HB3678 98TH GENERAL ASSEMBLY

LRB098 13760 HLH 48424 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3678

Introduced , by Rep. Jack D. Franks

SYNOPSIS AS INTRODUCED:

35 ILCS 200/18-65
35 ILCS 200/18-71 new
35 ILCS 200/18-80
35 ILCS 200/18-90

Amends the Property Tax Code. Provides that if in any levy year (1) the tax rate for the sum of all of the funds that are included in a taxing district's aggregate levy exceeds the district's tax rate for those funds in the previous levy year, and (2) the district is not otherwise required to hold a Truth in Taxation hearing, then the corporate authorities of the taxing district must approve, by ordinance or resolution, the total tax rate and hold a public hearing. Contains provisions concerning notice. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Property Tax Code is amended by changing Sections 18-65, 18-80, and 18-90 and by adding Section 18-71 as follows:

(35 ILCS 200/18-65)

Sec. 18-65. Restriction on extension. Until it has complied with the notice and hearing provisions of this Article, no taxing district shall levy an amount of ad valorem tax which is more than the lesser of (i) 105% of the amount, exclusive of election costs, which has been extended or is estimated will be extended, plus any amount abated by the taxing district before extension, upon the final aggregate levy of the preceding year or (ii) an amount that will result in a final tax rate for the aggregate of all funds of the district that is higher than the final tax rate for the aggregate of all funds of the district for the preceding levy year.

(Source: P.A. 86-957; 88-455.)

(35 ILCS 200/18-71 new)

Sec. 18-71. Increased tax rate; notice and hearing. Notwithstanding any other provision of law, if in any levy year: (1) a taxing district's aggregate levy will result in a tax rate for the sum of all of the funds that are included in the district's aggregate levy that is higher than the district's tax rate for those funds in the previous levy year, and (2) the district is not otherwise required to hold a public hearing pursuant to Section 18-70, then, not less than 30 days prior to extension, the corporate authorities of the taxing district must approve, by ordinance or resolution, the total tax rate for all of the funds that are included in the district's aggregate levy, and must certify that rate to the county clerk. If the taxing district is subject to the Property Tax Extension Limitation Law, then the tax rate set forth in the ordinance or resolution may not exceed the district's limiting rate; however, if an increased limiting rate is approved by referendum, as provided in Section 18-190, then the tax rate set forth in the ordinance or resolution may not exceed the limiting rate approved by the voters. In addition, if a taxing district is required to approve a tax rate under this Section, then the taxing district must hold a public hearing prior to approving the tax rate and must give notice of that public hearing in the form and manner provided in Sections 18-75 and 18-80.

(35 ILCS 200/18-80)

Sec. 18-80. Time and form of notice. The notice shall appear not more than 14 days nor less than 7 days prior to the date of the public hearing. The notice shall be no less than 1/8 page in size, and the smallest type used shall be 12 point and shall be enclosed in a black border no less than 1/4 inch wide. The notice shall not be placed in that portion of the newspaper where legal notices and classified advertisements appear. The notice shall be published in substantially the following form:

Notice of Proposed Property Tax Increase for ... (commonly known name of taxing district).

I. A public hearing to approve a proposed property tax levy increase for ... (legal name of the taxing district)... for ... (year) ... will be held on ... (date) ... at ... (time) ... at ... (location).

Any person desiring to appear at the public hearing and present testimony to the taxing district may contact ... (name, title, address and telephone number of an appropriate official).

II. The corporate and special purpose property taxes extended or abated for ... (preceding year) ... were ... (dollar amount of the final aggregate levy as extended, plus the amount abated by the taxing district prior to extension).

The proposed corporate and special purpose property taxes to be levied for ... (current year) ... are ... (dollar amount of the proposed aggregate levy). This represents a ... (percentage) ... increase over the previous year.

III. The property taxes extended for debt service and public building commission leases for ... (preceding year) ... were ... (dollar amount).

The estimated property taxes to be levied for debt service and public building commission leases for ... (current year) ... are ... (dollar amount). This represents a ... (percentage increase or decrease) ... over the previous year.

IV. The total property taxes extended or abated for ... (preceding year) ... were ... (dollar amount).

The estimated total property taxes to be levied for ... (current year) ... are ... (dollar amount). This represents a ... (percentage increase or decrease) ... over the previous year.

V. The additional tax extendable against property containing a single family residence and having a fair market value at the time of this notice of $100,000 is estimated to be $...

Any notice which includes any information not specified and required by this Article shall be an invalid notice.

All hearings shall be open to the public. The corporate authority of the taxing district shall explain the reasons for the proposed increase and shall permit persons desiring to be heard an opportunity to present testimony within reasonable time limits as it determines.

(Source: P.A. 92-382, eff. 8-16-01.)

(35 ILCS 200/18-90)

Sec. 18-90. Limitation on extension of county clerk. The tax levy resolution or ordinance approved in the manner provided for in this Article shall be filed with the county clerk in the manner and at the time otherwise provided by law. No amount that exceeds the amount set forth in Section 18-65 more than 105% of the amount, exclusive of election costs, which has been extended or is estimated to be extended, plus any amount abated by the taxing district prior to extension, upon the final aggregate levy of the preceding year shall be extended unless the tax levy ordinance or resolution is accompanied by a certification by the presiding officer of the corporate authority certifying compliance with or inapplicability of the provisions of Sections 18-60 through 18-85. An amount extended under Section 18-107 in 1994 for a multi-township assessment district that did not file a certification of compliance with the Truth in Taxation Law may not exceed 105% of the amount, exclusive of election costs, that was extended in 1993, plus a proportional amount abated before extension, upon the levy or portion of a levy that is allocable to assessment purposes in each township that is a member of that multi-township assessment district.

(Source: P.A. 88-455; 88-660, eff. 9-16-94.)

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