103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4568

 

Introduced 1/31/2024, by Rep. Matt Hanson

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-190

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a levy authorized for contributions to a Firefighters' Pension Fund for a municipality with a population of 500,00 or less is not considered a new rate. Effective immediately.


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A BILL FOR

 

HB4568LRB103 35354 HLH 65418 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
5Section 18-190 as follows:
 
6    (35 ILCS 200/18-190)
7    Sec. 18-190. Direct referendum; new rate or increased
8limiting rate.
9    (a) If a new rate is authorized by statute to be imposed
10without referendum or is subject to a backdoor referendum, as
11defined in Section 28-2 of the Election Code, the governing
12body of the affected taxing district before levying the new
13rate shall submit the new rate to direct referendum under the
14provisions of this Section and of Article 28 of the Election
15Code. Notwithstanding any other provision of law, the levies
16authorized by Sections 4-118, 21-110, and 21-110.1 of the
17Illinois Pension Code shall not be considered new rates;
18however, nothing in this amendatory Act of the 98th General
19Assembly or this amendatory Act of the 103rd General Assembly
20authorizes a taxing district to increase its limiting rate or
21its aggregate extension without first obtaining referendum
22approval as provided in this Section. Notwithstanding the
23provisions, requirements, or limitations of any other law, any

 

 

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1tax levied for the 2005 levy year and all subsequent levy years
2by any taxing district subject to this Law may be extended at a
3rate exceeding the rate established for that tax by referendum
4or statute, provided that the rate does not exceed the
5statutory ceiling above which the tax is not authorized to be
6further increased either by referendum or in any other manner.
7Notwithstanding the provisions, requirements, or limitations
8of any other law, all taxing districts subject to this Law
9shall follow the provisions of this Section whenever seeking
10referenda approval after March 21, 2006 to (i) levy a new tax
11rate authorized by statute or (ii) increase the limiting rate
12applicable to the taxing district. All taxing districts
13subject to this Law are authorized to seek referendum approval
14of each proposition described and set forth in this Section.
15    The proposition seeking to obtain referendum approval to
16levy a new tax rate as authorized in clause (i) shall be in
17substantially the following form:
18        Shall ... (insert legal name, number, if any, and
19    county or counties of taxing district and geographic or
20    other common name by which a school or community college
21    district is known and referred to), Illinois, be
22    authorized to levy a new tax for ... purposes and have an
23    additional tax of ...% of the equalized assessed value of
24    the taxable property therein extended for such purposes?
25The votes must be recorded as "Yes" or "No".
26    The proposition seeking to obtain referendum approval to

 

 

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1increase the limiting rate as authorized in clause (ii) shall
2be in substantially the following form:
3        Shall the limiting rate under the Property Tax
4    Extension Limitation Law for ... (insert legal name,
5    number, if any, and county or counties of taxing district
6    and geographic or other common name by which a school or
7    community college district is known and referred to),
8    Illinois, be increased by an additional amount equal to
9    ...% above the limiting rate for the purpose of...(insert
10    purpose) for levy year ... (insert the most recent levy
11    year for which the limiting rate of the taxing district is
12    known at the time the submission of the proposition is
13    initiated by the taxing district) and be equal to ...% of
14    the equalized assessed value of the taxable property
15    therein for levy year(s) (insert each levy year for which
16    the increase will be applicable, which years must be
17    consecutive and may not exceed 4)?
18    The votes must be recorded as "Yes" or "No".
19    The ballot for any proposition submitted pursuant to this
20Section shall have printed thereon, but not as a part of the
21proposition 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) The approximate amount of taxes extendable at the
25    most recently extended limiting rate is $..., and the
26    approximate amount of taxes extendable if the proposition

 

 

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1    is approved is $....
2        (2) For the ... (insert the first levy year for which
3    the new rate or increased limiting rate will be
4    applicable) levy year the approximate amount of the
5    additional tax extendable against property containing a
6    single family residence and having a fair market value at
7    the time of the referendum of $100,000 is estimated to be
8    $....
9        (3) Based upon an average annual percentage increase
10    (or decrease) in the market value of such property of %...
11    (insert percentage equal to the average annual percentage
12    increase or decrease for the prior 3 levy years, at the
13    time the submission of the proposition is initiated by the
14    taxing district, in the amount of (A) the equalized
15    assessed value of the taxable property in the taxing
16    district less (B) the new property included in the
17    equalized assessed value), the approximate amount of the
18    additional tax extendable against such property for the
19    ... levy year is estimated to be $... and for the ... levy
20    year is estimated to be $ ....
21        (4) If the proposition is approved, the aggregate
22    extension for ... (insert each levy year for which the
23    increase will apply) will be determined by the limiting
24    rate set forth in the proposition, rather than the
25    otherwise applicable limiting rate calculated under the
26    provisions of the Property Tax Extension Limitation Law

 

 

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1    (commonly known as the Property Tax Cap Law).
2The approximate amount of taxes extendable shown in paragraph
3(1) shall be computed upon the last known equalized assessed
4value of taxable property in the taxing district (at the time
5the submission of the proposition is initiated by the taxing
6district). Paragraph (3) shall be included only if the
7increased limiting rate will be applicable for more than one
8levy year and shall list each levy year for which the increased
9limiting rate will be applicable. The additional tax shown for
10each levy year shall be the approximate dollar amount of the
11increase over the amount of the most recently completed
12extension at the time the submission of the proposition is
13initiated by the taxing district. The approximate amount of
14the additional taxes extendable shown in paragraphs (2) and
15(3) shall be calculated by multiplying $100,000 (the fair
16market value of the property without regard to any property
17tax exemptions) by (i) the percentage level of assessment
18prescribed for that property by statute, or by ordinance of
19the county board in counties that classify property for
20purposes of taxation in accordance with Section 4 of Article
21IX of the Illinois Constitution; (ii) the most recent final
22equalization factor certified to the county clerk by the
23Department of Revenue at the time the taxing district
24initiates the submission of the proposition to the electors;
25and (iii) either the new rate or the amount by which the
26limiting rate is to be increased. This amendatory Act of the

 

 

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197th General Assembly is intended to clarify the existing
2requirements of this Section, and shall not be construed to
3validate any prior non-compliant referendum language.
4Paragraph (4) shall be included if the proposition concerns a
5limiting rate increase but shall not be included if the
6proposition concerns a new rate. Any notice required to be
7published in connection with the submission of the proposition
8shall also contain this supplemental information and shall not
9contain any other supplemental information regarding the
10proposition. Any error, miscalculation, or inaccuracy in
11computing any amount set forth on the ballot and in the notice
12that is not deliberate shall not invalidate or affect the
13validity of any proposition approved. Notice of the referendum
14shall be published and posted as otherwise required by law,
15and the submission of the proposition shall be initiated as
16provided by law.
17    If a majority of all ballots cast on the proposition are in
18favor of the proposition, the following provisions shall be
19applicable to the extension of taxes for the taxing district:
20        (A) a new tax rate shall be first effective for the
21    levy year in which the new rate is approved;
22        (B) if the proposition provides for a new tax rate,
23    the taxing district is authorized to levy a tax after the
24    canvass of the results of the referendum by the election
25    authority for the purposes for which the tax is
26    authorized;

 

 

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1        (C) a limiting rate increase shall be first effective
2    for the levy year in which the limiting rate increase is
3    approved, provided that the taxing district may elect to
4    have a limiting rate increase be effective for the levy
5    year prior to the levy year in which the limiting rate
6    increase is approved unless the extension of taxes for the
7    prior levy year occurs 30 days or less after the canvass of
8    the results of the referendum by the election authority in
9    any county in which the taxing district is located;
10        (D) in order for the limiting rate increase to be
11    first effective for the levy year prior to the levy year of
12    the referendum, the taxing district must certify its
13    election to have the limiting rate increase be effective
14    for the prior levy year to the clerk of each county in
15    which the taxing district is located not more than 2 days
16    after the date the results of the referendum are canvassed
17    by the election authority; and
18        (E) if the proposition provides for a limiting rate
19    increase, the increase may be effective regardless of
20    whether the proposition is approved before or after the
21    taxing district adopts or files its levy for any levy
22    year.
23    Rates required to extend taxes on levies subject to a
24backdoor referendum in each year there is a levy are not new
25rates or rate increases under this Section if a levy has been
26made for the fund in one or more of the preceding 3 levy years.

 

 

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1Changes made by this amendatory Act of 1997 to this Section in
2reference to rates required to extend taxes on levies subject
3to a backdoor referendum in each year there is a levy are
4declarative of existing law and not a new enactment.
5    (b) Whenever other applicable law authorizes a taxing
6district subject to the limitation with respect to its
7aggregate extension provided for in this Law to issue bonds or
8other obligations either without referendum or subject to
9backdoor referendum, the taxing district may elect for each
10separate bond issuance to submit the question of the issuance
11of the bonds or obligations directly to the voters of the
12taxing district, and if the referendum passes the taxing
13district is not required to comply with any backdoor
14referendum procedures or requirements set forth in the other
15applicable law. The direct referendum shall be initiated by
16ordinance or resolution of the governing body of the taxing
17district, and the question shall be certified to the proper
18election authorities in accordance with the provisions of the
19Election Code.
20(Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.