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| Public Act 103-0587
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| HB4284 Enrolled | LRB103 35682 HLH 65757 b |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Property Tax Code is amended by changing |
Section 18-185 as follows:
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(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 |
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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, |
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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 |
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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 |
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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 |
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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 |
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 |
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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 |
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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 |
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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 |
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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); (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 |
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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 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 |
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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 |
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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. |
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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 |
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 |
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District No. 31 in Cook County shall be $12,654,592. |
Notwithstanding any other provision of law, for the |
purpose of calculating the limiting rate for levy year 2023, |
the last preceding aggregate extension base for Homewood |
School District No. |
153 in Cook County shall be $19,535,377. |
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, |
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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 |
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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 |
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 |
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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 |
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 |
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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. 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; |
103-154, eff. 6-30-23.)
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