Illinois General Assembly - Full Text of SB4159
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Full Text of SB4159  102nd General Assembly

SB4159 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB4159

 

Introduced 2/9/2022, by Sen. Craig Wilcox

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 805/6  from Ch. 85, par. 2206
30 ILCS 805/8  from Ch. 85, par. 2208
30 ILCS 805/9.2 new
35 ILCS 5/901
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-207 new
35 ILCS 200/18-212

    Amends the State Mandates Act. Provides that any State mandate regarding any subject matter enacted on or after the effective date of the amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations and reimbursements to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations and reimbursements shall relieve the local government of the obligation to implement any State mandate. Makes conforming changes. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district shall reduce its aggregate extension base for the purpose of lowering its limiting rate for future years upon referendum approval initiated by the submission of a petition by the voters of the district. Provides that the extension limitation shall be: (a) the lesser of 5% or the average percentage increase in the Consumer Price Index for the immediately preceding 10 years; or (b) the rate of increase approved by the voters. Amends the Illinois Income Tax Act. Increases distributions into the Local Government Distributive Fund on and after August 1, 2022. Effective immediately.


LRB102 26259 HLH 36138 b

 

 

A BILL FOR

 

SB4159LRB102 26259 HLH 36138 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 State Mandates Act is amended by changing
5Sections 6 and 8 and by adding Section 9.2 as follows:
 
6    (30 ILCS 805/6)  (from Ch. 85, par. 2206)
7    Sec. 6. State Reimbursement to Local Government For
8Increased Costs Arising From Certain Mandates. (a) Any
9increased costs accruing to local governments as a direct
10result of mandates dealing with the organization and structure
11of local government or due process mandates, as defined in
12subsections (c) and (d), respectively, of Section 3 above, are
13not reimbursable by the State.
14    (b) At least 50%, but not more than 100% of the increase in
15costs of a local government directly attributable to a service
16mandate as defined in subsection (f) of Section 3 enacted by
17the General Assembly or established administratively after the
18effective date of this Act shall be reimbursed by the State
19unless there is in existence at the time of such enactment a
20program of State aid for the service affected by the mandate
21whereunder the non-local share for any participating local
22government is 50% or greater and where the increased costs
23arising under the mandate constitute allowable expenditures

 

 

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1under the aid program. Where all or part of the increased costs
2are met through federal or other external aid, only the net
3increase to the local government shall be included in the base
4against which the amount of State reimbursement is to be
5computed.
6    (c) 100% of the loss in revenue of a local government
7directly attributable to a mandated classification or
8exemption of property for purposes of ad valorem real property
9taxation enacted after the effective date of this Act shall be
10reimbursed by the State. The loss of revenue does not include
11potential revenue from property of a type which was not being
12assessed and taxed on January 1, 1980.
13    (d) Except for a State mandate that affects personnel
14qualifications for local employees, the salaries and wages of
15which are financed under a State program, and except as
16provided in subsection (e) below, any personnel mandate as
17defined in subsection (h) of Section 3 above enacted by the
18General Assembly or established administratively after the
19effective date of this Act shall be reimbursed by the State to
20the extent of increased costs incurred by local governments
21directly attributable to such mandate.
22    (e) All of the increased costs of a local government
23directly attributable to a mandated increase in public
24employee retirement benefits which is enacted after the
25effective date of this Act and which has the effect of
26elevating retirement benefits of local government employees

 

 

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1shall be reimbursed by the State; except that any increased
2costs of a local government attributable to Public Act 83-152,
383-374, 83-375, 83-528, 83-558, 83-661, 83-664, 83-737,
483-772, 83-773, 83-780, 83-792, 83-793, 83-802, 83-810,
583-812, 83-823, 83-827 or 83-869 are not reimbursable by the
6State.
7    (f) After the effective date of this Act, any bill filed
8and any amended bill that creates or enlarges a State mandate
9of the type specified in subsections (f), (g) and (h) of
10Section 3, shall have provided and identified for it an
11appropriation of an amount necessary to provide the
12reimbursement specified above unless a statement, stating the
13specific reasons for such exclusion is set out in the bill or
14amendment as provided in subsection (a) of Section 8.
15    (g) If a local government or combination of local
16governments has been providing a service at its option which
17is subsequently mandated by the State, the State shall pay
18them for the subsequent costs of such program and the local
19government or governments shall proportionately reduce its or
20their property tax extensions by the amount that the State
21payment replaces property tax revenues which were being
22expended on such service. However, for purposes of calculating
23a school district's State aid, no district's operating tax
24rate shall be decreased as a result of reimbursement under
25this Act.
26    (h) Any increased costs accruing to a local government as

 

 

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1a direct result of the requirements of the Steel Products
2Procurement Act are not reimbursable by the State.
3    (i) The provisions of subsections (a) through (h) shall
4apply to State mandates enacted prior to the effective date of
5this amendatory Act of the 102nd General Assembly. On and
6after the effective date of this amendatory Act of the 102nd
7General Assembly, any State mandate enacted regarding any
8subject matter that necessitates additional expenditures from
9local government revenues shall be appropriated for and
10reimbursed as provided under Section 9.2.
11(Source: P.A. 83-1362.)
 
12    (30 ILCS 805/8)  (from Ch. 85, par. 2208)
13    Sec. 8. Exclusions, reimbursement application, review,
14appeals, and adjudication.
15    (a) Exclusions: Any of the following circumstances
16inherent to, or associated with, a mandate shall exclude the
17State from reimbursement liability under this Act. If the
18mandate (1) accommodates a request from local governments or
19organizations thereof; (2) imposes additional duties of a
20nature which can be carried out by existing staff and
21procedures at no appreciable net cost increase; (3) creates
22additional costs but also provides offsetting savings
23resulting in no aggregate increase in net costs; (4) imposes a
24cost that is wholly or largely recovered from Federal, State
25or other external financial aid; (5) imposes additional annual

 

 

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1net costs of less than $1,000 for each of the several local
2governments affected or less than $50,000, in the aggregate,
3for all local governments affected.
4    The failure of the General Assembly to make necessary
5appropriations shall relieve the local government of the
6obligation to implement any service mandates, tax exemption
7mandates, and personnel mandates, as specified in Section 6,
8subsections (b), (c), (d) and (e), unless the exclusion
9provided for in this Section are explicitly stated in the Act
10establishing the mandate. In the event that funding is not
11provided for a State-mandated program by the General Assembly,
12the local government may implement or continue the program
13upon approval of its governing body. If the local government
14approves the program and funding is subsequently provided, the
15State shall reimburse the local governments only for costs
16incurred subsequent to the funding.
17    (a-5) The provisions of subsection (a) excluding the State
18from reimbursement liability under this Act shall not apply to
19any State mandate enacted on or after the effective date of
20this amendatory Act of the 102nd General Assembly, and all
21subsequent State mandates enacted shall be appropriated for
22and reimbursed as provided under Section 9.2.
23    (b) Reimbursement Estimation and Appropriation Procedure.
24        (1) When a bill is introduced in the General Assembly,
25    the Legislative Reference Bureau, hereafter referred to as
26    the Bureau, shall determine whether such bill may require

 

 

SB4159- 6 -LRB102 26259 HLH 36138 b

1    reimbursement to local governments pursuant to this Act.
2    The Bureau shall make such determination known in the
3    Legislative Synopsis and Digest.
4        In making the determination required by this
5    subsection (b) the Bureau shall disregard any provision in
6    a bill which would make inoperative the reimbursement
7    requirements of Section 6 above, including an express
8    exclusion of the applicability of this Act, and shall make
9    the determination irrespective of any such provision.
10        (2) Any bill or amended bill which creates or expands
11    a State mandate shall be subject to the provisions of "An
12    Act requiring fiscal notes in relation to certain bills",
13    approved June 4, 1965, as amended. The fiscal notes for
14    such bills or amended bills shall include estimates of the
15    costs to local government and the costs of any
16    reimbursement required under this Act. In the case of
17    bills having a potential fiscal impact on units of local
18    government, the fiscal note shall be prepared by the
19    Department. In the case of bills having a potential fiscal
20    impact on school districts, the fiscal note shall be
21    prepared by the State Superintendent of Education. In the
22    case of bills having a potential fiscal impact on
23    community college districts, the fiscal note shall be
24    prepared by the Illinois Community College Board. Such
25    fiscal note shall accompany the bill that requires State
26    reimbursement and shall be prepared prior to any final

 

 

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1    action on such a bill by the assigned committee. However,
2    if a fiscal note is not filed by the appropriate agency
3    within 30 days of introduction of a bill, the bill can be
4    heard in committee and advanced to the order of second
5    reading. The bill shall then remain on second reading
6    until a fiscal note is filed. A bill discharged from
7    committee shall also remain on second reading until a
8    fiscal note is provided by the appropriate agency.
9        (3) The estimate required by paragraph (2) above,
10    shall include the amount estimated to be required during
11    the first fiscal year of a bill's operation in order to
12    reimburse local governments pursuant to Section 6, for
13    costs mandated by such bill. In the event that the
14    effective date of such a bill is not the first day of the
15    fiscal year the estimate shall also include the amount
16    estimated to be required for reimbursement for the next
17    following full fiscal year.
18        (4) For the initial fiscal year, reimbursement funds
19    shall be provided as follows: (i) any statute mandating
20    such costs shall have a companion appropriation bill, and
21    (ii) any executive order mandating such costs shall be
22    accompanied by a bill to appropriate the funds therefor,
23    or, alternatively an appropriation for such funds shall be
24    included in the executive budget for the next following
25    fiscal year.
26        In subsequent fiscal years appropriations for such

 

 

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1    costs shall be included in the Governor's budget or
2    supplemental appropriation bills.
3    (c) Reimbursement Application and Disbursement Procedure.
4        (1) For the initial fiscal year during which
5    reimbursement is authorized, each local government, or
6    more than one local government wishing to join in filing a
7    single claim, believing itself to be entitled to
8    reimbursement under this Act shall submit to the
9    Department, State Superintendent of Education or Illinois
10    Community College Board within 60 days of the effective
11    date of the mandate a claim for reimbursement accompanied
12    by its estimate of the increased costs required by the
13    mandate for the balance of the fiscal year. The
14    Department, State Superintendent of Education or Illinois
15    Community College Board shall review such claim and
16    estimate, shall apportion the claim into 3 equal
17    installments and shall direct the Comptroller to pay the
18    installments at equal intervals throughout the remainder
19    of the fiscal year from the funds appropriated for such
20    purposes, provided that the Department, State
21    Superintendent of Education or Illinois Community College
22    Board may (i) audit the records of any local government to
23    verify the actual amount of the mandated cost, and (ii)
24    reduce any claim determined to be excessive or
25    unreasonable.
26        (2) For the subsequent fiscal years, local governments

 

 

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1    shall submit claims as specified above on or before
2    October 1 of each year. The Department, State
3    Superintendent of Education or Illinois Community College
4    Board shall apportion the claims into 3 equal installments
5    and shall direct the Comptroller to pay the first
6    installment upon approval of the claims, with subsequent
7    installments to follow on January 1 and March 1, such
8    claims to be paid from funds appropriated therefor,
9    provided that the Department, State Superintendent of
10    Education or Illinois Community College Board (i) may
11    audit the records of any local governments to verify the
12    actual amount of the mandated cost, (ii) may reduce any
13    claim, determined to be excessive or unreasonable, and
14    (iii) shall adjust the payment to correct for any
15    underpayments or overpayments which occurred in the
16    previous fiscal year.
17        (3) Any funds received by a local government pursuant
18    to this Act may be used for any public purpose.
19        If the funds appropriated for reimbursement of the
20    costs of local government resulting from the creation or
21    expansion of a State mandate are less than the total of the
22    approved claims, the amount appropriated shall be prorated
23    among the local governments having approved claims.
24    (d) Appeals and Adjudication.
25        (1) Local governments may appeal determinations made
26    by State agencies acting pursuant to subsection (c) above.

 

 

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1    The appeal must be submitted to the State Mandates Board
2    of Review created by Section 9.1 of this Act within 60 days
3    following the date of receipt of the determination being
4    appealed. The appeal must include evidence as to the
5    extent to which the mandate has been carried out in an
6    effective manner and executed without recourse to
7    standards of staffing or expenditure higher than specified
8    in the mandatory statute, if such standards are specified
9    in the statute. The State Mandates Board of Review, after
10    reviewing the evidence submitted to it, may increase or
11    reduce the amount of a reimbursement claim. The decision
12    of the State Mandates Board of Review shall be final
13    subject to judicial review. However, if sufficient funds
14    have not been appropriated, the Department shall notify
15    the General Assembly of such cost, and appropriations for
16    such costs shall be included in a supplemental
17    appropriation bill.
18        (2) A local government may also appeal directly to the
19    State Mandates Board of Review in those situations in
20    which the Department of Commerce and Economic Opportunity
21    does not act upon the local government's application for
22    reimbursement or request for mandate determination
23    submitted under this Act. The appeal must include evidence
24    that the application for reimbursement or request for
25    mandate determination was properly filed and should have
26    been reviewed by the Department.

 

 

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1        An appeal may be made to the Board if the Department
2    does not respond to a local government's application for
3    reimbursement or request for mandate determination within
4    120 days after filing the application or request. In no
5    case, however, may an appeal be brought more than one year
6    after the application or request is filed with the
7    Department.
8(Source: P.A. 94-793, eff. 5-19-06.)
 
9    (30 ILCS 805/9.2 new)
10    Sec. 9.2. Unfunded State mandates prohibited.
11Notwithstanding any provision of law to the contrary, any
12State mandate regarding any subject matter enacted on or after
13the effective date of this amendatory Act of the 102nd General
14Assembly that necessitates additional expenditures from local
15government revenues shall be void and unenforceable unless the
16General Assembly makes necessary appropriations and
17reimbursements to implement that mandate. The failure of the
18General Assembly to make necessary appropriations and
19reimbursements shall relieve the local government of the
20obligation to implement any State mandate.
 
21    Section 10. The Illinois Income Tax Act is amended by
22changing Section 901 as follows:
 
23    (35 ILCS 5/901)

 

 

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1    Sec. 901. Collection authority.
2    (a) In general. The Department shall collect the taxes
3imposed by this Act. The Department shall collect certified
4past due child support amounts under Section 2505-650 of the
5Department of Revenue Law of the Civil Administrative Code of
6Illinois. Except as provided in subsections (b), (c), (e),
7(f), (g), and (h) of this Section, money collected pursuant to
8subsections (a) and (b) of Section 201 of this Act shall be
9paid into the General Revenue Fund in the State treasury;
10money collected pursuant to subsections (c) and (d) of Section
11201 of this Act shall be paid into the Personal Property Tax
12Replacement Fund, a special fund in the State Treasury; and
13money collected under Section 2505-650 of the Department of
14Revenue Law of the Civil Administrative Code of Illinois shall
15be paid into the Child Support Enforcement Trust Fund, a
16special fund outside the State Treasury, or to the State
17Disbursement Unit established under Section 10-26 of the
18Illinois Public Aid Code, as directed by the Department of
19Healthcare and Family Services.
20    (b) Local Government Distributive Fund. Beginning August
211, 2017 continuing through July 31, 2022, the Treasurer shall
22transfer each month from the General Revenue Fund to the Local
23Government Distributive Fund an amount equal to the sum of:
24(i) 6.06% (10% of the ratio of the 3% individual income tax
25rate prior to 2011 to the 4.95% individual income tax rate
26after July 1, 2017) of the net revenue realized from the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 of this Act
2upon individuals, trusts, and estates during the preceding
3month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
4income tax rate prior to 2011 to the 7% corporate income tax
5rate after July 1, 2017) of the net revenue realized from the
6tax imposed by subsections (a) and (b) of Section 201 of this
7Act upon corporations during the preceding month; and (iii)
8beginning February 1, 2022, 6.06% of the net revenue realized
9from the tax imposed by subsection (p) of Section 201 of this
10Act upon electing pass-through entities. From August 1, 2022
11through July 31, 2023, the Treasurer shall transfer each month
12from the General Revenue Fund to the Local Government
13Distributive Fund an amount equal to the sum of: (i) 7% of the
14net revenue realized from the tax imposed by subsections (a)
15and (b) of Section 201 of this Act upon individuals, trusts,
16and estates during the preceding month; (ii) 8.11% of the net
17revenue realized from the tax imposed by subsections (a) and
18(b) of Section 201 of this Act upon corporations during the
19preceding month; and (iii) 7% of the net revenue realized from
20the tax imposed by subsection (p) of Section 201 of this Act
21upon electing pass-through entities. Beginning on August 1,
222023, the Treasurer shall transfer each month from the General
23Revenue Fund to the Local Government Distributive Fund an
24amount equal to the sum of: (i) 8% of the net revenue realized
25from the tax imposed by subsections (a) and (b) of Section 201
26of this Act upon individuals, trusts, and estates during the

 

 

SB4159- 14 -LRB102 26259 HLH 36138 b

1preceding month; (ii) 9.11% of the net revenue realized from
2the tax imposed by subsections (a) and (b) of Section 201 of
3this Act upon corporations during the preceding month; and
4(iii) 8% of the net revenue realized from the tax imposed by
5subsection (p) of Section 201 of this Act upon electing
6pass-through entities. Net revenue realized for a month shall
7be defined as the revenue from the tax imposed by subsections
8(a) and (b) of Section 201 of this Act which is deposited in
9the General Revenue Fund, the Education Assistance Fund, the
10Income Tax Surcharge Local Government Distributive Fund, the
11Fund for the Advancement of Education, and the Commitment to
12Human Services Fund during the month minus the amount paid out
13of the General Revenue Fund in State warrants during that same
14month as refunds to taxpayers for overpayment of liability
15under the tax imposed by subsections (a) and (b) of Section 201
16of this Act.
17    Notwithstanding any provision of law to the contrary,
18beginning on July 6, 2017 (the effective date of Public Act
19100-23), those amounts required under this subsection (b) to
20be transferred by the Treasurer into the Local Government
21Distributive Fund from the General Revenue Fund shall be
22directly deposited into the Local Government Distributive Fund
23as the revenue is realized from the tax imposed by subsections
24(a) and (b) of Section 201 of this Act.
25    (c) Deposits Into Income Tax Refund Fund.
26        (1) Beginning on January 1, 1989 and thereafter, the

 

 

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1    Department shall deposit a percentage of the amounts
2    collected pursuant to subsections (a) and (b)(1), (2), and
3    (3) of Section 201 of this Act into a fund in the State
4    treasury known as the Income Tax Refund Fund. Beginning
5    with State fiscal year 1990 and for each fiscal year
6    thereafter, the percentage deposited into the Income Tax
7    Refund Fund during a fiscal year shall be the Annual
8    Percentage. For fiscal year 2011, the Annual Percentage
9    shall be 8.75%. For fiscal year 2012, the Annual
10    Percentage shall be 8.75%. For fiscal year 2013, the
11    Annual Percentage shall be 9.75%. For fiscal year 2014,
12    the Annual Percentage shall be 9.5%. For fiscal year 2015,
13    the Annual Percentage shall be 10%. For fiscal year 2018,
14    the Annual Percentage shall be 9.8%. For fiscal year 2019,
15    the Annual Percentage shall be 9.7%. For fiscal year 2020,
16    the Annual Percentage shall be 9.5%. For fiscal year 2021,
17    the Annual Percentage shall be 9%. For fiscal year 2022,
18    the Annual Percentage shall be 9.25%. For all other fiscal
19    years, the Annual Percentage shall be calculated as a
20    fraction, the numerator of which shall be the amount of
21    refunds approved for payment by the Department during the
22    preceding fiscal year as a result of overpayment of tax
23    liability under subsections (a) and (b)(1), (2), and (3)
24    of Section 201 of this Act plus the amount of such refunds
25    remaining approved but unpaid at the end of the preceding
26    fiscal year, minus the amounts transferred into the Income

 

 

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1    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
2    and the denominator of which shall be the amounts which
3    will be collected pursuant to subsections (a) and (b)(1),
4    (2), and (3) of Section 201 of this Act during the
5    preceding fiscal year; except that in State fiscal year
6    2002, the Annual Percentage shall in no event exceed 7.6%.
7    The Director of Revenue shall certify the Annual
8    Percentage to the Comptroller on the last business day of
9    the fiscal year immediately preceding the fiscal year for
10    which it is to be effective.
11        (2) Beginning on January 1, 1989 and thereafter, the
12    Department shall deposit a percentage of the amounts
13    collected pursuant to subsections (a) and (b)(6), (7), and
14    (8), (c) and (d) of Section 201 of this Act into a fund in
15    the State treasury known as the Income Tax Refund Fund.
16    Beginning with State fiscal year 1990 and for each fiscal
17    year thereafter, the percentage deposited into the Income
18    Tax Refund Fund during a fiscal year shall be the Annual
19    Percentage. For fiscal year 2011, the Annual Percentage
20    shall be 17.5%. For fiscal year 2012, the Annual
21    Percentage shall be 17.5%. For fiscal year 2013, the
22    Annual Percentage shall be 14%. For fiscal year 2014, the
23    Annual Percentage shall be 13.4%. For fiscal year 2015,
24    the Annual Percentage shall be 14%. For fiscal year 2018,
25    the Annual Percentage shall be 17.5%. For fiscal year
26    2019, the Annual Percentage shall be 15.5%. For fiscal

 

 

SB4159- 17 -LRB102 26259 HLH 36138 b

1    year 2020, the Annual Percentage shall be 14.25%. For
2    fiscal year 2021, the Annual Percentage shall be 14%. For
3    fiscal year 2022, the Annual Percentage shall be 15%. For
4    all other fiscal years, the Annual Percentage shall be
5    calculated as a fraction, the numerator of which shall be
6    the amount of refunds approved for payment by the
7    Department during the preceding fiscal year as a result of
8    overpayment of tax liability under subsections (a) and
9    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
10    Act plus the amount of such refunds remaining approved but
11    unpaid at the end of the preceding fiscal year, and the
12    denominator of which shall be the amounts which will be
13    collected pursuant to subsections (a) and (b)(6), (7), and
14    (8), (c) and (d) of Section 201 of this Act during the
15    preceding fiscal year; except that in State fiscal year
16    2002, the Annual Percentage shall in no event exceed 23%.
17    The Director of Revenue shall certify the Annual
18    Percentage to the Comptroller on the last business day of
19    the fiscal year immediately preceding the fiscal year for
20    which it is to be effective.
21        (3) The Comptroller shall order transferred and the
22    Treasurer shall transfer from the Tobacco Settlement
23    Recovery Fund to the Income Tax Refund Fund (i)
24    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
25    2002, and (iii) $35,000,000 in January, 2003.
26    (d) Expenditures from Income Tax Refund Fund.

 

 

SB4159- 18 -LRB102 26259 HLH 36138 b

1        (1) Beginning January 1, 1989, money in the Income Tax
2    Refund Fund shall be expended exclusively for the purpose
3    of paying refunds resulting from overpayment of tax
4    liability under Section 201 of this Act and for making
5    transfers pursuant to this subsection (d).
6        (2) The Director shall order payment of refunds
7    resulting from overpayment of tax liability under Section
8    201 of this Act from the Income Tax Refund Fund only to the
9    extent that amounts collected pursuant to Section 201 of
10    this Act and transfers pursuant to this subsection (d) and
11    item (3) of subsection (c) have been deposited and
12    retained in the Fund.
13        (3) As soon as possible after the end of each fiscal
14    year, the Director shall order transferred and the State
15    Treasurer and State Comptroller shall transfer from the
16    Income Tax Refund Fund to the Personal Property Tax
17    Replacement Fund an amount, certified by the Director to
18    the Comptroller, equal to the excess of the amount
19    collected pursuant to subsections (c) and (d) of Section
20    201 of this Act deposited into the Income Tax Refund Fund
21    during the fiscal year over the amount of refunds
22    resulting from overpayment of tax liability under
23    subsections (c) and (d) of Section 201 of this Act paid
24    from the Income Tax Refund Fund during the fiscal year.
25        (4) As soon as possible after the end of each fiscal
26    year, the Director shall order transferred and the State

 

 

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1    Treasurer and State Comptroller shall transfer from the
2    Personal Property Tax Replacement Fund to the Income Tax
3    Refund Fund an amount, certified by the Director to the
4    Comptroller, equal to the excess of the amount of refunds
5    resulting from overpayment of tax liability under
6    subsections (c) and (d) of Section 201 of this Act paid
7    from the Income Tax Refund Fund during the fiscal year
8    over the amount collected pursuant to subsections (c) and
9    (d) of Section 201 of this Act deposited into the Income
10    Tax Refund Fund during the fiscal year.
11        (4.5) As soon as possible after the end of fiscal year
12    1999 and of each fiscal year thereafter, the Director
13    shall order transferred and the State Treasurer and State
14    Comptroller shall transfer from the Income Tax Refund Fund
15    to the General Revenue Fund any surplus remaining in the
16    Income Tax Refund Fund as of the end of such fiscal year;
17    excluding for fiscal years 2000, 2001, and 2002 amounts
18    attributable to transfers under item (3) of subsection (c)
19    less refunds resulting from the earned income tax credit.
20        (5) This Act shall constitute an irrevocable and
21    continuing appropriation from the Income Tax Refund Fund
22    for the purpose of paying refunds upon the order of the
23    Director in accordance with the provisions of this
24    Section.
25    (e) Deposits into the Education Assistance Fund and the
26Income Tax Surcharge Local Government Distributive Fund. On

 

 

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1July 1, 1991, and thereafter, of the amounts collected
2pursuant to subsections (a) and (b) of Section 201 of this Act,
3minus deposits into the Income Tax Refund Fund, the Department
4shall deposit 7.3% into the Education Assistance Fund in the
5State Treasury. Beginning July 1, 1991, and continuing through
6January 31, 1993, of the amounts collected pursuant to
7subsections (a) and (b) of Section 201 of the Illinois Income
8Tax Act, minus deposits into the Income Tax Refund Fund, the
9Department shall deposit 3.0% into the Income Tax Surcharge
10Local Government Distributive Fund in the State Treasury.
11Beginning February 1, 1993 and continuing through June 30,
121993, of the amounts collected pursuant to subsections (a) and
13(b) of Section 201 of the Illinois Income Tax Act, minus
14deposits into the Income Tax Refund Fund, the Department shall
15deposit 4.4% into the Income Tax Surcharge Local Government
16Distributive Fund in the State Treasury. Beginning July 1,
171993, and continuing through June 30, 1994, of the amounts
18collected under subsections (a) and (b) of Section 201 of this
19Act, minus deposits into the Income Tax Refund Fund, the
20Department shall deposit 1.475% into the Income Tax Surcharge
21Local Government Distributive Fund in the State Treasury.
22    (f) Deposits into the Fund for the Advancement of
23Education. Beginning February 1, 2015, the Department shall
24deposit the following portions of the revenue realized from
25the tax imposed upon individuals, trusts, and estates by
26subsections (a) and (b) of Section 201 of this Act, minus

 

 

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1deposits into the Income Tax Refund Fund, into the Fund for the
2Advancement of Education:
3        (1) beginning February 1, 2015, and prior to February
4    1, 2025, 1/30; and
5        (2) beginning February 1, 2025, 1/26.
6    If the rate of tax imposed by subsection (a) and (b) of
7Section 201 is reduced pursuant to Section 201.5 of this Act,
8the Department shall not make the deposits required by this
9subsection (f) on or after the effective date of the
10reduction.
11    (g) Deposits into the Commitment to Human Services Fund.
12Beginning February 1, 2015, the Department shall deposit the
13following portions of the revenue realized from the tax
14imposed upon individuals, trusts, and estates by subsections
15(a) and (b) of Section 201 of this Act, minus deposits into the
16Income Tax Refund Fund, into the Commitment to Human Services
17Fund:
18        (1) beginning February 1, 2015, and prior to February
19    1, 2025, 1/30; and
20        (2) beginning February 1, 2025, 1/26.
21    If the rate of tax imposed by subsection (a) and (b) of
22Section 201 is reduced pursuant to Section 201.5 of this Act,
23the Department shall not make the deposits required by this
24subsection (g) on or after the effective date of the
25reduction.
26    (h) Deposits into the Tax Compliance and Administration

 

 

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1Fund. Beginning on the first day of the first calendar month to
2occur on or after August 26, 2014 (the effective date of Public
3Act 98-1098), each month the Department shall pay into the Tax
4Compliance and Administration Fund, to be used, subject to
5appropriation, to fund additional auditors and compliance
6personnel at the Department, an amount equal to 1/12 of 5% of
7the cash receipts collected during the preceding fiscal year
8by the Audit Bureau of the Department from the tax imposed by
9subsections (a), (b), (c), and (d) of Section 201 of this Act,
10net of deposits into the Income Tax Refund Fund made from those
11cash receipts.
12(Source: P.A. 101-8, see Section 99 for effective date;
13101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
146-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
15eff. 8-27-21; revised 10-19-21.)
 
16    Section 15. The Property Tax Code is amended by changing
17Sections 18-185, 18-205, and 18-212 and by adding Section
1818-207 as follows:
 
19    (35 ILCS 200/18-185)
20    Sec. 18-185. Short title; definitions. This Division 5
21may be cited as the Property Tax Extension Limitation Law. As
22used in this Division 5:
23    "Consumer Price Index" means the Consumer Price Index for
24All Urban Consumers for all items published by the United

 

 

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1States Department of Labor.
2    "Extension limitation" means, for taxable years prior to
32023: (a) the lesser of 5% or the percentage increase in the
4Consumer Price Index during the 12-month calendar year
5preceding the levy year; or (b) the rate of increase approved
6by voters under Section 18-205.
7    "Extension limitation" means, for taxable year 2023 and
8thereafter: (a) the lesser of 5% or the average percentage
9increase in the Consumer Price Index for the 10 years
10immediately preceding the levy year for which the extension
11limitation is being calculated; or (b) the rate of increase
12approved by voters under Section 18-205.
13    "Affected county" means a county of 3,000,000 or more
14inhabitants or a county contiguous to a county of 3,000,000 or
15more inhabitants.
16    "Taxing district" has the same meaning provided in Section
171-150, except as otherwise provided in this Section. For the
181991 through 1994 levy years only, "taxing district" includes
19only each non-home rule taxing district having the majority of
20its 1990 equalized assessed value within any county or
21counties contiguous to a county with 3,000,000 or more
22inhabitants. Beginning with the 1995 levy year, "taxing
23district" includes only each non-home rule taxing district
24subject to this Law before the 1995 levy year and each non-home
25rule taxing district not subject to this Law before the 1995
26levy year having the majority of its 1994 equalized assessed

 

 

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1value in an affected county or counties. Beginning with the
2levy year in which this Law becomes applicable to a taxing
3district as provided in Section 18-213, "taxing district" also
4includes those taxing districts made subject to this Law as
5provided in Section 18-213.
6    "Aggregate extension" for taxing districts to which this
7Law applied before the 1995 levy year means the annual
8corporate extension for the taxing district and those special
9purpose extensions that are made annually for the taxing
10district, excluding special purpose extensions: (a) made for
11the taxing district to pay interest or principal on general
12obligation bonds that were approved by referendum; (b) made
13for any taxing district to pay interest or principal on
14general obligation bonds issued before October 1, 1991; (c)
15made for any taxing district to pay interest or principal on
16bonds issued to refund or continue to refund those bonds
17issued before October 1, 1991; (d) made for any taxing
18district to pay interest or principal on bonds issued to
19refund or continue to refund bonds issued after October 1,
201991 that were approved by referendum; (e) made for any taxing
21district to pay interest or principal on revenue bonds issued
22before October 1, 1991 for payment of which a property tax levy
23or the full faith and credit of the unit of local government is
24pledged; however, a tax for the payment of interest or
25principal on those bonds shall be made only after the
26governing body of the unit of local government finds that all

 

 

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1other sources for payment are insufficient to make those
2payments; (f) made for payments under a building commission
3lease when the lease payments are for the retirement of bonds
4issued by the commission before October 1, 1991, to pay for the
5building project; (g) made for payments due under installment
6contracts entered into before October 1, 1991; (h) made for
7payments of principal and interest on bonds issued under the
8Metropolitan Water Reclamation District Act to finance
9construction projects initiated before October 1, 1991; (i)
10made for payments of principal and interest on limited bonds,
11as defined in Section 3 of the Local Government Debt Reform
12Act, in an amount not to exceed the debt service extension base
13less the amount in items (b), (c), (e), and (h) of this
14definition for non-referendum obligations, except obligations
15initially issued pursuant to referendum; (j) made for payments
16of principal and interest on bonds issued under Section 15 of
17the Local Government Debt Reform Act; (k) made by a school
18district that participates in the Special Education District
19of Lake County, created by special education joint agreement
20under Section 10-22.31 of the School Code, for payment of the
21school district's share of the amounts required to be
22contributed by the Special Education District of Lake County
23to the Illinois Municipal Retirement Fund under Article 7 of
24the Illinois Pension Code; the amount of any extension under
25this item (k) shall be certified by the school district to the
26county clerk; (l) made to fund expenses of providing joint

 

 

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1recreational programs for persons with disabilities under
2Section 5-8 of the Park District Code or Section 11-95-14 of
3the Illinois Municipal Code; (m) made for temporary relocation
4loan repayment purposes pursuant to Sections 2-3.77 and
517-2.2d of the School Code; (n) made for payment of principal
6and interest on any bonds issued under the authority of
7Section 17-2.2d of the School Code; (o) made for contributions
8to a firefighter's pension fund created under Article 4 of the
9Illinois Pension Code, to the extent of the amount certified
10under item (5) of Section 4-134 of the Illinois Pension Code;
11and (p) made for road purposes in the first year after a
12township assumes the rights, powers, duties, assets, property,
13liabilities, obligations, and responsibilities of a road
14district abolished under the provisions of Section 6-133 of
15the Illinois Highway Code.
16    "Aggregate extension" for the taxing districts to which
17this Law did not apply before the 1995 levy year (except taxing
18districts subject to this Law in accordance with Section
1918-213) means the annual corporate extension for the taxing
20district and those special purpose extensions that are made
21annually for the taxing district, excluding special purpose
22extensions: (a) made for the taxing district to pay interest
23or principal on general obligation bonds that were approved by
24referendum; (b) made for any taxing district to pay interest
25or principal on general obligation bonds issued before March
261, 1995; (c) made for any taxing district to pay interest or

 

 

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1principal on bonds issued to refund or continue to refund
2those bonds issued before March 1, 1995; (d) made for any
3taxing district to pay interest or principal on bonds issued
4to refund or continue to refund bonds issued after March 1,
51995 that were approved by referendum; (e) made for any taxing
6district to pay interest or principal on revenue bonds issued
7before March 1, 1995 for payment of which a property tax levy
8or the full faith and credit of the unit of local government is
9pledged; however, a tax for the payment of interest or
10principal on those bonds shall be made only after the
11governing body of the unit of local government finds that all
12other sources for payment are insufficient to make those
13payments; (f) made for payments under a building commission
14lease when the lease payments are for the retirement of bonds
15issued by the commission before March 1, 1995 to pay for the
16building project; (g) made for payments due under installment
17contracts entered into before March 1, 1995; (h) made for
18payments of principal and interest on bonds issued under the
19Metropolitan Water Reclamation District Act to finance
20construction projects initiated before October 1, 1991; (h-4)
21made for stormwater management purposes by the Metropolitan
22Water Reclamation District of Greater Chicago under Section 12
23of the Metropolitan Water Reclamation District Act; (i) made
24for payments of principal and interest on limited bonds, as
25defined in Section 3 of the Local Government Debt Reform Act,
26in an amount not to exceed the debt service extension base less

 

 

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1the amount in items (b), (c), and (e) of this definition for
2non-referendum obligations, except obligations initially
3issued pursuant to referendum and bonds described in
4subsection (h) of this definition; (j) made for payments of
5principal and interest on bonds issued under Section 15 of the
6Local Government Debt Reform Act; (k) made for payments of
7principal and interest on bonds authorized by Public Act
888-503 and issued under Section 20a of the Chicago Park
9District Act for aquarium or museum projects and bonds issued
10under Section 20a of the Chicago Park District Act for the
11purpose of making contributions to the pension fund
12established under Article 12 of the Illinois Pension Code; (l)
13made for payments of principal and interest on bonds
14authorized by Public Act 87-1191 or 93-601 and (i) issued
15pursuant to Section 21.2 of the Cook County Forest Preserve
16District Act, (ii) issued under Section 42 of the Cook County
17Forest Preserve District Act for zoological park projects, or
18(iii) issued under Section 44.1 of the Cook County Forest
19Preserve District Act for botanical gardens projects; (m) made
20pursuant to Section 34-53.5 of the School Code, whether levied
21annually or not; (n) made to fund expenses of providing joint
22recreational programs for persons with disabilities under
23Section 5-8 of the Park District Code or Section 11-95-14 of
24the Illinois Municipal Code; (o) made by the Chicago Park
25District for recreational programs for persons with
26disabilities under subsection (c) of Section 7.06 of the

 

 

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1Chicago Park District Act; (p) made for contributions to a
2firefighter's pension fund created under Article 4 of the
3Illinois Pension Code, to the extent of the amount certified
4under item (5) of Section 4-134 of the Illinois Pension Code;
5(q) made by Ford Heights School District 169 under Section
617-9.02 of the School Code; and (r) made for the purpose of
7making employer contributions to the Public School Teachers'
8Pension and Retirement Fund of Chicago under Section 34-53 of
9the School Code.
10    "Aggregate extension" for all taxing districts to which
11this Law applies in accordance with Section 18-213, except for
12those taxing districts subject to paragraph (2) of subsection
13(e) of Section 18-213, means the annual corporate extension
14for the taxing district and those special purpose extensions
15that are made annually for the taxing district, excluding
16special purpose extensions: (a) made for the taxing district
17to pay interest or principal on general obligation bonds that
18were approved by referendum; (b) made for any taxing district
19to pay interest or principal on general obligation bonds
20issued before the date on which the referendum making this Law
21applicable to the taxing district is held; (c) made for any
22taxing district to pay interest or principal on bonds issued
23to refund or continue to refund those bonds issued before the
24date on which the referendum making this Law applicable to the
25taxing district is held; (d) made for any taxing district to
26pay interest or principal on bonds issued to refund or

 

 

SB4159- 30 -LRB102 26259 HLH 36138 b

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

 

 

SB4159- 31 -LRB102 26259 HLH 36138 b

1referendum; (i) made for payments of principal and interest on
2bonds issued under Section 15 of the Local Government Debt
3Reform Act; (j) made for a qualified airport authority to pay
4interest or principal on general obligation bonds issued for
5the purpose of paying obligations due under, or financing
6airport facilities required to be acquired, constructed,
7installed or equipped pursuant to, contracts entered into
8before March 1, 1996 (but not including any amendments to such
9a contract taking effect on or after that date); (k) made to
10fund expenses of providing joint recreational programs for
11persons with disabilities under Section 5-8 of the Park
12District Code or Section 11-95-14 of the Illinois Municipal
13Code; (l) made for contributions to a firefighter's pension
14fund created under Article 4 of the Illinois Pension Code, to
15the extent of the amount certified under item (5) of Section
164-134 of the Illinois Pension Code; and (m) made for the taxing
17district to pay interest or principal on general obligation
18bonds issued pursuant to Section 19-3.10 of the School Code.
19    "Aggregate extension" for all taxing districts to which
20this Law applies in accordance with paragraph (2) of
21subsection (e) of Section 18-213 means the annual corporate
22extension for the taxing district and those special purpose
23extensions that are made annually for the taxing district,
24excluding special purpose extensions: (a) made for the taxing
25district to pay interest or principal on general obligation
26bonds that were approved by referendum; (b) made for any

 

 

SB4159- 32 -LRB102 26259 HLH 36138 b

1taxing district to pay interest or principal on general
2obligation bonds issued before March 7, 1997 (the effective
3date of Public Act 89-718); (c) made for any taxing district to
4pay interest or principal on bonds issued to refund or
5continue to refund those bonds issued before March 7, 1997
6(the effective date of Public Act 89-718); (d) made for any
7taxing district to pay interest or principal on bonds issued
8to refund or continue to refund bonds issued after March 7,
91997 (the effective date of Public Act 89-718) if the bonds
10were approved by referendum after March 7, 1997 (the effective
11date of Public Act 89-718); (e) made for any taxing district to
12pay interest or principal on revenue bonds issued before March
137, 1997 (the effective date of Public Act 89-718) for payment
14of which a property tax levy or the full faith and credit of
15the unit of local government is pledged; however, a tax for the
16payment of interest or principal on those bonds shall be made
17only after the governing body of the unit of local government
18finds that all other sources for payment are insufficient to
19make those payments; (f) made for payments under a building
20commission lease when the lease payments are for the
21retirement of bonds issued by the commission before March 7,
221997 (the effective date of Public Act 89-718) to pay for the
23building project; (g) made for payments due under installment
24contracts entered into before March 7, 1997 (the effective
25date of Public Act 89-718); (h) made for payments of principal
26and interest on limited bonds, as defined in Section 3 of the

 

 

SB4159- 33 -LRB102 26259 HLH 36138 b

1Local Government Debt Reform Act, in an amount not to exceed
2the debt service extension base less the amount in items (b),
3(c), and (e) of this definition for non-referendum
4obligations, except obligations initially issued pursuant to
5referendum; (i) made for payments of principal and interest on
6bonds issued under Section 15 of the Local Government Debt
7Reform Act; (j) made for a qualified airport authority to pay
8interest or principal on general obligation bonds issued for
9the purpose of paying obligations due under, or financing
10airport facilities required to be acquired, constructed,
11installed or equipped pursuant to, contracts entered into
12before March 1, 1996 (but not including any amendments to such
13a contract taking effect on or after that date); (k) made to
14fund expenses of providing joint recreational programs for
15persons with disabilities under Section 5-8 of the Park
16District Code or Section 11-95-14 of the Illinois Municipal
17Code; and (l) made for contributions to a firefighter's
18pension fund created under Article 4 of the Illinois Pension
19Code, to the extent of the amount certified under item (5) of
20Section 4-134 of the Illinois Pension Code.
21    "Debt service extension base" means an amount equal to
22that portion of the extension for a taxing district for the
231994 levy year, or for those taxing districts subject to this
24Law in accordance with Section 18-213, except for those
25subject to paragraph (2) of subsection (e) of Section 18-213,
26for the levy year in which the referendum making this Law

 

 

SB4159- 34 -LRB102 26259 HLH 36138 b

1applicable to the taxing district is held, or for those taxing
2districts subject to this Law in accordance with paragraph (2)
3of subsection (e) of Section 18-213 for the 1996 levy year,
4constituting an extension for payment of principal and
5interest on bonds issued by the taxing district without
6referendum, but not including excluded non-referendum bonds.
7For park districts (i) that were first subject to this Law in
81991 or 1995 and (ii) whose extension for the 1994 levy year
9for the payment of principal and interest on bonds issued by
10the park district without referendum (but not including
11excluded non-referendum bonds) was less than 51% of the amount
12for the 1991 levy year constituting an extension for payment
13of principal and interest on bonds issued by the park district
14without referendum (but not including excluded non-referendum
15bonds), "debt service extension base" means an amount equal to
16that portion of the extension for the 1991 levy year
17constituting an extension for payment of principal and
18interest on bonds issued by the park district without
19referendum (but not including excluded non-referendum bonds).
20A debt service extension base established or increased at any
21time pursuant to any provision of this Law, except Section
2218-212, shall be increased each year commencing with the later
23of (i) the 2009 levy year or (ii) the first levy year in which
24this Law becomes applicable to the taxing district, by the
25extension limitation lesser of 5% or the percentage increase
26in the Consumer Price Index during the 12-month calendar year

 

 

SB4159- 35 -LRB102 26259 HLH 36138 b

1preceding the levy year. The debt service extension base may
2be established or increased as provided under Section 18-212.
3"Excluded non-referendum bonds" means (i) bonds authorized by
4Public Act 88-503 and issued under Section 20a of the Chicago
5Park District Act for aquarium and museum projects; (ii) bonds
6issued under Section 15 of the Local Government Debt Reform
7Act; or (iii) refunding obligations issued to refund or to
8continue to refund obligations initially issued pursuant to
9referendum.
10    "Special purpose extensions" include, but are not limited
11to, extensions for levies made on an annual basis for
12unemployment and workers' compensation, self-insurance,
13contributions to pension plans, and extensions made pursuant
14to Section 6-601 of the Illinois Highway Code for a road
15district's permanent road fund whether levied annually or not.
16The extension for a special service area is not included in the
17aggregate extension.
18    "Aggregate extension base" means the taxing district's
19last preceding aggregate extension as adjusted under Sections
2018-135, 18-215, 18-230, 18-206, and 18-233. An adjustment
21under Section 18-135 shall be made for the 2007 levy year and
22all subsequent levy years whenever one or more counties within
23which a taxing district is located (i) used estimated
24valuations or rates when extending taxes in the taxing
25district for the last preceding levy year that resulted in the
26over or under extension of taxes, or (ii) increased or

 

 

SB4159- 36 -LRB102 26259 HLH 36138 b

1decreased the tax extension for the last preceding levy year
2as required by Section 18-135(c). Whenever an adjustment is
3required under Section 18-135, the aggregate extension base of
4the taxing district shall be equal to the amount that the
5aggregate extension of the taxing district would have been for
6the last preceding levy year if either or both (i) actual,
7rather than estimated, valuations or rates had been used to
8calculate the extension of taxes for the last levy year, or
9(ii) the tax extension for the last preceding levy year had not
10been adjusted as required by subsection (c) of Section 18-135.
11    Notwithstanding any other provision of law, for levy year
122012, the aggregate extension base for West Northfield School
13District No. 31 in Cook County shall be $12,654,592.
14    Notwithstanding any other provision of law, for levy year
152022, the aggregate extension base of a home equity assurance
16program that levied at least $1,000,000 in property taxes in
17levy year 2019 or 2020 under the Home Equity Assurance Act
18shall be the amount that the program's aggregate extension
19base for levy year 2021 would have been if the program had
20levied a property tax for levy year 2021.
21    "Levy year" has the same meaning as "year" under Section
221-155.
23    "New property" means (i) the assessed value, after final
24board of review or board of appeals action, of new
25improvements or additions to existing improvements on any
26parcel of real property that increase the assessed value of

 

 

SB4159- 37 -LRB102 26259 HLH 36138 b

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

 

 

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1    "Qualified airport authority" means an airport authority
2organized under the Airport Authorities Act and located in a
3county bordering on the State of Wisconsin and having a
4population in excess of 200,000 and not greater than 500,000.
5    "Recovered tax increment value" means, except as otherwise
6provided in this paragraph, the amount of the current year's
7equalized assessed value, in the first year after a
8municipality terminates the designation of an area as a
9redevelopment project area previously established under the
10Tax Increment Allocation Redevelopment Act in the Illinois
11Municipal Code, previously established under the Industrial
12Jobs Recovery Law in the Illinois Municipal Code, previously
13established under the Economic Development Project Area Tax
14Increment Act of 1995, or previously established under the
15Economic Development Area Tax Increment Allocation Act, of
16each taxable lot, block, tract, or parcel of real property in
17the redevelopment project area over and above the initial
18equalized assessed value of each property in the redevelopment
19project area. For the taxes which are extended for the 1997
20levy year, the recovered tax increment value for a non-home
21rule taxing district that first became subject to this Law for
22the 1995 levy year because a majority of its 1994 equalized
23assessed value was in an affected county or counties shall be
24increased if a municipality terminated the designation of an
25area in 1993 as a redevelopment project area previously
26established under the Tax Increment Allocation Redevelopment

 

 

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1Act in the Illinois Municipal Code, previously established
2under the Industrial Jobs Recovery Law in the Illinois
3Municipal Code, or previously established under the Economic
4Development Area Tax Increment Allocation Act, by an amount
5equal to the 1994 equalized assessed value of each taxable
6lot, block, tract, or parcel of real property in the
7redevelopment project area over and above the initial
8equalized assessed value of each property in the redevelopment
9project area. In the first year after a municipality removes a
10taxable lot, block, tract, or parcel of real property from a
11redevelopment project area established under the Tax Increment
12Allocation Redevelopment Act in the Illinois Municipal Code,
13the Industrial Jobs Recovery Law in the Illinois Municipal
14Code, or the Economic Development Area Tax Increment
15Allocation Act, "recovered tax increment value" means the
16amount of the current year's equalized assessed value of each
17taxable lot, block, tract, or parcel of real property removed
18from the redevelopment project area over and above the initial
19equalized assessed value of that real property before removal
20from the redevelopment project area.
21    Except as otherwise provided in this Section, "limiting
22rate" means a fraction the numerator of which is the last
23preceding aggregate extension base (as reduced by Section
2418-207, if applicable) times an amount equal to one plus the
25extension limitation defined in this Section and the
26denominator of which is the current year's equalized assessed

 

 

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1value 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 and taxing districts that
7reduced their aggregate extension pursuant to Section 18-207,
8the highest aggregate extension in any of the last 3 preceding
9levy years shall be used for the purpose of computing the
10limiting rate. The denominator shall not include new property
11or the recovered tax increment value. If a new rate, a rate
12decrease, or a limiting rate increase has been approved at an
13election held after March 21, 2006, then (i) the otherwise
14applicable limiting rate shall be increased by the amount of
15the new rate or shall be reduced by the amount of the rate
16decrease, as the case may be, or (ii) in the case of a limiting
17rate increase, the limiting rate shall be equal to the rate set
18forth in the proposition approved by the voters for each of the
19years specified in the proposition, after which the limiting
20rate of the taxing district shall be calculated as otherwise
21provided. In the case of a taxing district that obtained
22referendum approval for an increased limiting rate on March
2320, 2012, the limiting rate for tax year 2012 shall be the rate
24that generates the approximate total amount of taxes
25extendable for that tax year, as set forth in the proposition
26approved by the voters; this rate shall be the final rate

 

 

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1applied by the county clerk for the aggregate of all capped
2funds of the district for tax year 2012.
3(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
4102-519, eff. 8-20-21; 102-558, eff. 8-20-21; revised
510-5-21.)
 
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 extension limitation
2    under item (a) of the definition of extension limitation
3    in Section 18-185) the lesser of 5% or the percentage
4    increase in the Consumer Price Index over the prior levy
5    year to (insert the percentage of the proposed increase)%
6    per year for (insert each levy year for which the
7    increased extension limitation will apply)?
8The votes must be recorded as "Yes" or "No".
9If a majority of voters voting on the issue approves the
10adoption of the increase, the increase shall be applicable for
11each levy year specified.
12    The ballot for any question submitted pursuant to this
13Section shall have printed thereon, but not as a part of the
14question 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) For the (insert the first levy year for which the
18    increased extension limitation will be applicable) levy
19    year the approximate amount of the additional tax
20    extendable against property containing a single family
21    residence and having a fair market value at the time of the
22    referendum of $100,000 is estimated to be $....
23        (2) Based upon an average annual percentage increase
24    (or decrease) in the market value of such property of ...%
25    (insert percentage equal to the average annual percentage
26    increase or decrease for the prior 3 levy years, at the

 

 

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

 

 

SB4159- 44 -LRB102 26259 HLH 36138 b

1initiates the submission of the proposition to the electors;
2(iii) the last known aggregate extension base of the taxing
3district at the time the submission of the question is
4initiated by the taxing district; and (iv) the difference
5between the percentage increase proposed in the question and
6the otherwise applicable extension limitation lesser of 5% or
7the percentage increase in the Consumer Price Index for the
8prior levy year (or an estimate of the percentage increase for
9the prior levy year if the increase is unavailable at the time
10the submission of the question is initiated by the taxing
11district); and dividing the result by the last known equalized
12assessed value of the taxing district at the time the
13submission of the question is initiated by the taxing
14district. This amendatory Act of the 97th General Assembly is
15intended to clarify the existing requirements of this Section,
16and shall not be construed to validate any prior non-compliant
17referendum language. Any notice required to be published in
18connection with the submission of the question shall also
19contain this supplemental information and shall not contain
20any other supplemental information. Any error, miscalculation,
21or inaccuracy in computing any amount set forth on the ballot
22or in the notice that is not deliberate shall not invalidate or
23affect the validity of any proposition approved. Notice of the
24referendum shall be published and posted as otherwise required
25by law, and the submission of the question shall be initiated
26as provided by law.

 

 

SB4159- 45 -LRB102 26259 HLH 36138 b

1(Source: P.A. 97-1087, eff. 8-24-12.)
 
2    (35 ILCS 200/18-207 new)
3    Sec. 18-207. Reduced aggregate extension base.
4    (a) Upon submission of a petition signed by a number of
5voters of the taxing district that is not less than 10% of the
6votes cast in the taxing district at the immediately preceding
7gubernatorial election, the question of whether a taxing
8district shall reduce its aggregate extension base for the
9purpose of lowering its limiting rate for future years shall
10be submitted to the voters of the taxing district at the next
11general or consolidated election. The petition shall set forth
12the amount of the reduction and the levy years for which the
13reduction shall be applicable.
14    (b) The petition shall be filed with the applicable
15election authority, as defined in Section 1-3 of the Election
16Code, or, in the case of multiple election authorities, with
17the State Board of Elections, not more than 10 months nor less
18than 6 months prior to the election at which the question is to
19be submitted to the voters, and its validity shall be
20determined as provided by Article 28 of the Election Code and
21general election law. The election authority or Board, as
22applicable, shall certify the question and the proper election
23authority or authorities shall submit the question to the
24voters. Except as otherwise provided in this Section, this
25referendum shall be subject to all other general election law

 

 

SB4159- 46 -LRB102 26259 HLH 36138 b

1requirements.
2    (c) The proposition seeking to reduce the aggregate
3extension base shall be in substantially the following form:
4        Shall the aggregate extension base used to calculate
5    the limiting rate for (taxing district) under the Property
6    Tax Extension Limitation Law be reduced by (amount of
7    money expressed in U.S. dollars) for (levy year or years)?
8    Votes shall be recorded as "Yes" or "No".
9    If a majority of all votes cast on the proposition are in
10favor of the proposition, then the aggregate extension base
11shall be reduced as provided in the referendum.
 
12    (35 ILCS 200/18-212)
13    Sec. 18-212. Referendum on debt service extension base. A
14taxing district may establish or increase its debt service
15extension base if (i) that taxing district holds a referendum
16before the date on which the levy must be filed with the county
17clerk of the county or counties in which the taxing district is
18situated and (ii) a majority of voters voting on the issue
19approves the establishment of or increase in the debt service
20extension base. A debt service extension base established or
21increased by a referendum held pursuant to this Section after
22February 2, 2010, shall be increased each year, commencing
23with the first levy year beginning after the date of the
24referendum, by the extension limitation lesser of 5% or the
25percentage increase in the Consumer Price Index during the

 

 

SB4159- 47 -LRB102 26259 HLH 36138 b

112-month calendar year preceding the levy year if the optional
2language concerning the annual increase is included in the
3question submitted to the electors of the taxing district.
4Referenda under this Section shall be conducted at a regularly
5scheduled election in accordance with the Election Code. The
6governing body of the taxing district shall certify the
7question to the proper election authorities who shall submit
8the question to the electors of the taxing district in
9substantially the following form:
10    "Shall the debt service extension base under the Property
11    Tax Extension Limitation Law for ... (taxing district
12    name) ... for payment of principal and interest on limited
13    bonds be .... ((established at $ ....) . (or) (increased
14    from $ .... to $ ....)) .. for the ..... levy year and all
15    subsequent levy years (optional language: , such debt
16    service extension base to be increased each year by
17    (extension limitation amount) the lesser of 5% or the
18    percentage increase in the Consumer Price Index during the
19    12-month calendar year preceding the levy year)?"
20    Votes on the question shall be recorded as "Yes" or "No".
21    If a majority of voters voting on the issue approves the
22establishment of or increase in the debt service extension
23base, the establishment of or increase in the debt service
24extension base shall be applicable for the levy years
25specified.
26(Source: P.A. 96-1202, eff. 7-22-10.)
 

 

 

SB4159- 48 -LRB102 26259 HLH 36138 b

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