value, after final board of review or
5board of appeals action, of real property not exempt from real
6estate taxation, which real property was exempt from real
7estate taxation for any portion of the immediately preceding
8levy year, multiplied by the equalization factor issued by the
9Department under Section 17-30, including the assessed value,
10upon final stabilization of occupancy after new construction
11is complete, of any real property located within the
12boundaries of an otherwise or previously exempt military
13reservation that is intended for residential use and owned by
14or leased to a private corporation or other entity, (iii) in
15counties that classify in accordance with Section 4 of Article
16IX of the Illinois Constitution, an incentive property's
17additional assessed value resulting from a scheduled increase
18in the level of assessment as applied to the first year final
19board of review market value, and (iv) any increase in
20assessed value due to oil or gas production from an oil or gas
21well required to be permitted under the Hydraulic Fracturing
22Regulatory Act that was not produced in or accounted for
23during the previous levy year. In addition, the county clerk
24in a county containing a population of 3,000,000 or more shall
25include in the 1997 recovered tax increment value for any
26school district, any recovered tax increment value that was

 

 

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1applicable to the 1995 tax year calculations.
2    "Qualified airport authority" means an airport authority
3organized under the Airport Authorities Act and located in a
4county bordering on the State of Wisconsin and having a
5population in excess of 200,000 and not greater than 500,000.
6    "Recovered tax increment value" means, except as otherwise
7provided in this paragraph, the amount of the current year's
8equalized assessed value, in the first year after a
9municipality terminates the designation of an area as a
10redevelopment project area previously established under the
11Tax Increment Allocation Redevelopment Act in the Illinois
12Municipal Code, previously established under the Industrial
13Jobs Recovery Law in the Illinois Municipal Code, previously
14established under the Economic Development Project Area Tax
15Increment Act of 1995, or previously established under the
16Economic Development Area Tax Increment Allocation Act, 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. For the taxes which are extended for the 1997
21levy year, the recovered tax increment value for a non-home
22rule taxing district that first became subject to this Law for
23the 1995 levy year because a majority of its 1994 equalized
24assessed value was in an affected county or counties shall be
25increased if a municipality terminated the designation of an
26area in 1993 as a redevelopment project area previously

 

 

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1established under the Tax Increment Allocation Redevelopment
2Act in the Illinois Municipal Code, previously established
3under the Industrial Jobs Recovery Law in the Illinois
4Municipal Code, or previously established under the Economic
5Development Area Tax Increment Allocation Act, by an amount
6equal to the 1994 equalized assessed value of each taxable
7lot, block, tract, or parcel of real property in the
8redevelopment project area over and above the initial
9equalized assessed value of each property in the redevelopment
10project area. In the first year after a municipality removes a
11taxable lot, block, tract, or parcel of real property from a
12redevelopment project area established under the Tax Increment
13Allocation Redevelopment Act in the Illinois Municipal Code,
14the Industrial Jobs Recovery Law in the Illinois Municipal
15Code, or the Economic Development Area Tax Increment
16Allocation Act, "recovered tax increment value" means the
17amount of the current year's equalized assessed value of each
18taxable lot, block, tract, or parcel of real property removed
19from the redevelopment project area over and above the initial
20equalized assessed value of that real property before removal
21from the redevelopment project area.
22    Except as otherwise provided in this Section, "limiting
23rate" means a fraction the numerator of which is the last
24preceding aggregate extension base times an amount equal to
25one plus the extension limitation defined in this Section and
26the denominator of which is the current year's equalized

 

 

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1assessed value of all real property in the territory under the
2jurisdiction of the taxing district during the prior levy
3year. For those taxing districts that reduced their aggregate
4extension for the last preceding levy year, except for school
5districts that reduced their extension for educational
6purposes pursuant to Section 18-206, the highest aggregate
7extension in any of the last 3 preceding levy years shall be
8used for the purpose of computing the limiting rate. The
9denominator shall not include new property or the recovered
10tax increment value. If a new rate, a rate decrease, or a
11limiting rate increase has been approved at an election held
12after March 21, 2006, then (i) the otherwise applicable
13limiting rate shall be increased by the amount of the new rate
14or shall be reduced by the amount of the rate decrease, as the
15case may be, or (ii) in the case of a limiting rate increase,
16the limiting rate shall be equal to the rate set forth in the
17proposition approved by the voters for each of the years
18specified in the proposition, after which the limiting rate of
19the taxing district shall be calculated as otherwise provided.
20In the case of a taxing district that obtained referendum
21approval for an increased limiting rate on March 20, 2012, the
22limiting rate for tax year 2012 shall be the rate that
23generates the approximate total amount of taxes extendable for
24that tax year, as set forth in the proposition approved by the
25voters; this rate shall be the final rate applied by the county
26clerk for the aggregate of all capped funds of the district for

 

 

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1tax year 2012.
2(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
3102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff.
44-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22; revised
58-29-22.)
 
6    (35 ILCS 200/18-205)
7    Sec. 18-205. Referendum to increase the extension
8limitation. A taxing district is limited to an extension
9limitation as defined in Section 18-185 of 5% or the
10percentage increase in the Consumer Price Index during the
1112-month calendar year preceding the levy year, whichever is
12less. A taxing district may increase its extension limitation
13for one or more levy years if that taxing district holds a
14referendum before the levy date for the first levy year at
15which a majority of voters voting on the issue approves
16adoption of a higher extension limitation. Referenda shall be
17conducted at a regularly scheduled election in accordance with
18the Election Code. The question shall be presented in
19substantially the following manner for all elections held
20after March 21, 2006:
21        Shall the extension limitation under the Property Tax
22    Extension Limitation Law for (insert the legal name,
23    number, if any, and county or counties of the taxing
24    district and geographic or other common name by which a
25    school or community college district is known and referred

 

 

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1    to), Illinois, be increased from the lesser of 5% or the
2    percentage increase in the Consumer Price Index over the
3    prior levy year to (insert the percentage of the proposed
4    increase)% per year for (insert each levy year for which
5    the increased extension limitation will apply)?
6    In the case of a taxing district that had reserves of 50%
7or more of its operating budget at the end of the immediately
8preceding levy year, the question shall be presented in
9substantially the following manner:
10        Shall the extension limitation under the Property Tax
11    Extension Limitation Law for (insert the legal name,
12    number, if any, and county or counties of the taxing
13    district and geographic or other common name by which a
14    school or community college district is known and referred
15    to), Illinois, be increased from 0% to (insert the
16    percentage of the proposed increase)% per year for (insert
17    each levy year for which the increased extension
18    limitation will apply)?
19The votes must be recorded as "Yes" or "No".
20If a majority of voters voting on the issue approves the
21adoption of the increase, the increase shall be applicable for
22each levy year specified.
23    The ballot for any question submitted pursuant to this
24Section shall have printed thereon, but not as a part of the
25question submitted, only the following supplemental
26information (which shall be supplied to the election authority

 

 

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1by the taxing district) in substantially the following form:
2        (1) For the (insert the first levy year for which the
3    increased extension limitation will be applicable) levy
4    year the approximate amount of the additional tax
5    extendable against property containing a single family
6    residence and having a fair market value at the time of the
7    referendum of $100,000 is estimated to be $....
8        (2) Based upon an average annual percentage increase
9    (or decrease) in the market value of such property of ...%
10    (insert percentage equal to the average annual percentage
11    increase or decrease for the prior 3 levy years, at the
12    time the submission of the question is initiated by the
13    taxing district, in the amount of (A) the equalized
14    assessed value of the taxable property in the taxing
15    district less (B) the new property included in the
16    equalized assessed value), the approximate amount of the
17    additional tax extendable against such property for the
18    ... levy year is estimated to be $... and for the ... levy
19    year is estimated to be $....
20    Paragraph (2) shall be included only if the increased
21extension limitation will be applicable for more than one year
22and shall list each levy year for which the increased
23extension limitation will be applicable. The additional tax
24shown for each levy year shall be the approximate dollar
25amount of the increase over the amount of the most recently
26completed extension at the time the submission of the question

 

 

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1is initiated by the taxing district. The approximate amount of
2the additional tax extendable shown in paragraphs (1) and (2)
3shall be calculated by multiplying $100,000 (the fair market
4value of the property without regard to any property tax
5exemptions) by (i) the percentage level of assessment
6prescribed for that property by statute, or by ordinance of
7the county board in counties that classify property for
8purposes of taxation in accordance with Section 4 of Article
9IX of the Illinois Constitution; (ii) the most recent final
10equalization factor certified to the county clerk by the
11Department of Revenue at the time the taxing district
12initiates the submission of the proposition to the electors;
13(iii) the last known aggregate extension base of the taxing
14district at the time the submission of the question is
15initiated by the taxing district; and (iv) the difference
16between the percentage increase proposed in the question and
17(A) the lesser of 5% or the percentage increase in the Consumer
18Price Index for the prior levy year (or an estimate of the
19percentage increase for the prior levy year if the increase is
20unavailable at the time the submission of the question is
21initiated by the taxing district) or (B) 0%, as applicable;
22and dividing the result by the last known equalized assessed
23value of the taxing district at the time the submission of the
24question is initiated by the taxing district. This amendatory
25Act of the 97th General Assembly is intended to clarify the
26existing requirements of this Section, and shall not be

 

 

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1construed to validate any prior non-compliant referendum
2language. Any notice required to be published in connection
3with the submission of the question shall also contain this
4supplemental information and shall not contain any other
5supplemental information. Any error, miscalculation, or
6inaccuracy in computing any amount set forth on the ballot or
7in the notice that is not deliberate shall not invalidate or
8affect the validity of any proposition approved. Notice of the
9referendum shall be published and posted as otherwise required
10by law, and the submission of the question shall be initiated
11as provided by law.
12(Source: P.A. 97-1087, eff. 8-24-12.)
 
13    (35 ILCS 200/18-242 new)
14    Sec. 18-242. Home rule. This Division 5 is a limitation,
15under subsection (g) of Section 6 of Article VII of the
16Illinois Constitution, on the power of home rule units to tax.
 
17    Section 90. The State Mandates Act is amended by adding
18Section 8.47 as follows:
 
19    (30 ILCS 805/8.47 new)
20    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
218 of this Act, no reimbursement by the State is required for
22the implementation of any mandate created by this amendatory
23Act of the 103rd General Assembly.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.