093_SB1881
LRB093 10910 SJM 11433 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
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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,
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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 joint recreational programs for the handicapped under Section
20 5-8 of the Park District Code or Section 11-95-14 of the
21 Illinois Municipal Code.
22 "Aggregate extension" for the taxing districts to which
23 this Law did not apply before the 1995 levy year (except
24 taxing districts subject to this Law in accordance with
25 Section 18-213) means the annual corporate extension for the
26 taxing district and those special purpose extensions that are
27 made annually for the taxing district, excluding special
28 purpose extensions: (a) made for the taxing district to pay
29 interest or principal on general obligation bonds that were
30 approved by referendum; (b) made for any taxing district to
31 pay interest or principal on general obligation bonds issued
32 before March 1, 1995; (c) made for any taxing district to pay
33 interest or principal on bonds issued to refund or continue
34 to refund those bonds issued before March 1, 1995; (d) made
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1 for any taxing district to pay interest or principal on bonds
2 issued to refund or continue to refund bonds issued after
3 March 1, 1995 that were approved by referendum; (e) made for
4 any taxing district to pay interest or principal on revenue
5 bonds issued before March 1, 1995 for payment of which a
6 property tax levy or the full faith and credit of the unit of
7 local government is pledged; however, a tax for the payment
8 of interest or principal on those bonds shall be made only
9 after the governing body of the unit of local government
10 finds that all other sources for payment are insufficient to
11 make those payments; (f) made for payments under a building
12 commission lease when the lease payments are for the
13 retirement of bonds issued by the commission before March 1,
14 1995 to pay for the building project; (g) made for payments
15 due under installment contracts entered into before March 1,
16 1995; (h) made for payments of principal and interest on
17 bonds issued under the Metropolitan Water Reclamation
18 District Act to finance construction projects initiated
19 before October 1, 1991; (i) made for payments of principal
20 and interest on limited bonds, as defined in Section 3 of the
21 Local Government Debt Reform Act, in an amount not to exceed
22 the debt service extension base less the amount in items (b),
23 (c), and (e) of this definition for non-referendum
24 obligations, except obligations initially issued pursuant to
25 referendum and bonds described in subsection (h) of this
26 definition; (j) made for payments of principal and interest
27 on bonds issued under Section 15 of the Local Government Debt
28 Reform Act; (k) made for payments of principal and interest
29 on bonds authorized by Public Act 88-503 and issued under
30 Section 20a of the Chicago Park District Act for aquarium or
31 museum projects; (l) made for payments of principal and
32 interest on bonds authorized by Public Act 87-1191 and issued
33 under Section 42 of the Cook County Forest Preserve District
34 Act for zoological park projects; and (m) made pursuant to
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1 Section 34-53.5 of the School Code, whether levied annually
2 or not; and (n) made to fund expenses of providing joint
3 recreational programs for the handicapped under Section 5-8
4 of the Park District Code or Section 11-95-14 of the Illinois
5 Municipal Code.
6 "Aggregate extension" for all taxing districts to which
7 this Law applies in accordance with Section 18-213, except
8 for those taxing districts subject to paragraph (2) of
9 subsection (e) of Section 18-213, means the annual corporate
10 extension for the taxing district and those special purpose
11 extensions that are made annually for the taxing district,
12 excluding special purpose extensions: (a) made for the taxing
13 district to pay interest or principal on general obligation
14 bonds that were approved by referendum; (b) made for any
15 taxing district to pay interest or principal on general
16 obligation bonds issued before the date on which the
17 referendum making this Law applicable to the taxing district
18 is held; (c) made for any taxing district to pay interest or
19 principal on bonds issued to refund or continue to refund
20 those bonds issued before the date on which the referendum
21 making this Law applicable to the taxing district is held;
22 (d) made for any taxing district to pay interest or principal
23 on bonds issued to refund or continue to refund bonds issued
24 after the date on which the referendum making this Law
25 applicable to the taxing district is held if the bonds were
26 approved by referendum after the date on which the referendum
27 making this Law applicable to the taxing district is held;
28 (e) made for any taxing district to pay interest or principal
29 on revenue bonds issued before the date on which the
30 referendum making this Law applicable to the taxing district
31 is held for payment of which a property tax levy or the full
32 faith and credit of the unit of local government is pledged;
33 however, a tax for the payment of interest or principal on
34 those bonds shall be made only after the governing body of
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1 the unit of local government finds that all other sources for
2 payment are insufficient to make those payments; (f) made for
3 payments under a building commission lease when the lease
4 payments are for the retirement of bonds issued by the
5 commission before the date on which the referendum making
6 this Law applicable to the taxing district is held to pay for
7 the building project; (g) made for payments due under
8 installment contracts entered into before the date on which
9 the referendum making this Law applicable to the taxing
10 district is held; (h) made for payments of principal and
11 interest on limited bonds, as defined in Section 3 of the
12 Local Government Debt Reform Act, in an amount not to exceed
13 the debt service extension base less the amount in items (b),
14 (c), and (e) of this definition for non-referendum
15 obligations, except obligations initially issued pursuant to
16 referendum; (i) made for payments of principal and interest
17 on bonds issued under Section 15 of the Local Government Debt
18 Reform Act; and (j) made for a qualified airport authority to
19 pay interest or principal on general obligation bonds issued
20 for the purpose of paying obligations due under, or financing
21 airport facilities required to be acquired, constructed,
22 installed or equipped pursuant to, contracts entered into
23 before March 1, 1996 (but not including any amendments to
24 such a contract taking effect on or after that date); and (k)
25 made to fund expenses of providing joint recreational
26 programs for the handicapped under Section 5-8 of the Park
27 District Code or Section 11-95-14 of the Illinois Municipal
28 Code.
29 "Aggregate extension" for all taxing districts to which
30 this Law applies in accordance with paragraph (2) of
31 subsection (e) of Section 18-213 means the annual corporate
32 extension for the taxing district and those special purpose
33 extensions that are made annually for the taxing district,
34 excluding special purpose extensions: (a) made for the taxing
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1 district to pay interest or principal on general obligation
2 bonds that were approved by referendum; (b) made for any
3 taxing district to pay interest or principal on general
4 obligation bonds issued before the effective date of this
5 amendatory Act of 1997; (c) made for any taxing district to
6 pay interest or principal on bonds issued to refund or
7 continue to refund those bonds issued before the effective
8 date of this amendatory Act of 1997; (d) made for any taxing
9 district to pay interest or principal on bonds issued to
10 refund or continue to refund bonds issued after the effective
11 date of this amendatory Act of 1997 if the bonds were
12 approved by referendum after the effective date of this
13 amendatory Act of 1997; (e) made for any taxing district to
14 pay interest or principal on revenue bonds issued before the
15 effective date of this amendatory Act of 1997 for payment of
16 which a property tax levy or the full faith and credit of the
17 unit of local government is pledged; however, a tax for the
18 payment of interest or principal on those bonds shall be made
19 only after the governing body of the unit of local government
20 finds that all other sources for payment are insufficient to
21 make those payments; (f) made for payments under a building
22 commission lease when the lease payments are for the
23 retirement of bonds issued by the commission before the
24 effective date of this amendatory Act of 1997 to pay for the
25 building project; (g) made for payments due under installment
26 contracts entered into before the effective date of this
27 amendatory Act of 1997; (h) made for payments of principal
28 and interest on limited bonds, as defined in Section 3 of the
29 Local Government Debt Reform Act, in an amount not to exceed
30 the debt service extension base less the amount in items (b),
31 (c), and (e) of this definition for non-referendum
32 obligations, except obligations initially issued pursuant to
33 referendum; (i) made for payments of principal and interest
34 on bonds issued under Section 15 of the Local Government Debt
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1 Reform Act; and (j) made for a qualified airport authority to
2 pay interest or principal on general obligation bonds issued
3 for the purpose of paying obligations due under, or financing
4 airport facilities required to be acquired, constructed,
5 installed or equipped pursuant to, contracts entered into
6 before March 1, 1996 (but not including any amendments to
7 such a contract taking effect on or after that date); and (k)
8 made to fund expenses of providing joint recreational
9 programs for the handicapped under Section 5-8 of the Park
10 District Code or Section 11-95-14 of the Illinois Municipal
11 Code.
12 "Debt service extension base" means an amount equal to
13 that portion of the extension for a taxing district for the
14 1994 levy year, or for those taxing districts subject to this
15 Law in accordance with Section 18-213, except for those
16 subject to paragraph (2) of subsection (e) of Section 18-213,
17 for the levy year in which the referendum making this Law
18 applicable to the taxing district is held, or for those
19 taxing districts subject to this Law in accordance with
20 paragraph (2) of subsection (e) of Section 18-213 for the
21 1996 levy year, constituting an extension for payment of
22 principal and interest on bonds issued by the taxing district
23 without referendum, but not including (i) bonds authorized by
24 Public Act 88-503 and issued under Section 20a of the Chicago
25 Park District Act for aquarium and museum projects; (ii)
26 bonds issued under Section 15 of the Local Government Debt
27 Reform Act; or (iii) refunding obligations issued to refund
28 or to continue to refund obligations initially issued
29 pursuant to referendum. The debt service extension base may
30 be established or increased as provided under Section 18-212.
31 "Special purpose extensions" include, but are not limited
32 to, extensions for levies made on an annual basis for
33 unemployment and workers' compensation, self-insurance,
34 contributions to pension plans, and extensions made pursuant
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1 to Section 6-601 of the Illinois Highway Code for a road
2 district's permanent road fund whether levied annually or
3 not. The extension for a special service area is not
4 included in the aggregate extension.
5 "Aggregate extension base" means the taxing district's
6 last preceding aggregate extension as adjusted under Sections
7 18-215 through 18-230.
8 "Levy year" has the same meaning as "year" under Section
9 1-155.
10 "New property" means (i) the assessed value, after final
11 board of review or board of appeals action, of new
12 improvements or additions to existing improvements on any
13 parcel of real property that increase the assessed value of
14 that real property during the levy year multiplied by the
15 equalization factor issued by the Department under Section
16 17-30 and (ii) the assessed value, after final board of
17 review or board of appeals action, of real property not
18 exempt from real estate taxation, which real property was
19 exempt from real estate taxation for any portion of the
20 immediately preceding levy year, multiplied by the
21 equalization factor issued by the Department under Section
22 17-30. In addition, the county clerk in a county containing a
23 population of 3,000,000 or more shall include in the 1997
24 recovered tax increment value for any school district, any
25 recovered tax increment value that was applicable to the 1995
26 tax year calculations.
27 "Qualified airport authority" means an airport authority
28 organized under the Airport Authorities Act and located in a
29 county bordering on the State of Wisconsin and having a
30 population in excess of 200,000 and not greater than 500,000.
31 "Recovered tax increment value" means, except as
32 otherwise provided in this paragraph, the amount of the
33 current year's equalized assessed value, in the first year
34 after a municipality terminates the designation of an area as
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1 a redevelopment project area previously established under the
2 Tax Increment Allocation Development Act in the Illinois
3 Municipal Code, previously established under the Industrial
4 Jobs Recovery Law in the Illinois Municipal Code, or
5 previously established under the Economic Development Area
6 Tax Increment Allocation Act, of each taxable lot, block,
7 tract, or parcel of real property in the redevelopment
8 project area over and above the initial equalized assessed
9 value of each property in the redevelopment project area. For
10 the taxes which are extended for the 1997 levy year, the
11 recovered tax increment value for a non-home rule taxing
12 district that first became subject to this Law for the 1995
13 levy year because a majority of its 1994 equalized assessed
14 value was in an affected county or counties shall be
15 increased if a municipality terminated the designation of an
16 area in 1993 as a redevelopment project area previously
17 established under the Tax Increment Allocation Development
18 Act in the Illinois Municipal Code, previously established
19 under the Industrial Jobs Recovery Law in the Illinois
20 Municipal Code, or previously established under the Economic
21 Development Area Tax Increment Allocation Act, by an amount
22 equal to the 1994 equalized assessed value of each taxable
23 lot, block, tract, or parcel of real property in the
24 redevelopment project area over and above the initial
25 equalized assessed value of each property in the
26 redevelopment project area. In the first year after a
27 municipality removes a taxable lot, block, tract, or parcel
28 of real property from a redevelopment project area
29 established under the Tax Increment Allocation Development
30 Act in the Illinois Municipal Code, the Industrial Jobs
31 Recovery Law in the Illinois Municipal Code, or the Economic
32 Development Area Tax Increment Allocation Act, "recovered tax
33 increment value" means the amount of the current year's
34 equalized assessed value of each taxable lot, block, tract,
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1 or parcel of real property removed from the redevelopment
2 project area over and above the initial equalized assessed
3 value of that real property before removal from the
4 redevelopment project area.
5 Except as otherwise provided in this Section, "limiting
6 rate" means a fraction the numerator of which is the last
7 preceding aggregate extension base times an amount equal to
8 one plus the extension limitation defined in this Section and
9 the denominator of which is the current year's equalized
10 assessed value of all real property in the territory under
11 the jurisdiction of the taxing district during the prior levy
12 year. For those taxing districts that reduced their
13 aggregate extension for the last preceding levy year, the
14 highest aggregate extension in any of the last 3 preceding
15 levy years shall be used for the purpose of computing the
16 limiting rate. The denominator shall not include new
17 property. The denominator shall not include the recovered
18 tax increment value.
19 (Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99;
20 92-547, eff. 6-13-02.)
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.