Bill Text: IL SB2256 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that no referendum to increase a limiting rate may be submitted to the voters on or after January 1, 2014. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Failed) 2015-01-13 - Session Sine Die [SB2256 Detail]

Download: Illinois-2013-SB2256-Amended.html

Sen. Don Harmon

Filed: 3/6/2013

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1
AMENDMENT TO SENATE BILL 2256
2 AMENDMENT NO. ______. Amend Senate Bill 2256 by replacing
3everything after the enacting clause with the following:
4 "Section 5. The Property Tax Code is amended by changing
5Section 18-185 as follows:
6 (35 ILCS 200/18-185)
7 Sec. 18-185. Short title; definitions. This Division 5 may
8be cited as the Property Tax Extension Limitation Law. As used
9in this Division 5:
10 "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13 "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year or (b) the rate
16of increase approved by voters under Section 18-205.

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1 "Affected county" means a county of 3,000,000 or more
2inhabitants or a county contiguous to a county of 3,000,000 or
3more inhabitants.
4 "Taxing district" has the same meaning provided in Section
51-150, except as otherwise provided in this Section. For the
61991 through 1994 levy years only, "taxing district" includes
7only each non-home rule taxing district having the majority of
8its 1990 equalized assessed value within any county or counties
9contiguous to a county with 3,000,000 or more inhabitants.
10Beginning with the 1995 levy year, "taxing district" includes
11only each non-home rule taxing district subject to this Law
12before the 1995 levy year and each non-home rule taxing
13district not subject to this Law before the 1995 levy year
14having the majority of its 1994 equalized assessed value in an
15affected county or counties. Beginning with the levy year in
16which this Law becomes applicable to a taxing district as
17provided in Section 18-213, "taxing district" also includes
18those taxing districts made subject to this Law as provided in
19Section 18-213.
20 "Aggregate extension" for taxing districts to which this
21Law applied before the 1995 levy year means the annual
22corporate extension for the taxing district and those special
23purpose extensions that are made annually for the taxing
24district, excluding special purpose extensions: (a) made for
25the taxing district to pay interest or principal on general
26obligation bonds that were approved by referendum; (b) made for

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1any taxing district to pay interest or principal on general
2obligation bonds issued before October 1, 1991; (c) made for
3any taxing district to pay interest or principal on bonds
4issued to refund or continue to refund those bonds issued
5before October 1, 1991; (d) made for any taxing district to pay
6interest or principal on bonds issued to refund or continue to
7refund bonds issued after October 1, 1991 that were approved by
8referendum; (e) made for any taxing district to pay interest or
9principal on revenue bonds issued before October 1, 1991 for
10payment of which a property tax levy or the full faith and
11credit of the unit of local government is pledged; however, a
12tax for the payment of interest or principal on those bonds
13shall be made only after the governing body of the unit of
14local government finds that all other sources for payment are
15insufficient to make those payments; (f) made for payments
16under a building commission lease when the lease payments are
17for the retirement of bonds issued by the commission before
18October 1, 1991, to pay for the building project; (g) made for
19payments due under installment contracts entered into before
20October 1, 1991; (h) made for payments of principal and
21interest on bonds issued under the Metropolitan Water
22Reclamation District Act to finance construction projects
23initiated before October 1, 1991; (i) made for payments of
24principal and interest on limited bonds, as defined in Section
253 of the Local Government Debt Reform Act, in an amount not to
26exceed the debt service extension base less the amount in items

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1(b), (c), (e), and (h) of this definition for non-referendum
2obligations, except obligations initially issued pursuant to
3referendum; (j) made for payments of principal and interest on
4bonds issued under Section 15 of the Local Government Debt
5Reform Act; (k) made by a school district that participates in
6the Special Education District of Lake County, created by
7special education joint agreement under Section 10-22.31 of the
8School Code, for payment of the school district's share of the
9amounts required to be contributed by the Special Education
10District of Lake County to the Illinois Municipal Retirement
11Fund under Article 7 of the Illinois Pension Code; the amount
12of any extension under this item (k) shall be certified by the
13school district to the county clerk; (l) made to fund expenses
14of providing joint recreational programs for the handicapped
15under Section 5-8 of the Park District Code or Section 11-95-14
16of the Illinois Municipal Code; (m) made for temporary
17relocation loan repayment purposes pursuant to Sections 2-3.77
18and 17-2.2d of the School Code; (n) made for payment of
19principal and interest on any bonds issued under the authority
20of Section 17-2.2d of the School Code; (o) made for
21contributions to a firefighter's pension fund created under
22Article 4 of the Illinois Pension Code, to the extent of the
23amount certified under item (5) of Section 4-134 of the
24Illinois Pension Code; and (p) made for road purposes in the
25first year after a township assumes the rights, powers, duties,
26assets, property, liabilities, obligations, and

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1responsibilities of a road district abolished under the
2provisions of Section 6-133 of the Illinois Highway Code.
3 "Aggregate extension" for the taxing districts to which
4this Law did not apply before the 1995 levy year (except taxing
5districts subject to this Law in accordance with Section
618-213) means the annual corporate extension for the taxing
7district and those special purpose extensions that are made
8annually for the taxing district, excluding special purpose
9extensions: (a) made for the taxing district to pay interest or
10principal on general obligation bonds that were approved by
11referendum; (b) made for any taxing district to pay interest or
12principal on general obligation bonds issued before March 1,
131995; (c) made for any taxing district to pay interest or
14principal on bonds issued to refund or continue to refund those
15bonds issued before March 1, 1995; (d) made for any taxing
16district to pay interest or principal on bonds issued to refund
17or continue to refund bonds issued after March 1, 1995 that
18were approved by referendum; (e) made for any taxing district
19to pay interest or principal on revenue bonds issued before
20March 1, 1995 for payment of which a property tax levy or the
21full faith and credit of the unit of local government is
22pledged; however, a tax for the payment of interest or
23principal on those bonds shall be made only after the governing
24body of the unit of local government finds that all other
25sources for payment are insufficient to make those payments;
26(f) made for payments under a building commission lease when

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1the lease payments are for the retirement of bonds issued by
2the commission before March 1, 1995 to pay for the building
3project; (g) made for payments due under installment contracts
4entered into before March 1, 1995; (h) made for payments of
5principal and interest on bonds issued under the Metropolitan
6Water Reclamation District Act to finance construction
7projects initiated before October 1, 1991; (h-4) made for
8stormwater management purposes by the Metropolitan Water
9Reclamation District of Greater Chicago under Section 12 of the
10Metropolitan Water Reclamation District Act; (i) made for
11payments of principal and interest on limited bonds, as defined
12in Section 3 of the Local Government Debt Reform Act, in an
13amount not to exceed the debt service extension base less the
14amount in items (b), (c), and (e) of this definition for
15non-referendum obligations, except obligations initially
16issued pursuant to referendum and bonds described in subsection
17(h) of this definition; (j) made for payments of principal and
18interest on bonds issued under Section 15 of the Local
19Government Debt Reform Act; (k) made for payments of principal
20and interest on bonds authorized by Public Act 88-503 and
21issued under Section 20a of the Chicago Park District Act for
22aquarium or museum projects; (l) made for payments of principal
23and interest on bonds authorized by Public Act 87-1191 or
2493-601 and (i) issued pursuant to Section 21.2 of the Cook
25County Forest Preserve District Act, (ii) issued under Section
2642 of the Cook County Forest Preserve District Act for

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1zoological park projects, or (iii) issued under Section 44.1 of
2the Cook County Forest Preserve District Act for botanical
3gardens projects; (m) made pursuant to Section 34-53.5 of the
4School Code, whether levied annually or not; (n) made to fund
5expenses of providing joint recreational programs for the
6handicapped under Section 5-8 of the Park District Code or
7Section 11-95-14 of the Illinois Municipal Code; (o) made by
8the Chicago Park District for recreational programs for the
9handicapped under subsection (c) of Section 7.06 of the Chicago
10Park District Act; (p) made for contributions to a
11firefighter's pension fund created under Article 4 of the
12Illinois Pension Code, to the extent of the amount certified
13under item (5) of Section 4-134 of the Illinois Pension Code;
14and (q) made by Ford Heights School District 169 under Section
1517-9.02 of the School Code.
16 "Aggregate extension" for all taxing districts to which
17this Law applies in accordance with Section 18-213, except for
18those taxing districts subject to paragraph (2) of subsection
19(e) of Section 18-213, means the annual corporate extension for
20the taxing district and those special purpose extensions that
21are made annually for the taxing district, excluding special
22purpose extensions: (a) made for the taxing district to pay
23interest or principal on general obligation bonds that were
24approved by referendum; (b) made for any taxing district to pay
25interest or principal on general obligation bonds issued before
26the date on which the referendum making this Law applicable to

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1the taxing district is held; (c) made for any taxing district
2to pay interest or principal on bonds issued to refund or
3continue to refund those bonds issued before the date on which
4the referendum making this Law applicable to the taxing
5district is held; (d) made for any taxing district to pay
6interest or principal on bonds issued to refund or continue to
7refund bonds issued after the date on which the referendum
8making this Law applicable to the taxing district is held if
9the bonds were approved by referendum after the date on which
10the referendum making this Law applicable to the taxing
11district is held; (e) made for any taxing district to pay
12interest or principal on revenue bonds issued before the date
13on which the referendum making this Law applicable to the
14taxing district is held for payment of which a property tax
15levy or the full faith and credit of the unit of local
16government is pledged; however, a tax for the payment of
17interest or principal on those bonds shall be made only after
18the governing body of the unit of local government finds that
19all other sources for payment are insufficient to make those
20payments; (f) made for payments under a building commission
21lease when the lease payments are for the retirement of bonds
22issued by the commission before the date on which the
23referendum making this Law applicable to the taxing district is
24held to pay for the building project; (g) made for payments due
25under installment contracts entered into before the date on
26which the referendum making this Law applicable to the taxing

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1district is held; (h) made for payments of principal and
2interest on limited bonds, as defined in Section 3 of the Local
3Government Debt Reform Act, in an amount not to exceed the debt
4service extension base less the amount in items (b), (c), and
5(e) of this definition for non-referendum obligations, except
6obligations initially issued pursuant to referendum; (i) made
7for payments of principal and interest on bonds issued under
8Section 15 of the Local Government Debt Reform Act; (j) made
9for a qualified airport authority to pay interest or principal
10on general obligation bonds issued for the purpose of paying
11obligations due under, or financing airport facilities
12required to be acquired, constructed, installed or equipped
13pursuant to, contracts entered into before March 1, 1996 (but
14not including any amendments to such a contract taking effect
15on or after that date); (k) made to fund expenses of providing
16joint recreational programs for the handicapped under Section
175-8 of the Park District Code or Section 11-95-14 of the
18Illinois Municipal Code; (l) made for contributions to a
19firefighter's pension fund created under Article 4 of the
20Illinois Pension Code, to the extent of the amount certified
21under item (5) of Section 4-134 of the Illinois Pension Code;
22and (m) made for the taxing district to pay interest or
23principal on general obligation bonds issued pursuant to
24Section 19-3.10 of the School Code.
25 "Aggregate extension" for all taxing districts to which
26this Law applies in accordance with paragraph (2) of subsection

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1(e) of Section 18-213 means the annual corporate extension for
2the taxing district and those special purpose extensions that
3are made annually for the taxing district, excluding special
4purpose extensions: (a) made for the taxing district to pay
5interest or principal on general obligation bonds that were
6approved by referendum; (b) made for any taxing district to pay
7interest or principal on general obligation bonds issued before
8the effective date of this amendatory Act of 1997; (c) made for
9any taxing district to pay interest or principal on bonds
10issued to refund or continue to refund those bonds issued
11before the effective date of this amendatory Act of 1997; (d)
12made for any taxing district to pay interest or principal on
13bonds issued to refund or continue to refund bonds issued after
14the effective date of this amendatory Act of 1997 if the bonds
15were approved by referendum after the effective date of this
16amendatory Act of 1997; (e) made for any taxing district to pay
17interest or principal on revenue bonds issued before the
18effective date of this amendatory Act of 1997 for payment of
19which a property tax levy or the full faith and credit of the
20unit of local government is pledged; however, a tax for the
21payment of interest or principal on those bonds shall be made
22only after the governing body of the unit of local government
23finds that all other sources for payment are insufficient to
24make those payments; (f) made for payments under a building
25commission lease when the lease payments are for the retirement
26of bonds issued by the commission before the effective date of

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1this amendatory Act of 1997 to pay for the building project;
2(g) made for payments due under installment contracts entered
3into before the effective date of this amendatory Act of 1997;
4(h) made for payments of principal and interest on limited
5bonds, as defined in Section 3 of the Local Government Debt
6Reform Act, in an amount not to exceed the debt service
7extension base less the amount in items (b), (c), and (e) of
8this definition for non-referendum obligations, except
9obligations initially issued pursuant to referendum; (i) made
10for payments of principal and interest on bonds issued under
11Section 15 of the Local Government Debt Reform Act; (j) made
12for a qualified airport authority to pay interest or principal
13on general obligation bonds issued for the purpose of paying
14obligations due under, or financing airport facilities
15required to be acquired, constructed, installed or equipped
16pursuant to, contracts entered into before March 1, 1996 (but
17not including any amendments to such a contract taking effect
18on or after that date); (k) made to fund expenses of providing
19joint recreational programs for the handicapped under Section
205-8 of the Park District Code or Section 11-95-14 of the
21Illinois Municipal Code; and (l) made for contributions to a
22firefighter's pension fund created under Article 4 of the
23Illinois Pension Code, to the extent of the amount certified
24under item (5) of Section 4-134 of the Illinois Pension Code.
25 "Debt service extension base" means an amount equal to that
26portion of the extension for a taxing district for the 1994

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1levy year, or for those taxing districts subject to this Law in
2accordance with Section 18-213, except for those subject to
3paragraph (2) of subsection (e) of Section 18-213, for the levy
4year in which the referendum making this Law applicable to the
5taxing district is held, or for those taxing districts subject
6to this Law in accordance with paragraph (2) of subsection (e)
7of Section 18-213 for the 1996 levy year, constituting an
8extension for payment of principal and interest on bonds issued
9by the taxing district without referendum, but not including
10excluded non-referendum bonds. For park districts (i) that were
11first subject to this Law in 1991 or 1995 and (ii) whose
12extension for the 1994 levy year for the payment of principal
13and interest on bonds issued by the park district without
14referendum (but not including excluded non-referendum bonds)
15was less than 51% of the amount for the 1991 levy year
16constituting an extension for payment of principal and interest
17on bonds issued by the park district without referendum (but
18not including excluded non-referendum bonds), "debt service
19extension base" means an amount equal to that portion of the
20extension for the 1991 levy year constituting an extension for
21payment of principal and interest on bonds issued by the park
22district without referendum (but not including excluded
23non-referendum bonds). A debt service extension base
24established or increased at any time pursuant to any provision
25of this Law, except Section 18-212, shall be increased each
26year commencing with the later of (i) the 2009 levy year or

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1(ii) the first levy year in which this Law becomes applicable
2to the taxing district, by the lesser of 5% or the percentage
3increase in the Consumer Price Index during the 12-month
4calendar year preceding the levy year. The debt service
5extension base may be established or increased as provided
6under Section 18-212. "Excluded non-referendum bonds" means
7(i) bonds authorized by Public Act 88-503 and issued under
8Section 20a of the Chicago Park District Act for aquarium and
9museum projects; (ii) bonds issued under Section 15 of the
10Local Government Debt Reform Act; or (iii) refunding
11obligations issued to refund or to continue to refund
12obligations initially issued pursuant to referendum.
13 "Special purpose extensions" include, but are not limited
14to, extensions for levies made on an annual basis for
15unemployment and workers' compensation, self-insurance,
16contributions to pension plans, and extensions made pursuant to
17Section 6-601 of the Illinois Highway Code for a road
18district's permanent road fund whether levied annually or not.
19The extension for a special service area is not included in the
20aggregate extension.
21 "Aggregate extension base" means: (i) for levy years before
222014, the taxing district's last preceding aggregate extension
23as adjusted under Sections 18-135, 18-215, and 18-230; and (ii)
24for levy years 2014 and later, the greater of (A) the taxing
25district's aggregate extension limit; or (B) the taxing
26district's last preceding aggregate extension as adjusted

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1under Sections 18-135, 18-215, and 18-230. An adjustment under
2Section 18-135 shall be made for the 2007 levy year and all
3subsequent levy years whenever one or more counties within
4which a taxing district is located (i) used estimated
5valuations or rates when extending taxes in the taxing district
6for the last preceding levy year that resulted in the over or
7under extension of taxes, or (ii) increased or decreased the
8tax extension for the last preceding levy year as required by
9Section 18-135(c). Whenever an adjustment is required under
10Section 18-135, the aggregate extension base of the taxing
11district shall be equal to the amount that the aggregate
12extension of the taxing district would have been for the last
13preceding levy year if either or both (i) actual, rather than
14estimated, valuations or rates had been used to calculate the
15extension of taxes for the last levy year, or (ii) the tax
16extension for the last preceding levy year had not been
17adjusted as required by subsection (c) of Section 18-135.
18 "Aggregate extension limit" means the district's last
19preceding aggregate extension if the taxing district had
20utilized the maximum limiting rate permitted without
21referendum.
22 Notwithstanding any other provision of law, for levy year
232012, the aggregate extension base for West Northfield School
24District No. 31 in Cook County shall be $12,654,592.
25 "Levy year" has the same meaning as "year" under Section
261-155.

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1 "New property" means (i) the assessed value, after final
2board of review or board of appeals action, of new improvements
3or additions to existing improvements on any parcel of real
4property that increase the assessed value of that real property
5during the levy year multiplied by the equalization factor
6issued by the Department under Section 17-30, (ii) the assessed
7value, after final board of review or board of appeals action,
8of real property not exempt from real estate taxation, which
9real property was exempt from real estate taxation for any
10portion of the immediately preceding levy year, multiplied by
11the equalization factor issued by the Department under Section
1217-30, including the assessed value, upon final stabilization
13of occupancy after new construction is complete, of any real
14property located within the boundaries of an otherwise or
15previously exempt military reservation that is intended for
16residential use and owned by or leased to a private corporation
17or other entity, and (iii) in counties that classify in
18accordance with Section 4 of Article IX of the Illinois
19Constitution, an incentive property's additional assessed
20value resulting from a scheduled increase in the level of
21assessment as applied to the first year final board of review
22market value. In addition, the county clerk in a county
23containing a population of 3,000,000 or more shall include in
24the 1997 recovered tax increment value for any school district,
25any recovered tax increment value that was applicable to the
261995 tax year calculations.

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1 "Qualified airport authority" means an airport authority
2organized under the Airport Authorities Act and located in a
3county bordering on the State of Wisconsin and having a
4population in excess of 200,000 and not greater than 500,000.
5 "Recovered tax increment value" means, except as otherwise
6provided in this paragraph, the amount of the current year's
7equalized assessed value, in the first year after a
8municipality terminates the designation of an area as a
9redevelopment project area previously established under the
10Tax Increment Allocation Development Act in the Illinois
11Municipal Code, previously established under the Industrial
12Jobs Recovery Law in the Illinois Municipal Code, previously
13established under the Economic Development Project Area Tax
14Increment Act of 1995, or previously established under the
15Economic Development Area Tax Increment Allocation Act, of each
16taxable lot, block, tract, or parcel of real property in the
17redevelopment project area over and above the initial equalized
18assessed value of each property in the redevelopment project
19area. For the taxes which are extended for the 1997 levy year,
20the recovered tax increment value for a non-home rule taxing
21district that first became subject to this Law for the 1995
22levy year because a majority of its 1994 equalized assessed
23value was in an affected county or counties shall be increased
24if a municipality terminated the designation of an area in 1993
25as a redevelopment project area previously established under
26the Tax Increment Allocation Development Act in the Illinois

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1Municipal Code, previously established under the Industrial
2Jobs Recovery Law in the Illinois Municipal Code, or previously
3established under the Economic Development Area Tax Increment
4Allocation Act, by an amount equal to the 1994 equalized
5assessed value of each taxable lot, block, tract, or parcel of
6real property in the redevelopment project area over and above
7the initial equalized assessed value of each property in the
8redevelopment project area. In the first year after a
9municipality removes a taxable lot, block, tract, or parcel of
10real property from a redevelopment project area established
11under the Tax Increment Allocation Development Act in the
12Illinois Municipal Code, the Industrial Jobs Recovery Law in
13the Illinois Municipal Code, or the Economic Development Area
14Tax Increment Allocation Act, "recovered tax increment value"
15means the amount of the current year's equalized assessed value
16of each taxable lot, block, tract, or parcel of real property
17removed from the redevelopment project area over and above the
18initial equalized assessed value of that real property before
19removal from the redevelopment project area.
20 Except as otherwise provided in this Section, "limiting
21rate" means a fraction the numerator of which is the last
22preceding aggregate extension base times an amount equal to one
23plus the extension limitation defined in this Section and the
24denominator of which is the current year's equalized assessed
25value of all real property in the territory under the
26jurisdiction of the taxing district during the prior levy year.

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1For those taxing districts that reduced their aggregate
2extension for the last preceding levy year, the highest
3aggregate extension in any of the last 3 preceding levy years
4shall be used for the purpose of computing the limiting rate.
5The denominator shall not include new property or the recovered
6tax increment value. If a new rate, a rate decrease, or a
7limiting rate increase has been approved at an election held
8after March 21, 2006, then (i) the otherwise applicable
9limiting rate shall be increased by the amount of the new rate
10or shall be reduced by the amount of the rate decrease, as the
11case may be, or (ii) in the case of a limiting rate increase,
12the limiting rate shall be equal to the rate set forth in the
13proposition approved by the voters for each of the years
14specified in the proposition, after which the limiting rate of
15the taxing district shall be calculated as otherwise provided.
16(Source: P.A. 96-501, eff. 8-14-09; 96-517, eff. 8-14-09;
1796-1000, eff. 7-2-10; 96-1202, eff. 7-22-10; 97-611, eff.
181-1-12; 97-1154, eff. 1-25-13.)".
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