HB0178eng 99TH GENERAL ASSEMBLY

HB0178 Engrossed LRB099 04052 HLH 25709 b

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 adding Division 7 to Article 18 as follows:

(35 ILCS 200/Art. 18 Div. 7 heading new)

Division 7. Township Property Tax Extension Freeze Law

(35 ILCS 200/18-280 new)

Sec. 18-280. Short title; definitions. This Division 7 may be cited as the Township Property Tax Extension Freeze Law.

As used in this Division 7:

"Aggregate extension" means the annual corporate extension for the town fund of the township, excluding highway funds, general assistance funds, and any special purpose extensions.

"Town fund" means the fund or funds for which moneys are appropriated by townships for general operating expenses in compliance with Section 3 of the Illinois Municipal Budget Law.

"Special purpose extensions" include, but are not limited to, extensions for levies made on an annual basis for unemployment and workers' compensation, self-insurance, or contributions to pension plans, whether levied annually or not. The extension for a special service area is not included in the aggregate extension.

"Aggregate extension base" means the township's aggregate extension for the 2014 levy year.

"New property" means (i) the assessed value, after final board of review or board of appeals action, of new improvements or additions to existing improvements on any parcel of real property that increase the assessed value of that real property during the levy year multiplied by the equalization factor issued by the Department under Section 17-30 and (ii) the assessed value, after final board of review or board of appeals action, of real property not exempt from real estate taxation, which real property was exempt from real estate taxation for any portion of the immediately preceding levy year, multiplied by the equalization factor issued by the Department under Section 17-30.

"Recovered tax increment value" means the equalized assessed value in 2015 of each taxable lot, block, tract, or parcel of real property located in a redevelopment project area previously established under (i) the Tax Increment Allocation Development Act of the Illinois Municipal Code, (ii) the Industrial Jobs Recovery Law of the Illinois Municipal Code, or (iii) the Economic Development Area Tax Increment Allocation Act, over and above the initial equalized assessed value of each of those lots, blocks, tracts, or parcels, if 2015 is the first year after the municipality terminates the designation of the area as a redevelopment project area.

"Natural disaster" means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including, but not limited to, fire, flood, earthquake, wind, storm, or extended period of severe inclement weather.

"Proclaimed natural disaster" means a natural disaster that has been proclaimed as such by the Governor or the President of the United States.

Except as otherwise provided in this Division, "limiting rate" means a fraction the numerator of which is the aggregate extension base and the denominator of which is the current year's equalized assessed value of all real property in the territory under the jurisdiction of the township during the 2014 levy year. The denominator shall not include new property and shall not include the recovered tax increment value.

(35 ILCS 200/18-285 new)

Sec. 18-285. Township extensions.

(a) Notwithstanding any other provision of law, in counties under township organization that are subject to the Property Tax Extension Limitation Law, for the 2015 levy year, for those townships with a population of 100,000 or less, according to the most recent federal decennial census, for which the county clerk extended taxes for any funds included in the aggregate extension base for the 2014 levy year, the county clerk shall extend a rate for the sum of the funds in the township's aggregate extension base that is no greater than the limiting rate. Notwithstanding any other provision of law, except as provided in subsection (b), this Section limits the increase in the township's 2015 aggregate extension to 0%. Notwithstanding any other provision of law, this Section does not apply to (1) townships located in any county in which a proclaimed natural disaster occurred at any time during calendar year 2013 or (2) the following townships: Addison, Bloom, Calumet, Orland, Rich, Stickney, and Wayne.

(b) If and only if the township obtains referendum approval for an increased limiting rate under Section 18-290, then the county clerk shall extend a rate for the sum of the funds in the township's aggregate extension base that is no greater than the increased limiting rate.

(c) If the county clerk is required to reduce the aggregate extension of a township under the provisions of this Division, then the county clerk shall proportionally reduce the extension for each fund included in the aggregate extension, unless a different method of reduction is requested by the township.

(35 ILCS 200/18-290 new)

Sec. 18-290. Increased limiting rate. A township that is subject to the limitation set forth in Section 18-285 may increase its limiting rate for the 2015 levy year if and only if the township submits the question at referendum before the levy date for the applicable year, and if a majority of voters voting on the issue approves adoption of the increased limiting rate. Referenda shall be conducted at a regularly scheduled election in accordance with the Election Code. The question shall be presented in substantially the following manner:

Shall the limiting rate under the Township Property Tax Extension Freeze Law for (township), Illinois, be increased to (increased limiting rate)?

Votes shall be recorded as "Yes" or "No".

Section 90. The State Mandates Act is amended by adding Section 8.39 as follows:

(30 ILCS 805/8.39 new)

Sec. 8.39. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 99th General Assembly.

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