98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4724

 

Introduced , 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 special purpose levies made by a fire protection district for the purpose of making contributions to a firefighter's pension fund are exempt from the definition of "aggregate extension".


LRB098 19061 HLH 54211 b

 

 

A BILL FOR

 

HB4724LRB098 19061 HLH 54211 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 18-185 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; (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, including special purpose levies made
18for this purpose by a fire protection district; and (p) made
19for road purposes in the first year after a township assumes
20the rights, powers, duties, assets, property, liabilities,
21obligations, and responsibilities of a road district abolished
22under the provisions of Section 6-133 of the Illinois Highway
23Code.
24    "Aggregate extension" for the taxing districts to which
25this Law did not apply before the 1995 levy year (except taxing
26districts subject to this Law in accordance with Section

 

 

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118-213) means the annual corporate extension for the taxing
2district and those special purpose extensions that are made
3annually for the taxing district, excluding special purpose
4extensions: (a) made for the taxing district to pay interest or
5principal on general obligation bonds that were approved by
6referendum; (b) made for any taxing district to pay interest or
7principal on general obligation bonds issued before March 1,
81995; (c) made for any taxing district to pay interest or
9principal on bonds issued to refund or continue to refund those
10bonds issued before March 1, 1995; (d) made for any taxing
11district to pay interest or principal on bonds issued to refund
12or continue to refund bonds issued after March 1, 1995 that
13were approved by referendum; (e) made for any taxing district
14to pay interest or principal on revenue bonds issued before
15March 1, 1995 for payment of which a property tax levy or the
16full faith and credit of the unit of local government is
17pledged; however, a tax for the payment of interest or
18principal on those bonds shall be made only after the governing
19body of the unit of local government finds that all other
20sources for payment are insufficient to make those payments;
21(f) made for payments under a building commission lease when
22the lease payments are for the retirement of bonds issued by
23the commission before March 1, 1995 to pay for the building
24project; (g) made for payments due under installment contracts
25entered into before March 1, 1995; (h) made for payments of
26principal and interest on bonds issued under the Metropolitan

 

 

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1Water Reclamation District Act to finance construction
2projects initiated before October 1, 1991; (h-4) made for
3stormwater management purposes by the Metropolitan Water
4Reclamation District of Greater Chicago under Section 12 of the
5Metropolitan Water Reclamation District Act; (i) made for
6payments of principal and interest on limited bonds, as defined
7in Section 3 of the Local Government Debt Reform Act, in an
8amount not to exceed the debt service extension base less the
9amount in items (b), (c), and (e) of this definition for
10non-referendum obligations, except obligations initially
11issued pursuant to referendum and bonds described in subsection
12(h) of this definition; (j) made for payments of principal and
13interest on bonds issued under Section 15 of the Local
14Government Debt Reform Act; (k) made for payments of principal
15and interest on bonds authorized by Public Act 88-503 and
16issued under Section 20a of the Chicago Park District Act for
17aquarium or museum projects; (l) made for payments of principal
18and interest on bonds authorized by Public Act 87-1191 or
1993-601 and (i) issued pursuant to Section 21.2 of the Cook
20County Forest Preserve District Act, (ii) issued under Section
2142 of the Cook County Forest Preserve District Act for
22zoological park projects, or (iii) issued under Section 44.1 of
23the Cook County Forest Preserve District Act for botanical
24gardens projects; (m) made pursuant to Section 34-53.5 of the
25School Code, whether levied annually or not; (n) made to fund
26expenses of providing joint recreational programs for the

 

 

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1handicapped under Section 5-8 of the Park District Code or
2Section 11-95-14 of the Illinois Municipal Code; (o) made by
3the Chicago Park District for recreational programs for the
4handicapped under subsection (c) of Section 7.06 of the Chicago
5Park District Act; (p) made for contributions to a
6firefighter's pension fund created under Article 4 of the
7Illinois Pension Code, to the extent of the amount certified
8under item (5) of Section 4-134 of the Illinois Pension Code,
9including special purpose levies made for this purpose by a
10fire protection district; and (q) made by Ford Heights School
11District 169 under Section 17-9.02 of the School Code.
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,
18including special purpose levies made for this purpose by a
19fire protection district; and (m) made for the taxing district
20to pay interest or principal on general obligation bonds issued
21pursuant to Section 19-3.10 of the School Code.
22    "Aggregate extension" for all taxing districts to which
23this Law applies in accordance with paragraph (2) of subsection
24(e) of Section 18-213 means the annual corporate extension for
25the taxing district and those special purpose extensions that
26are made annually for the taxing district, excluding special

 

 

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

 

 

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1(h) made for payments of principal and interest on limited
2bonds, as defined in Section 3 of the Local Government Debt
3Reform Act, in an amount not to exceed the debt service
4extension base less the amount in items (b), (c), and (e) of
5this definition for non-referendum obligations, except
6obligations initially issued pursuant to referendum; (i) made
7for payments of principal and interest on bonds issued under
8Section 15 of the Local Government Debt Reform Act; (j) made
9for a qualified airport authority to pay interest or principal
10on general obligation bonds issued for the purpose of paying
11obligations due under, or financing airport facilities
12required to be acquired, constructed, installed or equipped
13pursuant to, contracts entered into before March 1, 1996 (but
14not including any amendments to such a contract taking effect
15on or after that date); (k) made to fund expenses of providing
16joint recreational programs for the handicapped under Section
175-8 of the Park District Code or Section 11-95-14 of the
18Illinois Municipal Code; and (l) made for contributions to a
19firefighter's pension fund created under Article 4 of the
20Illinois Pension Code, to the extent of the amount certified
21under item (5) of Section 4-134 of the Illinois Pension Code,
22including special purpose levies made for this purpose by a
23fire protection district.
24    "Debt service extension base" means an amount equal to that
25portion of the extension for a taxing district for the 1994
26levy year, or for those taxing districts subject to this Law in

 

 

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1accordance with Section 18-213, except for those subject to
2paragraph (2) of subsection (e) of Section 18-213, for the levy
3year in which the referendum making this Law applicable to the
4taxing district is held, or for those taxing districts subject
5to this Law in accordance with paragraph (2) of subsection (e)
6of Section 18-213 for the 1996 levy year, constituting an
7extension for payment of principal and interest on bonds issued
8by the taxing district without referendum, but not including
9excluded non-referendum bonds. For park districts (i) that were
10first subject to this Law in 1991 or 1995 and (ii) whose
11extension for the 1994 levy year for the payment of principal
12and interest on bonds issued by the park district without
13referendum (but not including excluded non-referendum bonds)
14was less than 51% of the amount for the 1991 levy year
15constituting an extension for payment of principal and interest
16on bonds issued by the park district without referendum (but
17not including excluded non-referendum bonds), "debt service
18extension base" means an amount equal to that portion of the
19extension for the 1991 levy year constituting an extension for
20payment of principal and interest on bonds issued by the park
21district without referendum (but not including excluded
22non-referendum bonds). A debt service extension base
23established or increased at any time pursuant to any provision
24of this Law, except Section 18-212, shall be increased each
25year commencing with the later of (i) the 2009 levy year or
26(ii) the first levy year in which this Law becomes applicable

 

 

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1to the taxing district, by the lesser of 5% or the percentage
2increase in the Consumer Price Index during the 12-month
3calendar year preceding the levy year. The debt service
4extension base may be established or increased as provided
5under Section 18-212. "Excluded non-referendum bonds" means
6(i) bonds authorized by Public Act 88-503 and issued under
7Section 20a of the Chicago Park District Act for aquarium and
8museum projects; (ii) bonds issued under Section 15 of the
9Local Government Debt Reform Act; or (iii) refunding
10obligations issued to refund or to continue to refund
11obligations initially issued pursuant to referendum.
12    "Special purpose extensions" include, but are not limited
13to, extensions for levies made on an annual basis for
14unemployment and workers' compensation, self-insurance,
15contributions to pension plans, and extensions made pursuant to
16Section 6-601 of the Illinois Highway Code for a road
17district's permanent road fund whether levied annually or not.
18The extension for a special service area is not included in the
19aggregate extension.
20    "Aggregate extension base" means the taxing district's
21last preceding aggregate extension as adjusted under Sections
2218-135, 18-215, and 18-230. An adjustment under Section 18-135
23shall be made for the 2007 levy year and all subsequent levy
24years whenever one or more counties within which a taxing
25district is located (i) used estimated valuations or rates when
26extending taxes in the taxing district for the last preceding

 

 

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1levy year that resulted in the over or under extension of
2taxes, or (ii) increased or decreased the tax extension for the
3last preceding levy year as required by Section 18-135(c).
4Whenever an adjustment is required under Section 18-135, the
5aggregate extension base of the taxing district shall be equal
6to the amount that the aggregate extension of the taxing
7district would have been for the last preceding levy year if
8either or both (i) actual, rather than estimated, valuations or
9rates had been used to calculate the extension of taxes for the
10last levy year, or (ii) the tax extension for the last
11preceding levy year had not been adjusted as required by
12subsection (c) of Section 18-135.
13    Notwithstanding any other provision of law, for levy year
142012, the aggregate extension base for West Northfield School
15District No. 31 in Cook County shall be $12,654,592.
16    "Levy year" has the same meaning as "year" under Section
171-155.
18    "New property" means (i) the assessed value, after final
19board of review or board of appeals action, of new improvements
20or additions to existing improvements on any parcel of real
21property that increase the assessed value of that real property
22during the levy year multiplied by the equalization factor
23issued by the Department under Section 17-30, (ii) the assessed
24value, after final board of review or board of appeals action,
25of real property not exempt from real estate taxation, which
26real property was exempt from real estate taxation for any

 

 

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1portion of the immediately preceding levy year, multiplied by
2the equalization factor issued by the Department under Section
317-30, including the assessed value, upon final stabilization
4of occupancy after new construction is complete, of any real
5property located within the boundaries of an otherwise or
6previously exempt military reservation that is intended for
7residential use and owned by or leased to a private corporation
8or other entity, (iii) in counties that classify in accordance
9with Section 4 of Article IX of the Illinois Constitution, an
10incentive property's additional assessed value resulting from
11a scheduled increase in the level of assessment as applied to
12the first year final board of review market value, and (iv) any
13increase in assessed value due to oil or gas production from an
14oil or gas well required to be permitted under the Hydraulic
15Fracturing Regulatory Act that was not produced in or accounted
16for during the previous levy year. In addition, the county
17clerk in a county containing a population of 3,000,000 or more
18shall include in the 1997 recovered tax increment value for any
19school district, any recovered tax increment value that was
20applicable to the 1995 tax year calculations.
21    "Qualified airport authority" means an airport authority
22organized under the Airport Authorities Act and located in a
23county bordering on the State of Wisconsin and having a
24population in excess of 200,000 and not greater than 500,000.
25    "Recovered tax increment value" means, except as otherwise
26provided in this paragraph, the amount of the current year's

 

 

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

 

 

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

 

 

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1limiting rate increase has been approved at an election held
2after March 21, 2006, then (i) the otherwise applicable
3limiting rate shall be increased by the amount of the new rate
4or shall be reduced by the amount of the rate decrease, as the
5case may be, or (ii) in the case of a limiting rate increase,
6the limiting rate shall be equal to the rate set forth in the
7proposition approved by the voters for each of the years
8specified in the proposition, after which the limiting rate of
9the taxing district shall be calculated as otherwise provided.
10In the case of a taxing district that obtained referendum
11approval for an increased limiting rate on March 20, 2012, the
12limiting rate for tax year 2012 shall be the rate that
13generates the approximate total amount of taxes extendable for
14that tax year, as set forth in the proposition approved by the
15voters; this rate shall be the final rate applied by the county
16clerk for the aggregate of all capped funds of the district for
17tax year 2012.
18(Source: P.A. 97-611, eff. 1-1-12; 97-1154, eff. 1-25-13; 98-6,
19eff. 3-29-13; 98-23, eff. 6-17-13.)