August
21, 2018
To
the Honorable Members of
The
Illinois Senate,
100th
General Assembly:
Today I
return Senate Bill 3041 with specific recommendations for change.
This
legislation extends the types of local governments that can levy an additional
property tax for purposes of funding facilities and services for residents with
developmental disabilities from exclusively counties to municipalities and
townships. Although I recognize the unique needs and funding challenges of the
mental health and developmental disability communities, increasing property
taxes across various layers of local government without any mechanism for
taxpayers to reduce their tax burdens is untenable in Illinois’ current
property tax crisis. When Illinoisans are able to impose taxes via referendum, citizens
should also be fully empowered to vote to bring down levies raised for special
purposes such as this, as well as their property taxes more generally.
Therefore,
pursuant to Section 9(e) of Article IV of the Illinois Constitution of 1970, I
hereby return Senate Bill 3041, entitled “AN ACT concerning local government”,
with the following specific recommendations for change:
On page 1, by replacing line 5 with: “Sections 18-195 and 18-205 as
follows:”; and
On page 6, immediately after line 19, by inserting the
following:
“(35
ILCS 200/18-205)
Sec. 18-205. Referendum to
increase the extension limitation.
(a) A taxing district is
limited to an extension limitation of 5% or the percentage increase in the
Consumer Price Index during the 12 month calendar year preceding the levy year,
whichever is less. A taxing district may increase its extension limitation for
one or more levy years if that taxing district holds a referendum before the
levy date for the first levy year at which a majority of voters voting on the
issue approves adoption of a higher extension limitation. Referenda shall be
conducted at a regularly scheduled election in accordance with the Election
Code.
(b) The question shall be
presented in substantially the following manner:
Shall the extension
limitation under the Property Tax Extension Limitation Law for (insert the
legal name, number, if any, and county or counties of the taxing district and
geographic or other common name by which a school or community college district
is known and referred to), Illinois, be increased from the lesser of 5% or the
percentage increase in the Consumer Price Index over the prior levy year to
(insert the percentage of the proposed increase)% per year for (insert each
levy year for which the increased extension limitation will apply)?
(c) Whenever a petition,
subject to the petition requirements of Section 28-3 of the Election Code, is presented to the governing body of a taxing district
requesting that the taxing district's aggregate extension be decreased by not
more than 10% of its aggregate extension for the previous levy year, that
governing body shall cause the proposition to be certified to the proper
election officials who shall submit the proposition to the voters at the next
appropriate election in accordance with this subsection and general election
law. A petition under this subsection (c) shall include:
(1)
the desired aggregate extension decrease;
(2) signatures by a number of
registered voters equal to or greater than 5% of the total ballots cast in the
taxing district at the last preceding general election; and
(3) an affidavit of
publication, attesting that notice of the petition decrease the taxing
district's aggregate extension was published in a newspaper of general
circulation within the taxing district.
The parties filing a petition
under this Section shall give notice in substantially the following form:
NOTICE OF PETITION TO
(INCREASE/DECREASE) (TAXING DISTRICT'S) PROPERTY TAX.
Residents of (taxing
district) are notified that a petition will be filed with (taxing district)
requesting a referendum to decrease property tax by (amount of increase or
decrease) % for (tax levy year(s)).
A petition that meets the
requirements of this subsection shall be placed on the ballot at the general
election next following. Failure to publish the required notice of petition
shall render the petition, and the results of any referendum held on the
petition, null and void.
The
ballot question shall be in substantially the following form on the ballot:
----------------------------------------------------------
Shall the property tax rate
of (taxing district) be decreased by (insert amount) % in (tax levy year(s) )?
YES NO
------------------------------------------------------------
The increase or decrease is
approved when three-fifths of the electors of the taxing district approve and
the decrease shall be applicable for each levy year specified.
(d) The
votes under subsection (b) or (c) must be recorded as "Yes" or
"No". Except as provided in subsection (c), if If a
majority of voters voting on the issue approves the adoption of the increase,
the increase shall be applicable for each levy year specified.
(e) The
ballot for any question submitted pursuant to this Section shall have printed
thereon, but not as a part of the question submitted, only the following
supplemental information (which shall be supplied to the election authority by
the taxing district) in substantially the following form:
(1) For the (insert the first
levy year for which the increased or reduced extension limitation will
be applicable) levy year the approximate amount of the additional or reduced
tax extendable against property containing a single family residence and having
a fair market value at the time of the referendum of $100,000 is estimated to
be $ ....
(2) Based upon an average
annual percentage increase (or decrease) in the market value of such property
of ... % (insert percentage equal to the average annual percentage increase or
decrease for the prior 3 levy years, at the time the submission of the question
is initiated by the taxing district, in the amount of (A) the equalized
assessed value of the taxable property in the taxing district less (B) the new
property included in the equalized assessed value), the approximate amount of the
additional or reduced tax extendable against such property for the levy
year is estimated to be $ ... and for the ... levy year is estimated to be $
....
Paragraph (2) shall be
included only if the increased or reduced extension limitation will be
applicable for more than one year and shall list each levy year for which the
increased or reduced extension limitation will be applicable. The
additional or reduced tax shown for each levy year shall be the
approximate dollar amount of the increase or decrease over the amount of
the most recently completed extension at the time the submission of the
question is initiated by the taxing district. The approximate amount of the
additional or reduced tax extendable shown in paragraphs (1) and (2)
shall be calculated by multiplying $100,000 (the fair market value of the
property without regard to any property tax exemptions) by ( i) the percentage
level of assessment prescribed for that property by statute, or by ordinance of
the county board in counties that classify property for purposes of taxation in
accordance with Section 4 of Article IX of the Illinois Constitution; (ii) the
most recent final equalization factor certified to the county clerk by the
Department of Revenue at the time the taxing district initiates the submission
of the proposition to the electors; (iii) the last known aggregate extension
base of the taxing district at the time the submission of the question is
initiated by the taxing district; and (iv) the difference between the
percentage increase or decrease proposed in the question and the lesser
of 5% or the percentage increase in the Consumer Price Index for the prior levy
year (or an estimate of the percentage increase or decrease for the
prior levy year if the increase or decrease is unavailable at the time
the submission of the question is initiated by the taxing district); and
dividing the result by the last known equalized assessed value of the taxing
district at the time the submission of the question is initiated by the taxing
district. This amendatory Act of the 97th General Assembly is intended to
clarify the existing requirements of this Section, and shall not be construed
to validate any prior non-compliant referendum language. Any notice required to
be published in connection with the submission of the question shall also
contain this supplemental information and shall not contain any other
supplemental information. Any error, miscalculation, or inaccuracy in computing
any amount set forth on the ballot or in the notice that is not deliberate
shall not invalidate or affect the validity of any proposition approved. Notice
of the referendum shall be published and posted as otherwise required by law,
and the submission of the question shall be initiated as provided by law.”; and
On page 17, by inserting immediately after line 15 the
following:
“(c) If the governmental
unit's county board passes an ordinance or resolution as asking that an annual
tax levied for the purpose of providing facilities or services set forth in
this Section be reduced or discontinued and so instructs the county clerk, the
clerk shall certify the proposition to the proper election officials for
submission at the governmental unit's next general county election. The
proposition shall be in substantially the following form:
Shall the tax currently imposed in (governmental unit) for
the purposes of providing facilities or services for the benefit of its
residents who are persons with intellectual or developmental disabilities at a rate of (insert rate) be (reduced to (insert
rate))(discontinued)?
(d)
If a majority of the votes cast upon the proposition are in favor thereof, such
tax levy shall be reduced or discontinued as set forth in the proposition.”;
and
On page 18, by inserting immediately after line 25 the
following:
“(c) Whenever a petition
for submission to referendum by the electors which requests the reduction or
discontinuance of a tax levied pursuant to this Section is signed by electors
of the governmental unit county equal in number to at least 10% of the total
votes cast for the office that received the greatest total number of votes at
the last preceding general county election of the governmental unit and is
presented to the county clerk, the clerk shall certify the proposition to the
proper election authorities for submission at the governmental unit's next
general county election. The proposition shall be in substantially the
following form:
Shall the tax
currently imposed in (governmental unit) for the purposes of providing
facilities or services for the benefit of its residents who are persons with
intellectual or developmental disabilities at a rate
of (insert rate) be (reduced to (insert rate))(discontinued)?
(d) If a majority of the
votes cast upon the proposition are in favor thereof, such tax levy shall be
reduced or discontinued as set forth in the proposition.”.
With
these changes, Senate Bill 3041 will have my approval. I respectfully request
your concurrence.
Sincerely,
Bruce
Rauner
GOVERNOR