093_HB1443

 
                                     LRB093 04432 NHT 04484 b

 1        AN ACT concerning schools.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Property Tax Code is amended by  changing
 5    Section 18-185 as follows:

 6        (35 ILCS 200/18-185)
 7        Sec.  18-185.  Short title; definitions.  This Division 5
 8    may be cited as the Property Tax  Extension  Limitation  Law.
 9    As used in this Division 5:
10        "Consumer Price Index" means the Consumer Price Index for
11    All  Urban  Consumers  for  all items published by the United
12    States Department of Labor.
13        "Extension limitation" means (a) the lesser of 5% or  the
14    percentage  increase  in  the Consumer Price Index during the
15    12-month calendar year preceding the levy  year  or  (b)  the
16    rate of increase approved by voters under Section 18-205.
17        "Affected  county"  means  a  county of 3,000,000 or more
18    inhabitants or a county contiguous to a county  of  3,000,000
19    or more inhabitants.
20        "Taxing  district"  has  the  same  meaning  provided  in
21    Section  1-150, except as otherwise provided in this Section.
22    For the 1991 through 1994 levy years only, "taxing  district"
23    includes  only  each non-home rule taxing district having the
24    majority of its 1990  equalized  assessed  value  within  any
25    county  or  counties contiguous to a county with 3,000,000 or
26    more inhabitants.  Beginning with the 1995 levy year, "taxing
27    district" includes only each non-home  rule  taxing  district
28    subject  to  this  Law  before  the  1995  levy year and each
29    non-home rule taxing district not subject to this Law  before
30    the  1995 levy year having the majority of its 1994 equalized
31    assessed value in an affected county or counties.   Beginning
 
                            -2-      LRB093 04432 NHT 04484 b
 1    with  the levy year in which this Law becomes applicable to a
 2    taxing  district  as  provided  in  Section  18-213,  "taxing
 3    district" also includes those taxing districts  made  subject
 4    to this Law as provided in Section 18-213.
 5        "Aggregate  extension" for taxing districts to which this
 6    Law applied before  the  1995  levy  year  means  the  annual
 7    corporate extension for the taxing district and those special
 8    purpose  extensions  that  are  made  annually for the taxing
 9    district, excluding special purpose extensions: (a) made  for
10    the  taxing  district to pay interest or principal on general
11    obligation bonds that were approved by referendum;  (b)  made
12    for  any  taxing  district  to  pay  interest or principal on
13    general obligation bonds issued before October 1,  1991;  (c)
14    made  for any taxing district to pay interest or principal on
15    bonds issued to refund or  continue  to  refund  those  bonds
16    issued  before  October  1,  1991;  (d)  made  for any taxing
17    district to pay interest or  principal  on  bonds  issued  to
18    refund  or  continue  to refund bonds issued after October 1,
19    1991 that were approved  by  referendum;  (e)  made  for  any
20    taxing district to pay interest or principal on revenue bonds
21    issued before October 1, 1991 for payment of which a property
22    tax  levy  or  the full faith and credit of the unit of local
23    government is pledged; however, a  tax  for  the  payment  of
24    interest or principal on those bonds shall be made only after
25    the governing body of the unit of local government finds that
26    all  other sources for payment are insufficient to make those
27    payments; (f) made for payments under a  building  commission
28    lease when the lease payments are for the retirement of bonds
29    issued  by  the commission before October 1, 1991, to pay for
30    the  building  project;  (g)  made  for  payments  due  under
31    installment contracts entered into before  October  1,  1991;
32    (h)  made  for  payments  of  principal and interest on bonds
33    issued under the Metropolitan Water Reclamation District  Act
34    to  finance construction projects initiated before October 1,
 
                            -3-      LRB093 04432 NHT 04484 b
 1    1991; (i) made for payments  of  principal  and  interest  on
 2    limited   bonds,  as  defined  in  Section  3  of  the  Local
 3    Government Debt Reform Act, in an amount not  to  exceed  the
 4    debt  service  extension  base  less the amount in items (b),
 5    (c), (e), and  (h)  of  this  definition  for  non-referendum
 6    obligations,  except obligations initially issued pursuant to
 7    referendum; (j) made for payments of principal  and  interest
 8    on bonds issued under Section 15 of the Local Government Debt
 9    Reform   Act;   and  (k)  made  by  a  school  district  that
10    participates  in  the  Special  Education  District  of  Lake
11    County, created by special education  joint  agreement  under
12    Section  10-22.31  of  the  School  Code,  for payment of the
13    school  district's  share  of  the  amounts  required  to  be
14    contributed by the Special Education District of Lake  County
15    to  the Illinois Municipal Retirement Fund under Article 7 of
16    the Illinois Pension Code; the amount of any extension  under
17    this  item  (k)  shall be certified by the school district to
18    the county clerk; and (l)  made  by  a  school  district  for
19    special  education  purposes  under  Section  17-2.2a  of the
20    School Code.
21        "Aggregate extension" for the taxing districts  to  which
22    this  Law  did  not  apply  before the 1995 levy year (except
23    taxing districts subject  to  this  Law  in  accordance  with
24    Section  18-213) means the annual corporate extension for the
25    taxing district and those special purpose extensions that are
26    made annually for  the  taxing  district,  excluding  special
27    purpose  extensions:  (a) made for the taxing district to pay
28    interest or principal on general obligation bonds  that  were
29    approved  by  referendum; (b) made for any taxing district to
30    pay interest or principal on general obligation bonds  issued
31    before March 1, 1995; (c) made for any taxing district to pay
32    interest  or  principal on bonds issued to refund or continue
33    to refund those bonds issued before March 1, 1995;  (d)  made
34    for any taxing district to pay interest or principal on bonds
 
                            -4-      LRB093 04432 NHT 04484 b
 1    issued  to  refund  or  continue to refund bonds issued after
 2    March 1, 1995 that were approved by referendum; (e) made  for
 3    any  taxing  district to pay interest or principal on revenue
 4    bonds issued before March 1, 1995  for  payment  of  which  a
 5    property tax levy or the full faith and credit of the unit of
 6    local  government  is pledged; however, a tax for the payment
 7    of interest or principal on those bonds shall  be  made  only
 8    after  the  governing  body  of  the unit of local government
 9    finds that all other sources for payment are insufficient  to
10    make  those  payments; (f) made for payments under a building
11    commission  lease  when  the  lease  payments  are  for   the
12    retirement  of bonds issued by the commission before March 1,
13    1995 to pay for the building project; (g) made  for  payments
14    due  under installment contracts entered into before March 1,
15    1995; (h) made for payments  of  principal  and  interest  on
16    bonds   issued   under  the  Metropolitan  Water  Reclamation
17    District  Act  to  finance  construction  projects  initiated
18    before October 1, 1991; (i) made for  payments  of  principal
19    and interest on limited bonds, as defined in Section 3 of the
20    Local  Government Debt Reform Act, in an amount not to exceed
21    the debt service extension base less the amount in items (b),
22    (c),  and  (e)  of   this   definition   for   non-referendum
23    obligations,  except obligations initially issued pursuant to
24    referendum and bonds described  in  subsection  (h)  of  this
25    definition;  (j)  made for payments of principal and interest
26    on bonds issued under Section 15 of the Local Government Debt
27    Reform Act; (k) made for payments of principal  and  interest
28    on  bonds  authorized  by  Public Act 88-503 and issued under
29    Section 20a of the Chicago Park District Act for aquarium  or
30    museum  projects;  (l)  made  for  payments  of principal and
31    interest on bonds authorized by Public Act 87-1191 and issued
32    under Section 42 of the Cook County Forest Preserve  District
33    Act  for  zoological  park projects; and (m) made pursuant to
34    Section 34-53.5 of the School Code, whether  levied  annually
 
                            -5-      LRB093 04432 NHT 04484 b
 1    or  not;  and  (n)  made  by  a  school  district for special
 2    education purposes under Section 17-2.2a of the School Code.
 3        "Aggregate extension" for all taxing districts  to  which
 4    this  Law  applies  in accordance with Section 18-213, except
 5    for those  taxing  districts  subject  to  paragraph  (2)  of
 6    subsection  (e) of Section 18-213, means the annual corporate
 7    extension for the taxing district and those  special  purpose
 8    extensions  that  are  made annually for the taxing district,
 9    excluding special purpose extensions: (a) made for the taxing
10    district to pay interest or principal on  general  obligation
11    bonds  that  were  approved  by  referendum; (b) made for any
12    taxing district to  pay  interest  or  principal  on  general
13    obligation   bonds  issued  before  the  date  on  which  the
14    referendum making this Law applicable to the taxing  district
15    is  held; (c) made for any taxing district to pay interest or
16    principal on bonds issued to refund  or  continue  to  refund
17    those  bonds  issued  before the date on which the referendum
18    making this Law applicable to the taxing  district  is  held;
19    (d) made for any taxing district to pay interest or principal
20    on  bonds issued to refund or continue to refund bonds issued
21    after the date  on  which  the  referendum  making  this  Law
22    applicable  to  the taxing district is held if the bonds were
23    approved by referendum after the date on which the referendum
24    making this Law applicable to the taxing  district  is  held;
25    (e) made for any taxing district to pay interest or principal
26    on  revenue  bonds  issued  before  the  date  on  which  the
27    referendum  making this Law applicable to the taxing district
28    is held for payment of which a property tax levy or the  full
29    faith  and credit of the unit of local government is pledged;
30    however, a tax for the payment of interest  or  principal  on
31    those  bonds  shall  be made only after the governing body of
32    the unit of local government finds that all other sources for
33    payment are insufficient to make those payments; (f) made for
34    payments under a building commission  lease  when  the  lease
 
                            -6-      LRB093 04432 NHT 04484 b
 1    payments  are  for  the  retirement  of  bonds  issued by the
 2    commission before the date on  which  the  referendum  making
 3    this Law applicable to the taxing district is held to pay for
 4    the  building  project;  (g)  made  for  payments  due  under
 5    installment  contracts  entered into before the date on which
 6    the referendum making  this  Law  applicable  to  the  taxing
 7    district  is  held;  (h)  made  for payments of principal and
 8    interest on limited bonds, as defined in  Section  3  of  the
 9    Local  Government Debt Reform Act, in an amount not to exceed
10    the debt service extension base less the amount in items (b),
11    (c),  and  (e)  of   this   definition   for   non-referendum
12    obligations,  except obligations initially issued pursuant to
13    referendum; (i) made for payments of principal  and  interest
14    on bonds issued under Section 15 of the Local Government Debt
15    Reform Act; and (j) made for a qualified airport authority to
16    pay  interest or principal on general obligation bonds issued
17    for the purpose of paying obligations due under, or financing
18    airport facilities  required  to  be  acquired,  constructed,
19    installed  or  equipped  pursuant  to, contracts entered into
20    before March 1, 1996 (but not  including  any  amendments  to
21    such a contract taking effect on or after that date); and (k)
22    made  by  a  school  district  for special education purposes
23    under Section 17-2.2a of the School Code.
24        "Aggregate extension" for all taxing districts  to  which
25    this   Law  applies  in  accordance  with  paragraph  (2)  of
26    subsection (e) of Section 18-213 means the  annual  corporate
27    extension  for  the taxing district and those special purpose
28    extensions that are made annually for  the  taxing  district,
29    excluding special purpose extensions: (a) made for the taxing
30    district  to  pay interest or principal on general obligation
31    bonds that were approved by  referendum;  (b)  made  for  any
32    taxing  district  to  pay  interest  or  principal on general
33    obligation bonds issued before the  effective  date  of  this
34    amendatory  Act  of 1997; (c) made for any taxing district to
 
                            -7-      LRB093 04432 NHT 04484 b
 1    pay interest or  principal  on  bonds  issued  to  refund  or
 2    continue  to  refund  those bonds issued before the effective
 3    date of this amendatory Act of 1997; (d) made for any  taxing
 4    district  to  pay  interest  or  principal on bonds issued to
 5    refund or continue to refund bonds issued after the effective
 6    date of this  amendatory  Act  of  1997  if  the  bonds  were
 7    approved  by  referendum  after  the  effective  date of this
 8    amendatory Act of 1997; (e) made for any taxing  district  to
 9    pay  interest or principal on revenue bonds issued before the
10    effective date of this amendatory Act of 1997 for payment  of
11    which a property tax levy or the full faith and credit of the
12    unit  of  local government is pledged; however, a tax for the
13    payment of interest or principal on those bonds shall be made
14    only after the governing body of the unit of local government
15    finds that all other sources for payment are insufficient  to
16    make  those  payments; (f) made for payments under a building
17    commission  lease  when  the  lease  payments  are  for   the
18    retirement  of  bonds  issued  by  the  commission before the
19    effective date of this amendatory Act of 1997 to pay for  the
20    building project; (g) made for payments due under installment
21    contracts  entered  into  before  the  effective date of this
22    amendatory Act of 1997; (h) made for  payments  of  principal
23    and interest on limited bonds, as defined in Section 3 of the
24    Local  Government Debt Reform Act, in an amount not to exceed
25    the debt service extension base less the amount in items (b),
26    (c),  and  (e)  of   this   definition   for   non-referendum
27    obligations,  except obligations initially issued pursuant to
28    referendum; (i) made for payments of principal  and  interest
29    on bonds issued under Section 15 of the Local Government Debt
30    Reform Act; and (j) made for a qualified airport authority to
31    pay  interest or principal on general obligation bonds issued
32    for the purpose of paying obligations due under, or financing
33    airport facilities  required  to  be  acquired,  constructed,
34    installed  or  equipped  pursuant  to, contracts entered into
 
                            -8-      LRB093 04432 NHT 04484 b
 1    before March 1, 1996 (but not  including  any  amendments  to
 2    such a contract taking effect on or after that date); and (k)
 3    made  by  a  school  district  for special education purposes
 4    under Section 17-2.2a of the School Code.
 5        "Debt service extension base" means an  amount  equal  to
 6    that  portion  of the extension for a taxing district for the
 7    1994 levy year, or for those taxing districts subject to this
 8    Law in accordance  with  Section  18-213,  except  for  those
 9    subject to paragraph (2) of subsection (e) of Section 18-213,
10    for  the  levy  year  in which the referendum making this Law
11    applicable to the taxing  district  is  held,  or  for  those
12    taxing  districts  subject  to  this  Law  in accordance with
13    paragraph (2) of subsection (e) of  Section  18-213  for  the
14    1996  levy  year,  constituting  an  extension for payment of
15    principal and interest on bonds issued by the taxing district
16    without referendum, but not including (i) bonds authorized by
17    Public Act 88-503 and issued under Section 20a of the Chicago
18    Park District Act for  aquarium  and  museum  projects;  (ii)
19    bonds  issued  under  Section 15 of the Local Government Debt
20    Reform Act; or (iii) refunding obligations issued  to  refund
21    or   to  continue  to  refund  obligations  initially  issued
22    pursuant to referendum. The debt service extension  base  may
23    be established or increased as provided under Section 18-212.
24        "Special purpose extensions" include, but are not limited
25    to,  extensions  for  levies  made  on  an  annual  basis for
26    unemployment  and  workers'   compensation,   self-insurance,
27    contributions  to pension plans, and extensions made pursuant
28    to Section 6-601 of the Illinois  Highway  Code  for  a  road
29    district's  permanent  road  fund  whether levied annually or
30    not.  The  extension  for  a  special  service  area  is  not
31    included in the aggregate extension.
32        "Aggregate  extension  base"  means the taxing district's
33    last preceding aggregate extension as adjusted under Sections
34    18-215 through 18-230.
 
                            -9-      LRB093 04432 NHT 04484 b
 1        "Levy year" has the same meaning as "year" under  Section
 2    1-155.
 3        "New  property" means (i) the assessed value, after final
 4    board  of  review  or  board  of  appeals  action,   of   new
 5    improvements  or  additions  to  existing improvements on any
 6    parcel of real property that increase the assessed  value  of
 7    that  real  property  during  the levy year multiplied by the
 8    equalization factor issued by the  Department  under  Section
 9    17-30  and  (ii)  the  assessed  value,  after final board of
10    review or board of  appeals  action,  of  real  property  not
11    exempt  from  real  estate  taxation, which real property was
12    exempt from real estate  taxation  for  any  portion  of  the
13    immediately   preceding   levy   year,   multiplied   by  the
14    equalization factor issued by the  Department  under  Section
15    17-30. In addition, the county clerk in a county containing a
16    population  of  3,000,000  or  more shall include in the 1997
17    recovered tax increment value for any  school  district,  any
18    recovered tax increment value that was applicable to the 1995
19    tax year calculations.
20        "Qualified  airport authority" means an airport authority
21    organized under the Airport Authorities Act and located in  a
22    county  bordering  on  the  State  of  Wisconsin and having a
23    population in excess of 200,000 and not greater than 500,000.
24        "Recovered  tax  increment  value"   means,   except   as
25    otherwise  provided  in  this  paragraph,  the  amount of the
26    current year's equalized assessed value, in  the  first  year
27    after a municipality terminates the designation of an area as
28    a redevelopment project area previously established under the
29    Tax  Increment  Allocation  Development  Act  in the Illinois
30    Municipal Code, previously established under  the  Industrial
31    Jobs   Recovery  Law  in  the  Illinois  Municipal  Code,  or
32    previously established under the  Economic  Development  Area
33    Tax  Increment  Allocation  Act,  of each taxable lot, block,
34    tract, or  parcel  of  real  property  in  the  redevelopment
 
                            -10-     LRB093 04432 NHT 04484 b
 1    project  area  over  and above the initial equalized assessed
 2    value of each property in the redevelopment project area. For
 3    the taxes which are extended for  the  1997  levy  year,  the
 4    recovered  tax  increment  value  for  a non-home rule taxing
 5    district that first became subject to this Law for  the  1995
 6    levy  year  because a majority of its 1994 equalized assessed
 7    value  was  in  an  affected  county  or  counties  shall  be
 8    increased if a municipality terminated the designation of  an
 9    area  in  1993  as  a  redevelopment  project area previously
10    established under the Tax  Increment  Allocation  Development
11    Act  in  the  Illinois Municipal Code, previously established
12    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
13    Municipal  Code, or previously established under the Economic
14    Development Area Tax Increment Allocation Act, by  an  amount
15    equal  to  the  1994 equalized assessed value of each taxable
16    lot,  block,  tract,  or  parcel  of  real  property  in  the
17    redevelopment  project  area  over  and  above  the   initial
18    equalized   assessed   value   of   each   property   in  the
19    redevelopment  project  area.  In  the  first  year  after  a
20    municipality removes a taxable lot, block, tract,  or  parcel
21    of   real   property   from   a  redevelopment  project  area
22    established under the Tax  Increment  Allocation  Development
23    Act  in  the  Illinois  Municipal  Code,  the Industrial Jobs
24    Recovery Law in the Illinois Municipal Code, or the  Economic
25    Development Area Tax Increment Allocation Act, "recovered tax
26    increment  value"  means  the  amount  of  the current year's
27    equalized assessed value of each taxable lot,  block,  tract,
28    or  parcel  of  real  property removed from the redevelopment
29    project area over and above the  initial  equalized  assessed
30    value   of   that  real  property  before  removal  from  the
31    redevelopment project area.
32        Except as otherwise provided in this  Section,  "limiting
33    rate"  means  a  fraction  the numerator of which is the last
34    preceding aggregate extension base times an amount  equal  to
 
                            -11-     LRB093 04432 NHT 04484 b
 1    one plus the extension limitation defined in this Section and
 2    the  denominator  of  which  is  the current year's equalized
 3    assessed value of all real property in  the  territory  under
 4    the jurisdiction of the taxing district during the prior levy
 5    year.    For   those  taxing  districts  that  reduced  their
 6    aggregate extension for the last  preceding  levy  year,  the
 7    highest  aggregate  extension  in any of the last 3 preceding
 8    levy years shall be used for the  purpose  of  computing  the
 9    limiting   rate.   The  denominator  shall  not  include  new
10    property.  The denominator shall not  include  the  recovered
11    tax increment value.
12    (Source:  P.A.  91-357,  eff.  7-29-99; 91-478, eff. 11-1-99;
13    92-547, eff. 6-13-02.)

14        Section 10.  The  School  Code  is  amended  by  changing
15    Section 17-2.2a as follows:

16        (105 ILCS 5/17-2.2a) (from Ch. 122, par. 17-2.2a)
17        Sec.  17-2.2a.  (a)  Tax  for special education programs.
18    The school board of any district having a population of  less
19    than  500,000  inhabitants may, by proper resolution, levy an
20    annual tax upon the value as equalized  or  assessed  by  the
21    Department   of  Revenue,  for  special  education  purposes,
22    including the purposes authorized  by  Section  10-22.3lb  as
23    follows:
24             (1)  districts  maintaining only grades kindergarten
25        through  8,  and  prior  to  July  1,   1970,   districts
26        maintaining only grades 1 through 8, 0.05% .02%;
27             (2)  districts maintaining only grades 9 through 12,
28        0.05% .02%;
29             (3)  districts  maintaining only grades kindergarten
30        through  12,  and  prior  to  July  1,  1970,   districts
31        maintaining only grades 1 through 12, 0.10% .04%.
32        The  revenue  raised  by  such tax shall be used only for
 
                            -12-     LRB093 04432 NHT 04484 b
 1    special education purposes, including  the  construction  and
 2    maintenance of special education facilities.
 3        Upon  proper  resolution  of the school board, the school
 4    district may accumulate  such  funds  for  special  education
 5    building purposes for a period of 8 years.
 6        Buildings   constructed  under  the  provisions  of  this
 7    Section shall comply with the building code authorized  under
 8    Section 2-3.12.
 9        If  it  is  no  longer  feasible or economical to utilize
10    classroom facilities constructed  with  revenues  raised  and
11    accumulated   by  the  tax  for  special  education  building
12    purposes, the district, or cooperative district by  unanimous
13    consent, may with the approval of the regional superintendent
14    of schools and the State Superintendent of Education use such
15    facilities  for  regular  school  purposes.   The district or
16    cooperative of districts  shall  make  comparable  facilities
17    available   for   special   education   purposes  at  another
18    attendance center which is in a more practical  location  due
19    to the proximity of the students served.
20        (b)  If  the school board of any district that has levied
21    the tax  authorized  by  this  Section  determines  that  the
22    accumulated  funds  from  such  tax and from the $1,000 State
23    reimbursement per professional worker received under  Section
24    14-13.02   are  no  longer  required  for  special  education
25    building  purposes,  the  board  may  by  proper   resolution
26    transfer  such  funds  to  any  other fund to be used for any
27    special education purposes authorized by  Article  14.   Such
28    transfer   shall   not  be  made  until  after  the  regional
29    superintendent has certified to the State  Superintendent  of
30    Education that adequate housing provisions have been made for
31    all   children  with  disabilities  residing  in  the  school
32    district.
33        (c)  The tax rate limits specified in this Section may be
34    increased  to  .40%  by  districts  maintaining  only  grades
 
                            -13-     LRB093 04432 NHT 04484 b
 1    kindergarten through 8 or only grades 9 through  12,  and  to
 2    .80% by districts maintaining grades kindergarten through 12,
 3    upon the approval of a proposition to effect such increase by
 4    a  majority  of  the electors voting on such proposition at a
 5    regular scheduled election.  The proposition may be initiated
 6    by resolution of the school board and shall be  certified  by
 7    the   secretary   to  the  proper  election  authorities  for
 8    submission in accordance with the general election  law.   If
 9    at  such  election  a  majority  of  the  votes  cast  on the
10    proposition  is  in  favor  thereof,  the  school  board  may
11    thereafter until such authority is  revoked  in  like  manner
12    levy annually the tax so authorized.
13    (Source: P.A. 89-397, eff. 8-20-95; 90-757, eff. 8-14-98.)

14        Section  99.   Effective  date.  This Act takes effect on
15    July 1, 2003.