State of Illinois
92nd General Assembly
Legislation

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92_SB1171

 
                                               LRB9205814SMdv

 1        AN ACT in relation to 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
 
                            -2-                LRB9205814SMdv
 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,
 
                            -3-                LRB9205814SMdv
 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.
19        "Aggregate  extension"  for the taxing districts to which
20    this Law did not apply before  the  1995  levy  year  (except
21    taxing  districts  subject  to  this  Law  in accordance with
22    Section 18-213) means the annual corporate extension for  the
23    taxing district and those special purpose extensions that are
24    made  annually  for  the  taxing  district, excluding special
25    purpose extensions: (a) made for the taxing district  to  pay
26    interest  or  principal on general obligation bonds that were
27    approved by referendum; (b) made for any taxing  district  to
28    pay  interest or principal on general obligation bonds issued
29    before March 1, 1995; (c) made for any taxing district to pay
30    interest or principal on bonds issued to refund  or  continue
31    to  refund  those bonds issued before March 1, 1995; (d) made
32    for any taxing district to pay interest or principal on bonds
33    issued to refund or continue to  refund  bonds  issued  after
34    March  1, 1995 that were approved by referendum; (e) made for
 
                            -4-                LRB9205814SMdv
 1    any taxing district to pay interest or principal  on  revenue
 2    bonds  issued  before  March  1,  1995 for payment of which a
 3    property tax levy or the full faith and credit of the unit of
 4    local government is pledged; however, a tax for  the  payment
 5    of  interest  or  principal on those bonds shall be made only
 6    after the governing body of  the  unit  of  local  government
 7    finds  that all other sources for payment are insufficient to
 8    make those payments; (f) made for payments under  a  building
 9    commission   lease  when  the  lease  payments  are  for  the
10    retirement of bonds issued by the commission before March  1,
11    1995  to  pay for the building project; (g) made for payments
12    due under installment contracts entered into before March  1,
13    1995;  (h)  made  for  payments  of principal and interest on
14    bonds  issued  under  the  Metropolitan   Water   Reclamation
15    District  Act  to  finance  construction  projects  initiated
16    before  October  1,  1991; (i) made for payments of principal
17    and interest on limited bonds, as defined in Section 3 of the
18    Local Government Debt Reform Act, in an amount not to  exceed
19    the debt service extension base less the amount in items (b),
20    (c),   and   (e)   of   this  definition  for  non-referendum
21    obligations, except obligations initially issued pursuant  to
22    referendum  and  bonds  described  in  subsection (h) of this
23    definition; (j) made for payments of principal  and  interest
24    on bonds issued under Section 15 of the Local Government Debt
25    Reform  Act;  (k) made for payments of principal and interest
26    on bonds authorized by Public Act  88-503  and  issued  under
27    Section  20a of the Chicago Park District Act for aquarium or
28    museum projects; and (l) made for payments of  principal  and
29    interest on bonds authorized by Public Act 87-1191 and issued
30    under  Section 42 of the Cook County Forest Preserve District
31    Act for zoological park projects.
32        "Aggregate extension" for all taxing districts  to  which
33    this  Law  applies  in accordance with Section 18-213, except
34    for those  taxing  districts  subject  to  paragraph  (2)  of
 
                            -5-                LRB9205814SMdv
 1    subsection  (e) of Section 18-213, means the annual corporate
 2    extension for the taxing district and those  special  purpose
 3    extensions  that  are  made annually for the taxing district,
 4    excluding special purpose extensions: (a) made for the taxing
 5    district to pay interest or principal on  general  obligation
 6    bonds  that  were  approved  by  referendum; (b) made for any
 7    taxing district to  pay  interest  or  principal  on  general
 8    obligation   bonds  issued  before  the  date  on  which  the
 9    referendum making this Law applicable to the taxing  district
10    is  held; (c) made for any taxing district to pay interest or
11    principal on bonds issued to refund  or  continue  to  refund
12    those  bonds  issued  before the date on which the referendum
13    making this Law applicable to the taxing  district  is  held;
14    (d) made for any taxing district to pay interest or principal
15    on  bonds issued to refund or continue to refund bonds issued
16    after the date  on  which  the  referendum  making  this  Law
17    applicable  to  the taxing district is held if the bonds were
18    approved by referendum after the date on which the referendum
19    making this Law applicable to the taxing  district  is  held;
20    (e) made for any taxing district to pay interest or principal
21    on  revenue  bonds  issued  before  the  date  on  which  the
22    referendum  making this Law applicable to the taxing district
23    is held for payment of which a property tax levy or the  full
24    faith  and credit of the unit of local government is pledged;
25    however, a tax for the payment of interest  or  principal  on
26    those  bonds  shall  be made only after the governing body of
27    the unit of local government finds that all other sources for
28    payment are insufficient to make those payments; (f) made for
29    payments under a building commission  lease  when  the  lease
30    payments  are  for  the  retirement  of  bonds  issued by the
31    commission before the date on  which  the  referendum  making
32    this Law applicable to the taxing district is held to pay for
33    the  building  project;  (g)  made  for  payments  due  under
34    installment  contracts  entered into before the date on which
 
                            -6-                LRB9205814SMdv
 1    the referendum making  this  Law  applicable  to  the  taxing
 2    district  is  held;  (h)  made  for payments of principal and
 3    interest on limited bonds, as defined in  Section  3  of  the
 4    Local  Government Debt Reform Act, in an amount not to exceed
 5    the debt service extension base less the amount in items (b),
 6    (c),  and  (e)  of   this   definition   for   non-referendum
 7    obligations,  except obligations initially issued pursuant to
 8    referendum; (i) made for payments of principal  and  interest
 9    on bonds issued under Section 15 of the Local Government Debt
10    Reform Act; and (j) made for a qualified airport authority to
11    pay  interest or principal on general obligation bonds issued
12    for the purpose of paying obligations due under, or financing
13    airport facilities  required  to  be  acquired,  constructed,
14    installed  or  equipped  pursuant  to, contracts entered into
15    before March 1, 1996 (but not  including  any  amendments  to
16    such a contract taking effect on or after that date).
17        "Aggregate  extension"  for all taxing districts to which
18    this  Law  applies  in  accordance  with  paragraph  (2)   of
19    subsection  (e)  of Section 18-213 means the annual corporate
20    extension for the taxing district and those  special  purpose
21    extensions  that  are  made annually for the taxing district,
22    excluding special purpose extensions: (a) made for the taxing
23    district to pay interest or principal on  general  obligation
24    bonds  that  were  approved  by  referendum; (b) made for any
25    taxing district to  pay  interest  or  principal  on  general
26    obligation  bonds  issued  before  the effective date of this
27    amendatory Act of 1997; (c) made for any taxing  district  to
28    pay  interest  or  principal  on  bonds  issued  to refund or
29    continue to refund those bonds issued  before  the  effective
30    date  of this amendatory Act of 1997; (d) made for any taxing
31    district to pay interest or  principal  on  bonds  issued  to
32    refund or continue to refund bonds issued after the effective
33    date  of  this  amendatory  Act  of  1997  if  the bonds were
34    approved by referendum  after  the  effective  date  of  this
 
                            -7-                LRB9205814SMdv
 1    amendatory  Act  of 1997; (e) made for any taxing district to
 2    pay interest or principal on revenue bonds issued before  the
 3    effective  date of this amendatory Act of 1997 for payment of
 4    which a property tax levy or the full faith and credit of the
 5    unit of local government is pledged; however, a tax  for  the
 6    payment of interest or principal on those bonds shall be made
 7    only after the governing body of the unit of local government
 8    finds  that all other sources for payment are insufficient to
 9    make those payments; (f) made for payments under  a  building
10    commission   lease  when  the  lease  payments  are  for  the
11    retirement of bonds  issued  by  the  commission  before  the
12    effective  date of this amendatory Act of 1997 to pay for the
13    building project; (g) made for payments due under installment
14    contracts entered into before  the  effective  date  of  this
15    amendatory  Act  of  1997; (h) made for payments of principal
16    and interest on limited bonds, as defined in Section 3 of the
17    Local Government Debt Reform Act, in an amount not to  exceed
18    the debt service extension base less the amount in items (b),
19    (c),   and   (e)   of   this  definition  for  non-referendum
20    obligations, except obligations initially issued pursuant  to
21    referendum;  (i)  made for payments of principal and interest
22    on bonds issued under Section 15 of the Local Government Debt
23    Reform Act; and (j) made for a qualified airport authority to
24    pay interest or principal on general obligation bonds  issued
25    for the purpose of paying obligations due under, or financing
26    airport  facilities  required  to  be  acquired, constructed,
27    installed or equipped pursuant  to,  contracts  entered  into
28    before  March  1,  1996  (but not including any amendments to
29    such a contract taking effect on or after that date).
30        "Debt service extension base" means an  amount  equal  to
31    that  portion  of the extension for a taxing district for the
32    1994 levy year, or for those taxing districts subject to this
33    Law in accordance  with  Section  18-213,  except  for  those
34    subject to paragraph (2) of subsection (e) of Section 18-213,
 
                            -8-                LRB9205814SMdv
 1    for  the  levy  year  in which the referendum making this Law
 2    applicable to the taxing  district  is  held,  or  for  those
 3    taxing  districts  subject  to  this  Law  in accordance with
 4    paragraph (2) of subsection (e) of  Section  18-213  for  the
 5    1996  levy  year,  constituting  an  extension for payment of
 6    principal and interest on bonds issued by the taxing district
 7    without referendum, but not including excluded non-referendum
 8    bonds.  For park districts (i) that  were  first  subject  to
 9    this  Law  in  1991  or 1995 and (ii) whose extension for the
10    1994 levy year for the payment of principal and  interest  on
11    bonds issued by the park district without referendum (but not
12    including excluded non-referendum bonds) was less than 51% of
13    the  amount  for the 1991 levy year constituting an extension
14    for payment of principal and interest on bonds issued by  the
15    park  district without referendum (but not including excluded
16    non-referendum bonds), "debt service extension base" means an
17    amount equal to that portion of the extension  for  the  1991
18    levy  year constituting an extension for payment of principal
19    and interest on bonds issued by  the  park  district  without
20    referendum (but not including excluded non-referendum bonds).
21    The  debt  service  extension  base  may  be  established  or
22    increased   as   provided  under  Section  18-212.  "Excluded
23    non-referendum bonds" means (i) bonds  authorized  by  Public
24    Act  88-503  and issued under Section 20a of the Chicago Park
25    District Act for aquarium and  museum  projects;  (ii)  bonds
26    issued  under  Section 15 of the Local Government Debt Reform
27    Act; and or (iii) refunding obligations issued to  refund  or
28    to  continue  to refund obligations initially issued pursuant
29    to referendum.   The  debt  service  extension  base  may  be
30    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
 
                            -9-                LRB9205814SMdv
 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
23    a 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
 
                            -10-               LRB9205814SMdv
 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.
10    For 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,
 
                            -11-               LRB9205814SMdv
 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.  90-485,  eff.  1-1-98;  90-511, eff. 8-22-97;
20    90-568, eff.  1-1-99;  90-616,  eff.  7-10-98;  90-655,  eff.
21    7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.)

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