SB1937ham001 98TH GENERAL ASSEMBLY

Rep. David McSweeney

Filed: 5/8/2013

09800SB1937ham001 LRB098 09012 HLH 45625 a

AMENDMENT TO SENATE BILL 1937

AMENDMENT NO. ______. Amend Senate Bill 1937 on page 1, line 5, after "15-172", by inserting "and by adding Division 7 to Article 18"; and

on page 14, immediately below line 20, by inserting the following:

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

Division 7. Township Property Tax Extension Freeze.

(35 ILCS 200/18-280 new)

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

As used in this Division 7:

"Aggregate extension" means the annual corporate extension for the township and those special purpose extensions that are made annually for the township, excluding the following special purpose extensions: (1) extensions made for the township to pay interest or principal on general obligation bonds; (2) extensions made for the township to pay interest or principal on bonds issued to refund or continue to refund bonds; (3) extensions made for the township to pay interest or principal on revenue bonds for payment of which a property tax levy or the full faith and credit of the township is pledged; and (4) extensions made for payments due under installment contracts entered into before December 31, 2013.

"Current year" means the 2013 or 2014 levy year, as applicable.

"Special purpose extensions" include, but are not limited to, extensions for levies made on an annual basis for unemployment and workers' compensation, self-insurance, 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 2012 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 amount of the current year's equalized assessed value, in the first year after a city terminates the designation of an area as a redevelopment project area previously established under the Tax Increment Allocation Development Act of the Illinois Municipal Code, previously established under the Industrial Jobs Recovery Law of the Illinois Municipal Code, or previously established under the Economic Development Area Tax Increment Allocation Act, of each taxable lot, block, tract, or parcel of real property in the redevelopment project area over and above the initial equalized assessed value of each property in the redevelopment project area.

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 2012 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, for the 2013 and 2014 levy years, for those townships for which the county clerk extended taxes for any funds included in the aggregate extension base for the 2012 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.

(b) 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, 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 may increase its limiting rate for either the 2012 or 2013 levy year 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".".