97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3314

 

Introduced 2/7/2012, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-190
35 ILCS 200/18-205

    Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that the approximate amount of the tax extendable, as stated on the referendum question submitted to impose a new or increased limiting rate or increase the extension limitation, shall be calculated (i) without regard to any property tax exemptions and (ii) using an equalized assessed value calculated by multiplying the percentage level of assessment prescribed for such property by statute or by ordinance of the county board by the most recent final equalization factor certified to the county clerk by the Department of Revenue at the time the taxing district initiates the submission of the proposition to the electors. Effective immediately.


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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
5Sections 18-190 and 18-205 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 the provisions, requirements, or
16limitations of any other law, any tax levied for the 2005 levy
17year and all subsequent levy years by any taxing district
18subject to this Law may be extended at a rate exceeding the
19rate established for that tax by referendum or statute,
20provided that the rate does not exceed the statutory ceiling
21above which the tax is not authorized to be further increased
22either by referendum or in any other manner. Notwithstanding
23the provisions, requirements, or limitations of any other law,

 

 

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1all taxing districts subject to this Law shall follow the
2provisions of this Section whenever seeking referenda approval
3after March 21, 2006 to (i) levy a new tax rate authorized by
4statute or (ii) increase the limiting rate applicable to the
5taxing district. All taxing districts subject to this Law are
6authorized to seek referendum approval of each proposition
7described and set forth in this Section.
8    The proposition seeking to obtain referendum approval to
9levy a new tax rate as authorized in clause (i) shall be in
10substantially the following form:
11        Shall ... (insert legal name, number, if any, and
12    county or counties of taxing district and geographic or
13    other common name by which a school or community college
14    district is known and referred to), Illinois, be authorized
15    to levy a new tax for ... purposes and have an additional
16    tax of ...% of the equalized assessed value of the taxable
17    property therein extended for such purposes?
18The votes must be recorded as "Yes" or "No".
19    The proposition seeking to obtain referendum approval to
20increase the limiting rate as authorized in clause (ii) shall
21be in substantially the following form:
22        Shall the limiting rate under the Property Tax
23    Extension Limitation Law for ... (insert legal name,
24    number, if any, and county or counties of taxing district
25    and geographic or other common name by which a school or
26    community college district is known and referred to),

 

 

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1    Illinois, be increased by an additional amount equal to
2    ...% above the limiting rate for the purpose of...(insert
3    purpose) for levy year ... (insert the most recent levy
4    year for which the limiting rate of the taxing district is
5    known at the time the submission of the proposition is
6    initiated by the taxing district) and be equal to ...% of
7    the equalized assessed value of the taxable property
8    therein for levy year(s) (insert each levy year for which
9    the increase will be applicable, which years must be
10    consecutive and may not exceed 4)?
11    The votes must be recorded as "Yes" or "No".
12    The ballot for any proposition submitted pursuant to this
13Section shall have printed thereon, but not as a part of the
14proposition submitted, only the following supplemental
15information (which shall be supplied to the election authority
16by the taxing district) in substantially the following form:
17        (1) The approximate amount of taxes extendable at the
18    most recently extended limiting rate is $..., and the
19    approximate amount of taxes extendable if the proposition
20    is approved is $....
21        (2) For the ... (insert the first levy year for which
22    the new rate or increased limiting rate will be applicable)
23    levy year the approximate amount of the additional tax
24    extendable against property containing a single family
25    residence and having a fair market value at the time of the
26    referendum of $100,000 is estimated to be $....

 

 

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1        (3) Based upon an average annual percentage increase
2    (or decrease) in the market value of such property of %...
3    (insert percentage equal to the average annual percentage
4    increase or decrease for the prior 3 levy years, at the
5    time the submission of the proposition is initiated by the
6    taxing district, in the amount of (A) the equalized
7    assessed value of the taxable property in the taxing
8    district less (B) the new property included in the
9    equalized assessed value), the approximate amount of the
10    additional tax extendable against such property for the ...
11    levy year is estimated to be $... and for the ... levy year
12    is estimated to be $ ....
13        (4) If the proposition is approved, the aggregate
14    extension for ... (insert each levy year for which the
15    increase will apply) will be determined by the limiting
16    rate set forth in the proposition, rather than the
17    otherwise applicable limiting rate calculated under the
18    provisions of the Property Tax Extension Limitation Law
19    (commonly known as the Property Tax Cap Law).
20The approximate amount of taxes extendable shown in paragraph
21(1) shall be computed upon the last known equalized assessed
22value of taxable property in the taxing district (at the time
23the submission of the proposition is initiated by the taxing
24district). Paragraph (3) shall be included only if the
25increased limiting rate will be applicable for more than one
26levy year and shall list each levy year for which the increased

 

 

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1limiting rate will be applicable. The additional tax shown for
2each levy year shall be the approximate dollar amount of the
3increase over the amount of the most recently completed
4extension at the time the submission of the proposition is
5initiated by the taxing district. The approximate amount of the
6additional taxes extendable shown in paragraphs (2) and (3)
7shall be calculated (i) without regard to any property tax
8exemptions and (ii) using an equalized assessed value
9calculated by multiplying based upon the percentage level of
10assessment prescribed for such property by statute or by
11ordinance of the county board in counties which classify
12property for purposes of taxation in accordance with Section 4
13of Article IX of the Constitution by the most recent final
14equalization factor certified to the county clerk by the
15Department of Revenue at the time the taxing district initiates
16the submission of the proposition to the electors. Paragraph
17(4) shall be included if the proposition concerns a limiting
18rate increase but shall not be included if the proposition
19concerns a new rate. Any notice required to be published in
20connection with the submission of the proposition shall also
21contain this supplemental information and shall not contain any
22other supplemental information regarding the proposition. Any
23error, miscalculation, or inaccuracy in computing any amount
24set forth on the ballot and in the notice that is not
25deliberate shall not invalidate or affect the validity of any
26proposition approved. Notice of the referendum shall be

 

 

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1published and posted as otherwise required by law, and the
2submission of the proposition shall be initiated as provided by
3law.
4    If a majority of all ballots cast on the proposition are in
5favor of the proposition, the following provisions shall be
6applicable to the extension of taxes for the taxing district:
7        (A) a new tax rate shall be first effective for the
8    levy year in which the new rate is approved;
9        (B) if the proposition provides for a new tax rate, the
10    taxing district is authorized to levy a tax after the
11    canvass of the results of the referendum by the election
12    authority for the purposes for which the tax is authorized;
13        (C) a limiting rate increase shall be first effective
14    for the levy year in which the limiting rate increase is
15    approved, provided that the taxing district may elect to
16    have a limiting rate increase be effective for the levy
17    year prior to the levy year in which the limiting rate
18    increase is approved unless the extension of taxes for the
19    prior levy year occurs 30 days or less after the canvass of
20    the results of the referendum by the election authority in
21    any county in which the taxing district is located;
22        (D) in order for the limiting rate increase to be first
23    effective for the levy year prior to the levy year of the
24    referendum, the taxing district must certify its election
25    to have the limiting rate increase be effective for the
26    prior levy year to the clerk of each county in which the

 

 

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1    taxing district is located not more than 2 days after the
2    date the results of the referendum are canvassed by the
3    election authority; and
4        (E) if the proposition provides for a limiting rate
5    increase, the increase may be effective regardless of
6    whether the proposition is approved before or after the
7    taxing district adopts or files its levy for any levy year.
8    Rates required to extend taxes on levies subject to a
9backdoor referendum in each year there is a levy are not new
10rates or rate increases under this Section if a levy has been
11made for the fund in one or more of the preceding 3 levy years.
12Changes made by this amendatory Act of 1997 to this Section in
13reference to rates required to extend taxes on levies subject
14to a backdoor referendum in each year there is a levy are
15declarative of existing law and not a new enactment.
16    (b) Whenever other applicable law authorizes a taxing
17district subject to the limitation with respect to its
18aggregate extension provided for in this Law to issue bonds or
19other obligations either without referendum or subject to
20backdoor referendum, the taxing district may elect for each
21separate bond issuance to submit the question of the issuance
22of the bonds or obligations directly to the voters of the
23taxing district, and if the referendum passes the taxing
24district is not required to comply with any backdoor referendum
25procedures or requirements set forth in the other applicable
26law. The direct referendum shall be initiated by ordinance or

 

 

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1resolution of the governing body of the taxing district, and
2the question shall be certified to the proper election
3authorities in accordance with the provisions of the Election
4Code.
5(Source: P.A. 96-764, eff. 8-25-09.)
 
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 of 5% or the percentage increase in the Consumer
10Price Index during the 12-month calendar year preceding the
11levy year, whichever is less. A taxing district may increase
12its extension limitation for one or more levy years if that
13taxing district holds a referendum before the levy date for the
14first levy year at which a majority of voters voting on the
15issue approves adoption of a higher extension limitation.
16Referenda shall be conducted at a regularly scheduled election
17in accordance with the Election Code. The question shall be
18presented in substantially the following manner for all
19elections held after March 21, 2006:
20        Shall the extension limitation under the Property Tax
21    Extension Limitation Law for (insert the legal name,
22    number, if any, and county or counties of the taxing
23    district and geographic or other common name by which a
24    school or community college district is known and referred
25    to), Illinois, be increased from the lesser of 5% or the

 

 

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1    percentage increase in the Consumer Price Index over the
2    prior levy year to (insert the percentage of the proposed
3    increase)% per year for (insert each levy year for which
4    the increased extension limitation will apply)?
5The votes must be recorded as "Yes" or "No".
6If a majority of voters voting on the issue approves the
7adoption of the increase, the increase shall be applicable for
8each levy year specified.
9    The ballot for any question submitted pursuant to this
10Section shall have printed thereon, but not as a part of the
11question submitted, only the following supplemental
12information (which shall be supplied to the election authority
13by the taxing district) in substantially the following form:
14        (1) For the (insert the first levy year for which the
15    increased extension limitation will be applicable) levy
16    year the approximate amount of the additional tax
17    extendable against property containing a single family
18    residence and having a fair market value at the time of the
19    referendum of $100,000 is estimated to be $....
20        (2) Based upon an average annual percentage increase
21    (or decrease) in the market value of such property of ...%
22    (insert percentage equal to the average annual percentage
23    increase or decrease for the prior 3 levy years, at the
24    time the submission of the question is initiated by the
25    taxing district, in the amount of (A) the equalized
26    assessed value of the taxable property in the taxing

 

 

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1    district less (B) the new property included in the
2    equalized assessed value), the approximate amount of the
3    additional tax extendable against such property for the ...
4    levy year is estimated to be $... and for the ... levy year
5    is estimated to be $....
6    Paragraph (2) shall be included only if the increased
7extension limitation will be applicable for more than one year
8and shall list each levy year for which the increased extension
9limitation 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 question is
13initiated by the taxing district. The approximate amount of the
14additional tax extendable shall be calculated by using (A) the
15lesser of 5% or the percentage increase in the Consumer Price
16Index for the prior levy year (or an estimate of the percentage
17increase for the prior levy year if the increase is unavailable
18at the time the submission of the question is initiated by the
19taxing district), (B) the percentage increase proposed in the
20question, and (C) the last known equalized assessed value and
21aggregate extension base of the taxing district at the time the
22submission of the question is initiated by the taxing district.
23The approximate amount of the tax extendable shown in
24paragraphs (1) and (2) shall be calculated (i) without regard
25to any property tax exemptions and (ii) using an equalized
26assessed value calculated by multiplying based upon the

 

 

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1percentage level of assessment prescribed for such property by
2statute or by ordinance of the county board in counties which
3classify property for purposes of taxation in accordance with
4Section 4 of Article IX of the Constitution by the most recent
5final equalization factor certified to the county clerk by the
6Department of Revenue at the time the taxing district initiates
7the submission of the proposition to the electors. Any notice
8required to be published in connection with the submission of
9the question shall also contain this supplemental information
10and shall not contain any other supplemental information. Any
11error, miscalculation, or inaccuracy in computing any amount
12set forth on the ballot or in the notice that is not deliberate
13shall not invalidate or affect the validity of any proposition
14approved. Notice of the referendum shall be published and
15posted as otherwise required by law, and the submission of the
16question shall be initiated as provided by law.
17(Source: P.A. 94-976, eff. 6-30-06.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.