Public Act 093-0690
 
HB0753 Enrolled LRB093 05408 NHT 05498 b

    AN ACT relating to schools.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by changing
Section 18-185 as follows:
 
    (35 ILCS 200/18-185)
    Sec. 18-185. Short title; definitions. This Division 5 may
be cited as the Property Tax Extension Limitation Law. As used
in this Division 5:
    "Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
    "Extension limitation" means (a) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the rate
of increase approved by voters under Section 18-205.
    "Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000 or
more inhabitants.
    "Taxing district" has the same meaning provided in Section
1-150, except as otherwise provided in this Section. For the
1991 through 1994 levy years only, "taxing district" includes
only each non-home rule taxing district having the majority of
its 1990 equalized assessed value within any county or counties
contiguous to a county with 3,000,000 or more inhabitants.
Beginning with the 1995 levy year, "taxing district" includes
only each non-home rule taxing district subject to this Law
before the 1995 levy year and each non-home rule taxing
district not subject to this Law before the 1995 levy year
having the majority of its 1994 equalized assessed value in an
affected county or counties. Beginning with the levy year in
which this Law becomes applicable to a taxing district as
provided in Section 18-213, "taxing district" also includes
those taxing districts made subject to this Law as provided in
Section 18-213.
    "Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made for
any taxing district to pay interest or principal on general
obligation bonds issued before October 1, 1991; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before October 1, 1991; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after October 1, 1991 that were approved by
referendum; (e) made for any taxing district to pay interest or
principal on revenue bonds issued before October 1, 1991 for
payment of which a property tax levy or the full faith and
credit of the unit of local government is pledged; however, a
tax for the payment of interest or principal on those bonds
shall be made only after the governing body of the unit of
local government finds that all other sources for payment are
insufficient to make those payments; (f) made for payments
under a building commission lease when the lease payments are
for the retirement of bonds issued by the commission before
October 1, 1991, to pay for the building project; (g) made for
payments due under installment contracts entered into before
October 1, 1991; (h) made for payments of principal and
interest on bonds issued under the Metropolitan Water
Reclamation District Act to finance construction projects
initiated before October 1, 1991; (i) made for payments of
principal and interest on limited bonds, as defined in Section
3 of the Local Government Debt Reform Act, in an amount not to
exceed the debt service extension base less the amount in items
(b), (c), (e), and (h) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (j) made for payments of principal and interest on
bonds issued under Section 15 of the Local Government Debt
Reform Act; (k) made by a school district that participates in
the Special Education District of Lake County, created by
special education joint agreement under Section 10-22.31 of the
School Code, for payment of the school district's share of the
amounts required to be contributed by the Special Education
District of Lake County to the Illinois Municipal Retirement
Fund under Article 7 of the Illinois Pension Code; the amount
of any extension under this item (k) shall be certified by the
school district to the county clerk; and (l) made to fund
expenses of providing joint recreational programs for the
handicapped under Section 5-8 of the Park District Code or
Section 11-95-14 of the Illinois Municipal Code; (m) made for
temporary relocation loan repayment purposes pursuant to
Sections 2-3.77 and 17-2.2d of the School Code, and (n) made
for payment of principal and interest on any bonds issued under
the authority of Section 17-2.2d of the School Code.
    "Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except taxing
districts subject to this Law in accordance with Section
18-213) means the annual corporate extension for the taxing
district and those special purpose extensions that are made
annually for the taxing district, excluding special purpose
extensions: (a) made for the taxing district to pay interest or
principal on general obligation bonds that were approved by
referendum; (b) made for any taxing district to pay interest or
principal on general obligation bonds issued before March 1,
1995; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund those
bonds issued before March 1, 1995; (d) made for any taxing
district to pay interest or principal on bonds issued to refund
or continue to refund bonds issued after March 1, 1995 that
were approved by referendum; (e) made for any taxing district
to pay interest or principal on revenue bonds issued before
March 1, 1995 for payment of which a property tax levy or the
full faith and credit of the unit of local government is
pledged; however, a tax for the payment of interest or
principal on those bonds shall be made only after the governing
body of the unit of local government finds that all other
sources for payment are insufficient to make those payments;
(f) made for payments under a building commission lease when
the lease payments are for the retirement of bonds issued by
the commission before March 1, 1995 to pay for the building
project; (g) made for payments due under installment contracts
entered into before March 1, 1995; (h) made for payments of
principal and interest on bonds issued under the Metropolitan
Water Reclamation District Act to finance construction
projects initiated before October 1, 1991; (i) made for
payments of principal and interest on limited bonds, as defined
in Section 3 of the Local Government Debt Reform Act, in an
amount not to exceed the debt service extension base less the
amount in items (b), (c), and (e) of this definition for
non-referendum obligations, except obligations initially
issued pursuant to referendum and bonds described in subsection
(h) of this definition; (j) made for payments of principal and
interest on bonds issued under Section 15 of the Local
Government Debt Reform Act; (k) made for payments of principal
and interest on bonds authorized by Public Act 88-503 and
issued under Section 20a of the Chicago Park District Act for
aquarium or museum projects; (l) made for payments of principal
and interest on bonds authorized by Public Act 87-1191 or
93-601 this amendatory Act of the 93rd General Assembly and (i)
issued pursuant to Section 21.2 of the Cook County Forest
Preserve District Act, (ii) issued under Section 42 of the Cook
County Forest Preserve District Act for zoological park
projects, or (iii) issued under Section 44.1 of the Cook County
Forest Preserve District Act for botanical gardens projects;
(m) made pursuant to Section 34-53.5 of the School Code,
whether levied annually or not; (n) made to fund expenses of
providing joint recreational programs for the handicapped
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code; and (o) made by the Chicago
Park District for recreational programs for the handicapped
under subsection (c) of Section 7.06 of the Chicago Park
District Act.
    "Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except for
those taxing districts subject to paragraph (2) of subsection
(e) of Section 18-213, means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the date on which the referendum making this Law applicable to
the taxing district is held; (c) made for any taxing district
to pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the date on which
the referendum making this Law applicable to the taxing
district is held; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after the date on which the referendum
making this Law applicable to the taxing district is held if
the bonds were approved by referendum after the date on which
the referendum making this Law applicable to the taxing
district is held; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the date
on which the referendum making this Law applicable to the
taxing district is held for payment of which a property tax
levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before the date on which the
referendum making this Law applicable to the taxing district is
held to pay for the building project; (g) made for payments due
under installment contracts entered into before the date on
which the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the debt
service extension base less the amount in items (b), (c), and
(e) of this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); and (k) made to fund expenses of
providing joint recreational programs for the handicapped
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code.
    "Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of subsection
(e) of Section 18-213 means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the effective date of this amendatory Act of 1997; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before the effective date of this amendatory Act of 1997; (d)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund bonds issued after
the effective date of this amendatory Act of 1997 if the bonds
were approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 for payment of
which a property tax levy or the full faith and credit of the
unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the retirement
of bonds issued by the commission before the effective date of
this amendatory Act of 1997 to pay for the building project;
(g) made for payments due under installment contracts entered
into before the effective date of this amendatory Act of 1997;
(h) made for payments of principal and interest on limited
bonds, as defined in Section 3 of the Local Government Debt
Reform Act, in an amount not to exceed the debt service
extension base less the amount in items (b), (c), and (e) of
this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); and (k) made to fund expenses of
providing joint recreational programs for the handicapped
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code.
    "Debt service extension base" means an amount equal to that
portion of the extension for a taxing district for the 1994
levy year, or for those taxing districts subject to this Law in
accordance with Section 18-213, except for those subject to
paragraph (2) of subsection (e) of Section 18-213, for the levy
year in which the referendum making this Law applicable to the
taxing district is held, or for those taxing districts subject
to this Law in accordance with paragraph (2) of subsection (e)
of Section 18-213 for the 1996 levy year, constituting an
extension for payment of principal and interest on bonds issued
by the taxing district without referendum, but not including
excluded non-referendum bonds. For park districts (i) that were
first subject to this Law in 1991 or 1995 and (ii) whose
extension for the 1994 levy year for the payment of principal
and interest on bonds issued by the park district without
referendum (but not including excluded non-referendum bonds)
was less than 51% of the amount for the 1991 levy year
constituting an extension for payment of principal and interest
on bonds issued by the park district without referendum (but
not including excluded non-referendum bonds), "debt service
extension base" means an amount equal to that portion of the
extension for the 1991 levy year constituting an extension for
payment of principal and interest on bonds issued by the park
district without referendum (but not including excluded
non-referendum bonds). The debt service extension base may be
established or increased as provided under Section 18-212.
"Excluded non-referendum bonds" means (i) bonds authorized by
Public Act 88-503 and issued under Section 20a of the Chicago
Park District Act for aquarium and museum projects; (ii) bonds
issued under Section 15 of the Local Government Debt Reform
Act; or (iii) refunding obligations issued to refund or to
continue to refund obligations initially issued pursuant to
referendum.
    "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, and extensions made pursuant to
Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or not.
The extension for a special service area is not included in the
aggregate extension.
    "Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-215 through 18-230.
    "Levy year" has the same meaning as "year" under Section
1-155.
    "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, (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, and (iii) in counties that classify in accordance with
Section 4 of Article IX of the Illinois Constitution, an
incentive property's additional assessed value resulting from
a scheduled increase in the level of assessment as applied to
the first year final board of review market value. In addition,
the county clerk in a county containing a population of
3,000,000 or more shall include in the 1997 recovered tax
increment value for any school district, any recovered tax
increment value that was applicable to the 1995 tax year
calculations.
    "Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
    "Recovered tax increment value" means, except as otherwise
provided in this paragraph, the amount of the current year's
equalized assessed value, in the first year after a
municipality terminates the designation of an area as a
redevelopment project area previously established under the
Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in 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. For the taxes which are extended
for the 1997 levy year, the recovered tax increment value for a
non-home rule taxing district that first became subject to this
Law for the 1995 levy year because a majority of its 1994
equalized assessed value was in an affected county or counties
shall be increased if a municipality terminated the designation
of an area in 1993 as a redevelopment project area previously
established under the Tax Increment Allocation Development Act
in the Illinois Municipal Code, previously established under
the Industrial Jobs Recovery Law in the Illinois Municipal
Code, or previously established under the Economic Development
Area Tax Increment Allocation Act, by an amount equal to the
1994 equalized assessed value 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. In the first
year after a municipality removes a taxable lot, block, tract,
or parcel of real property from a redevelopment project area
established under the Tax Increment Allocation Development Act
in the Illinois Municipal Code, the Industrial Jobs Recovery
Law in the Illinois Municipal Code, or the Economic Development
Area Tax Increment Allocation Act, "recovered tax increment
value" means the amount of the current year's equalized
assessed value of each taxable lot, block, tract, or parcel of
real property removed from the redevelopment project area over
and above the initial equalized assessed value of that real
property before removal from the redevelopment project area.
    Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to one
plus the extension limitation defined in this Section 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 taxing district during the prior levy year.
For those taxing districts that reduced their aggregate
extension for the last preceding levy year, the highest
aggregate extension in any of the last 3 preceding levy years
shall be used for the purpose of computing the limiting rate.
The denominator shall not include new property. The denominator
shall not include the recovered tax increment value.
(Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
93-606, eff. 11-18-03; 93-612, eff. 11-18-03; revised
12-10-03.)
 
    Section 10. The School Code is amended by adding Section
17-2.2d as follows:
 
    (105 ILCS 5/17-2.2d new)
    Sec. 17-2.2d. Special taxing and bonding for temporary
relocation expense and emergency replacement purposes.
    (a) In addition to any other taxes and notwithstanding any
limitation imposed by the Property Tax Extension Limitation Law
or any other limitations specified in this Code or any other
law, the school board of any district having a population of
less than 500,000 inhabitants that meets the criteria specified
in subsection (c) of this Section, may, by proper resolution,
levy an annual tax not to exceed 0.05% upon the value of the
taxable property as equalized or assessed by the Department of
Revenue for a period not to exceed 7 years for the purpose of
providing for the repayment of moneys distributed for temporary
relocation expenses of the district pursuant to Section 2-3.77
of this Code.
    (b) The school board of any district that meets the
criteria specified in subsection (c) of this Section may
repair, reconstruct, or replace a condemned building without
seeking referendum approval for the repair, reconstruction, or
replacement.
    (c) In order for this Section to apply, the school district
must (i) be located in a county subject to the Property Tax
Extension Limitation Law, (ii) have had a total enrollment of
at least 1,075 students as shown on the 2003 Illinois State
Report Card, and (iii) have had a school building condemned
after January 1, 2004 and prior to June 30, 2004.
    (d) Notwithstanding any limitation imposed by the Property
Tax Extension Limitation Law or any other limitations specified
in this Code or any other law, the school board of any district
that meets the criteria specified in subsection (c) of this
Section, may, by proper resolution, issue bonds, without
referendum, in an amount sufficient to finance the total cost
of repair, reconstruction, or replacement of the condemned
building. Any premium and all interest earnings on the proceeds
of the bonds so issued shall be used for the purposes for which
the bonds were issued. The proceeds of any bonds issued under
this Section shall be deposited and accounted for separately
within the district's site and construction/capital
improvements fund. The recording officer of the board shall
file in the office of the county clerk of each county in which
a portion of the district is situated a certified copy of the
resolution providing for the issuance of the bonds and levy of
a tax without limit as to rate or amount to pay the bonds.
Bonds issued under this Section and any bonds issued to refund
these bonds are not subject to any debt limitation imposed by
this Code.
    (e) The school board, as an express condition to receiving
a temporary relocation loan under Section 2-3.77 of this Code,
must agree to levy the tax provided in this Section at the
maximum rate permitted and to pay to the State of Illinois for
deposit into the Temporary Relocation Expenses Revolving Grant
Fund (i) all proceeds of the tax attributable to the first year
and succeeding years for which the tax is levied after moneys
appropriated for purposes of Section 2-3.77 have been
distributed to the school district and (ii) all insurance
proceeds that become payable to the district under those
provisions of any contract or policy of insurance that provide
reimbursement for or other coverage against loss with respect
to any temporary relocation expenses of the district or
proceeds of any legal judgment or settlement regarding the
temporary relocation expenses incurred by the district,
provided that the aggregate of any tax and insurance or other
proceeds paid by the district to the State pursuant to this
subsection (e) shall not exceed in amount the moneys
distributed to the district pursuant to Section 2-3.77 as a
loan or grant.
    (f) If bonds under this Section have been issued by the
school district and the purposes for which the bonds have been
issued are accomplished and paid for in full and there remain
funds on hand from the proceeds of the bonds or interest
earnings or premiums, then the school board, by resolution,
shall transfer those excess funds to the district's bond and
interest fund for the purpose of abating taxes to pay debt
service on the bonds or for defeasance of the debt or both.
    (g) If the school district receives a construction grant
under the School Construction Law or any other law and the
purposes for which the grant was issued are accomplished and
paid for in full and there remains funds on hand from the grant
or interest earnings thereon, then the excess funds shall be
paid to the State of Illinois for deposit into the School
Construction Fund or other State fund from which the
construction grant was paid.
    (h) All insurance proceeds that become payable to the
school district under those provisions of a contract or policy
of insurance that provide reimbursement for or other coverage
against losses other than with respect to any temporary
relocation expenses of the district or proceeds of any legal
judgment or settlement regarding the repair, reconstruction,
or replacement of the condemned building shall be applied to
the repair, reconstruction, or replacement. If the project is
completed and, therefore, all costs have been paid for in full
and there remain funds on hand, including any interest earnings
thereon, from the insurance coverage, legal judgment, or
settlement, then a portion of those excess funds equal to the
State's share of the construction cost of the project shall be
paid to the State of Illinois for deposit into the School
Construction Fund or other State fund from which the
construction grant was paid, and the remainder of the excess
funds shall be transferred to the district's bond and interest
fund for the purpose of abating taxes to pay debt service on
the bonds or for defeasance of the debt or both. If no debt
service remains to be paid, then the excess may be transferred
to whichever fund that, as determined by the school board, is
most in need of the funds.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/1/2004