Public Act 103-0587

HB4284 EnrolledLRB103 35682 HLH 65757 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; (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 
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); (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 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, 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 
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, 
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 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 
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 
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.)