Bill Text: IL HB3656 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if, at the end of any levy year, a taxing district has reserves of 50% or more of its operating budget for that levy year, then, for the next levy year, "extension limitation" means 0% or the rate of increase approved by the voters. Preempts the power of home rule units to tax. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB3656 Detail]

Download: Illinois-2019-HB3656-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3656

Introduced , by Rep. Fred Crespo

SYNOPSIS AS INTRODUCED:
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-242 new
30 ILCS 805/8.43 new

Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if, at the end of any levy year, a taxing district has reserves of 50% or more of its operating budget for that levy year, then, for the next levy year, "extension limitation" means 0% or the rate of increase approved by the voters. Preempts the power of home rule units to tax. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB3656LRB101 05857 HLH 50876 b
1 AN ACT concerning revenue.
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
5Sections 18-185 and 18-205 and by adding Section 18-242 as
6follows:
7 (35 ILCS 200/18-185)
8 Sec. 18-185. Short title; definitions. This Division 5 may
9be cited as the Property Tax Extension Limitation Law. As used
10in this Division 5:
11 "Consumer Price Index" means the Consumer Price Index for
12All Urban Consumers for all items published by the United
13States Department of Labor.
14 "Extension limitation" means, except as otherwise provided
15in this Section, (a) the lesser of 5% or the percentage
16increase in the Consumer Price Index during the 12-month
17calendar year preceding the levy year or (b) the rate of
18increase approved by voters under Section 18-205.
19 If, at the end of any levy year, any taxing district, as
20defined in Section 1-150, has reserves of 50% or more of its
21operating budget for that levy year, then, for the next levy
22year, "extension limitation" means 0% or the rate of increase
23approved by the voters under Section 18-205.

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1 "Affected county" means a county of 3,000,000 or more
2inhabitants or a county contiguous to a county of 3,000,000 or
3more inhabitants.
4 "Taxing district" has the same meaning provided in Section
51-150, except as otherwise provided in this Section. For the
61991 through 1994 levy years only, "taxing district" includes
7only each non-home rule taxing district having the majority of
8its 1990 equalized assessed value within any county or counties
9contiguous to a county with 3,000,000 or more inhabitants.
10Beginning with the 1995 levy year, "taxing district" includes
11only each non-home rule taxing district subject to this Law
12before the 1995 levy year and each non-home rule taxing
13district not subject to this Law before the 1995 levy year
14having the majority of its 1994 equalized assessed value in an
15affected county or counties. Beginning with the levy year in
16which this Law becomes applicable to a taxing district as
17provided in Section 18-213, "taxing district" also includes
18those taxing districts made subject to this Law as provided in
19Section 18-213. Beginning in levy year 2019, "taxing district"
20also means any taxing district, as defined in Section 1-150,
21that had reserves of 50% or more of its operating budget at the
22end of the immediately preceding levy year.
23 "Aggregate extension" for taxing districts to which this
24Law applied before the 1995 levy year means the annual
25corporate extension for the taxing district and those special
26purpose extensions that are made annually for the taxing

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1district, excluding special purpose extensions: (a) made for
2the taxing district to pay interest or principal on general
3obligation bonds that were approved by referendum; (b) made for
4any taxing district to pay interest or principal on general
5obligation bonds issued before October 1, 1991; (c) made for
6any taxing district to pay interest or principal on bonds
7issued to refund or continue to refund those bonds issued
8before October 1, 1991; (d) made for any taxing district to pay
9interest or principal on bonds issued to refund or continue to
10refund bonds issued after October 1, 1991 that were approved by
11referendum; (e) made for any taxing district to pay interest or
12principal on revenue bonds issued before October 1, 1991 for
13payment of which a property tax levy or the full faith and
14credit of the unit of local government is pledged; however, a
15tax for the payment of interest or principal on those bonds
16shall be made only after the governing body of the unit of
17local government finds that all other sources for payment are
18insufficient to make those payments; (f) made for payments
19under a building commission lease when the lease payments are
20for the retirement of bonds issued by the commission before
21October 1, 1991, to pay for the building project; (g) made for
22payments due under installment contracts entered into before
23October 1, 1991; (h) made for payments of principal and
24interest on bonds issued under the Metropolitan Water
25Reclamation District Act to finance construction projects
26initiated before October 1, 1991; (i) made for payments of

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1principal and interest on limited bonds, as defined in Section
23 of the Local Government Debt Reform Act, in an amount not to
3exceed the debt service extension base less the amount in items
4(b), (c), (e), and (h) of this definition for non-referendum
5obligations, except obligations initially issued pursuant to
6referendum; (j) made for payments of principal and interest on
7bonds issued under Section 15 of the Local Government Debt
8Reform Act; (k) made by a school district that participates in
9the Special Education District of Lake County, created by
10special education joint agreement under Section 10-22.31 of the
11School Code, for payment of the school district's share of the
12amounts required to be contributed by the Special Education
13District of Lake County to the Illinois Municipal Retirement
14Fund under Article 7 of the Illinois Pension Code; the amount
15of any extension under this item (k) shall be certified by the
16school district to the county clerk; (l) made to fund expenses
17of providing joint recreational programs for persons with
18disabilities under Section 5-8 of the Park District Code or
19Section 11-95-14 of the Illinois Municipal Code; (m) made for
20temporary relocation loan repayment purposes pursuant to
21Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
22payment of principal and interest on any bonds issued under the
23authority of Section 17-2.2d of the School Code; (o) made for
24contributions to a firefighter's pension fund created under
25Article 4 of the Illinois Pension Code, to the extent of the
26amount certified under item (5) of Section 4-134 of the

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1Illinois Pension Code; and (p) made for road purposes in the
2first year after a township assumes the rights, powers, duties,
3assets, property, liabilities, obligations, and
4responsibilities of a road district abolished under the
5provisions of Section 6-133 of the Illinois Highway Code.
6 "Aggregate extension" for the taxing districts to which
7this Law did not apply before the 1995 levy year (except taxing
8districts subject to this Law in accordance with Section 18-213
9or this amendatory Act of the 101st General Assembly) means the
10annual corporate extension for the taxing district and those
11special purpose extensions that are made annually for the
12taxing district, excluding special purpose extensions: (a)
13made for the taxing district to pay interest or principal on
14general obligation bonds that were approved by referendum; (b)
15made for any taxing district to pay interest or principal on
16general obligation bonds issued before March 1, 1995; (c) made
17for any taxing district to pay interest or principal on bonds
18issued to refund or continue to refund those bonds issued
19before March 1, 1995; (d) made for any taxing district to pay
20interest or principal on bonds issued to refund or continue to
21refund bonds issued after March 1, 1995 that were approved by
22referendum; (e) made for any taxing district to pay interest or
23principal on revenue bonds issued before March 1, 1995 for
24payment of which a property tax levy or the full faith and
25credit of the unit of local government is pledged; however, a
26tax for the payment of interest or principal on those bonds

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1shall be made only after the governing body of the unit of
2local government finds that all other sources for payment are
3insufficient to make those payments; (f) made for payments
4under a building commission lease when the lease payments are
5for the retirement of bonds issued by the commission before
6March 1, 1995 to pay for the building project; (g) made for
7payments due under installment contracts entered into before
8March 1, 1995; (h) made for payments of principal and interest
9on bonds issued under the Metropolitan Water Reclamation
10District Act to finance construction projects initiated before
11October 1, 1991; (h-4) made for stormwater management purposes
12by the Metropolitan Water Reclamation District of Greater
13Chicago under Section 12 of the Metropolitan Water Reclamation
14District Act; (i) made for payments of principal and interest
15on limited bonds, as defined in Section 3 of the Local
16Government Debt Reform Act, in an amount not to exceed the debt
17service extension base less the amount in items (b), (c), and
18(e) of this definition for non-referendum obligations, except
19obligations initially issued pursuant to referendum and bonds
20described in subsection (h) of this definition; (j) made for
21payments of principal and interest on bonds issued under
22Section 15 of the Local Government Debt Reform Act; (k) made
23for payments of principal and interest on bonds authorized by
24Public Act 88-503 and issued under Section 20a of the Chicago
25Park District Act for aquarium or museum projects; (l) made for
26payments of principal and interest on bonds authorized by

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1Public Act 87-1191 or 93-601 and (i) issued pursuant to Section
221.2 of the Cook County Forest Preserve District Act, (ii)
3issued under Section 42 of the Cook County Forest Preserve
4District Act for zoological park projects, or (iii) issued
5under Section 44.1 of the Cook County Forest Preserve District
6Act for botanical gardens projects; (m) made pursuant to
7Section 34-53.5 of the School Code, whether levied annually or
8not; (n) made to fund expenses of providing joint recreational
9programs for persons with disabilities under Section 5-8 of the
10Park District Code or Section 11-95-14 of the Illinois
11Municipal Code; (o) made by the Chicago Park District for
12recreational programs for persons with disabilities under
13subsection (c) of Section 7.06 of the Chicago Park District
14Act; (p) made for contributions to a firefighter's pension fund
15created under Article 4 of the Illinois Pension Code, to the
16extent of the amount certified under item (5) of Section 4-134
17of the Illinois Pension Code; (q) made by Ford Heights School
18District 169 under Section 17-9.02 of the School Code; and (r)
19made for the purpose of making employer contributions to the
20Public School Teachers' Pension and Retirement Fund of Chicago
21under Section 34-53 of the School Code.
22 "Aggregate extension" for all taxing districts to which
23this Law applies in accordance with Section 18-213, except for
24those taxing districts subject to paragraph (2) of subsection
25(e) of Section 18-213, means the annual corporate extension for
26the taxing district and those special purpose extensions that

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

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1lease when the lease payments are for the retirement of bonds
2issued by the commission before the date on which the
3referendum making this Law applicable to the taxing district is
4held to pay for the building project; (g) made for payments due
5under installment contracts entered into before the date on
6which the referendum making this Law applicable to the taxing
7district is held; (h) made for payments of principal and
8interest on limited bonds, as defined in Section 3 of the Local
9Government Debt Reform Act, in an amount not to exceed the debt
10service extension base less the amount in items (b), (c), and
11(e) of this definition for non-referendum obligations, except
12obligations initially issued pursuant to referendum; (i) made
13for payments of principal and interest on bonds issued under
14Section 15 of the Local Government Debt Reform Act; (j) made
15for a qualified airport authority to pay interest or principal
16on general obligation bonds issued for the purpose of paying
17obligations due under, or financing airport facilities
18required to be acquired, constructed, installed or equipped
19pursuant to, contracts entered into before March 1, 1996 (but
20not including any amendments to such a contract taking effect
21on or after that date); (k) made to fund expenses of providing
22joint recreational programs for persons with disabilities
23under Section 5-8 of the Park District Code or Section 11-95-14
24of the Illinois Municipal Code; (l) made for contributions to a
25firefighter's pension fund created under Article 4 of the
26Illinois Pension Code, to the extent of the amount certified

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1under item (5) of Section 4-134 of the Illinois Pension Code;
2and (m) made for the taxing district to pay interest or
3principal on general obligation bonds issued pursuant to
4Section 19-3.10 of the School Code.
5 "Aggregate extension" for all taxing districts to which
6this Law applies in accordance with paragraph (2) of subsection
7(e) of Section 18-213 or this amendatory Act of the 101st
8General Assembly means the annual corporate extension for the
9taxing district and those special purpose extensions that are
10made annually for the taxing district, excluding special
11purpose extensions: (a) made for the taxing district to pay
12interest or principal on general obligation bonds that were
13approved by referendum; (b) made for any taxing district to pay
14interest or principal on general obligation bonds issued before
15the effective date of this amendatory Act of 1997; (c) made for
16any taxing district to pay interest or principal on bonds
17issued to refund or continue to refund those bonds issued
18before the effective date of this amendatory Act of 1997; (d)
19made for any taxing district to pay interest or principal on
20bonds issued to refund or continue to refund bonds issued after
21the effective date of this amendatory Act of 1997 if the bonds
22were approved by referendum after the effective date of this
23amendatory Act of 1997; (e) made for any taxing district to pay
24interest or principal on revenue bonds issued before the
25effective date of this amendatory Act of 1997 for payment of
26which a property tax levy or the full faith and credit of the

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1unit of local government is pledged; however, a tax for the
2payment of interest or principal on those bonds shall be made
3only after the governing body of the unit of local government
4finds that all other sources for payment are insufficient to
5make those payments; (f) made for payments under a building
6commission lease when the lease payments are for the retirement
7of bonds issued by the commission before the effective date of
8this amendatory Act of 1997 to pay for the building project;
9(g) made for payments due under installment contracts entered
10into before the effective date of this amendatory Act of 1997;
11(h) made for payments of principal and interest on limited
12bonds, as defined in Section 3 of the Local Government Debt
13Reform Act, in an amount not to exceed the debt service
14extension base less the amount in items (b), (c), and (e) of
15this definition for non-referendum obligations, except
16obligations initially issued pursuant to referendum; (i) made
17for payments of principal and interest on bonds issued under
18Section 15 of the Local Government Debt Reform Act; (j) made
19for a qualified airport authority to pay interest or principal
20on general obligation bonds issued for the purpose of paying
21obligations due under, or financing airport facilities
22required to be acquired, constructed, installed or equipped
23pursuant to, contracts entered into before March 1, 1996 (but
24not including any amendments to such a contract taking effect
25on or after that date); (k) made to fund expenses of providing
26joint recreational programs for persons with disabilities

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1under Section 5-8 of the Park District Code or Section 11-95-14
2of the Illinois Municipal Code; and (l) made for contributions
3to a firefighter's pension fund created under Article 4 of the
4Illinois Pension Code, to the extent of the amount certified
5under item (5) of Section 4-134 of the Illinois Pension Code.
6 "Debt service extension base" means an amount equal to that
7portion of the extension for a taxing district for the 1994
8levy year, or for those taxing districts subject to this Law in
9accordance with Section 18-213, except for those subject to
10paragraph (2) of subsection (e) of Section 18-213, for the levy
11year in which the referendum making this Law applicable to the
12taxing district is held, or for those taxing districts subject
13to this Law in accordance with paragraph (2) of subsection (e)
14of Section 18-213 for the 1996 levy year, constituting an
15extension for payment of principal and interest on bonds issued
16by the taxing district without referendum, but not including
17excluded non-referendum bonds. For park districts (i) that were
18first subject to this Law in 1991 or 1995 and (ii) whose
19extension for the 1994 levy year for the payment of principal
20and interest on bonds issued by the park district without
21referendum (but not including excluded non-referendum bonds)
22was less than 51% of the amount for the 1991 levy year
23constituting an extension for payment of principal and interest
24on bonds issued by the park district without referendum (but
25not including excluded non-referendum bonds), "debt service
26extension base" means an amount equal to that portion of the

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

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1aggregate extension.
2 "Aggregate extension base" means the taxing district's
3last preceding aggregate extension as adjusted under Sections
418-135, 18-215, 18-230, and 18-206. An adjustment under Section
518-135 shall be made for the 2007 levy year and all subsequent
6levy years whenever one or more counties within which a taxing
7district is located (i) used estimated valuations or rates when
8extending taxes in the taxing district for the last preceding
9levy year that resulted in the over or under extension of
10taxes, or (ii) increased or decreased the tax extension for the
11last preceding levy year as required by Section 18-135(c).
12Whenever an adjustment is required under Section 18-135, the
13aggregate extension base of the taxing district shall be equal
14to the amount that the aggregate extension of the taxing
15district would have been for the last preceding levy year if
16either or both (i) actual, rather than estimated, valuations or
17rates had been used to calculate the extension of taxes for the
18last levy year, or (ii) the tax extension for the last
19preceding levy year had not been adjusted as required by
20subsection (c) of Section 18-135.
21 Notwithstanding any other provision of law, for levy year
222012, the aggregate extension base for West Northfield School
23District No. 31 in Cook County shall be $12,654,592.
24 "Levy year" has the same meaning as "year" under Section
251-155.
26 "New property" means (i) the assessed value, after final

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1board of review or board of appeals action, of new improvements
2or additions to existing improvements on any parcel of real
3property that increase the assessed value of that real property
4during the levy year multiplied by the equalization factor
5issued by the Department under Section 17-30, (ii) the assessed
6value, after final board of review or board of appeals action,
7of real property not exempt from real estate taxation, which
8real property was exempt from real estate taxation for any
9portion of the immediately preceding levy year, multiplied by
10the equalization factor issued by the Department under Section
1117-30, including the assessed value, upon final stabilization
12of occupancy after new construction is complete, of any real
13property located within the boundaries of an otherwise or
14previously exempt military reservation that is intended for
15residential use and owned by or leased to a private corporation
16or other entity, (iii) in counties that classify in accordance
17with Section 4 of Article IX of the Illinois Constitution, an
18incentive property's additional assessed value resulting from
19a scheduled increase in the level of assessment as applied to
20the first year final board of review market value, and (iv) any
21increase in assessed value due to oil or gas production from an
22oil or gas well required to be permitted under the Hydraulic
23Fracturing Regulatory Act that was not produced in or accounted
24for during the previous levy year. In addition, the county
25clerk in a county containing a population of 3,000,000 or more
26shall include in the 1997 recovered tax increment value for any

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

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

HB3656- 18 -LRB101 05857 HLH 50876 b
1value of all real property in the territory under the
2jurisdiction of the taxing district during the prior levy year.
3For those taxing districts that reduced their aggregate
4extension for the last preceding levy year, except for school
5districts that reduced their extension for educational
6purposes pursuant to Section 18-206, the highest aggregate
7extension in any of the last 3 preceding levy years shall be
8used for the purpose of computing the limiting rate. The
9denominator shall not include new property or the recovered tax
10increment value. If a new rate, a rate decrease, or a limiting
11rate increase has been approved at an election held after March
1221, 2006, then (i) the otherwise applicable limiting rate shall
13be increased by the amount of the new rate or shall be reduced
14by the amount of the rate decrease, as the case may be, or (ii)
15in the case of a limiting rate increase, the limiting rate
16shall be equal to the rate set forth in the proposition
17approved by the voters for each of the years specified in the
18proposition, after which the limiting rate of the taxing
19district shall be calculated as otherwise provided. In the case
20of a taxing district that obtained referendum approval for an
21increased limiting rate on March 20, 2012, the limiting rate
22for tax year 2012 shall be the rate that generates the
23approximate total amount of taxes extendable for that tax year,
24as set forth in the proposition approved by the voters; this
25rate shall be the final rate applied by the county clerk for
26the aggregate of all capped funds of the district for tax year

HB3656- 19 -LRB101 05857 HLH 50876 b
12012.
2(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
3100-465, eff. 8-31-17.)
4 (35 ILCS 200/18-205)
5 Sec. 18-205. Referendum to increase the extension
6limitation. A taxing district is limited to an extension
7limitation as defined in Section 18-185 of 5% or the percentage
8increase in the Consumer Price Index during the 12-month
9calendar year preceding the levy year, whichever is less. A
10taxing district may increase its extension limitation for one
11or more levy years if that taxing district holds a referendum
12before the levy date for the first levy year at which a
13majority of voters voting on the issue approves adoption of a
14higher extension limitation. Referenda shall be conducted at a
15regularly scheduled election in accordance with the Election
16Code. The question shall be presented in substantially the
17following manner for all elections held after March 21, 2006:
18 Shall the extension limitation under the Property Tax
19 Extension Limitation Law for (insert the legal name,
20 number, if any, and county or counties of the taxing
21 district and geographic or other common name by which a
22 school or community college district is known and referred
23 to), Illinois, be increased from the lesser of 5% or the
24 percentage increase in the Consumer Price Index over the
25 prior levy year to (insert the percentage of the proposed

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1 increase)% per year for (insert each levy year for which
2 the increased extension limitation will apply)?
3 In the case of a taxing district that had reserves of 50%
4or more of its operating budget at the end of the immediately
5preceding levy year, the question shall be presented in
6substantially the following manner:
7 Shall the extension limitation under the Property Tax
8 Extension Limitation Law for (insert the legal name,
9 number, if any, and county or counties of the taxing
10 district and geographic or other common name by which a
11 school or community college district is known and referred
12 to), Illinois, be increased from 0% to (insert the
13 percentage of the proposed increase)% per year for (insert
14 each levy year for which the increased extension limitation
15 will apply)?
16The votes must be recorded as "Yes" or "No".
17If a majority of voters voting on the issue approves the
18adoption of the increase, the increase shall be applicable for
19each levy year specified.
20 The ballot for any question submitted pursuant to this
21Section shall have printed thereon, but not as a part of the
22question submitted, only the following supplemental
23information (which shall be supplied to the election authority
24by the taxing district) in substantially the following form:
25 (1) For the (insert the first levy year for which the
26 increased extension limitation will be applicable) levy

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1 year the approximate amount of the additional tax
2 extendable against property containing a single family
3 residence and having a fair market value at the time of the
4 referendum of $100,000 is estimated to be $....
5 (2) Based upon an average annual percentage increase
6 (or decrease) in the market value of such property of ...%
7 (insert percentage equal to the average annual percentage
8 increase or decrease for the prior 3 levy years, at the
9 time the submission of the question is initiated by the
10 taxing district, in the amount of (A) the equalized
11 assessed value of the taxable property in the taxing
12 district less (B) the new property included in the
13 equalized assessed value), the approximate amount of the
14 additional tax extendable against such property for the ...
15 levy year is estimated to be $... and for the ... levy year
16 is estimated to be $....
17 Paragraph (2) shall be included only if the increased
18extension limitation will be applicable for more than one year
19and shall list each levy year for which the increased extension
20limitation will be applicable. The additional tax shown for
21each levy year shall be the approximate dollar amount of the
22increase over the amount of the most recently completed
23extension at the time the submission of the question is
24initiated by the taxing district. The approximate amount of the
25additional tax extendable shown in paragraphs (1) and (2) shall
26be calculated by multiplying $100,000 (the fair market value of

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1the property without regard to any property tax exemptions) by
2(i) the percentage level of assessment prescribed for that
3property by statute, or by ordinance of the county board in
4counties that classify property for purposes of taxation in
5accordance with Section 4 of Article IX of the Illinois
6Constitution; (ii) the most recent final equalization factor
7certified to the county clerk by the Department of Revenue at
8the time the taxing district initiates the submission of the
9proposition to the electors; (iii) the last known aggregate
10extension base of the taxing district at the time the
11submission of the question is initiated by the taxing district;
12and (iv) the difference between the percentage increase
13proposed in the question and (A) the lesser of 5% or the
14percentage increase in the Consumer Price Index for the prior
15levy year (or an estimate of the percentage increase for the
16prior levy year if the increase is unavailable at the time the
17submission of the question is initiated by the taxing district)
18or (B) 0%, as applicable; and dividing the result by the last
19known equalized assessed value of the taxing district at the
20time the submission of the question is initiated by the taxing
21district. This amendatory Act of the 97th General Assembly is
22intended to clarify the existing requirements of this Section,
23and shall not be construed to validate any prior non-compliant
24referendum language. Any notice required to be published in
25connection with the submission of the question shall also
26contain this supplemental information and shall not contain any

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1other supplemental information. Any error, miscalculation, or
2inaccuracy in computing any amount set forth on the ballot or
3in the notice that is not deliberate shall not invalidate or
4affect the validity of any proposition approved. Notice of the
5referendum shall be published and posted as otherwise required
6by law, and the submission of the question shall be initiated
7as provided by law.
8(Source: P.A. 97-1087, eff. 8-24-12.)
9 (35 ILCS 200/18-242 new)
10 Sec. 18-242. Home rule. This Division 5 is a limitation,
11under subsection (g) of Section 6 of Article VII of the
12Illinois Constitution, on the power of home rule units to tax.
13 Section 90. The State Mandates Act is amended by adding
14Section 8.43 as follows:
15 (30 ILCS 805/8.43 new)
16 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
17of this Act, no reimbursement by the State is required for the
18implementation of any mandate created by this amendatory Act of
19the 101st General Assembly.
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