97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1363

 

Introduced 2/9/2011, by Rep. Donald L. Moffitt

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that levies by fire protection districts for pension contributions and insurance are exempt from the definition of "aggregate extension".


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 18-185 as follows:
 
6    (35 ILCS 200/18-185)
7    Sec. 18-185. Short title; definitions. This Division 5 may
8be cited as the Property Tax Extension Limitation Law. As used
9in this Division 5:
10    "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13    "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year or (b) the rate
16of increase approved by voters under Section 18-205.
17    "Affected county" means a county of 3,000,000 or more
18inhabitants or a county contiguous to a county of 3,000,000 or
19more inhabitants.
20    "Taxing district" has the same meaning provided in Section
211-150, except as otherwise provided in this Section. For the
221991 through 1994 levy years only, "taxing district" includes
23only each non-home rule taxing district having the majority of

 

 

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1its 1990 equalized assessed value within any county or counties
2contiguous to a county with 3,000,000 or more inhabitants.
3Beginning with the 1995 levy year, "taxing district" includes
4only each non-home rule taxing district subject to this Law
5before the 1995 levy year and each non-home rule taxing
6district not subject to this Law before the 1995 levy year
7having the majority of its 1994 equalized assessed value in an
8affected county or counties. Beginning with the levy year in
9which this Law becomes applicable to a taxing district as
10provided in Section 18-213, "taxing district" also includes
11those taxing districts made subject to this Law as provided in
12Section 18-213.
13    "Aggregate extension" for taxing districts to which this
14Law applied before the 1995 levy year means the annual
15corporate extension for the taxing district and those special
16purpose extensions that are made annually for the taxing
17district, excluding special purpose extensions: (a) made for
18the taxing district to pay interest or principal on general
19obligation bonds that were approved by referendum; (b) made for
20any taxing district to pay interest or principal on general
21obligation bonds issued before October 1, 1991; (c) made for
22any taxing district to pay interest or principal on bonds
23issued to refund or continue to refund those bonds issued
24before October 1, 1991; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after October 1, 1991 that were approved by

 

 

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

 

 

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1School Code, for payment of the school district's share of the
2amounts required to be contributed by the Special Education
3District of Lake County to the Illinois Municipal Retirement
4Fund under Article 7 of the Illinois Pension Code; the amount
5of any extension under this item (k) shall be certified by the
6school district to the county clerk; (l) made to fund expenses
7of providing joint recreational programs for the handicapped
8under Section 5-8 of the Park District Code or Section 11-95-14
9of the Illinois Municipal Code; (m) made for temporary
10relocation loan repayment purposes pursuant to Sections 2-3.77
11and 17-2.2d of the School Code; (n) made for payment of
12principal and interest on any bonds issued under the authority
13of Section 17-2.2d of the School Code; and (o) made for
14contributions to a firefighter's pension fund created under
15Article 4 of the Illinois Pension Code, to the extent of the
16amount certified under item (5) of Section 4-134 of the
17Illinois Pension Code; (p) made by a fire protection district
18for contributions to a firefighter's pension fund created under
19Article 4 of the Illinois Pension Code; and (q) made by a fire
20protection district for funding expenses related to insurance.
21    "Aggregate extension" for the taxing districts to which
22this Law did not apply before the 1995 levy year (except taxing
23districts subject to this Law in accordance with Section
2418-213) means the annual corporate extension for the taxing
25district and those special purpose extensions that are made
26annually for the taxing district, excluding special purpose

 

 

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1extensions: (a) made for the taxing district to pay interest or
2principal on general obligation bonds that were approved by
3referendum; (b) made for any taxing district to pay interest or
4principal on general obligation bonds issued before March 1,
51995; (c) made for any taxing district to pay interest or
6principal on bonds issued to refund or continue to refund those
7bonds issued before March 1, 1995; (d) made for any taxing
8district to pay interest or principal on bonds issued to refund
9or continue to refund bonds issued after March 1, 1995 that
10were approved by referendum; (e) made for any taxing district
11to pay interest or principal on revenue bonds issued before
12March 1, 1995 for payment of which a property tax levy or the
13full faith and credit of the unit of local government is
14pledged; however, a tax for the payment of interest or
15principal on those bonds shall be made only after the governing
16body of the unit of local government finds that all other
17sources for payment are insufficient to make those payments;
18(f) made for payments under a building commission lease when
19the lease payments are for the retirement of bonds issued by
20the commission before March 1, 1995 to pay for the building
21project; (g) made for payments due under installment contracts
22entered into before March 1, 1995; (h) made for payments of
23principal and interest on bonds issued under the Metropolitan
24Water Reclamation District Act to finance construction
25projects initiated before October 1, 1991; (h-4) made for
26stormwater management purposes by the Metropolitan Water

 

 

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1Reclamation District of Greater Chicago under Section 12 of the
2Metropolitan Water Reclamation District Act; (i) made for
3payments of principal and interest on limited bonds, as defined
4in Section 3 of the Local Government Debt Reform Act, in an
5amount not to exceed the debt service extension base less the
6amount in items (b), (c), and (e) of this definition for
7non-referendum obligations, except obligations initially
8issued pursuant to referendum and bonds described in subsection
9(h) of this definition; (j) made for payments of principal and
10interest on bonds issued under Section 15 of the Local
11Government Debt Reform Act; (k) made for payments of principal
12and interest on bonds authorized by Public Act 88-503 and
13issued under Section 20a of the Chicago Park District Act for
14aquarium or museum projects; (l) made for payments of principal
15and interest on bonds authorized by Public Act 87-1191 or
1693-601 and (i) issued pursuant to Section 21.2 of the Cook
17County Forest Preserve District Act, (ii) issued under Section
1842 of the Cook County Forest Preserve District Act for
19zoological park projects, or (iii) issued under Section 44.1 of
20the Cook County Forest Preserve District Act for botanical
21gardens projects; (m) made pursuant to Section 34-53.5 of the
22School Code, whether levied annually or not; (n) made to fund
23expenses of providing joint recreational programs for the
24handicapped under Section 5-8 of the Park District Code or
25Section 11-95-14 of the Illinois Municipal Code; (o) made by
26the Chicago Park District for recreational programs for the

 

 

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1handicapped under subsection (c) of Section 7.06 of the Chicago
2Park District Act; (p) made for contributions to a
3firefighter's pension fund created under Article 4 of the
4Illinois Pension Code, to the extent of the amount certified
5under item (5) of Section 4-134 of the Illinois Pension Code;
6and (q) made by Ford Heights School District 169 under Section
717-9.02 of the School Code; (r) made by a fire protection
8district for contributions to a firefighter's pension fund
9created under Article 4 of the Illinois Pension Code; and (s)
10made by a fire protection district for funding expenses related
11to insurance.
12    "Aggregate extension" for all taxing districts to which
13this Law applies in accordance with Section 18-213, except for
14those taxing districts subject to paragraph (2) of subsection
15(e) of Section 18-213, means the annual corporate extension for
16the taxing district and those special purpose extensions that
17are made annually for the taxing district, excluding special
18purpose extensions: (a) made for the taxing district to pay
19interest or principal on general obligation bonds that were
20approved by referendum; (b) made for any taxing district to pay
21interest or principal on general obligation bonds issued before
22the date on which the referendum making this Law applicable to
23the taxing district is held; (c) made for any taxing district
24to pay interest or principal on bonds issued to refund or
25continue to refund those bonds issued before the date on which
26the referendum making this Law applicable to the taxing

 

 

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

 

 

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1(e) of this 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 the handicapped under Section
135-8 of the Park District Code or Section 11-95-14 of the
14Illinois Municipal Code; (l) 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;
18and (m) made for the taxing district to pay interest or
19principal on general obligation bonds issued pursuant to
20Section 19-3.10 of the School Code; (n) made by a fire
21protection district for contributions to a firefighter's
22pension fund created under Article 4 of the Illinois Pension
23Code; and (o) made by a fire protection district for funding
24expenses related to insurance.
25    "Aggregate extension" for all taxing districts to which
26this Law applies in accordance with paragraph (2) of subsection

 

 

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1(e) of Section 18-213 means the annual corporate extension for
2the taxing district and those special purpose extensions that
3are made annually for the taxing district, excluding special
4purpose extensions: (a) made for the taxing district to pay
5interest or principal on general obligation bonds that were
6approved by referendum; (b) made for any taxing district to pay
7interest or principal on general obligation bonds issued before
8the effective date of this amendatory Act of 1997; (c) made for
9any taxing district to pay interest or principal on bonds
10issued to refund or continue to refund those bonds issued
11before the effective date of this amendatory Act of 1997; (d)
12made for any taxing district to pay interest or principal on
13bonds issued to refund or continue to refund bonds issued after
14the effective date of this amendatory Act of 1997 if the bonds
15were approved by referendum after the effective date of this
16amendatory Act of 1997; (e) made for any taxing district to pay
17interest or principal on revenue bonds issued before the
18effective date of this amendatory Act of 1997 for payment of
19which a property tax levy or the full faith and credit of the
20unit of local government is pledged; however, a tax for the
21payment of interest or principal on those bonds shall be made
22only after the governing body of the unit of local government
23finds that all other sources for payment are insufficient to
24make those payments; (f) made for payments under a building
25commission lease when the lease payments are for the retirement
26of bonds issued by the commission before the effective date of

 

 

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1this amendatory Act of 1997 to pay for the building project;
2(g) made for payments due under installment contracts entered
3into before the effective date of this amendatory Act of 1997;
4(h) made for payments of principal and interest on limited
5bonds, as defined in Section 3 of the Local Government Debt
6Reform Act, in an amount not to exceed the debt service
7extension base less the amount in items (b), (c), and (e) of
8this definition for non-referendum obligations, except
9obligations initially issued pursuant to referendum; (i) made
10for payments of principal and interest on bonds issued under
11Section 15 of the Local Government Debt Reform Act; (j) made
12for a qualified airport authority to pay interest or principal
13on general obligation bonds issued for the purpose of paying
14obligations due under, or financing airport facilities
15required to be acquired, constructed, installed or equipped
16pursuant to, contracts entered into before March 1, 1996 (but
17not including any amendments to such a contract taking effect
18on or after that date); (k) made to fund expenses of providing
19joint recreational programs for the handicapped under Section
205-8 of the Park District Code or Section 11-95-14 of the
21Illinois Municipal Code; and (l) made for contributions to a
22firefighter's pension fund created under Article 4 of the
23Illinois Pension Code, to the extent of the amount certified
24under item (5) of Section 4-134 of the Illinois Pension Code;
25(m) made by a fire protection district for contributions to a
26firefighter's pension fund created under Article 4 of the

 

 

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1Illinois Pension Code; and (n) made by a fire protection
2district for funding expenses related to insurance.
3    "Debt service extension base" means an amount equal to that
4portion of the extension for a taxing district for the 1994
5levy year, or for those taxing districts subject to this Law in
6accordance with Section 18-213, except for those subject to
7paragraph (2) of subsection (e) of Section 18-213, for the levy
8year in which the referendum making this Law applicable to the
9taxing district is held, or for those taxing districts subject
10to this Law in accordance with paragraph (2) of subsection (e)
11of Section 18-213 for the 1996 levy year, constituting an
12extension for payment of principal and interest on bonds issued
13by the taxing district without referendum, but not including
14excluded non-referendum bonds. For park districts (i) that were
15first subject to this Law in 1991 or 1995 and (ii) whose
16extension for the 1994 levy year for the payment of principal
17and interest on bonds issued by the park district without
18referendum (but not including excluded non-referendum bonds)
19was less than 51% of the amount for the 1991 levy year
20constituting an extension for payment of principal and interest
21on bonds issued by the park district without referendum (but
22not including excluded non-referendum bonds), "debt service
23extension base" means an amount equal to that portion of the
24extension for the 1991 levy year constituting an extension for
25payment of principal and interest on bonds issued by the park
26district without referendum (but not including excluded

 

 

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1non-referendum bonds). A debt service extension base
2established or increased at any time pursuant to any provision
3of this Law, except Section 18-212, shall be increased each
4year commencing with the later of (i) the 2009 levy year or
5(ii) the first levy year in which this Law becomes applicable
6to the taxing district, by the lesser of 5% or the percentage
7increase in the Consumer Price Index during the 12-month
8calendar year preceding the levy year. The debt service
9extension base may be established or increased as provided
10under Section 18-212. "Excluded non-referendum bonds" means
11(i) bonds authorized by Public Act 88-503 and issued under
12Section 20a of the Chicago Park District Act for aquarium and
13museum projects; (ii) bonds issued under Section 15 of the
14Local Government Debt Reform Act; or (iii) refunding
15obligations issued to refund or to continue to refund
16obligations initially issued pursuant to referendum.
17    "Special purpose extensions" include, but are not limited
18to, extensions for levies made on an annual basis for
19unemployment and workers' compensation, self-insurance,
20contributions to pension plans, and extensions made pursuant to
21Section 6-601 of the Illinois Highway Code for a road
22district's permanent road fund whether levied annually or not.
23The extension for a special service area is not included in the
24aggregate extension.
25    "Aggregate extension base" means the taxing district's
26last preceding aggregate extension as adjusted under Sections

 

 

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118-135, 18-215, and 18-230. An adjustment under Section 18-135
2shall be made for the 2007 levy year and all subsequent levy
3years whenever one or more counties within which a taxing
4district is located (i) used estimated valuations or rates when
5extending taxes in the taxing district for the last preceding
6levy year that resulted in the over or under extension of
7taxes, or (ii) increased or decreased the tax extension for the
8last preceding levy year as required by Section 18-135(c).
9Whenever an adjustment is required under Section 18-135, the
10aggregate extension base of the taxing district shall be equal
11to the amount that the aggregate extension of the taxing
12district would have been for the last preceding levy year if
13either or both (i) actual, rather than estimated, valuations or
14rates had been used to calculate the extension of taxes for the
15last levy year, or (ii) the tax extension for the last
16preceding levy year had not been adjusted as required by
17subsection (c) of Section 18-135.
18    "Levy year" has the same meaning as "year" under Section
191-155.
20    "New property" means (i) the assessed value, after final
21board of review or board of appeals action, of new improvements
22or additions to existing improvements on any parcel of real
23property that increase the assessed value of that real property
24during the levy year multiplied by the equalization factor
25issued by the Department under Section 17-30, (ii) the assessed
26value, after final board of review or board of appeals action,

 

 

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1of real property not exempt from real estate taxation, which
2real property was exempt from real estate taxation for any
3portion of the immediately preceding levy year, multiplied by
4the equalization factor issued by the Department under Section
517-30, including the assessed value, upon final stabilization
6of occupancy after new construction is complete, of any real
7property located within the boundaries of an otherwise or
8previously exempt military reservation that is intended for
9residential use and owned by or leased to a private corporation
10or other entity, and (iii) in counties that classify in
11accordance with Section 4 of Article IX of the Illinois
12Constitution, an incentive property's additional assessed
13value resulting from a scheduled increase in the level of
14assessment as applied to the first year final board of review
15market value. In addition, the county clerk in a county
16containing a population of 3,000,000 or more shall include in
17the 1997 recovered tax increment value for any school district,
18any recovered tax increment value that was applicable to the
191995 tax year calculations.
20    "Qualified airport authority" means an airport authority
21organized under the Airport Authorities Act and located in a
22county bordering on the State of Wisconsin and having a
23population in excess of 200,000 and not greater than 500,000.
24    "Recovered tax increment value" means, except as otherwise
25provided in this paragraph, the amount of the current year's
26equalized assessed value, in the first year after a

 

 

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

 

 

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

 

 

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1after March 21, 2006, then (i) the otherwise applicable
2limiting rate shall be increased by the amount of the new rate
3or shall be reduced by the amount of the rate decrease, as the
4case may be, or (ii) in the case of a limiting rate increase,
5the limiting rate shall be equal to the rate set forth in the
6proposition approved by the voters for each of the years
7specified in the proposition, after which the limiting rate of
8the taxing district shall be calculated as otherwise provided.
9(Source: P.A. 95-90, eff. 1-1-08; 95-331, eff. 8-21-07; 95-404,
10eff. 1-1-08; 95-876, eff. 8-21-08; 96-501, eff. 8-14-09;
1196-517, eff. 8-14-09; 96-1000, eff. 7-2-10; 96-1202, eff.
127-22-10.)