Bill Text: IL SB3438 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the State Mandates Act. Provides that any State mandate regarding any subject matter enacted on or after the effective date of the amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations and reimbursements to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations and reimbursements shall relieve the local government of the obligation to implement any State mandate. Makes conforming changes. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district shall reduce its aggregate extension base for the purpose of lowering its limiting rate for future years upon referendum approval initiated by the submission of a petition by the voters of the district. Provides that the extension limitation shall be: (a) the lesser of 5% or the average percentage increase in the Consumer Price Index for the immediately preceding 10 years; or (b) the rate of increase approved by the voters. Amends the Illinois Income Tax Act. Increases distributions into the Local Government Distributive Fund on and after August 1, 2024. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-02-08 - Referred to Assignments [SB3438 Detail]

Download: Illinois-2023-SB3438-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3438 Introduced 2/8/2024, by Sen. Craig Wilcox SYNOPSIS AS INTRODUCED:
30 ILCS 805/6 from Ch. 85, par. 2206
30 ILCS 805/8 from Ch. 85, par. 2208
30 ILCS 805/9.2 new
35 ILCS 5/901
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-207 new
35 ILCS 200/18-212
Amends the State Mandates Act. Provides that any State mandate regarding any subject matter enacted on or after the effective date of the amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations and reimbursements to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations and reimbursements shall relieve the local government of the obligation to implement any State mandate. Makes conforming changes. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district shall reduce its aggregate extension base for the purpose of lowering its limiting rate for future years upon referendum approval initiated by the submission of a petition by the voters of the district. Provides that the extension limitation shall be: (a) the lesser of 5% or the average percentage increase in the Consumer Price Index for the immediately preceding 10 years; or (b) the rate of increase approved by the voters. Amends the Illinois Income Tax Act. Increases distributions into the Local Government Distributive Fund on and after August 1, 2024. Effective immediately.
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A BILL FOR
SB3438 LRB103 37836 HLH 67966 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Mandates Act is amended by changing
Sections 6 and 8 and by adding Section 9.2 as follows:
(30 ILCS 805/6) (from Ch. 85, par. 2206)
Sec. 6. State Reimbursement to Local Government For
Increased Costs Arising From Certain Mandates. (a) Any
increased costs accruing to local governments as a direct
result of mandates dealing with the organization and structure
of local government or due process mandates, as defined in
subsections (c) and (d), respectively, of Section 3 above, are
not reimbursable by the State.
(b) At least 50%, but not more than 100% of the increase in
costs of a local government directly attributable to a service
mandate as defined in subsection (f) of Section 3 enacted by
the General Assembly or established administratively after the
effective date of this Act shall be reimbursed by the State
unless there is in existence at the time of such enactment a
program of State aid for the service affected by the mandate
whereunder the non-local share for any participating local
government is 50% or greater and where the increased costs
arising under the mandate constitute allowable expenditures

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under the aid program. Where all or part of the increased costs
are met through federal or other external aid, only the net
increase to the local government shall be included in the base
against which the amount of State reimbursement is to be
computed.
(c) 100% of the loss in revenue of a local government
directly attributable to a mandated classification or
exemption of property for purposes of ad valorem real property
taxation enacted after the effective date of this Act shall be
reimbursed by the State. The loss of revenue does not include
potential revenue from property of a type which was not being
assessed and taxed on January 1, 1980.
(d) Except for a State mandate that affects personnel
qualifications for local employees, the salaries and wages of
which are financed under a State program, and except as
provided in subsection (e) below, any personnel mandate as
defined in subsection (h) of Section 3 above enacted by the
General Assembly or established administratively after the
effective date of this Act shall be reimbursed by the State to
the extent of increased costs incurred by local governments
directly attributable to such mandate.
(e) All of the increased costs of a local government
directly attributable to a mandated increase in public
employee retirement benefits which is enacted after the
effective date of this Act and which has the effect of
elevating retirement benefits of local government employees

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shall be reimbursed by the State; except that any increased
costs of a local government attributable to Public Act 83-152,
83-374, 83-375, 83-528, 83-558, 83-661, 83-664, 83-737,
83-772, 83-773, 83-780, 83-792, 83-793, 83-802, 83-810,
83-812, 83-823, 83-827 or 83-869 are not reimbursable by the
State.
(f) After the effective date of this Act, any bill filed
and any amended bill that creates or enlarges a State mandate
of the type specified in subsections (f), (g) and (h) of
Section 3, shall have provided and identified for it an
appropriation of an amount necessary to provide the
reimbursement specified above unless a statement, stating the
specific reasons for such exclusion is set out in the bill or
amendment as provided in subsection (a) of Section 8.
(g) If a local government or combination of local
governments has been providing a service at its option which
is subsequently mandated by the State, the State shall pay
them for the subsequent costs of such program and the local
government or governments shall proportionately reduce its or
their property tax extensions by the amount that the State
payment replaces property tax revenues which were being
expended on such service. However, for purposes of calculating
a school district's State aid, no district's operating tax
rate shall be decreased as a result of reimbursement under
this Act.
(h) Any increased costs accruing to a local government as

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a direct result of the requirements of the Steel Products
Procurement Act are not reimbursable by the State.
(i) The provisions of subsections (a) through (h) shall
apply to State mandates enacted prior to the effective date of
this amendatory Act of the 103rd General Assembly. On and
after the effective date of this amendatory Act of the 103rd
General Assembly, any State mandate enacted regarding any
subject matter that necessitates additional expenditures from
local government revenues shall be appropriated for and
reimbursed as provided under Section 9.2.
(Source: P.A. 83-1362.)
(30 ILCS 805/8) (from Ch. 85, par. 2208)
Sec. 8. Exclusions, reimbursement application, review,
appeals, and adjudication.
(a) Exclusions: Any of the following circumstances
inherent to, or associated with, a mandate shall exclude the
State from reimbursement liability under this Act. If the
mandate (1) accommodates a request from local governments or
organizations thereof; (2) imposes additional duties of a
nature which can be carried out by existing staff and
procedures at no appreciable net cost increase; (3) creates
additional costs but also provides offsetting savings
resulting in no aggregate increase in net costs; (4) imposes a
cost that is wholly or largely recovered from Federal, State
or other external financial aid; (5) imposes additional annual

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net costs of less than $1,000 for each of the several local
governments affected or less than $50,000, in the aggregate,
for all local governments affected.
The failure of the General Assembly to make necessary
appropriations shall relieve the local government of the
obligation to implement any service mandates, tax exemption
mandates, and personnel mandates, as specified in Section 6,
subsections (b), (c), (d) and (e), unless the exclusion
provided for in this Section are explicitly stated in the Act
establishing the mandate. In the event that funding is not
provided for a State-mandated program by the General Assembly,
the local government may implement or continue the program
upon approval of its governing body. If the local government
approves the program and funding is subsequently provided, the
State shall reimburse the local governments only for costs
incurred subsequent to the funding.
(a-5) The provisions of subsection (a) excluding the State
from reimbursement liability under this Act shall not apply to
any State mandate enacted on or after the effective date of
this amendatory Act of the 103rd General Assembly, and all
subsequent State mandates enacted shall be appropriated for
and reimbursed as provided under Section 9.2.
(b) Reimbursement Estimation and Appropriation Procedure.
(1) When a bill is introduced in the General Assembly,
the Legislative Reference Bureau, hereafter referred to as
the Bureau, shall determine whether such bill may require

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reimbursement to local governments pursuant to this Act.
The Bureau shall make such determination known in the
Legislative Synopsis and Digest.
In making the determination required by this
subsection (b) the Bureau shall disregard any provision in
a bill which would make inoperative the reimbursement
requirements of Section 6 above, including an express
exclusion of the applicability of this Act, and shall make
the determination irrespective of any such provision.
(2) Any bill or amended bill which creates or expands
a State mandate shall be subject to the provisions of "An
Act requiring fiscal notes in relation to certain bills",
approved June 4, 1965, as amended. The fiscal notes for
such bills or amended bills shall include estimates of the
costs to local government and the costs of any
reimbursement required under this Act. In the case of
bills having a potential fiscal impact on units of local
government, the fiscal note shall be prepared by the
Department. In the case of bills having a potential fiscal
impact on school districts, the fiscal note shall be
prepared by the State Superintendent of Education. In the
case of bills having a potential fiscal impact on
community college districts, the fiscal note shall be
prepared by the Illinois Community College Board. Such
fiscal note shall accompany the bill that requires State
reimbursement and shall be prepared prior to any final

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action on such a bill by the assigned committee. However,
if a fiscal note is not filed by the appropriate agency
within 30 days of introduction of a bill, the bill can be
heard in committee and advanced to the order of second
reading. The bill shall then remain on second reading
until a fiscal note is filed. A bill discharged from
committee shall also remain on second reading until a
fiscal note is provided by the appropriate agency.
(3) The estimate required by paragraph (2) above,
shall include the amount estimated to be required during
the first fiscal year of a bill's operation in order to
reimburse local governments pursuant to Section 6, for
costs mandated by such bill. In the event that the
effective date of such a bill is not the first day of the
fiscal year the estimate shall also include the amount
estimated to be required for reimbursement for the next
following full fiscal year.
(4) For the initial fiscal year, reimbursement funds
shall be provided as follows: (i) any statute mandating
such costs shall have a companion appropriation bill, and
(ii) any executive order mandating such costs shall be
accompanied by a bill to appropriate the funds therefor,
or, alternatively an appropriation for such funds shall be
included in the executive budget for the next following
fiscal year.
In subsequent fiscal years appropriations for such

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costs shall be included in the Governor's budget or
supplemental appropriation bills.
(c) Reimbursement Application and Disbursement Procedure.
(1) For the initial fiscal year during which
reimbursement is authorized, each local government, or
more than one local government wishing to join in filing a
single claim, believing itself to be entitled to
reimbursement under this Act shall submit to the
Department, State Superintendent of Education or Illinois
Community College Board within 60 days of the effective
date of the mandate a claim for reimbursement accompanied
by its estimate of the increased costs required by the
mandate for the balance of the fiscal year. The
Department, State Superintendent of Education or Illinois
Community College Board shall review such claim and
estimate, shall apportion the claim into 3 equal
installments and shall direct the Comptroller to pay the
installments at equal intervals throughout the remainder
of the fiscal year from the funds appropriated for such
purposes, provided that the Department, State
Superintendent of Education or Illinois Community College
Board may (i) audit the records of any local government to
verify the actual amount of the mandated cost, and (ii)
reduce any claim determined to be excessive or
unreasonable.
(2) For the subsequent fiscal years, local governments

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shall submit claims as specified above on or before
October 1 of each year. The Department, State
Superintendent of Education or Illinois Community College
Board shall apportion the claims into 3 equal installments
and shall direct the Comptroller to pay the first
installment upon approval of the claims, with subsequent
installments to follow on January 1 and March 1, such
claims to be paid from funds appropriated therefor,
provided that the Department, State Superintendent of
Education or Illinois Community College Board (i) may
audit the records of any local governments to verify the
actual amount of the mandated cost, (ii) may reduce any
claim, determined to be excessive or unreasonable, and
(iii) shall adjust the payment to correct for any
underpayments or overpayments which occurred in the
previous fiscal year.
(3) Any funds received by a local government pursuant
to this Act may be used for any public purpose.
If the funds appropriated for reimbursement of the
costs of local government resulting from the creation or
expansion of a State mandate are less than the total of the
approved claims, the amount appropriated shall be prorated
among the local governments having approved claims.
(d) Appeals and Adjudication.
(1) Local governments may appeal determinations made
by State agencies acting pursuant to subsection (c) above.

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The appeal must be submitted to the State Mandates Board
of Review created by Section 9.1 of this Act within 60 days
following the date of receipt of the determination being
appealed. The appeal must include evidence as to the
extent to which the mandate has been carried out in an
effective manner and executed without recourse to
standards of staffing or expenditure higher than specified
in the mandatory statute, if such standards are specified
in the statute. The State Mandates Board of Review, after
reviewing the evidence submitted to it, may increase or
reduce the amount of a reimbursement claim. The decision
of the State Mandates Board of Review shall be final
subject to judicial review. However, if sufficient funds
have not been appropriated, the Department shall notify
the General Assembly of such cost, and appropriations for
such costs shall be included in a supplemental
appropriation bill.
(2) A local government may also appeal directly to the
State Mandates Board of Review in those situations in
which the Department of Commerce and Economic Opportunity
does not act upon the local government's application for
reimbursement or request for mandate determination
submitted under this Act. The appeal must include evidence
that the application for reimbursement or request for
mandate determination was properly filed and should have
been reviewed by the Department.

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An appeal may be made to the Board if the Department
does not respond to a local government's application for
reimbursement or request for mandate determination within
120 days after filing the application or request. In no
case, however, may an appeal be brought more than one year
after the application or request is filed with the
Department.
(Source: P.A. 94-793, eff. 5-19-06.)
(30 ILCS 805/9.2 new)
Sec. 9.2. Unfunded State mandates prohibited.
Notwithstanding any provision of law to the contrary, any
State mandate regarding any subject matter enacted on or after
the effective date of this amendatory Act of the 103rd General
Assembly that necessitates additional expenditures from local
government revenues shall be void and unenforceable unless the
General Assembly makes necessary appropriations and
reimbursements to implement that mandate. The failure of the
General Assembly to make necessary appropriations and
reimbursements shall relieve the local government of the
obligation to implement any State mandate.
Section 10. The Illinois Income Tax Act is amended by
changing Section 901 as follows:
(35 ILCS 5/901)

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Sec. 901. Collection authority.
(a) In general. The Department shall collect the taxes
imposed by this Act. The Department shall collect certified
past due child support amounts under Section 2505-650 of the
Department of Revenue Law of the Civil Administrative Code of
Illinois. Except as provided in subsections (b), (c), (e),
(f), (g), and (h) of this Section, money collected pursuant to
subsections (a) and (b) of Section 201 of this Act shall be
paid into the General Revenue Fund in the State treasury;
money collected pursuant to subsections (c) and (d) of Section
201 of this Act shall be paid into the Personal Property Tax
Replacement Fund, a special fund in the State Treasury; and
money collected under Section 2505-650 of the Department of
Revenue Law of the Civil Administrative Code of Illinois shall
be paid into the Child Support Enforcement Trust Fund, a
special fund outside the State Treasury, or to the State
Disbursement Unit established under Section 10-26 of the
Illinois Public Aid Code, as directed by the Department of
Healthcare and Family Services.
(b) Local Government Distributive Fund. Beginning August
1, 2017 and continuing through July 31, 2022, the Treasurer
shall transfer each month from the General Revenue Fund to the
Local Government Distributive Fund an amount equal to the sum
of: (i) 6.06% (10% of the ratio of the 3% individual income tax
rate prior to 2011 to the 4.95% individual income tax rate
after July 1, 2017) of the net revenue realized from the tax

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imposed by subsections (a) and (b) of Section 201 of this Act
upon individuals, trusts, and estates during the preceding
month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
income tax rate prior to 2011 to the 7% corporate income tax
rate after July 1, 2017) of the net revenue realized from the
tax imposed by subsections (a) and (b) of Section 201 of this
Act upon corporations during the preceding month; and (iii)
beginning February 1, 2022, 6.06% of the net revenue realized
from the tax imposed by subsection (p) of Section 201 of this
Act upon electing pass-through entities. From Beginning August
1, 2022 and continuing through July 31, 2024 2023, the
Treasurer shall transfer each month from the General Revenue
Fund to the Local Government Distributive Fund an amount equal
to the sum of: (i) 6.16% of the net revenue realized from the
tax imposed by subsections (a) and (b) of Section 201 of this
Act upon individuals, trusts, and estates during the preceding
month; (ii) 6.85% of the net revenue realized from the tax
imposed by subsections (a) and (b) of Section 201 of this Act
upon corporations during the preceding month; and (iii) 6.16%
of the net revenue realized from the tax imposed by subsection
(p) of Section 201 of this Act upon electing pass-through
entities. From August 1, 2024 through July 31, 2025, the
Treasurer shall transfer each month from the General Revenue
Fund to the Local Government Distributive Fund an amount equal
to the sum of: (i) 7% of the net revenue realized from the tax
imposed by subsections (a) and (b) of Section 201 of this Act

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upon individuals, trusts, and estates during the preceding
month; (ii) 8.11% of the net revenue realized from the tax
imposed by subsections (a) and (b) of Section 201 of this Act
upon corporations during the preceding month; and (iii) 7% of
the net revenue realized from the tax imposed by subsection
(p) of Section 201 of this Act upon electing pass-through
entities. Beginning on August 1, 2025, the Treasurer shall
transfer each month from the General Revenue Fund to the Local
Government Distributive Fund an amount equal to the sum of:
(i) 8% of the net revenue realized from the tax imposed by
subsections (a) and (b) of Section 201 of this Act upon
individuals, trusts, and estates during the preceding month;
(ii) 9.11% of the net revenue realized from the tax imposed by
subsections (a) and (b) of Section 201 of this Act upon
corporations during the preceding month; and (iii) 8% of the
net revenue realized from the tax imposed by subsection (p) of
Section 201 of this Act upon electing pass-through entities.
Beginning August 1, 2023, the Treasurer shall transfer each
month from the General Revenue Fund to the Local Government
Distributive Fund an amount equal to the sum of: (i) 6.47% of
the net revenue realized from the tax imposed by subsections
(a) and (b) of Section 201 of this Act upon individuals,
trusts, and estates during the preceding month; (ii) 6.85% of
the net revenue realized from the tax imposed by subsections
(a) and (b) of Section 201 of this Act upon corporations during
the preceding month; and (iii) 6.47% of the net revenue

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realized from the tax imposed by subsection (p) of Section 201
of this Act upon electing pass-through entities. Net revenue
realized for a month shall be defined as the revenue from the
tax imposed by subsections (a) and (b) of Section 201 of this
Act which is deposited into the General Revenue Fund, the
Education Assistance Fund, the Income Tax Surcharge Local
Government Distributive Fund, the Fund for the Advancement of
Education, and the Commitment to Human Services Fund during
the month minus the amount paid out of the General Revenue Fund
in State warrants during that same month as refunds to
taxpayers for overpayment of liability under the tax imposed
by subsections (a) and (b) of Section 201 of this Act.
Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23), those amounts required under this subsection (b) to
be transferred by the Treasurer into the Local Government
Distributive Fund from the General Revenue Fund shall be
directly deposited into the Local Government Distributive Fund
as the revenue is realized from the tax imposed by subsections
(a) and (b) of Section 201 of this Act.
(c) Deposits Into Income Tax Refund Fund.
(1) Beginning on January 1, 1989 and thereafter, the
Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(1), (2), and
(3) of Section 201 of this Act into a fund in the State
treasury known as the Income Tax Refund Fund. Beginning

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with State fiscal year 1990 and for each fiscal year
thereafter, the percentage deposited into the Income Tax
Refund Fund during a fiscal year shall be the Annual
Percentage. For fiscal year 2011, the Annual Percentage
shall be 8.75%. For fiscal year 2012, the Annual
Percentage shall be 8.75%. For fiscal year 2013, the
Annual Percentage shall be 9.75%. For fiscal year 2014,
the Annual Percentage shall be 9.5%. For fiscal year 2015,
the Annual Percentage shall be 10%. For fiscal year 2018,
the Annual Percentage shall be 9.8%. For fiscal year 2019,
the Annual Percentage shall be 9.7%. For fiscal year 2020,
the Annual Percentage shall be 9.5%. For fiscal year 2021,
the Annual Percentage shall be 9%. For fiscal year 2022,
the Annual Percentage shall be 9.25%. For fiscal year
2023, the Annual Percentage shall be 9.25%. For fiscal
year 2024, the Annual Percentage shall be 9.15%. For all
other fiscal years, the Annual Percentage shall be
calculated as a fraction, the numerator of which shall be
the amount of refunds approved for payment by the
Department during the preceding fiscal year as a result of
overpayment of tax liability under subsections (a) and
(b)(1), (2), and (3) of Section 201 of this Act plus the
amount of such refunds remaining approved but unpaid at
the end of the preceding fiscal year, minus the amounts
transferred into the Income Tax Refund Fund from the
Tobacco Settlement Recovery Fund, and the denominator of

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which shall be the amounts which will be collected
pursuant to subsections (a) and (b)(1), (2), and (3) of
Section 201 of this Act during the preceding fiscal year;
except that in State fiscal year 2002, the Annual
Percentage shall in no event exceed 7.6%. The Director of
Revenue shall certify the Annual Percentage to the
Comptroller on the last business day of the fiscal year
immediately preceding the fiscal year for which it is to
be effective.
(2) Beginning on January 1, 1989 and thereafter, the
Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(6), (7), and
(8), (c) and (d) of Section 201 of this Act into a fund in
the State treasury known as the Income Tax Refund Fund.
Beginning with State fiscal year 1990 and for each fiscal
year thereafter, the percentage deposited into the Income
Tax Refund Fund during a fiscal year shall be the Annual
Percentage. For fiscal year 2011, the Annual Percentage
shall be 17.5%. For fiscal year 2012, the Annual
Percentage shall be 17.5%. For fiscal year 2013, the
Annual Percentage shall be 14%. For fiscal year 2014, the
Annual Percentage shall be 13.4%. For fiscal year 2015,
the Annual Percentage shall be 14%. For fiscal year 2018,
the Annual Percentage shall be 17.5%. For fiscal year
2019, the Annual Percentage shall be 15.5%. For fiscal
year 2020, the Annual Percentage shall be 14.25%. For

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fiscal year 2021, the Annual Percentage shall be 14%. For
fiscal year 2022, the Annual Percentage shall be 15%. For
fiscal year 2023, the Annual Percentage shall be 14.5%.
For fiscal year 2024, the Annual Percentage shall be 14%.
For all other fiscal years, the Annual Percentage shall be
calculated as a fraction, the numerator of which shall be
the amount of refunds approved for payment by the
Department during the preceding fiscal year as a result of
overpayment of tax liability under subsections (a) and
(b)(6), (7), and (8), (c) and (d) of Section 201 of this
Act plus the amount of such refunds remaining approved but
unpaid at the end of the preceding fiscal year, and the
denominator of which shall be the amounts which will be
collected pursuant to subsections (a) and (b)(6), (7), and
(8), (c) and (d) of Section 201 of this Act during the
preceding fiscal year; except that in State fiscal year
2002, the Annual Percentage shall in no event exceed 23%.
The Director of Revenue shall certify the Annual
Percentage to the Comptroller on the last business day of
the fiscal year immediately preceding the fiscal year for
which it is to be effective.
(3) The Comptroller shall order transferred and the
Treasurer shall transfer from the Tobacco Settlement
Recovery Fund to the Income Tax Refund Fund (i)
$35,000,000 in January, 2001, (ii) $35,000,000 in January,
2002, and (iii) $35,000,000 in January, 2003.

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(d) Expenditures from Income Tax Refund Fund.
(1) Beginning January 1, 1989, money in the Income Tax
Refund Fund shall be expended exclusively for the purpose
of paying refunds resulting from overpayment of tax
liability under Section 201 of this Act and for making
transfers pursuant to this subsection (d), except that in
State fiscal years 2022 and 2023, moneys in the Income Tax
Refund Fund shall also be used to pay one-time rebate
payments as provided under Sections 208.5 and 212.1.
(2) The Director shall order payment of refunds
resulting from overpayment of tax liability under Section
201 of this Act from the Income Tax Refund Fund only to the
extent that amounts collected pursuant to Section 201 of
this Act and transfers pursuant to this subsection (d) and
item (3) of subsection (c) have been deposited and
retained in the Fund.
(3) As soon as possible after the end of each fiscal
year, the Director shall order transferred and the State
Treasurer and State Comptroller shall transfer from the
Income Tax Refund Fund to the Personal Property Tax
Replacement Fund an amount, certified by the Director to
the Comptroller, equal to the excess of the amount
collected pursuant to subsections (c) and (d) of Section
201 of this Act deposited into the Income Tax Refund Fund
during the fiscal year over the amount of refunds
resulting from overpayment of tax liability under

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subsections (c) and (d) of Section 201 of this Act paid
from the Income Tax Refund Fund during the fiscal year.
(4) As soon as possible after the end of each fiscal
year, the Director shall order transferred and the State
Treasurer and State Comptroller shall transfer from the
Personal Property Tax Replacement Fund to the Income Tax
Refund Fund an amount, certified by the Director to the
Comptroller, equal to the excess of the amount of refunds
resulting from overpayment of tax liability under
subsections (c) and (d) of Section 201 of this Act paid
from the Income Tax Refund Fund during the fiscal year
over the amount collected pursuant to subsections (c) and
(d) of Section 201 of this Act deposited into the Income
Tax Refund Fund during the fiscal year.
(4.5) As soon as possible after the end of fiscal year
1999 and of each fiscal year thereafter, the Director
shall order transferred and the State Treasurer and State
Comptroller shall transfer from the Income Tax Refund Fund
to the General Revenue Fund any surplus remaining in the
Income Tax Refund Fund as of the end of such fiscal year;
excluding for fiscal years 2000, 2001, and 2002 amounts
attributable to transfers under item (3) of subsection (c)
less refunds resulting from the earned income tax credit,
and excluding for fiscal year 2022 amounts attributable to
transfers from the General Revenue Fund authorized by
Public Act 102-700.

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(5) This Act shall constitute an irrevocable and
continuing appropriation from the Income Tax Refund Fund
for the purposes of (i) paying refunds upon the order of
the Director in accordance with the provisions of this
Section and (ii) paying one-time rebate payments under
Sections 208.5 and 212.1.
(e) Deposits into the Education Assistance Fund and the
Income Tax Surcharge Local Government Distributive Fund. On
July 1, 1991, and thereafter, of the amounts collected
pursuant to subsections (a) and (b) of Section 201 of this Act,
minus deposits into the Income Tax Refund Fund, the Department
shall deposit 7.3% into the Education Assistance Fund in the
State Treasury. Beginning July 1, 1991, and continuing through
January 31, 1993, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 3.0% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
Beginning February 1, 1993 and continuing through June 30,
1993, of the amounts collected pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act, minus
deposits into the Income Tax Refund Fund, the Department shall
deposit 4.4% into the Income Tax Surcharge Local Government
Distributive Fund in the State Treasury. Beginning July 1,
1993, and continuing through June 30, 1994, of the amounts
collected under subsections (a) and (b) of Section 201 of this

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Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 1.475% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
(f) Deposits into the Fund for the Advancement of
Education. Beginning February 1, 2015, the Department shall
deposit the following portions of the revenue realized from
the tax imposed upon individuals, trusts, and estates by
subsections (a) and (b) of Section 201 of this Act, minus
deposits into the Income Tax Refund Fund, into the Fund for the
Advancement of Education:
(1) beginning February 1, 2015, and prior to February
1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (f) on or after the effective date of the
reduction.
(g) Deposits into the Commitment to Human Services Fund.
Beginning February 1, 2015, the Department shall deposit the
following portions of the revenue realized from the tax
imposed upon individuals, trusts, and estates by subsections
(a) and (b) of Section 201 of this Act, minus deposits into the
Income Tax Refund Fund, into the Commitment to Human Services
Fund:
(1) beginning February 1, 2015, and prior to February

SB3438 - 23 - LRB103 37836 HLH 67966 b
1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (g) on or after the effective date of the
reduction.
(h) Deposits into the Tax Compliance and Administration
Fund. Beginning on the first day of the first calendar month to
occur on or after August 26, 2014 (the effective date of Public
Act 98-1098), each month the Department shall pay into the Tax
Compliance and Administration Fund, to be used, subject to
appropriation, to fund additional auditors and compliance
personnel at the Department, an amount equal to 1/12 of 5% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department from the tax imposed by
subsections (a), (b), (c), and (d) of Section 201 of this Act,
net of deposits into the Income Tax Refund Fund made from those
cash receipts.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
102-658, eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff.
4-19-22; 102-813, eff. 5-13-22; 103-8, eff. 6-7-23; 103-154,
eff. 6-30-23.)
Section 15. The Property Tax Code is amended by changing
Sections 18-185, 18-205, and 18-212 and by adding Section

SB3438 - 24 - LRB103 37836 HLH 67966 b
18-207 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, for taxable years prior to
2025: (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.
"Extension limitation" means, for taxable year 2025 and
thereafter: (a) the lesser of 5% or the average percentage
increase in the Consumer Price Index for the 10 years
immediately preceding the levy year for which the extension
limitation is being calculated; 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

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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

SB3438 - 26 - LRB103 37836 HLH 67966 b
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

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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

SB3438 - 28 - LRB103 37836 HLH 67966 b
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

SB3438 - 29 - LRB103 37836 HLH 67966 b
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

SB3438 - 30 - LRB103 37836 HLH 67966 b
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

SB3438 - 31 - LRB103 37836 HLH 67966 b
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

SB3438 - 32 - LRB103 37836 HLH 67966 b
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

SB3438 - 33 - LRB103 37836 HLH 67966 b
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

SB3438 - 34 - LRB103 37836 HLH 67966 b
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

SB3438 - 35 - LRB103 37836 HLH 67966 b
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

SB3438 - 36 - LRB103 37836 HLH 67966 b
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
extension limitation 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

SB3438 - 37 - LRB103 37836 HLH 67966 b
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

SB3438 - 38 - LRB103 37836 HLH 67966 b
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
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

SB3438 - 39 - LRB103 37836 HLH 67966 b
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

SB3438 - 40 - LRB103 37836 HLH 67966 b
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

SB3438 - 41 - LRB103 37836 HLH 67966 b
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 (as reduced by Section
18-207, if applicable) 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 and taxing districts that
reduced their aggregate extension pursuant to Section 18-207,
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

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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.)
(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

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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
to), Illinois, be increased from (the extension limitation
under item (a) of the definition of extension limitation
in Section 18-185) 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)?
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

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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
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

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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
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
the otherwise applicable extension limitation 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

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district); 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 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 200/18-207 new)
Sec. 18-207. Reduced aggregate extension base.
(a) Upon submission of a petition signed by a number of
voters of the taxing district that is not less than 10% of the
votes cast in the taxing district at the immediately preceding
gubernatorial election, the question of whether a taxing
district shall reduce its aggregate extension base for the
purpose of lowering its limiting rate for future years shall

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be submitted to the voters of the taxing district at the next
general or consolidated election. The petition shall set forth
the amount of the reduction and the levy years for which the
reduction shall be applicable.
(b) The petition shall be filed with the applicable
election authority, as defined in Section 1-3 of the Election
Code, or, in the case of multiple election authorities, with
the State Board of Elections, not more than 10 months nor less
than 6 months prior to the election at which the question is to
be submitted to the voters, and its validity shall be
determined as provided by Article 28 of the Election Code and
general election law. The election authority or Board, as
applicable, shall certify the question and the proper election
authority or authorities shall submit the question to the
voters. Except as otherwise provided in this Section, this
referendum shall be subject to all other general election law
requirements.
(c) The proposition seeking to reduce the aggregate
extension base shall be in substantially the following form:
Shall the aggregate extension base used to calculate
the limiting rate for (taxing district) under the Property
Tax Extension Limitation Law be reduced by (amount of
money expressed in U.S. dollars) for (levy year or years)?
Votes shall be recorded as "Yes" or "No".
If a majority of all votes cast on the proposition are in
favor of the proposition, then the aggregate extension base

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shall be reduced as provided in the referendum.
(35 ILCS 200/18-212)
Sec. 18-212. Referendum on debt service extension base. A
taxing district may establish or increase its debt service
extension base if (i) that taxing district holds a referendum
before the date on which the levy must be filed with the county
clerk of the county or counties in which the taxing district is
situated and (ii) a majority of voters voting on the issue
approves the establishment of or increase in the debt service
extension base. A debt service extension base established or
increased by a referendum held pursuant to this Section after
February 2, 2010, shall be increased each year, commencing
with the first levy year beginning after the date of the
referendum, by the extension limitation lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year if the optional
language concerning the annual increase is included in the
question submitted to the electors of the taxing district.
Referenda under this Section shall be conducted at a regularly
scheduled election in accordance with the Election Code. The
governing body of the taxing district shall certify the
question to the proper election authorities who shall submit
the question to the electors of the taxing district in
substantially the following form:
"Shall the debt service extension base under the Property

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Tax Extension Limitation Law for ... (taxing district
name) ... for payment of principal and interest on limited
bonds be .... ((established at $ ....) . (or) (increased
from $ .... to $ ....)) .. for the ..... levy year and all
subsequent levy years (optional language: , such debt
service extension base to be increased each year by
(extension limitation amount) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year)?"
Votes on the question shall be recorded as "Yes" or "No".
If a majority of voters voting on the issue approves the
establishment of or increase in the debt service extension
base, the establishment of or increase in the debt service
extension base shall be applicable for the levy years
specified.
(Source: P.A. 96-1202, eff. 7-22-10.)