093_HB3273

 
                                     LRB093 10024 SJM 10274 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,  but,  for
16    taxable years 2003 and thereafter, no less than 2% or (b) the
17    rate of increase approved by voters under Section 18-205.
18        "Affected  county"  means  a  county of 3,000,000 or more
19    inhabitants or a county contiguous to a county  of  3,000,000
20    or more inhabitants.
21        "Taxing  district"  has  the  same  meaning  provided  in
22    Section  1-150, except as otherwise provided in this Section.
23    For the 1991 through 1994 levy years only, "taxing  district"
24    includes  only  each non-home rule taxing district having the
25    majority of its 1990  equalized  assessed  value  within  any
26    county  or  counties contiguous to a county with 3,000,000 or
27    more inhabitants.  Beginning with the 1995 levy year, "taxing
28    district" includes only each non-home  rule  taxing  district
29    subject  to  this  Law  before  the  1995  levy year and each
30    non-home rule taxing district not subject to this Law  before
31    the  1995 levy year having the majority of its 1994 equalized
 
                            -2-      LRB093 10024 SJM 10274 b
 1    assessed value in an affected county or counties.   Beginning
 2    with  the levy year in which this Law becomes applicable to a
 3    taxing  district  as  provided  in  Section  18-213,  "taxing
 4    district" also includes those taxing districts  made  subject
 5    to this Law as provided in Section 18-213.
 6        "Aggregate  extension" for taxing districts to which this
 7    Law applied before  the  1995  levy  year  means  the  annual
 8    corporate extension for the taxing district and those special
 9    purpose  extensions  that  are  made  annually for the taxing
10    district, excluding special purpose extensions: (a) made  for
11    the  taxing  district to pay interest or principal on general
12    obligation bonds that were approved by referendum;  (b)  made
13    for  any  taxing  district  to  pay  interest or principal on
14    general obligation bonds issued before October 1,  1991;  (c)
15    made  for any taxing district to pay interest or principal on
16    bonds issued to refund or  continue  to  refund  those  bonds
17    issued  before  October  1,  1991;  (d)  made  for any taxing
18    district to pay interest or  principal  on  bonds  issued  to
19    refund  or  continue  to refund bonds issued after October 1,
20    1991 that were approved  by  referendum;  (e)  made  for  any
21    taxing district to pay interest or principal on revenue bonds
22    issued before October 1, 1991 for payment of which a property
23    tax  levy  or  the full faith and credit of the unit of local
24    government is pledged; however, a  tax  for  the  payment  of
25    interest or principal on those bonds shall be made only after
26    the governing body of the unit of local government finds that
27    all  other sources for payment are insufficient to make those
28    payments; (f) made for payments under a  building  commission
29    lease when the lease payments are for the retirement of bonds
30    issued  by  the commission before October 1, 1991, to pay for
31    the  building  project;  (g)  made  for  payments  due  under
32    installment contracts entered into before  October  1,  1991;
33    (h)  made  for  payments  of  principal and interest on bonds
34    issued under the Metropolitan Water Reclamation District  Act
 
                            -3-      LRB093 10024 SJM 10274 b
 1    to  finance construction projects initiated before October 1,
 2    1991; (i) made for payments  of  principal  and  interest  on
 3    limited   bonds,  as  defined  in  Section  3  of  the  Local
 4    Government Debt Reform Act, in an amount not  to  exceed  the
 5    debt  service  extension  base  less the amount in items (b),
 6    (c), (e), and  (h)  of  this  definition  for  non-referendum
 7    obligations,  except obligations initially issued pursuant to
 8    referendum; (j) made for payments of principal  and  interest
 9    on bonds issued under Section 15 of the Local Government Debt
10    Reform   Act;   and  (k)  made  by  a  school  district  that
11    participates  in  the  Special  Education  District  of  Lake
12    County, created by special education  joint  agreement  under
13    Section  10-22.31  of  the  School  Code,  for payment of the
14    school  district's  share  of  the  amounts  required  to  be
15    contributed by the Special Education District of Lake  County
16    to  the Illinois Municipal Retirement Fund under Article 7 of
17    the Illinois Pension Code; the amount of any extension  under
18    this  item  (k)  shall be certified by the school district to
19    the county clerk.
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 10024 SJM 10274 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.
 
                            -5-      LRB093 10024 SJM 10274 b
 1        "Aggregate  extension"  for all taxing districts to which
 2    this Law applies in accordance with  Section  18-213,  except
 3    for  those  taxing  districts  subject  to  paragraph  (2) of
 4    subsection (e) of Section 18-213, means the annual  corporate
 5    extension  for  the taxing district and those special purpose
 6    extensions that are made annually for  the  taxing  district,
 7    excluding special purpose extensions: (a) made for the taxing
 8    district  to  pay interest or principal on general obligation
 9    bonds that were approved by  referendum;  (b)  made  for  any
10    taxing  district  to  pay  interest  or  principal on general
11    obligation  bonds  issued  before  the  date  on  which   the
12    referendum  making this Law applicable to the taxing district
13    is held; (c) made for any taxing district to pay interest  or
14    principal  on  bonds  issued  to refund or continue to refund
15    those bonds issued before the date on  which  the  referendum
16    making  this  Law  applicable to the taxing district is held;
17    (d) made for any taxing district to pay interest or principal
18    on bonds issued to refund or continue to refund bonds  issued
19    after  the  date  on  which  the  referendum  making this Law
20    applicable to the taxing district is held if the  bonds  were
21    approved by referendum after the date on which the referendum
22    making  this  Law  applicable to the taxing district is held;
23    (e) made for any taxing district to pay interest or principal
24    on  revenue  bonds  issued  before  the  date  on  which  the
25    referendum making this Law applicable to the taxing  district
26    is  held for payment of which a property tax levy or the full
27    faith and credit of the unit of local government is  pledged;
28    however,  a  tax  for the payment of interest or principal on
29    those bonds shall be made only after the  governing  body  of
30    the unit of local government finds that all other sources for
31    payment are insufficient to make those payments; (f) made for
32    payments  under  a  building  commission lease when the lease
33    payments are for  the  retirement  of  bonds  issued  by  the
34    commission  before  the  date  on which the referendum making
 
                            -6-      LRB093 10024 SJM 10274 b
 1    this Law applicable to the taxing district is held to pay for
 2    the  building  project;  (g)  made  for  payments  due  under
 3    installment contracts entered into before the date  on  which
 4    the  referendum  making  this  Law  applicable  to the taxing
 5    district is held; (h) made  for  payments  of  principal  and
 6    interest  on  limited  bonds,  as defined in Section 3 of the
 7    Local Government Debt Reform Act, in an amount not to  exceed
 8    the debt service extension base less the amount in items (b),
 9    (c),   and   (e)   of   this  definition  for  non-referendum
10    obligations, except obligations initially issued pursuant  to
11    referendum;  (i)  made for payments of principal and interest
12    on bonds issued under Section 15 of the Local Government Debt
13    Reform Act; and (j) made for a qualified airport authority to
14    pay interest or principal on general obligation bonds  issued
15    for the purpose of paying obligations due under, or financing
16    airport  facilities  required  to  be  acquired, constructed,
17    installed or equipped pursuant  to,  contracts  entered  into
18    before  March  1,  1996  (but not including any amendments to
19    such a contract taking effect on or after that date).
20        "Aggregate extension" for all taxing districts  to  which
21    this   Law  applies  in  accordance  with  paragraph  (2)  of
22    subsection (e) of Section 18-213 means the  annual  corporate
23    extension  for  the taxing district and those special purpose
24    extensions that are made annually for  the  taxing  district,
25    excluding special purpose extensions: (a) made for the taxing
26    district  to  pay interest or principal on general obligation
27    bonds that were approved by  referendum;  (b)  made  for  any
28    taxing  district  to  pay  interest  or  principal on general
29    obligation bonds issued before the  effective  date  of  this
30    amendatory  Act  of 1997; (c) made for any taxing district to
31    pay interest or  principal  on  bonds  issued  to  refund  or
32    continue  to  refund  those bonds issued before the effective
33    date of this amendatory Act of 1997; (d) made for any  taxing
34    district  to  pay  interest  or  principal on bonds issued to
 
                            -7-      LRB093 10024 SJM 10274 b
 1    refund or continue to refund bonds issued after the effective
 2    date of this  amendatory  Act  of  1997  if  the  bonds  were
 3    approved  by  referendum  after  the  effective  date of this
 4    amendatory Act of 1997; (e) made for any taxing  district  to
 5    pay  interest or principal on revenue bonds issued before the
 6    effective date of this amendatory Act of 1997 for payment  of
 7    which a property tax levy or the full faith and credit of the
 8    unit  of  local government is pledged; however, a tax for the
 9    payment of interest or principal on those bonds shall be made
10    only after the governing body of the unit of local government
11    finds that all other sources for payment are insufficient  to
12    make  those  payments; (f) made for payments under a building
13    commission  lease  when  the  lease  payments  are  for   the
14    retirement  of  bonds  issued  by  the  commission before the
15    effective date of this amendatory Act of 1997 to pay for  the
16    building project; (g) made for payments due under installment
17    contracts  entered  into  before  the  effective date of this
18    amendatory Act of 1997; (h) 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; (i) made for payments of principal  and  interest
25    on bonds issued under Section 15 of the Local Government Debt
26    Reform Act; and (j) made for a qualified airport authority to
27    pay  interest or principal on general obligation bonds issued
28    for the purpose of paying obligations due under, or financing
29    airport facilities  required  to  be  acquired,  constructed,
30    installed  or  equipped  pursuant  to, contracts entered into
31    before March 1, 1996 (but not  including  any  amendments  to
32    such a contract taking effect on or after that date).
33        "Debt  service  extension  base" means an amount equal to
34    that portion of the extension for a taxing district  for  the
 
                            -8-      LRB093 10024 SJM 10274 b
 1    1994 levy year, or for those taxing districts subject to this
 2    Law  in  accordance  with  Section  18-213,  except for those
 3    subject to paragraph (2) of subsection (e) of Section 18-213,
 4    for the levy year in which the  referendum  making  this  Law
 5    applicable  to  the  taxing  district  is  held, or for those
 6    taxing districts subject  to  this  Law  in  accordance  with
 7    paragraph  (2)  of  subsection  (e) of Section 18-213 for the
 8    1996 levy year, constituting  an  extension  for  payment  of
 9    principal and interest on bonds issued by the taxing district
10    without referendum, but not including (i) bonds authorized by
11    Public Act 88-503 and issued under Section 20a of the Chicago
12    Park  District  Act  for  aquarium  and museum projects; (ii)
13    bonds issued under Section 15 of the  Local  Government  Debt
14    Reform  Act;  or (iii) refunding obligations issued to refund
15    or  to  continue  to  refund  obligations  initially   issued
16    pursuant  to  referendum. The debt service extension base may
17    be established or increased as provided under Section 18-212.
18        "Special purpose extensions" include, but are not limited
19    to, extensions  for  levies  made  on  an  annual  basis  for
20    unemployment   and   workers'  compensation,  self-insurance,
21    contributions to pension plans, and extensions made  pursuant
22    to  Section  6-601  of  the  Illinois Highway Code for a road
23    district's permanent road fund  whether  levied  annually  or
24    not.   The  extension  for  a  special  service  area  is not
25    included in the aggregate extension.
26        "Aggregate extension base" means  the  taxing  district's
27    last preceding aggregate extension as adjusted under Sections
28    18-215 through 18-230.
29        "Levy  year" has the same meaning as "year" under Section
30    1-155.
31        "New property" means (i) the assessed value, after  final
32    board   of   review  or  board  of  appeals  action,  of  new
33    improvements or additions to  existing  improvements  on  any
34    parcel  of  real property that increase the assessed value of
 
                            -9-      LRB093 10024 SJM 10274 b
 1    that real property during the levy  year  multiplied  by  the
 2    equalization  factor  issued  by the Department under Section
 3    17-30 and (ii) the  assessed  value,  after  final  board  of
 4    review  or  board  of  appeals  action,  of real property not
 5    exempt from real estate taxation,  which  real  property  was
 6    exempt  from  real  estate  taxation  for  any portion of the
 7    immediately  preceding   levy   year,   multiplied   by   the
 8    equalization  factor  issued  by the Department under Section
 9    17-30. In addition, the county clerk in a county containing a
10    population of 3,000,000 or more shall  include  in  the  1997
11    recovered  tax  increment  value for any school district, any
12    recovered tax increment value that was applicable to the 1995
13    tax year calculations.
14        "Qualified airport authority" means an airport  authority
15    organized  under the Airport Authorities Act and located in a
16    county bordering on the  State  of  Wisconsin  and  having  a
17    population in excess of 200,000 and not greater than 500,000.
18        "Recovered   tax   increment   value"  means,  except  as
19    otherwise provided in  this  paragraph,  the  amount  of  the
20    current  year's  equalized  assessed value, in the first year
21    after a municipality terminates the designation of an area as
22    a redevelopment project area previously established under the
23    Tax Increment Allocation  Development  Act  in  the  Illinois
24    Municipal  Code,  previously established under the Industrial
25    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
26    previously  established  under  the Economic Development Area
27    Tax Increment Allocation Act, of  each  taxable  lot,  block,
28    tract,  or  parcel  of  real  property  in  the redevelopment
29    project area over and above the  initial  equalized  assessed
30    value of each property in the redevelopment project area. For
31    the  taxes  which  are  extended  for the 1997 levy year, the
32    recovered tax increment value  for  a  non-home  rule  taxing
33    district  that  first became subject to this Law for the 1995
34    levy year because a majority of its 1994  equalized  assessed
 
                            -10-     LRB093 10024 SJM 10274 b
 1    value  was  in  an  affected  county  or  counties  shall  be
 2    increased  if a municipality terminated the designation of an
 3    area in 1993  as  a  redevelopment  project  area  previously
 4    established  under  the  Tax Increment Allocation Development
 5    Act in the Illinois Municipal  Code,  previously  established
 6    under  the  Industrial  Jobs  Recovery  Law  in  the Illinois
 7    Municipal Code, or previously established under the  Economic
 8    Development  Area  Tax Increment Allocation Act, by an amount
 9    equal to the 1994 equalized assessed value  of  each  taxable
10    lot,  block,  tract,  or  parcel  of  real  property  in  the
11    redevelopment   project  area  over  and  above  the  initial
12    equalized  assessed   value   of   each   property   in   the
13    redevelopment  project  area.  In  the  first  year  after  a
14    municipality  removes  a taxable lot, block, tract, or parcel
15    of  real  property  from   a   redevelopment   project   area
16    established  under  the  Tax Increment Allocation Development
17    Act in the  Illinois  Municipal  Code,  the  Industrial  Jobs
18    Recovery  Law in the Illinois Municipal Code, or the Economic
19    Development Area Tax Increment Allocation Act, "recovered tax
20    increment value" means  the  amount  of  the  current  year's
21    equalized  assessed  value of each taxable lot, block, tract,
22    or parcel of real property  removed  from  the  redevelopment
23    project  area  over  and above the initial equalized assessed
24    value  of  that  real  property  before  removal   from   the
25    redevelopment project area.
26        Except  as  otherwise provided in this Section, "limiting
27    rate" means a fraction the numerator of  which  is  the  last
28    preceding  aggregate  extension base times an amount equal to
29    one plus the extension limitation defined in this Section and
30    the denominator of which  is  the  current  year's  equalized
31    assessed  value  of  all real property in the territory under
32    the jurisdiction of the taxing district during the prior levy
33    year.   For  those  taxing  districts  that   reduced   their
34    aggregate  extension  for  the  last preceding levy year, the
 
                            -11-     LRB093 10024 SJM 10274 b
 1    highest aggregate extension in any of the  last  3  preceding
 2    levy  years  shall  be  used for the purpose of computing the
 3    limiting  rate.   The  denominator  shall  not  include   new
 4    property.   The  denominator  shall not include the recovered
 5    tax increment value.
 6    (Source: P.A. 91-357, eff.  7-29-99;  91-478,  eff.  11-1-99;
 7    92-547, eff. 6-13-02.)