Bill Text: IL HB3644 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if, at the end of any levy year, a taxing district has reserves of 50% or more of its operating budget for that levy year, then, for the next levy year, "extension limitation" means 0% or the rate of increase approved by the voters. Preempts the power of home rule units to tax. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB3644 Detail]

Download: Illinois-2023-HB3644-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3644 Introduced , by Rep. Fred Crespo SYNOPSIS AS INTRODUCED:
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-242 new
30 ILCS 805/8.47 new
Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if, at the end of any levy year, a taxing district has reserves of 50% or more of its operating budget for that levy year, then, for the next levy year, "extension limitation" means 0% or the rate of increase approved by the voters. Preempts the power of home rule units to tax. Effective immediately.
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A BILL FOR
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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
Sections 18-185 and 18-205 and by adding Section 18-242 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, except as otherwise provided
in this Section, (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.
If, at the end of any levy year, any taxing district, as
defined in Section 1-150, has reserves of 50% or more of its
operating budget for that levy year, then, for the next levy
year, "extension limitation" means 0% or the rate of increase
approved by the voters under Section 18-205.

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"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. Beginning in levy year 2023,
"taxing district" also means any taxing district, as defined
in Section 1-150, that had reserves of 50% or more of its
operating budget at the end of the immediately preceding levy
year.
"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

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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

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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

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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 or this amendatory Act of the 103rd General Assembly)
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

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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; (h-8) made
for payments of principal and interest on bonds issued under
Section 9.6a of the Metropolitan Water Reclamation District
Act to make contributions to the pension fund established
under Article 13 of the Illinois Pension Code; (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

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subsections (h) and (h-8) 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 and bonds
issued under Section 20a of the Chicago Park District Act for
the purpose of making contributions to the pension fund
established under Article 12 of the Illinois Pension Code; (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

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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

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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

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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 or this amendatory Act of the
103rd General Assembly 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

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89-718); (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); (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) if the bonds were approved by referendum
after March 7, 1997 (the effective date of Public Act 89-718);
(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) 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) 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); (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

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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)

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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

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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, 18-206, and 18-233. Beginning with
levy year 2022, for taxing districts that are specified in
Section 18-190.7, the taxing district's aggregate extension
base shall be calculated as provided in Section 18-190.7. 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

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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

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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

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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 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

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established under the Tax Increment Allocation Redevelopment
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 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

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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

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tax year 2012.
(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff.
4-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22; revised
8-29-22.)
(35 ILCS 200/18-205)
Sec. 18-205. Referendum to increase the extension
limitation. A taxing district is limited to an extension
limitation as defined in Section 18-185 of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year, whichever is
less. A taxing district may increase its extension limitation
for one or more levy years if that taxing district holds a
referendum before the levy date for the first levy year at
which a majority of voters voting on the issue approves
adoption of a higher extension limitation. Referenda shall be
conducted at a regularly scheduled election in accordance with
the Election Code. The question shall be presented in
substantially the following manner for all elections held
after March 21, 2006:
Shall the extension limitation under the Property Tax
Extension Limitation Law for (insert the legal name,
number, if any, and county or counties of the taxing
district and geographic or other common name by which a
school or community college district is known and referred

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to), Illinois, be increased from the lesser of 5% or the
percentage increase in the Consumer Price Index over the
prior levy year to (insert the percentage of the proposed
increase)% per year for (insert each levy year for which
the increased extension limitation will apply)?
In the case of a taxing district that had reserves of 50%
or more of its operating budget at the end of the immediately
preceding levy year, the question shall be presented in
substantially the following manner:
Shall the extension limitation under the Property Tax
Extension Limitation Law for (insert the legal name,
number, if any, and county or counties of the taxing
district and geographic or other common name by which a
school or community college district is known and referred
to), Illinois, be increased from 0% to (insert the
percentage of the proposed increase)% per year for (insert
each levy year for which the increased extension
limitation will apply)?
The votes must be recorded as "Yes" or "No".
If a majority of voters voting on the issue approves the
adoption of the increase, the increase shall be applicable for
each levy year specified.
The ballot for any question submitted pursuant to this
Section shall have printed thereon, but not as a part of the
question submitted, only the following supplemental
information (which shall be supplied to the election authority

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by the taxing district) in substantially the following form:
(1) For the (insert the first levy year for which the
increased extension limitation will be applicable) levy
year the approximate amount of the additional tax
extendable against property containing a single family
residence and having a fair market value at the time of the
referendum of $100,000 is estimated to be $....
(2) Based upon an average annual percentage increase
(or decrease) in the market value of such property of ...%
(insert percentage equal to the average annual percentage
increase or decrease for the prior 3 levy years, at the
time the submission of the question is initiated by the
taxing district, in the amount of (A) the equalized
assessed value of the taxable property in the taxing
district less (B) the new property included in the
equalized assessed value), the approximate amount of the
additional tax extendable against such property for the
... levy year is estimated to be $... and for the ... levy
year is estimated to be $....
Paragraph (2) shall be included only if the increased
extension limitation will be applicable for more than one year
and shall list each levy year for which the increased
extension limitation will be applicable. The additional tax
shown for each levy year shall be the approximate dollar
amount of the increase over the amount of the most recently
completed extension at the time the submission of the question

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is initiated by the taxing district. The approximate amount of
the additional tax extendable shown in paragraphs (1) and (2)
shall be calculated by multiplying $100,000 (the fair market
value of the property without regard to any property tax
exemptions) by (i) the percentage level of assessment
prescribed for that property by statute, or by ordinance of
the county board in counties that classify property for
purposes of taxation in accordance with Section 4 of Article
IX of the Illinois Constitution; (ii) the most recent final
equalization factor certified to the county clerk by the
Department of Revenue at the time the taxing district
initiates the submission of the proposition to the electors;
(iii) the last known aggregate extension base of the taxing
district at the time the submission of the question is
initiated by the taxing district; and (iv) the difference
between the percentage increase proposed in the question and
(A) the lesser of 5% or the percentage increase in the Consumer
Price Index for the prior levy year (or an estimate of the
percentage increase for the prior levy year if the increase is
unavailable at the time the submission of the question is
initiated by the taxing district) or (B) 0%, as applicable;
and dividing the result by the last known equalized assessed
value of the taxing district at the time the submission of the
question is initiated by the taxing district. This amendatory
Act of the 97th General Assembly is intended to clarify the
existing requirements of this Section, and shall not be

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construed to validate any prior non-compliant referendum
language. Any notice required to be published in connection
with the submission of the question shall also contain this
supplemental information and shall not contain any other
supplemental information. Any error, miscalculation, or
inaccuracy in computing any amount set forth on the ballot or
in the notice that is not deliberate shall not invalidate or
affect the validity of any proposition approved. Notice of the
referendum shall be published and posted as otherwise required
by law, and the submission of the question shall be initiated
as provided by law.
(Source: P.A. 97-1087, eff. 8-24-12.)
(35 ILCS 200/18-242 new)
Sec. 18-242. Home rule. This Division 5 is a limitation,
under subsection (g) of Section 6 of Article VII of the
Illinois Constitution, on the power of home rule units to tax.
Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:
(30 ILCS 805/8.47 new)
Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.

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