093_HB1466

                                     LRB093 07828 SJM 10985 b

 1        AN ACT concerning taxes.

 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 07828 SJM 10985 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 07828 SJM 10985 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 to fund expenses of providing
19    programs under Section 5-8 of the Park District Code.
20        "Aggregate extension" for the taxing districts  to  which
21    this  Law  did  not  apply  before the 1995 levy year (except
22    taxing districts subject  to  this  Law  in  accordance  with
23    Section  18-213) means the annual corporate extension for the
24    taxing district and those special purpose extensions that are
25    made annually for  the  taxing  district,  excluding  special
26    purpose  extensions:  (a) made for the taxing district to pay
27    interest or principal on general obligation bonds  that  were
28    approved  by  referendum; (b) made for any taxing district to
29    pay interest or principal on general obligation bonds  issued
30    before March 1, 1995; (c) made for any taxing district to pay
31    interest  or  principal on bonds issued to refund or continue
32    to refund those bonds issued before March 1, 1995;  (d)  made
33    for any taxing district to pay interest or principal on bonds
34    issued  to  refund  or  continue to refund bonds issued after
 
                            -4-      LRB093 07828 SJM 10985 b
 1    March 1, 1995 that were approved by referendum; (e) made  for
 2    any  taxing  district to pay interest or principal on revenue
 3    bonds issued before March 1, 1995  for  payment  of  which  a
 4    property tax levy or the full faith and credit of the unit of
 5    local  government  is pledged; however, a tax for the payment
 6    of interest or principal on those bonds shall  be  made  only
 7    after  the  governing  body  of  the unit of local government
 8    finds that all other sources for payment are insufficient  to
 9    make  those  payments; (f) made for payments under a building
10    commission  lease  when  the  lease  payments  are  for   the
11    retirement  of bonds issued by the commission before March 1,
12    1995 to pay for the building project; (g) made  for  payments
13    due  under installment contracts entered into before March 1,
14    1995; (h) made for payments  of  principal  and  interest  on
15    bonds   issued   under  the  Metropolitan  Water  Reclamation
16    District  Act  to  finance  construction  projects  initiated
17    before October 1, 1991; (i) made for  payments  of  principal
18    and interest on limited bonds, as defined in Section 3 of the
19    Local  Government Debt Reform Act, in an amount not to exceed
20    the debt service extension base less the amount in items (b),
21    (c),  and  (e)  of   this   definition   for   non-referendum
22    obligations,  except obligations initially issued pursuant to
23    referendum and bonds described  in  subsection  (h)  of  this
24    definition;  (j)  made for payments of principal and interest
25    on bonds issued under Section 15 of the Local Government Debt
26    Reform Act; (k) made for payments of principal  and  interest
27    on  bonds  authorized  by  Public Act 88-503 and issued under
28    Section 20a of the Chicago Park District Act for aquarium  or
29    museum  projects;  (l)  made  for  payments  of principal and
30    interest on bonds authorized by Public Act 87-1191 and issued
31    under Section 42 of the Cook County Forest Preserve  District
32    Act  for  zoological  park projects; and (m) made pursuant to
33    Section 34-53.5 of the School Code, whether  levied  annually
34    or  not;  and (n) made to fund expenses of providing programs
 
                            -5-      LRB093 07828 SJM 10985 b
 1    under Section 5-8 of the Park District Code.
 2        "Aggregate extension" for all taxing districts  to  which
 3    this  Law  applies  in accordance with Section 18-213, except
 4    for those  taxing  districts  subject  to  paragraph  (2)  of
 5    subsection  (e) of Section 18-213, means the annual corporate
 6    extension for the taxing district and those  special  purpose
 7    extensions  that  are  made annually for the taxing district,
 8    excluding special purpose extensions: (a) made for the taxing
 9    district to pay interest or principal on  general  obligation
10    bonds  that  were  approved  by  referendum; (b) made for any
11    taxing district to  pay  interest  or  principal  on  general
12    obligation   bonds  issued  before  the  date  on  which  the
13    referendum making this Law applicable to the taxing  district
14    is  held; (c) made for any taxing district to pay interest or
15    principal on bonds issued to refund  or  continue  to  refund
16    those  bonds  issued  before the date on which the referendum
17    making this Law applicable to the taxing  district  is  held;
18    (d) made for any taxing district to pay interest or principal
19    on  bonds issued to refund or continue to refund bonds issued
20    after the date  on  which  the  referendum  making  this  Law
21    applicable  to  the taxing district is held if the bonds were
22    approved by referendum after the date on which the referendum
23    making this Law applicable to the taxing  district  is  held;
24    (e) made for any taxing district to pay interest or principal
25    on  revenue  bonds  issued  before  the  date  on  which  the
26    referendum  making this Law applicable to the taxing district
27    is held for payment of which a property tax levy or the  full
28    faith  and credit of the unit of local government is pledged;
29    however, a tax for the payment of interest  or  principal  on
30    those  bonds  shall  be made only after the governing body of
31    the unit of local government finds that all other sources for
32    payment are insufficient to make those payments; (f) made for
33    payments under a building commission  lease  when  the  lease
34    payments  are  for  the  retirement  of  bonds  issued by the
 
                            -6-      LRB093 07828 SJM 10985 b
 1    commission before the date on  which  the  referendum  making
 2    this Law applicable to the taxing district is held to pay for
 3    the  building  project;  (g)  made  for  payments  due  under
 4    installment  contracts  entered into before the date on which
 5    the referendum making  this  Law  applicable  to  the  taxing
 6    district  is  held;  (h)  made  for payments of principal and
 7    interest on limited bonds, as defined in  Section  3  of  the
 8    Local  Government Debt Reform Act, in an amount not to exceed
 9    the debt service extension base less the amount in items (b),
10    (c),  and  (e)  of   this   definition   for   non-referendum
11    obligations,  except obligations initially issued pursuant to
12    referendum; (i) made for payments of principal  and  interest
13    on bonds issued under Section 15 of the Local Government Debt
14    Reform Act; and (j) made for a qualified airport authority to
15    pay  interest or principal on general obligation bonds issued
16    for the purpose of paying obligations due under, or financing
17    airport facilities  required  to  be  acquired,  constructed,
18    installed  or  equipped  pursuant  to, contracts entered into
19    before March 1, 1996 (but not  including  any  amendments  to
20    such a contract taking effect on or after that date); and (k)
21    made to fund expenses of providing programs under Section 5-8
22    of the Park District Code.
23        "Aggregate  extension"  for all taxing districts to which
24    this  Law  applies  in  accordance  with  paragraph  (2)   of
25    subsection  (e)  of Section 18-213 means the annual corporate
26    extension for the taxing district and those  special  purpose
27    extensions  that  are  made annually for the taxing district,
28    excluding special purpose extensions: (a) made for the taxing
29    district to pay interest or principal on  general  obligation
30    bonds  that  were  approved  by  referendum; (b) made for any
31    taxing district to  pay  interest  or  principal  on  general
32    obligation  bonds  issued  before  the effective date of this
33    amendatory Act of 1997; (c) made for any taxing  district  to
34    pay  interest  or  principal  on  bonds  issued  to refund or
 
                            -7-      LRB093 07828 SJM 10985 b
 1    continue to refund those bonds issued  before  the  effective
 2    date  of this amendatory Act of 1997; (d) made for any taxing
 3    district to pay interest or  principal  on  bonds  issued  to
 4    refund or continue to refund bonds issued after the effective
 5    date  of  this  amendatory  Act  of  1997  if  the bonds were
 6    approved by referendum  after  the  effective  date  of  this
 7    amendatory  Act  of 1997; (e) made for any taxing district to
 8    pay interest or principal on revenue bonds issued before  the
 9    effective  date of this amendatory Act of 1997 for payment of
10    which a property tax levy or the full faith and credit of the
11    unit of local government is pledged; however, a tax  for  the
12    payment of interest or principal on those bonds shall be made
13    only after the governing body of the unit of local government
14    finds  that all other sources for payment are insufficient to
15    make those payments; (f) made for payments under  a  building
16    commission   lease  when  the  lease  payments  are  for  the
17    retirement of bonds  issued  by  the  commission  before  the
18    effective  date of this amendatory Act of 1997 to pay for the
19    building project; (g) made for payments due under installment
20    contracts entered into before  the  effective  date  of  this
21    amendatory  Act  of  1997; (h) made for payments of principal
22    and interest on limited bonds, as defined in Section 3 of the
23    Local Government Debt Reform Act, in an amount not to  exceed
24    the debt service extension base less the amount in items (b),
25    (c),   and   (e)   of   this  definition  for  non-referendum
26    obligations, except obligations initially issued pursuant  to
27    referendum;  (i)  made for payments of principal and interest
28    on bonds issued under Section 15 of the Local Government Debt
29    Reform Act; and (j) made for a qualified airport authority to
30    pay interest or principal on general obligation bonds  issued
31    for the purpose of paying obligations due under, or financing
32    airport  facilities  required  to  be  acquired, constructed,
33    installed or equipped pursuant  to,  contracts  entered  into
34    before  March  1,  1996  (but not including any amendments to
 
                            -8-      LRB093 07828 SJM 10985 b
 1    such a contract taking effect on or after that date); and (k)
 2    made to fund expenses of providing programs under Section 5-8
 3    of the Park District Code.
 4        "Debt service extension base" means an  amount  equal  to
 5    that  portion  of the extension for a taxing district for the
 6    1994 levy year, or for those taxing districts subject to this
 7    Law in accordance  with  Section  18-213,  except  for  those
 8    subject to paragraph (2) of subsection (e) of Section 18-213,
 9    for  the  levy  year  in which the referendum making this Law
10    applicable to the taxing  district  is  held,  or  for  those
11    taxing  districts  subject  to  this  Law  in accordance with
12    paragraph (2) of subsection (e) of  Section  18-213  for  the
13    1996  levy  year,  constituting  an  extension for payment of
14    principal and interest on bonds issued by the taxing district
15    without referendum, but not including (i) bonds authorized by
16    Public Act 88-503 and issued under Section 20a of the Chicago
17    Park District Act for  aquarium  and  museum  projects;  (ii)
18    bonds  issued  under  Section 15 of the Local Government Debt
19    Reform Act; or (iii) refunding obligations issued  to  refund
20    or   to  continue  to  refund  obligations  initially  issued
21    pursuant to referendum. The debt service extension  base  may
22    be established or increased as provided under Section 18-212.
23        "Special purpose extensions" include, but are not limited
24    to,  extensions  for  levies  made  on  an  annual  basis for
25    unemployment  and  workers'   compensation,   self-insurance,
26    contributions  to pension plans, and extensions made pursuant
27    to Section 6-601 of the Illinois  Highway  Code  for  a  road
28    district's  permanent  road  fund  whether levied annually or
29    not.  The  extension  for  a  special  service  area  is  not
30    included in the aggregate extension.
31        "Aggregate  extension  base"  means the taxing district's
32    last preceding aggregate extension as adjusted under Sections
33    18-215 through 18-230.
34        "Levy year" has the same meaning as "year" under  Section
 
                            -9-      LRB093 07828 SJM 10985 b
 1    1-155.
 2        "New  property" means (i) the assessed value, after final
 3    board  of  review  or  board  of  appeals  action,   of   new
 4    improvements  or  additions  to  existing improvements on any
 5    parcel of real property that increase the assessed  value  of
 6    that  real  property  during  the levy year multiplied by the
 7    equalization factor issued by the  Department  under  Section
 8    17-30  and  (ii)  the  assessed  value,  after final board of
 9    review or board of  appeals  action,  of  real  property  not
10    exempt  from  real  estate  taxation, which real property was
11    exempt from real estate  taxation  for  any  portion  of  the
12    immediately   preceding   levy   year,   multiplied   by  the
13    equalization factor issued by the  Department  under  Section
14    17-30. In addition, the county clerk in a county containing a
15    population  of  3,000,000  or  more shall include in the 1997
16    recovered tax increment value for any  school  district,  any
17    recovered tax increment value that was applicable to the 1995
18    tax year calculations.
19        "Qualified  airport authority" means an airport authority
20    organized under the Airport Authorities Act and located in  a
21    county  bordering  on  the  State  of  Wisconsin and having a
22    population in excess of 200,000 and not greater than 500,000.
23        "Recovered  tax  increment  value"   means,   except   as
24    otherwise  provided  in  this  paragraph,  the  amount of the
25    current year's equalized assessed value, in  the  first  year
26    after a municipality terminates the designation of an area as
27    a redevelopment project area previously established under the
28    Tax  Increment  Allocation  Development  Act  in the Illinois
29    Municipal Code, previously established under  the  Industrial
30    Jobs   Recovery  Law  in  the  Illinois  Municipal  Code,  or
31    previously established under the  Economic  Development  Area
32    Tax  Increment  Allocation  Act,  of each taxable lot, block,
33    tract, or  parcel  of  real  property  in  the  redevelopment
34    project  area  over  and above the initial equalized assessed
 
                            -10-     LRB093 07828 SJM 10985 b
 1    value of each property in the redevelopment project area. For
 2    the taxes which are extended for  the  1997  levy  year,  the
 3    recovered  tax  increment  value  for  a non-home rule taxing
 4    district that first became subject to this Law for  the  1995
 5    levy  year  because a majority of its 1994 equalized assessed
 6    value  was  in  an  affected  county  or  counties  shall  be
 7    increased if a municipality terminated the designation of  an
 8    area  in  1993  as  a  redevelopment  project area previously
 9    established under the Tax  Increment  Allocation  Development
10    Act  in  the  Illinois Municipal Code, previously established
11    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
12    Municipal  Code, or previously established under the Economic
13    Development Area Tax Increment Allocation Act, by  an  amount
14    equal  to  the  1994 equalized assessed value of each taxable
15    lot,  block,  tract,  or  parcel  of  real  property  in  the
16    redevelopment  project  area  over  and  above  the   initial
17    equalized   assessed   value   of   each   property   in  the
18    redevelopment  project  area.  In  the  first  year  after  a
19    municipality removes a taxable lot, block, tract,  or  parcel
20    of   real   property   from   a  redevelopment  project  area
21    established under the Tax  Increment  Allocation  Development
22    Act  in  the  Illinois  Municipal  Code,  the Industrial Jobs
23    Recovery Law in the Illinois Municipal Code, or the  Economic
24    Development Area Tax Increment Allocation Act, "recovered tax
25    increment  value"  means  the  amount  of  the current year's
26    equalized assessed value of each taxable lot,  block,  tract,
27    or  parcel  of  real  property removed from the redevelopment
28    project area over and above the  initial  equalized  assessed
29    value   of   that  real  property  before  removal  from  the
30    redevelopment project area.
31        Except as otherwise provided in this  Section,  "limiting
32    rate"  means  a  fraction  the numerator of which is the last
33    preceding aggregate extension base times an amount  equal  to
34    one plus the extension limitation defined in this Section and
 
                            -11-     LRB093 07828 SJM 10985 b
 1    the  denominator  of  which  is  the current year's equalized
 2    assessed value of all real property in  the  territory  under
 3    the jurisdiction of the taxing district during the prior levy
 4    year.    For   those  taxing  districts  that  reduced  their
 5    aggregate extension for the last  preceding  levy  year,  the
 6    highest  aggregate  extension  in any of the last 3 preceding
 7    levy years shall be used for the  purpose  of  computing  the
 8    limiting   rate.   The  denominator  shall  not  include  new
 9    property.  The denominator shall not  include  the  recovered
10    tax increment value.
11    (Source:  P.A.  91-357,  eff.  7-29-99; 91-478, eff. 11-1-99;
12    92-547, eff. 6-13-02.)

13        Section 99.  Effective date.  This Act takes effect  upon
14    becoming law.