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91_HB2744eng HB2744 Engrossed LRB9100172PTbd 1 AN ACT to amend the Property Tax Code by changing Section 2 18-185. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Property Tax Code is amended by changing 6 Section 18-185 as follows: 7 (35 ILCS 200/18-185) 8 Sec. 18-185. Short title; definitions. This Division 5 9Section and Sections 18-190 through 18-245may be cited as 10 the Property Tax Extension Limitation Law. As used in this 11 Division 5Sections 18-190 through 18-245: 12 "Consumer Price Index" means the Consumer Price Index for 13 All Urban Consumers for all items published by the United 14 States Department of Labor. 15 "Extension limitation" means (a) the lesser of 5% or the 16 percentage increase in the Consumer Price Index during the 17 12-month calendar year preceding the levy year or (b) the 18 rate of increase approved by voters under Section 18-205. 19 "Affected county" means a county of 3,000,000 or more 20 inhabitants or a county contiguous to a county of 3,000,000 21 or more inhabitants. 22 "Taxing district" has the same meaning provided in 23 Section 1-150, except as otherwise provided in this Section. 24 For the 1991 through 1994 levy years only, "taxing district" 25 includes only each non-home rule taxing district having the 26 majority of its 1990 equalized assessed value within any 27 county or counties contiguous to a county with 3,000,000 or 28 more inhabitants. Beginning with the 1995 levy year, "taxing 29 district" includes only each non-home rule taxing district 30 subject to this Law before the 1995 levy year and each 31 non-home rule taxing district not subject to this Law before HB2744 Engrossed -2- LRB9100172PTbd 1 the 1995 levy year having the majority of its 1994 equalized 2 assessed value in an affected county or counties. Beginning 3 with the levy year in which this Law becomes applicable to a 4 taxing district as provided in Section 18-213, "taxing 5 district" also includes those taxing districts made subject 6 to this Law as provided in Section 18-213. 7 "Aggregate extension" for taxing districts to which this 8 Law applied before the 1995 levy year means the annual 9 corporate extension for the taxing district and those special 10 purpose extensions that are made annually for the taxing 11 district, excluding special purpose extensions: (a) made for 12 the taxing district to pay interest or principal on general 13 obligation bonds that were approved by referendum; (b) made 14 for any taxing district to pay interest or principal on 15 general obligation bonds issued before October 1, 1991; (c) 16 made for any taxing district to pay interest or principal on 17 bonds issued to refund or continue to refund those bonds 18 issued before October 1, 1991; (d) made for any taxing 19 district to pay interest or principal on bonds issued to 20 refund or continue to refund bonds issued after October 1, 21 1991 that were approved by referendum; (e) made for any 22 taxing district to pay interest or principal on revenue bonds 23 issued before October 1, 1991 for payment of which a property 24 tax levy or the full faith and credit of the unit of local 25 government is pledged; however, a tax for the payment of 26 interest or principal on those bonds shall be made only after 27 the governing body of the unit of local government finds that 28 all other sources for payment are insufficient to make those 29 payments; (f) made for payments under a building commission 30 lease when the lease payments are for the retirement of bonds 31 issued by the commission before October 1, 1991, to pay for 32 the building project; (g) made for payments due under 33 installment contracts entered into before October 1, 1991; 34 (h) made for payments of principal and interest on bonds HB2744 Engrossed -3- LRB9100172PTbd 1 issued under the Metropolitan Water Reclamation District Act 2 to finance construction projects initiated before October 1, 3 1991; (i) made for payments of principal and interest on 4 limited bonds, as defined in Section 3 of the Local 5 Government Debt Reform Act, in an amount not to exceed the 6 debt service extension base less the amount in items (b), 7 (c), (e), and (h) of this definition for non-referendum 8 obligations, except obligations initially issued pursuant to 9 referendum; (j) made for payments of principal and interest 10 on bonds issued under Section 15 of the Local Government Debt 11 Reform Act; and (k) made by a school district that 12 participates in the Special Education District of Lake 13 County, created by special education joint agreement under 14 Section 10-22.31 of the School Code, for payment of the 15 school district's share of the amounts required to be 16 contributed by the Special Education District of Lake County 17 to the Illinois Municipal Retirement Fund under Article 7 of 18 the Illinois Pension Code; the amount of any extension under 19 this item (k) shall be certified by the school district to 20 the county clerk. 21 "Aggregate extension" for the taxing districts to which 22 this Law did not apply before the 1995 levy year (except 23 taxing districts subject to this Law in accordance with 24 Section 18-213) means the annual corporate extension for the 25 taxing district and those special purpose extensions that are 26 made annually for the taxing district, excluding special 27 purpose extensions: (a) made for the taxing district to pay 28 interest or principal on general obligation bonds that were 29 approved by referendum; (b) made for any taxing district to 30 pay interest or principal on general obligation bonds issued 31 before March 1, 1995; (c) made for any taxing district to pay 32 interest or principal on bonds issued to refund or continue 33 to refund those bonds issued before March 1, 1995; (d) made 34 for any taxing district to pay interest or principal on bonds HB2744 Engrossed -4- LRB9100172PTbd 1 issued to refund or continue to refund bonds issued after 2 March 1, 1995 that were approved by referendum; (e) made for 3 any taxing district to pay interest or principal on revenue 4 bonds issued before March 1, 1995 for payment of which a 5 property tax levy or the full faith and credit of the unit of 6 local government is pledged; however, a tax for the payment 7 of interest or principal on those bonds shall be made only 8 after the governing body of the unit of local government 9 finds that all other sources for payment are insufficient to 10 make those payments; (f) made for payments under a building 11 commission lease when the lease payments are for the 12 retirement of bonds issued by the commission before March 1, 13 1995 to pay for the building project; (g) made for payments 14 due under installment contracts entered into before March 1, 15 1995; (h) made for payments of principal and interest on 16 bonds issued under the Metropolitan Water Reclamation 17 District Act to finance construction projects initiated 18 before October 1, 1991; (i) made for payments of principal 19 and interest on limited bonds, as defined in Section 3 of the 20 Local Government Debt Reform Act, in an amount not to exceed 21 the debt service extension base less the amount in items (b), 22 (c), and (e) of this definition for non-referendum 23 obligations, except obligations initially issued pursuant to 24 referendum and bonds described in subsection (h) of this 25 definition; (j) made for payments of principal and interest 26 on bonds issued under Section 15 of the Local Government Debt 27 Reform Act; (k) made for payments of principal and interest 28 on bonds authorized by Public Act 88-503 and issued under 29 Section 20a of the Chicago Park District Act for aquarium or 30 museum projects; and (l) made for payments of principal and 31 interest on bonds authorized by Public Act 87-1191 and issued 32 under Section 42 of the Cook County Forest Preserve District 33 Act for zoological park projects. 34 "Aggregate extension" for all taxing districts to which HB2744 Engrossed -5- LRB9100172PTbd 1 this Law applies in accordance with Section 18-213, except 2 for those taxing districts subject to paragraph (2) of 3 subsection (e) of Section 18-213, means the annual corporate 4 extension for the taxing district and those special purpose 5 extensions that are made annually for the taxing district, 6 excluding special purpose extensions: (a) made for the taxing 7 district to pay interest or principal on general obligation 8 bonds that were approved by referendum; (b) made for any 9 taxing district to pay interest or principal on general 10 obligation bonds issued before the date on which the 11 referendum making this Law applicable to the taxing district 12 is held; (c) made for any taxing district to pay interest or 13 principal on bonds issued to refund or continue to refund 14 those bonds issued before the date on which the referendum 15 making this Law applicable to the taxing district is held; 16 (d) made for any taxing district to pay interest or principal 17 on bonds issued to refund or continue to refund bonds issued 18 after the date on which the referendum making this Law 19 applicable to the taxing district is held if the bonds were 20 approved by referendum after the date on which the referendum 21 making this Law applicable to the taxing district is held; 22 (e) made for any taxing district to pay interest or principal 23 on revenue bonds issued before the date on which the 24 referendum making this Law applicable to the taxing district 25 is held for payment of which a property tax levy or the full 26 faith and credit of the unit of local government is pledged; 27 however, a tax for the payment of interest or principal on 28 those bonds shall be made only after the governing body of 29 the unit of local government finds that all other sources for 30 payment are insufficient to make those payments; (f) made for 31 payments under a building commission lease when the lease 32 payments are for the retirement of bonds issued by the 33 commission before the date on which the referendum making 34 this Law applicable to the taxing district is held to pay for HB2744 Engrossed -6- LRB9100172PTbd 1 the building project; (g) made for payments due under 2 installment contracts entered into before the date on which 3 the referendum making this Law applicable to the taxing 4 district is held; (h) made for payments of principal and 5 interest on limited bonds, as defined in Section 3 of the 6 Local Government Debt Reform Act, in an amount not to exceed 7 the debt service extension base less the amount in items (b), 8 (c), and (e) of this definition for non-referendum 9 obligations, except obligations initially issued pursuant to 10 referendum; (i) made for payments of principal and interest 11 on bonds issued under Section 15 of the Local Government Debt 12 Reform Act; and (j) made for a qualified airport authority to 13 pay interest or principal on general obligation bonds issued 14 for the purpose of paying obligations due under, or financing 15 airport facilities required to be acquired, constructed, 16 installed or equipped pursuant to, contracts entered into 17 before March 1, 1996 (but not including any amendments to 18 such a contract taking effect on or after that date). 19 "Aggregate extension" for all taxing districts to which 20 this Law applies in accordance with paragraph (2) of 21 subsection (e) of Section 18-213 means the annual corporate 22 extension for the taxing district and those special purpose 23 extensions that are made annually for the taxing district, 24 excluding special purpose extensions: (a) made for the taxing 25 district to pay interest or principal on general obligation 26 bonds that were approved by referendum; (b) made for any 27 taxing district to pay interest or principal on general 28 obligation bonds issued before the effective date of this 29 amendatory Act of 1997; (c) made for any taxing district to 30 pay interest or principal on bonds issued to refund or 31 continue to refund those bonds issued before the effective 32 date of this amendatory Act of 1997; (d) made for any taxing 33 district to pay interest or principal on bonds issued to 34 refund or continue to refund bonds issued after the effective HB2744 Engrossed -7- LRB9100172PTbd 1 date of this amendatory Act of 1997 if the bonds were 2 approved by referendum after the effective date of this 3 amendatory Act of 1997; (e) made for any taxing district to 4 pay interest or principal on revenue bonds issued before the 5 effective date of this amendatory Act of 1997 for payment of 6 which a property tax levy or the full faith and credit of the 7 unit of local government is pledged; however, a tax for the 8 payment of interest or principal on those bonds shall be made 9 only after the governing body of the unit of local government 10 finds that all other sources for payment are insufficient to 11 make those payments; (f) made for payments under a building 12 commission lease when the lease payments are for the 13 retirement of bonds issued by the commission before the 14 effective date of this amendatory Act of 1997 to pay for the 15 building project; (g) made for payments due under installment 16 contracts entered into before the effective date of this 17 amendatory Act of 1997; (h) made for payments of principal 18 and interest on limited bonds, as defined in Section 3 of the 19 Local Government Debt Reform Act, in an amount not to exceed 20 the debt service extension base less the amount in items (b), 21 (c), and (e) of this definition for non-referendum 22 obligations, except obligations initially issued pursuant to 23 referendum; (i) made for payments of principal and interest 24 on bonds issued under Section 15 of the Local Government Debt 25 Reform Act; and (j) made for a qualified airport authority to 26 pay interest or principal on general obligation bonds issued 27 for the purpose of paying obligations due under, or financing 28 airport facilities required to be acquired, constructed, 29 installed or equipped pursuant to, contracts entered into 30 before March 1, 1996 (but not including any amendments to 31 such a contract taking effect on or after that date). 32 "Debt service extension base" means an amount equal to 33 that portion of the extension for a taxing district for the 34 1994 levy year, or for those taxing districts subject to this HB2744 Engrossed -8- LRB9100172PTbd 1 Law in accordance with Section 18-213, except for those 2 subject to paragraph (2) of subsection (e) of Section 18-213, 3 for the levy year in which the referendum making this Law 4 applicable to the taxing district is held, or for those 5 taxing districts subject to this Law in accordance with 6 paragraph (2) of subsection (e) of Section 18-213 for the 7 1996 levy year, constituting an extension for payment of 8 principal and interest on bonds issued by the taxing district 9 without referendum, but not including (i) bonds authorized by 10 Public Act 88-503 and issued under Section 20a of the Chicago 11 Park District Act for aquarium and museum projects; (ii) 12 bonds issued under Section 15 of the Local Government Debt 13 Reform Act; or (iii) refunding obligations issued to refund 14 or to continue to refund obligations initially issued 15 pursuant to referendum. The debt service extension base may 16 be established or increased as provided under Section 18-212. 17 "Special purpose extensions" include, but are not limited 18 to, extensions for levies made on an annual basis for 19 unemployment and workers' compensation, self-insurance, 20 contributions to pension plans, and extensions made pursuant 21 to Section 6-601 of the Illinois Highway Code for a road 22 district's permanent road fund whether levied annually or 23 not. The extension for a special service area is not 24 included in the aggregate extension. 25 "Aggregate extension base" means the taxing district's 26 last preceding aggregate extension as adjusted under Sections 27 18-215 through 18-230. 28 "Levy year" has the same meaning as "year" under Section 29 1-155. 30 "New property" means (i) the assessed value, after final 31 board of review or board of appeals action, of new 32 improvements or additions to existing improvements on any 33 parcel of real property that increase the assessed value of 34 that real property during the levy year multiplied by the HB2744 Engrossed -9- LRB9100172PTbd 1 equalization factor issued by the Department under Section 2 17-30;and(ii) the assessed value, after final board of 3 review or board of appeals action, of real property not 4 exempt from real estate taxation, which real property was 5 exempt from real estate taxation for any portion of the 6 immediately preceding levy year, multiplied by the 7 equalization factor issued by the Department under Section 8 17-30; and (iii) the assessed value, after final board of 9 review action, of residential real property not exempt from 10 real estate taxation, which real property was exempt from 11 real estate taxation as part of the federal property that was 12 commonly known as the Chanute Air Force Base for levy years 13 preceding the effective date (December 23, 1993) of the 14 Chanute Air Force Base Retrocession Law, multiplied by the 15 equalization factor issued by the Department under Section 16 17-30. In addition, the county clerk in a county containing 17 a population of 3,000,000 or more shall include in the 1997 18 recovered tax increment value for any school district, any 19 recovered tax increment value that was applicable to the 1995 20 tax year calculations. 21 "Qualified airport authority" means an airport authority 22 organized under the Airport Authorities Act and located in a 23 county bordering on the State of Wisconsin and having a 24 population in excess of 200,000 and not greater than 500,000. 25 "Recovered tax increment value" means the amount of the 26 current year's equalized assessed value, in the first year 27 after a municipality terminates the designation of an area as 28 a redevelopment project area previously established under the 29 Tax Increment Allocation Development Act in the Illinois 30 Municipal Code, previously established under the Industrial 31 Jobs Recovery Law in the Illinois Municipal Code, or 32 previously established under the Economic Development Area 33 Tax Increment Allocation Act, of each taxable lot, block, 34 tract, or parcel of real property in the redevelopment HB2744 Engrossed -10- LRB9100172PTbd 1 project area over and above the initial equalized assessed 2 value of each property in the redevelopment project area. 3 For the taxes which are extended for the 1997 levy year, the 4 recovered tax increment value for a non-home rule taxing 5 district that first became subject to this Law for the 1995 6 levy year because a majority of its 1994 equalized assessed 7 value was in an affected county or counties shall be 8 increased if a municipality terminated the designation of an 9 area in 1993 as a redevelopment project area previously 10 established under the Tax Increment Allocation Development 11 Act in the Illinois Municipal Code, previously established 12 under the Industrial Jobs Recovery Law in the Illinois 13 Municipal Code, or previously established under the Economic 14 Development Area Tax Increment Allocation Act, by an amount 15 equal to the 1994 equalized assessed value of each taxable 16 lot, block, tract, or parcel of real property in the 17 redevelopment project area over and above the initial 18 equalized assessed value of each property in the 19 redevelopment project area. 20 Except as otherwise provided in this Section, "limiting 21 rate" means a fraction the numerator of which is the last 22 preceding aggregate extension base times an amount equal to 23 one plus the extension limitation defined in this Section and 24 the denominator of which is the current year's equalized 25 assessed value of all real property in the territory under 26 the jurisdiction of the taxing district during the prior levy 27 year. For those taxing districts that reduced their 28 aggregate extension for the last preceding levy year, the 29 highest aggregate extension in any of the last 3 preceding 30 levy years shall be used for the purpose of computing the 31 limiting rate. The denominator shall not include new 32 property. The denominator shall not include the recovered 33 tax increment value. 34 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95; HB2744 Engrossed -11- LRB9100172PTbd 1 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff. 2 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485, 3 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99; 4 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised 5 10-28-98.)