Full Text of SB1682 94th General Assembly
SB1682eng 94TH GENERAL ASSEMBLY
|
|
|
SB1682 Engrossed |
|
LRB094 07334 BDD 42075 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 1. This Amendatory Act shall be known as the PTELL | 5 |
| Required Referendum Procedures Act. | 6 |
| Section 3. Findings.
| 7 |
| (a) Approximately 80% of the State's population lives in a | 8 |
| county in which the Property Tax Extension Limitation Law is | 9 |
| applicable. This Law has been in effect for over 13 years, and | 10 |
| the provisions of the Election Code, the Property Tax Code, and | 11 |
| the various local government statutes governing tax rate | 12 |
| increase referenda have not been updated to take into account | 13 |
| this Law.
| 14 |
| (b) In many circumstances there is no easily understood | 15 |
| proposition that can be presented to a taxing district's voters | 16 |
| to authorize a tax rate increase. Both voters and local | 17 |
| government officials are confused and frustrated by referendum | 18 |
| propositions that do not accurately reflect the way the | 19 |
| Property Tax Extension Limitation Law works.
| 20 |
| (c) This Amendatory Act requires the use of ballots that | 21 |
| accurately tell the voter what the result of approving the | 22 |
| proposition will be and requires all ballots and notices at tax | 23 |
| rate increase elections to contain meaningful and consistent | 24 |
| information about the impact of the referendum.
| 25 |
| (d) This Amendatory Act impacts only elections held after | 26 |
| April 5, 2005. It does not change the way prior voted increases | 27 |
| were authorized. This Amendatory Act does not authorize any | 28 |
| non-referendum tax rate increases. Tax rate increases beyond | 29 |
| the limitations of the Property Tax Extension Limitation Law | 30 |
| must continue to be approved by referendum, and this Amendatory | 31 |
| Act applies only to taxing districts subject to the Property | 32 |
| Tax Extension Limitation Law.
|
|
|
|
SB1682 Engrossed |
- 2 - |
LRB094 07334 BDD 42075 b |
|
| 1 |
| Section 5. The Property Tax Code is amended by changing | 2 |
| Sections 18-190, 18-205, and 18-230 as follows:
| 3 |
| (35 ILCS 200/18-190)
| 4 |
| Sec. 18-190. Direct referendum; new rate or increased rate. | 5 |
| (a) If a new rate
or a rate increase is authorized by | 6 |
| statute to be imposed without referendum or
is subject to a | 7 |
| backdoor referendum, as defined in Section 28-2 of the Election
| 8 |
| Code, the governing body of the affected taxing district before | 9 |
| levying the new
rate or rate increase shall submit the new rate | 10 |
| or rate increase to direct
referendum under the provisions of | 11 |
| Article 28 of the Election Code. Notwithstanding the | 12 |
| requirements of any other law, all taxing districts subject to | 13 |
| this Law shall follow the provisions of this Section whenever | 14 |
| seeking referendum approval after April 5, 2005 to increase (i) | 15 |
| the maximum authorized tax rate for any fund for which the | 16 |
| taxing district is authorized by statute to levy taxes and | 17 |
| which rate is limited by prior referendum or statutory | 18 |
| authorization and which rate is authorized by statute to be | 19 |
| increased for a limited or unlimited number of years by direct | 20 |
| (and not back door) referendum, except for increases that | 21 |
| require an equal corresponding tax rate decrease for another | 22 |
| fund or (ii) the maximum extended tax rate applicable only to | 23 |
| the next taxes to be either levied or extended for any fund | 24 |
| notwithstanding the limiting rate that would otherwise be | 25 |
| applicable for such taxing district, which maximum extended tax | 26 |
| rate applicable to the next taxes shall not exceed the tax rate | 27 |
| for such fund. | 28 |
| The proposition seeking to obtain such referendum approval | 29 |
| for the increase described in clause (i) shall be in | 30 |
| substantially the following form: | 31 |
| Shall the maximum tax rate for the ... fund of ... | 32 |
| [insert legal name, number, if any, and county or counties | 33 |
| of taxing district], Illinois, be increased for the ... | 34 |
| levy year[s] [and all subsequent levy years] to ...% of the |
|
|
|
SB1682 Engrossed |
- 3 - |
LRB094 07334 BDD 42075 b |
|
| 1 |
| equalized assessed value of the taxable property therein | 2 |
| instead of ...%, the otherwise applicable maximum tax rate | 3 |
| for such fund? | 4 |
| The votes must be recorded as "Yes" or "No". | 5 |
| The proposition seeking to obtain such referendum approval | 6 |
| for the increase described in clause (ii) shall be in | 7 |
| substantially the following form: | 8 |
| Shall the maximum tax rate for the ... fund of ... | 9 |
| [insert legal name, number, if any, and county or counties | 10 |
| of taxing district], Illinois, for the ... levy year be | 11 |
| equal to ...% of the equalized assessed value of the | 12 |
| taxable property therein notwithstanding the otherwise | 13 |
| applicable limitations set forth in the Property Tax | 14 |
| Extension Limitation Law on such tax rate? | 15 |
| The votes must be recorded as "Yes" or "No". | 16 |
| The ballot for any proposition submitted pursuant to this | 17 |
| Section shall have printed thereon, but not as a part of the | 18 |
| proposition submitted, the following information; provided, | 19 |
| however, that any error, miscalculation or inaccuracy in | 20 |
| computing any amount set forth on the ballot shall not | 21 |
| invalidate or affect the validity of any proposition approved: | 22 |
| (1) if the taxing district is a school district or a | 23 |
| community college district, the geographic or other common | 24 |
| name by which the district is known and referred to; | 25 |
| (2) the amount, if any, of the proposed increase in the | 26 |
| maximum authorized tax rate for the fund referred to in the | 27 |
| proposition; | 28 |
| (3) the rate at which taxes for the fund was most | 29 |
| recently extended (at the time the submission of the | 30 |
| proposition is initiated by the taxing district); | 31 |
| (4) the amount by which the proposed rate for the fund | 32 |
| exceeds the most recently extended rate for the fund; | 33 |
| (5) the dollar amount of the last known aggregate | 34 |
| extension base of the taxing district (at the time the | 35 |
| submission of the proposition is initiated by the taxing | 36 |
| district); |
|
|
|
SB1682 Engrossed |
- 4 - |
LRB094 07334 BDD 42075 b |
|
| 1 |
| (6) the estimated dollar amount of the aggregate | 2 |
| extension base of the taxing district if the proposition is | 3 |
| approved, such amount computed by multiplying the amount of | 4 |
| the last known equalized assessed value of the taxing | 5 |
| district at the time the submission of the proposition is | 6 |
| initiated by the taxing district by the amount from | 7 |
| paragraph (4) and adding the product to the amount from | 8 |
| paragraph (5); and | 9 |
| (7) the percentage increase proposed in the aggregate | 10 |
| extension base of the taxing district based on the dollar | 11 |
| amount of the last known aggregate extension base of the | 12 |
| taxing district and the estimated dollar amount of the | 13 |
| aggregate extension base of the taxing district if the | 14 |
| proposition is approved. | 15 |
| Any notice required to be published in connection with the | 16 |
| submission of the proposition shall also contain this | 17 |
| information and shall not be required to contain any other | 18 |
| information. Notice of the referendum shall be published and | 19 |
| posted as otherwise required by law, and the submission of the | 20 |
| proposition shall be initiated as provided by law. | 21 |
| If a majority of all ballots cast on the proposition are in | 22 |
| favor of the proposition, the following provisions shall be | 23 |
| applicable to the extension of taxes for the taxing district: | 24 |
| (A) the tax rate approved at the referendum may be | 25 |
| effective for the extension of taxes accruing more than 30 | 26 |
| days after the canvass of the results of the referendum by | 27 |
| the taxing district and shall not be effective for the | 28 |
| extension of taxes occurring 30 days or less after such | 29 |
| canvass; | 30 |
| (B) if the proposition provides for an increase in the | 31 |
| maximum authorized tax rate, (i) the new maximum authorized | 32 |
| tax rate for the fund shall be the rate set forth in the | 33 |
| proposition for the levy years set forth therein regardless | 34 |
| of whether the proposition is approved before or after the | 35 |
| taxing district adopts or files its levy for any levy year | 36 |
| set forth in the proposition; and (ii) the aggregate |
|
|
|
SB1682 Engrossed |
- 5 - |
LRB094 07334 BDD 42075 b |
|
| 1 |
| extension base of the taxing district shall be adjusted as | 2 |
| a result of the approval of the proposition as set forth in | 3 |
| Section 18-230; | 4 |
| (C) if the proposition does not provide for an increase | 5 |
| in the maximum authorized tax rate, but provides for an | 6 |
| increase in the maximum extended tax rate for a single levy | 7 |
| year, (A) the maximum authorized tax rate for the fund | 8 |
| shall not be affected, but the rate extended for the fund | 9 |
| shall be equal to the rate set forth in the proposition for | 10 |
| the levy year set forth in the proposition regardless of | 11 |
| whether the proposition is approved before or after the | 12 |
| taxing district adopts or files its levy for that levy | 13 |
| year; and (B) the aggregate extension base of the taxing | 14 |
| district shall be adjusted as a result of the approval of | 15 |
| the proposition as set forth in Section 18-230.
| 16 |
| Rates
required to extend taxes for a fund
on levies subject | 17 |
| to a backdoor referendum in each
year there is a levy are not | 18 |
| new rates or rate increases under this Section if
a
levy has | 19 |
| been made for the fund in one or more of the preceding 3 levy
| 20 |
| years prior to this law becoming applicable to the taxing | 21 |
| district . Changes made by this amendatory Act of 1997 to this | 22 |
| Section in
reference to rates required to extend taxes on | 23 |
| levies subject to a backdoor
referendum in each year there is a | 24 |
| levy are declarative of existing law and not
a new enactment. | 25 |
| (b) Whenever other applicable law authorizes a taxing | 26 |
| district
subject to the
limitation
with respect to its | 27 |
| aggregate extension provided for in this Law to issue bonds
or | 28 |
| other obligations either without referendum or subject to | 29 |
| backdoor
referendum, the taxing district may elect for each | 30 |
| separate bond issuance to
submit the question of the issuance | 31 |
| of the bonds or obligations directly to the
voters of the | 32 |
| taxing district, and if the referendum passes the taxing
| 33 |
| district is not required to comply with any backdoor referendum
| 34 |
| procedures or requirements set forth in the other applicable | 35 |
| law. The
direct referendum shall be initiated by ordinance or | 36 |
| resolution of the
governing body of the taxing district, and |
|
|
|
SB1682 Engrossed |
- 6 - |
LRB094 07334 BDD 42075 b |
|
| 1 |
| the question shall be certified
to the proper election | 2 |
| authorities in accordance with the provisions of the
Election | 3 |
| Code.
| 4 |
| (Source: P.A. 88-455; 88-670, eff. 12-2-94; 89-385, eff. | 5 |
| 8-18-95; 89-718,
eff. 3-7-97.)
| 6 |
| (35 ILCS 200/18-205)
| 7 |
| Sec. 18-205. Referendum to increase the extension | 8 |
| limitation. A taxing
district is limited to an extension | 9 |
| limitation
increase of 5% or the percentage increase
in the | 10 |
| Consumer Price Index during the 12-month calendar year | 11 |
| preceding the
levy year, whichever is less. A taxing district | 12 |
| may increase its extension
limitation for a current levy year | 13 |
| if that taxing district holds a referendum
before the levy date | 14 |
| at which a majority of voters voting on the issue approves
| 15 |
| adoption of a higher extension limitation. Referenda shall be | 16 |
| conducted at a
regularly scheduled election in accordance with | 17 |
| the Election Code provided
that notice of the referendum, if | 18 |
| held before July 1, 1999, has been given in
accordance with the | 19 |
| provisions of Section 12-5 of the Election Code in effect
at | 20 |
| the time of the bond referendum, at least 10 and not more than | 21 |
| 45 days
before the date of the election, notwithstanding the | 22 |
| time for publication
otherwise imposed by Section 12-5. Notices | 23 |
| required in connection with the
submission of public questions | 24 |
| on or after July 1, 1999 shall be as set forth
in Section 12-5 | 25 |
| of the Election Code. The question shall be presented in
| 26 |
| substantially the following manner:
| 27 |
| -------------------------------------------------------------
| 28 |
| Shall the extension limitation
| 29 |
| under the Property Tax Extension
| 30 |
| Limitation Law for ...(taxing YES
| 31 |
| district name)... be increased from
| 32 |
| ...(the lesser of 5% or the increase -----------------
| 33 |
| in the Consumer Price Index over the
| 34 |
| prior levy year)...% to ...(percentage NO
| 35 |
| of proposed increase)...% for the
|
|
|
|
SB1682 Engrossed |
- 7 - |
LRB094 07334 BDD 42075 b |
|
| 1 |
| ...(levy year)... levy year?
| 2 |
| -------------------------------------------------------------
| 3 |
| If a majority of voters voting on the issue approves the | 4 |
| adoption of
the increase, the increase shall be applicable for | 5 |
| the levy year specified.
| 6 |
| (Source: P.A. 90-812, eff. 1-26-99; 91-57, eff. 6-30-99 .)
| 7 |
| (35 ILCS 200/18-230)
| 8 |
| Sec. 18-230. Rate increase or decrease factor. When a new | 9 |
| rate or a rate
increase as described in subsection (a) of | 10 |
| Section 18-190 or decrease first effective for the current levy | 11 |
| year has been
approved by referendum, the aggregate extension | 12 |
| base, as adjusted in Sections
18-215 and 18-220, shall be | 13 |
| multiplied by a rate increase (or decrease) factor.
The | 14 |
| numerator of the rate increase (or decrease) factor is the | 15 |
| total combined
rate for the funds that made up the aggregate | 16 |
| extension for the taxing district
for the prior year plus
the | 17 |
| difference between the rate set forth in the proposition | 18 |
| approved by referendum and the rate extended for the prior year | 19 |
| for the fund set forth in the proposition
rate increase | 20 |
| approved or minus the rate decrease
approved. The denominator | 21 |
| of the rate increase or decrease factor is the total
combined | 22 |
| rate for the funds that made up the aggregate extension for the | 23 |
| prior
year. For those taxing districts for which a new rate or | 24 |
| a rate increase has
been approved by referendum held after | 25 |
| December 31, 1988, and
that did not increase their rate to the | 26 |
| new maximum rate for that fund, the
rate increase factor shall | 27 |
| be adjusted for 4 levy years after the year
of the referendum | 28 |
| by a factor the numerator of which is the portion of the
new or | 29 |
| increased rate for which taxes were not extended plus the | 30 |
| aggregate
rate in effect for the levy year prior to the levy | 31 |
| year in which the
referendum was passed and the denominator of | 32 |
| which is the aggregate rate in
effect for the levy year prior | 33 |
| to the levy year in which the referendum
was passed.
| 34 |
| (Source: P.A. 87-17; 88-455.)
|
|