Bill Text: IL HB2975 | 2011-2012 | 97th General Assembly | Introduced


Bill Title: Amends the Property Tax Extension Limitation Law of the Property Tax Code. Excludes from the definition of the term "aggregate extension" extensions made by a taxing district for contributions to a pension or retirement fund created under the Downstate Police, Downstate Fire, or IMRF Articles of the Illinois Pension Code for the first 5 taxable years after the taxing district first participates in such a system. Amends the Downstate Police and IMRF Articles of the Illinois Pension Code. Requires the referenda questions used to create a pension or retirement fund under the specified Articles to also authorize the levying of an annual tax for the purpose of participation in that fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB2975 Detail]

Download: Illinois-2011-HB2975-Introduced.html


97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2975

Introduced , by Rep. Karen May

SYNOPSIS AS INTRODUCED:
35 ILCS 200/18-185
40 ILCS 5/3-145 from Ch. 108 1/2, par. 3-145
40 ILCS 5/7-134 from Ch. 108 1/2, par. 7-134

Amends the Property Tax Extension Limitation Law of the Property Tax Code. Excludes from the definition of the term "aggregate extension" extensions made by a taxing district for contributions to a pension or retirement fund created under the Downstate Police, Downstate Fire, or IMRF Articles of the Illinois Pension Code for the first 5 taxable years after the taxing district first participates in such a system. Amends the Downstate Police and IMRF Articles of the Illinois Pension Code. Requires the referenda questions used to create a pension or retirement fund under the specified Articles to also authorize the levying of an annual tax for the purpose of participation in that fund.
LRB097 06172 JDS 46246 b
FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB2975LRB097 06172 JDS 46246 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
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.
17 "Affected county" means a county of 3,000,000 or more
18inhabitants or a county contiguous to a county of 3,000,000 or
19more inhabitants.
20 "Taxing district" has the same meaning provided in Section
211-150, except as otherwise provided in this Section. For the
221991 through 1994 levy years only, "taxing district" includes
23only each non-home rule taxing district having the majority of

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1its 1990 equalized assessed value within any county or counties
2contiguous to a county with 3,000,000 or more inhabitants.
3Beginning with the 1995 levy year, "taxing district" includes
4only each non-home rule taxing district subject to this Law
5before the 1995 levy year and each non-home rule taxing
6district not subject to this Law before the 1995 levy year
7having the majority of its 1994 equalized assessed value in an
8affected county or counties. Beginning with the levy year in
9which this Law becomes applicable to a taxing district as
10provided in Section 18-213, "taxing district" also includes
11those taxing districts made subject to this Law as provided in
12Section 18-213.
13 "Aggregate extension" for taxing districts to which this
14Law applied before the 1995 levy year means the annual
15corporate extension for the taxing district and those special
16purpose extensions that are made annually for the taxing
17district, excluding special purpose extensions: (a) made for
18the taxing district to pay interest or principal on general
19obligation bonds that were approved by referendum; (b) made for
20any taxing district to pay interest or principal on general
21obligation bonds issued before October 1, 1991; (c) made for
22any taxing district to pay interest or principal on bonds
23issued to refund or continue to refund those bonds issued
24before October 1, 1991; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after October 1, 1991 that were approved by

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1referendum; (e) made for any taxing district to pay interest or
2principal on revenue bonds issued before October 1, 1991 for
3payment of which a property tax levy or the full faith and
4credit of the unit of local government is pledged; however, a
5tax for the payment of interest or principal on those bonds
6shall be made only after the governing body of the unit of
7local government finds that all other sources for payment are
8insufficient to make those payments; (f) made for payments
9under a building commission lease when the lease payments are
10for the retirement of bonds issued by the commission before
11October 1, 1991, to pay for the building project; (g) made for
12payments due under installment contracts entered into before
13October 1, 1991; (h) made for payments of principal and
14interest on bonds issued under the Metropolitan Water
15Reclamation District Act to finance construction projects
16initiated before October 1, 1991; (i) made for payments of
17principal and interest on limited bonds, as defined in Section
183 of the Local Government Debt Reform Act, in an amount not to
19exceed the debt service extension base less the amount in items
20(b), (c), (e), and (h) of this definition for non-referendum
21obligations, except obligations initially issued pursuant to
22referendum; (j) made for payments of principal and interest on
23bonds issued under Section 15 of the Local Government Debt
24Reform Act; (k) made by a school district that participates in
25the Special Education District of Lake County, created by
26special education joint agreement under Section 10-22.31 of the

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1School Code, for payment of the school district's share of the
2amounts required to be contributed by the Special Education
3District of Lake County to the Illinois Municipal Retirement
4Fund under Article 7 of the Illinois Pension Code; the amount
5of any extension under this item (k) shall be certified by the
6school district to the county clerk; (l) made to fund expenses
7of providing joint recreational programs for the handicapped
8under Section 5-8 of the Park District Code or Section 11-95-14
9of the Illinois Municipal Code; (m) made for temporary
10relocation loan repayment purposes pursuant to Sections 2-3.77
11and 17-2.2d of the School Code; (n) made for payment of
12principal and interest on any bonds issued under the authority
13of Section 17-2.2d of the School Code; and (o) made for
14contributions to a firefighter's pension fund created under
15Article 4 of the Illinois Pension Code, to the extent of the
16amount certified under item (5) of Section 4-134 of the
17Illinois Pension Code; and (p) made for contributions to a
18pension or retirement fund created under Article 3, 4, or 7 of
19the Illinois Pension Code for the first 5 taxable years after
20the taxing district first participates in the pension or
21retirement system created, by referendum or otherwise, under
22that Article.
23 "Aggregate extension" for the taxing districts to which
24this Law did not apply before the 1995 levy year (except taxing
25districts subject to this Law in accordance with Section
2618-213) means the annual corporate extension for the taxing

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1district and those special purpose extensions that are made
2annually for the taxing district, excluding special purpose
3extensions: (a) made for the taxing district to pay interest or
4principal on general obligation bonds that were approved by
5referendum; (b) made for any taxing district to pay interest or
6principal on general obligation bonds issued before March 1,
71995; (c) made for any taxing district to pay interest or
8principal on bonds issued to refund or continue to refund those
9bonds issued before March 1, 1995; (d) made for any taxing
10district to pay interest or principal on bonds issued to refund
11or continue to refund bonds issued after March 1, 1995 that
12were approved by referendum; (e) made for any taxing district
13to pay interest or principal on revenue bonds issued before
14March 1, 1995 for payment of which a property tax levy or the
15full faith and credit of the unit of local government is
16pledged; however, a tax for the payment of interest or
17principal on those bonds shall be made only after the governing
18body of the unit of local government finds that all other
19sources for payment are insufficient to make those payments;
20(f) made for payments under a building commission lease when
21the lease payments are for the retirement of bonds issued by
22the commission before March 1, 1995 to pay for the building
23project; (g) made for payments due under installment contracts
24entered into before March 1, 1995; (h) made for payments of
25principal and interest on bonds issued under the Metropolitan
26Water Reclamation District Act to finance construction

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1projects initiated before October 1, 1991; (h-4) made for
2stormwater management purposes by the Metropolitan Water
3Reclamation District of Greater Chicago under Section 12 of the
4Metropolitan Water Reclamation District Act; (i) made for
5payments of principal and interest on limited bonds, as defined
6in Section 3 of the Local Government Debt Reform Act, in an
7amount not to exceed the debt service extension base less the
8amount in items (b), (c), and (e) of this definition for
9non-referendum obligations, except obligations initially
10issued pursuant to referendum and bonds described in subsection
11(h) of this definition; (j) made for payments of principal and
12interest on bonds issued under Section 15 of the Local
13Government Debt Reform Act; (k) made for payments of principal
14and interest on bonds authorized by Public Act 88-503 and
15issued under Section 20a of the Chicago Park District Act for
16aquarium or museum projects; (l) made for payments of principal
17and interest on bonds authorized by Public Act 87-1191 or
1893-601 and (i) issued pursuant to Section 21.2 of the Cook
19County Forest Preserve District Act, (ii) issued under Section
2042 of the Cook County Forest Preserve District Act for
21zoological park projects, or (iii) issued under Section 44.1 of
22the Cook County Forest Preserve District Act for botanical
23gardens projects; (m) made pursuant to Section 34-53.5 of the
24School Code, whether levied annually or not; (n) made to fund
25expenses of providing joint recreational programs for the
26handicapped under Section 5-8 of the Park District Code or

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1Section 11-95-14 of the Illinois Municipal Code; (o) made by
2the Chicago Park District for recreational programs for the
3handicapped under subsection (c) of Section 7.06 of the Chicago
4Park District Act; (p) made for contributions to a
5firefighter's pension fund created under Article 4 of the
6Illinois Pension Code, to the extent of the amount certified
7under item (5) of Section 4-134 of the Illinois Pension Code;
8and (q) made by Ford Heights School District 169 under Section
917-9.02 of the School Code; and (r) made for contributions to a
10pension or retirement fund created under Article 3, 4, or 7 of
11the Illinois Pension Code for the first 5 taxable years after
12the taxing district first participates in the pension or
13retirement system created, by referendum or otherwise, under
14that Article.
15 "Aggregate extension" for all taxing districts to which
16this Law applies in accordance with Section 18-213, except for
17those taxing districts subject to paragraph (2) of subsection
18(e) of Section 18-213, means the annual corporate extension for
19the taxing district and those special purpose extensions that
20are made annually for the taxing district, excluding special
21purpose extensions: (a) made for the taxing district to pay
22interest or principal on general obligation bonds that were
23approved by referendum; (b) made for any taxing district to pay
24interest or principal on general obligation bonds issued before
25the date on which the referendum making this Law applicable to
26the taxing district is held; (c) made for any taxing district

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

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1interest on limited bonds, as defined in Section 3 of the Local
2Government Debt Reform Act, in an amount not to exceed the debt
3service extension base less the amount in items (b), (c), and
4(e) of this definition for non-referendum obligations, except
5obligations initially issued pursuant to referendum; (i) made
6for payments of principal and interest on bonds issued under
7Section 15 of the Local Government Debt Reform Act; (j) made
8for a qualified airport authority to pay interest or principal
9on general obligation bonds issued for the purpose of paying
10obligations due under, or financing airport facilities
11required to be acquired, constructed, installed or equipped
12pursuant to, contracts entered into before March 1, 1996 (but
13not including any amendments to such a contract taking effect
14on or after that date); (k) made to fund expenses of providing
15joint recreational programs for the handicapped under Section
165-8 of the Park District Code or Section 11-95-14 of the
17Illinois Municipal Code; (l) made for contributions to a
18firefighter's pension fund created under Article 4 of the
19Illinois Pension Code, to the extent of the amount certified
20under item (5) of Section 4-134 of the Illinois Pension Code;
21and (m) made for the taxing district to pay interest or
22principal on general obligation bonds issued pursuant to
23Section 19-3.10 of the School Code; and (n) made for
24contributions to a pension or retirement fund created under
25Article 3, 4, or 7 of the Illinois Pension Code for the first 5
26taxable years after the taxing district first participates in

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1the pension or retirement system created, by referendum or
2otherwise, under that Article.
3 "Aggregate extension" for all taxing districts to which
4this Law applies in accordance with paragraph (2) of subsection
5(e) of Section 18-213 means the annual corporate extension for
6the taxing district and those special purpose extensions that
7are made annually for the taxing district, excluding special
8purpose extensions: (a) made for the taxing district to pay
9interest or principal on general obligation bonds that were
10approved by referendum; (b) made for any taxing district to pay
11interest or principal on general obligation bonds issued before
12the effective date of this amendatory Act of 1997; (c) made for
13any taxing district to pay interest or principal on bonds
14issued to refund or continue to refund those bonds issued
15before the effective date of this amendatory Act of 1997; (d)
16made for any taxing district to pay interest or principal on
17bonds issued to refund or continue to refund bonds issued after
18the effective date of this amendatory Act of 1997 if the bonds
19were approved by referendum after the effective date of this
20amendatory Act of 1997; (e) made for any taxing district to pay
21interest or principal on revenue bonds issued before the
22effective date of this amendatory Act of 1997 for payment of
23which a property tax levy or the full faith and credit of the
24unit of local government is pledged; however, a tax for the
25payment of interest or principal on those bonds shall be made
26only after the governing body of the unit of local government

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1finds that all other sources for payment are insufficient to
2make those payments; (f) made for payments under a building
3commission lease when the lease payments are for the retirement
4of bonds issued by the commission before the effective date of
5this amendatory Act of 1997 to pay for the building project;
6(g) made for payments due under installment contracts entered
7into before the effective date of this amendatory Act of 1997;
8(h) made for payments of principal and interest on limited
9bonds, as defined in Section 3 of the Local Government Debt
10Reform Act, in an amount not to exceed the debt service
11extension base less the amount in items (b), (c), and (e) of
12this definition for non-referendum obligations, except
13obligations initially issued pursuant to referendum; (i) made
14for payments of principal and interest on bonds issued under
15Section 15 of the Local Government Debt Reform Act; (j) made
16for a qualified airport authority to pay interest or principal
17on general obligation bonds issued for the purpose of paying
18obligations due under, or financing airport facilities
19required to be acquired, constructed, installed or equipped
20pursuant to, contracts entered into before March 1, 1996 (but
21not including any amendments to such a contract taking effect
22on or after that date); (k) made to fund expenses of providing
23joint recreational programs for the handicapped under Section
245-8 of the Park District Code or Section 11-95-14 of the
25Illinois Municipal Code; and (l) made for contributions to a
26firefighter's pension fund created under Article 4 of the

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1Illinois Pension Code, to the extent of the amount certified
2under item (5) of Section 4-134 of the Illinois Pension Code;
3and (m) made for contributions to a pension or retirement fund
4created under Article 3, 4, or 7 of the Illinois Pension Code
5for the first 5 taxable years after the taxing district first
6participates in the pension or retirement system created, by
7referendum or otherwise, under that Article.
8 "Debt service extension base" means an amount equal to that
9portion of the extension for a taxing district for the 1994
10levy year, or for those taxing districts subject to this Law in
11accordance with Section 18-213, except for those subject to
12paragraph (2) of subsection (e) of Section 18-213, for the levy
13year in which the referendum making this Law applicable to the
14taxing district is held, or for those taxing districts subject
15to this Law in accordance with paragraph (2) of subsection (e)
16of Section 18-213 for the 1996 levy year, constituting an
17extension for payment of principal and interest on bonds issued
18by the taxing district without referendum, but not including
19excluded non-referendum bonds. For park districts (i) that were
20first subject to this Law in 1991 or 1995 and (ii) whose
21extension for the 1994 levy year for the payment of principal
22and interest on bonds issued by the park district without
23referendum (but not including excluded non-referendum bonds)
24was less than 51% of the amount for the 1991 levy year
25constituting an extension for payment of principal and interest
26on bonds issued by the park district without referendum (but

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1not including excluded non-referendum bonds), "debt service
2extension base" means an amount equal to that portion of the
3extension for the 1991 levy year constituting an extension for
4payment of principal and interest on bonds issued by the park
5district without referendum (but not including excluded
6non-referendum bonds). A debt service extension base
7established or increased at any time pursuant to any provision
8of this Law, except Section 18-212, shall be increased each
9year commencing with the later of (i) the 2009 levy year or
10(ii) the first levy year in which this Law becomes applicable
11to the taxing district, by the lesser of 5% or the percentage
12increase in the Consumer Price Index during the 12-month
13calendar year preceding the levy year. The debt service
14extension base may be established or increased as provided
15under Section 18-212. "Excluded non-referendum bonds" means
16(i) bonds authorized by Public Act 88-503 and issued under
17Section 20a of the Chicago Park District Act for aquarium and
18museum projects; (ii) bonds issued under Section 15 of the
19Local Government Debt Reform Act; or (iii) refunding
20obligations issued to refund or to continue to refund
21obligations initially issued pursuant to referendum.
22 "Special purpose extensions" include, but are not limited
23to, extensions for levies made on an annual basis for
24unemployment and workers' compensation, self-insurance,
25contributions to pension plans, and extensions made pursuant to
26Section 6-601 of the Illinois Highway Code for a road

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1district's permanent road fund whether levied annually or not.
2The extension for a special service area is not included in the
3aggregate extension.
4 "Aggregate extension base" means the taxing district's
5last preceding aggregate extension as adjusted under Sections
618-135, 18-215, and 18-230. An adjustment under Section 18-135
7shall be made for the 2007 levy year and all subsequent levy
8years whenever one or more counties within which a taxing
9district is located (i) used estimated valuations or rates when
10extending taxes in the taxing district for the last preceding
11levy year that resulted in the over or under extension of
12taxes, or (ii) increased or decreased the tax extension for the
13last preceding levy year as required by Section 18-135(c).
14Whenever an adjustment is required under Section 18-135, the
15aggregate extension base of the taxing district shall be equal
16to the amount that the aggregate extension of the taxing
17district would have been for the last preceding levy year if
18either or both (i) actual, rather than estimated, valuations or
19rates had been used to calculate the extension of taxes for the
20last levy year, or (ii) the tax extension for the last
21preceding levy year had not been adjusted as required by
22subsection (c) of Section 18-135.
23 "Levy year" has the same meaning as "year" under Section
241-155.
25 "New property" means (i) the assessed value, after final
26board of review or board of appeals action, of new improvements

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1or additions to existing improvements on any parcel of real
2property that increase the assessed value of that real property
3during the levy year multiplied by the equalization factor
4issued by the Department under Section 17-30, (ii) the assessed
5value, after final board of review or board of appeals action,
6of real property not exempt from real estate taxation, which
7real property was exempt from real estate taxation for any
8portion of the immediately preceding levy year, multiplied by
9the equalization factor issued by the Department under Section
1017-30, including the assessed value, upon final stabilization
11of occupancy after new construction is complete, of any real
12property located within the boundaries of an otherwise or
13previously exempt military reservation that is intended for
14residential use and owned by or leased to a private corporation
15or other entity, and (iii) in counties that classify in
16accordance with Section 4 of Article IX of the Illinois
17Constitution, an incentive property's additional assessed
18value resulting from a scheduled increase in the level of
19assessment as applied to the first year final board of review
20market value. In addition, the county clerk in a county
21containing a population of 3,000,000 or more shall include in
22the 1997 recovered tax increment value for any school district,
23any recovered tax increment value that was applicable to the
241995 tax year calculations.
25 "Qualified airport authority" means an airport authority
26organized under the Airport Authorities Act and located in a

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

HB2975- 17 -LRB097 06172 JDS 46246 b
1established under the Economic Development Area Tax Increment
2Allocation Act, by an amount equal to the 1994 equalized
3assessed value of each taxable lot, block, tract, or parcel of
4real property in the redevelopment project area over and above
5the initial equalized assessed value of each property in the
6redevelopment project area. In the first year after a
7municipality removes a taxable lot, block, tract, or parcel of
8real property from a redevelopment project area established
9under the Tax Increment Allocation Development Act in the
10Illinois Municipal Code, the Industrial Jobs Recovery Law in
11the Illinois Municipal Code, or the Economic Development Area
12Tax Increment Allocation Act, "recovered tax increment value"
13means the amount of the current year's equalized assessed value
14of each taxable lot, block, tract, or parcel of real property
15removed from the redevelopment project area over and above the
16initial equalized assessed value of that real property before
17removal from the redevelopment project area.
18 Except as otherwise provided in this Section, "limiting
19rate" means a fraction the numerator of which is the last
20preceding aggregate extension base times an amount equal to one
21plus the extension limitation defined in this Section and the
22denominator of which is the current year's equalized assessed
23value of all real property in the territory under the
24jurisdiction of the taxing district during the prior levy year.
25For those taxing districts that reduced their aggregate
26extension for the last preceding levy year, the highest

HB2975- 18 -LRB097 06172 JDS 46246 b
1aggregate extension in any of the last 3 preceding levy years
2shall be used for the purpose of computing the limiting rate.
3The denominator shall not include new property or the recovered
4tax increment value. If a new rate, a rate decrease, or a
5limiting rate increase has been approved at an election held
6after March 21, 2006, then (i) the otherwise applicable
7limiting rate shall be increased by the amount of the new rate
8or shall be reduced by the amount of the rate decrease, as the
9case may be, or (ii) in the case of a limiting rate increase,
10the limiting rate shall be equal to the rate set forth in the
11proposition approved by the voters for each of the years
12specified in the proposition, after which the limiting rate of
13the taxing district shall be calculated as otherwise provided.
14(Source: P.A. 95-90, eff. 1-1-08; 95-331, eff. 8-21-07; 95-404,
15eff. 1-1-08; 95-876, eff. 8-21-08; 96-501, eff. 8-14-09;
1696-517, eff. 8-14-09; 96-1000, eff. 7-2-10; 96-1202, eff.
177-22-10.)
18 Section 10. The Illinois Pension Code is amended by
19changing Sections 3-145 and 7-134 as follows:
20 (40 ILCS 5/3-145) (from Ch. 108 1/2, par. 3-145)
21 Sec. 3-145. Referendum in municipalities less than 5,000.
22 (a) This Article shall not be effective in any municipality
23having a population of less than 5,000 unless the proposition
24to adopt the Article is submitted to and approved by the voters

HB2975- 19 -LRB097 06172 JDS 46246 b
1of the municipality in the manner herein provided.
2 Whenever the electors of the municipality, equal in number
3to 5% of the number of legal votes cast at the last preceding
4general municipal election, petition the city, village or town
5clerk to submit the proposition whether that municipality shall
6adopt this Article, the officer to whom the petition is
7addressed shall certify the proposition to the proper election
8officials who shall submit the proposition in accordance with
9the general election law at a regular election in the
10municipality provided that notice of the referendum, if held
11before July 1, 1999, has been given in accordance with the
12provisions of Section 12-5 of the Election Code in effect at
13the time of the bond referendum, at least 10 and not more than
1445 days before the date of the election, notwithstanding the
15time for publication otherwise imposed by Section 12-5. Notices
16required in connection with the submission of public questions
17on or after July 1, 1999 shall be as set forth in Section 12-5
18of the Election Code. If the proposition is not adopted at that
19election, it may be submitted in like manner at any regular
20election thereafter. The proposition shall be substantially in
21the following form:
22 Shall the (name of the municipality) adopt Article 3 of
23 the Illinois Pension Code, providing for a police pension
24 fund and the levying of an annual tax therefor?

HB2975- 20 -LRB097 06172 JDS 46246 b
1The vote must be recorded as "Yes" or "No".
2-------------------------------------------------------------
3 Shall the city (or village or
4incorporated town) of.... adopt YES
5Article 3 of the "Illinois Pension -----------------------
6Code", pertaining to the creation NO
7of a police pension fund?
8-----------------------------------
9 If a majority of the votes cast on the proposition is for
10the proposition, this Article is adopted in that municipality.
11 (b) For a period of 60 days after the effective date of
12this amendatory Act of the 96th General Assembly, if a
13municipality having a population of less than 5,000 has adopted
14this Article in accordance with the provisions of subsection
15(a), the municipality may elect to terminate participation
16under this Article if all of the following conditions are met:
17 (1) An independent auditor certifies that the fund
18 created under this Article has no liabilities and there are
19 no members or participants in the fund and no beneficiaries
20 entitled to benefits under the fund.
21 (2) The corporate authorities of the municipality, by
22 ordinance, approve the closing of the fund.
23 If the conditions of this subsection (b) are met and the
24closed fund contains assets, those assets shall be transferred
25to the municipality for its general corporate purposes.
26 If a municipality that terminates participation under this

HB2975- 21 -LRB097 06172 JDS 46246 b
1Article in accordance with this subsection (b) wants to
2reinstate the fund, then the proposition to re-adopt the
3Article must be submitted to and approved by the voters of the
4municipality in the manner provided in subsection (a).
5(Source: P.A. 96-216, eff. 8-10-09.)
6 (40 ILCS 5/7-134) (from Ch. 108 1/2, par. 7-134)
7 Sec. 7-134. Municipality referendum and notice of election
8to participate. (a) A municipality electing to be included
9within this Article by referendum shall hold such referendum
10within the territory of the municipality following the filing
11of a written petition of at least 300 legal voters or at least
121% of the legal voters of the municipality, whichever is less.
13The question shall be certified to the proper election
14officials, who shall submit the question to the voters at an
15election in accordance with the general election law. If a
16majority of the voters who vote upon this question vote for
17inclusion of the municipality, notice of the election to be
18included shall be given as provided in this section and the
19municipality shall thereupon be so included.
20 The proposition shall be in substantially the following
21form:
22 Shall the (name of the municipality) adopt Article 7 of
23 the Illinois Pension Code, pertaining to participation in
24 the Illinois Municipal Retirement Fund and the levying of

HB2975- 22 -LRB097 06172 JDS 46246 b
1 an annual tax therefor?
2The vote must be recorded as "Yes" or "No".
3-------------------------------------------------------------
4 Shall the....(here name the
5municipality or municipalities in which YES
6the question is being voted upon) be
7included within the provisions of Article ------------------
87 of the Illinois Pension Code, as
9amended, pertaining to the creation of the NO
10"Illinois Municipal Retirement Fund"?
11-----------------------
12 Where the boundaries of 2 or more municipalities are
13coextensive, one ballot is sufficient for all municipalities
14specified in the ballot.
15 (b) A municipality electing to participate shall within 10
16days after the election submit to the board a certified notice
17of the election to participate. The notice shall:
18 1. Be in writing,
19 2. Indicate the date of the election,
20 3. Specify all the instrumentalities of the municipality,
21 4. Be officially certified by the clerk or other proper
22official of the municipality as having been duly made in
23accordance with the provisions of this Article.
24(Source: P.A. 81-1535.)
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