Public Act 102-0311
 
SB1138 EnrolledLRB102 04968 HLH 14987 b



    AN ACT concerning revenue.

 
    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; (l) made to fund
expenses of providing joint 
recreational programs for persons with disabilities 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;  (n) made for payment of principal 
and interest on any bonds issued under the authority of 
Section 17-2.2d of the School Code; (o) made for contributions 
to a firefighter's pension fund created under Article 4 of the 
Illinois Pension Code, to the extent of the amount certified 
under item (5) of Section 4-134 of the Illinois Pension Code; 
and (p) made for road purposes in the first year after a 
township assumes the rights, powers, duties, assets, property, 
liabilities, obligations, and
responsibilities of a road 
district abolished under the provisions of Section 6-133 of  
the Illinois Highway 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; (h-4) 
made for stormwater management purposes by the Metropolitan 
Water Reclamation District of Greater Chicago under Section 12 
of the Metropolitan Water Reclamation District Act; (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 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 persons with disabilities under 
Section 5-8 of the Park
District Code or Section 11-95-14 of 
the Illinois Municipal Code;
 (o) made by the
Chicago Park

District for recreational programs for persons with 
disabilities under subsection (c) of
Section
7.06 of the 
Chicago Park District Act; (p) made for contributions to a 
firefighter's pension fund created under Article 4 of the 
Illinois Pension Code, to the extent of the amount certified 
under item (5) of Section 4-134 of the Illinois Pension Code; 
(q) made by Ford Heights School District 169 under Section 
17-9.02 of the School Code; and (r) made for the purpose of 
making employer contributions to the Public School Teachers' 
Pension and Retirement Fund of Chicago under Section 34-53 of 
the School Code.


    "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); (k) made to 
fund expenses of providing joint
recreational programs for 
persons with disabilities under Section 5-8 of
the
Park 
District Code or Section 11-95-14 of the Illinois Municipal 
Code; (l) made for contributions to a firefighter's pension 
fund created under Article 4 of the Illinois Pension Code, to 
the extent of the amount certified under item (5) of Section 
4-134 of the Illinois Pension Code; and (m) made for the taxing 
district to pay interest or principal on general obligation 
bonds issued pursuant to Section 19-3.10 of the School 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 March 7, 1997 (the effective 
date of Public Act 89-718)
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 March 7, 1997 (the effective date
of Public Act 
89-718) 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 March 7, 1997 
(the effective date of Public Act 89-718) this amendatory Act

of 1997 if the bonds were approved by referendum after March 7, 
1997 (the effective date of Public Act 89-718)
this amendatory 
Act of 1997;
(e) made for any
taxing district to pay interest 
or principal on
revenue bonds issued before March 7, 1997 (the 
effective date of Public Act 89-718) 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 March 7, 1997 (the effective date
of Public 
Act 89-718) this amendatory Act of 1997
to
pay for the building 
project; (g) made for payments due under installment
contracts 
entered into before March 7, 1997 (the effective date of 
Public Act 89-718) 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); (k) made to fund expenses of providing joint

recreational programs for persons with disabilities under 
Section 5-8 of
the
Park District Code or Section 11-95-14 of 
the Illinois Municipal Code; and (l) made for contributions to 
a firefighter's pension fund created under Article 4 of the 
Illinois Pension Code, to the extent of the amount certified 
under item (5) of Section 4-134 of the Illinois Pension 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).  
A debt service extension base established or increased at any 
time pursuant to any provision of this Law, except Section 
18-212, shall be increased each year commencing with the later 
of (i) the 2009 levy year or (ii) the first levy year in which 
this Law becomes applicable to the taxing district, by the 
lesser of 5% or the percentage increase in the Consumer Price 
Index during the 12-month calendar year preceding the levy 
year. 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 
18-135, 18-215,
 18-230, and 18-206.
 An adjustment under 
Section 18-135 shall be made for the 2007 levy year and all 
subsequent levy years whenever one or more counties within 
which a taxing district is located (i) used estimated 
valuations or rates when extending taxes in the taxing 
district for the last preceding levy year that resulted in the 
over or under extension of taxes, or (ii) increased or 
decreased the tax extension for the last preceding levy year 
as required by Section 18-135(c). Whenever an adjustment is 
required under Section 18-135, the aggregate extension base of 
the taxing district shall be equal to the amount that the 
aggregate extension of the taxing district would have been for 
the last preceding levy year if either or both (i) actual, 
rather than estimated, valuations or rates had been used to 
calculate the extension of taxes for the last levy year, or 
(ii) the tax extension for the last preceding levy year had not 
been adjusted as required by subsection (c) of Section 18-135.

    Notwithstanding any other provision of law, for levy year 
2012, the aggregate extension base for West Northfield School 
District No. 31 in Cook County shall be $12,654,592. 
    Notwithstanding any other provision of law, for levy year 
2022, the aggregate extension base of a home equity assurance 
program that levied at least $1,000,000 in property taxes in 
levy year 2019 or 2020 under the Home Equity Assurance Act 
shall be the amount that the program's aggregate extension 
base for levy year 2021 would have been if the program had 
levied  a property tax for levy year 2021. 
    "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, including the assessed value, 
upon final stabilization of occupancy after new construction 
is complete, of any real property located within the 
boundaries of an otherwise or previously exempt military 
reservation that is intended for residential use and owned by 
or leased to a private corporation or other entity,
(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, and (iv) any increase in 
assessed value due to oil or gas production from an oil or gas 
well required to be permitted under the Hydraulic Fracturing 
Regulatory Act that was not produced in or accounted for 
during the previous levy year.
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 Redevelopment Development Act in the 
Illinois
Municipal Code, previously established under the 
Industrial Jobs Recovery Law
in the Illinois Municipal Code, 
previously established under the Economic Development Project 
Area Tax Increment Act of 1995, 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 
Redevelopment
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 Redevelopment
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, except for school 
districts that reduced their extension for educational 
purposes pursuant to Section 18-206, 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 or the recovered 
tax increment
value.
If a new rate, a rate decrease, or a 
limiting rate increase has been approved at an election held 
after March 21, 2006, then (i) the otherwise applicable 
limiting rate shall be increased by the amount of the new rate 
or shall be reduced by the amount of the rate decrease, as the 
case may be, or (ii) in the case of a limiting rate increase, 
the limiting rate shall be equal to the rate set forth
in the 
proposition approved by the voters for each of the years 
specified in the proposition, after
which the limiting rate of 
the taxing district shall be calculated as otherwise provided. 
In the case of a taxing district that obtained referendum 
approval for an increased limiting rate on March 20, 2012, the 
limiting rate for tax year 2012 shall be the rate that 
generates the approximate total amount of taxes extendable for 
that tax year, as set forth in the proposition approved by the 
voters; this rate shall be the final rate applied by the county 
clerk for the aggregate of all capped funds of the district for 
tax year 2012.

(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17; 
100-465, eff. 8-31-17; revised 8-12-19.)

 
    Section 10. The Home Equity Assurance Act is amended  by 
adding Section 4.3 as follows:
 
    (65 ILCS 95/4.3  new)
    Sec. 4.3. Tax levies for levy year 2021.
    (a) Notwithstanding any other provision of law, the 
governing commission of a home equity assurance program that 
levied at least $1,000,000 in property taxes in levy year 2019 
or 2020 may not levy any property tax in levy year 2021.
    (b) This Section is repealed January 1, 2025.
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.