Bill Text: IL HB5731 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, for levy years 2018 through 2021, the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units. Provides that, for levy years 2018 through 2021, the extension limitation under the Property Tax Extension Limitation Law is 0% or the rate of increase approved by the voters. Provides that, for taxing districts that became subject to the Law as a result of the amendatory Act, "aggregate extension" does not include special purpose extensions made for the payment of principal and interest on bonds or other evidences of indebtedness issued by the taxing district prior to the effective date of the amendatory Act. Provides that taxing districts may provide for the continuation of the amendatory Act for up to 4 years upon referendum approval. Provides that the voters of the taxing district may require a reduction in the taxing district's aggregate extension base by referendum. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5731 Detail]

Download: Illinois-2017-HB5731-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB5731 Introduced , by Rep. Jim Durkin SYNOPSIS AS INTRODUCED:
35 ILCS 200/18-185
35 ILCS 200/18-205
35 ILCS 200/18-206 new
35 ILCS 200/18-212
35 ILCS 200/18-214
35 ILCS 200/18-216 new
35 ILCS 200/18-242 new
30 ILCS 805/8.42 new
Amends the Property Tax Code. Provides that, for levy years 2018 through 2021, the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units. Provides that, for levy years 2018 through 2021, the extension limitation under the Property Tax Extension Limitation Law is 0% or the rate of increase approved by the voters. Provides that, for taxing districts that became subject to the Law as a result of the amendatory Act, "aggregate extension" does not include special purpose extensions made for the payment of principal and interest on bonds or other evidences of indebtedness issued by the taxing district prior to the effective date of the amendatory Act. Provides that taxing districts may provide for the continuation of the amendatory Act for up to 4 years upon referendum approval. Provides that the voters of the taxing district may require a reduction in the taxing district's aggregate extension base by referendum. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 18-185, 18-205, 18-212, 18-216, and 18-214 and by
adding Sections 18-242 and 18-206 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", for levy years prior to levy year
2018 and again for levy years after levy year 2021, means (a)
the lesser of 5% or the percentage increase in the Consumer
Price Index during the 12-month calendar year preceding the
levy year or (b) the rate of increase approved by voters under
Section 18-205.
"Extension limitation", for levy years 2018 through 2021,
means 0% or the rate of increase approved by the voters under
Section 18-205.
"Affected county" means a county of 3,000,000 or more

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inhabitants or a county contiguous to a county of 3,000,000 or
more inhabitants.
"Taxing district" has the same meaning provided in Section
1-150, except as otherwise provided in this Section. For the
1991 through 1994 levy years only, "taxing district" includes
only each non-home rule taxing district having the majority of
its 1990 equalized assessed value within any county or counties
contiguous to a county with 3,000,000 or more inhabitants. For
levy years 1995 through 2017 and beginning again with levy year
2022 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. For levy years 2018 through 2021, "taxing
district" has the same meaning provided in Section 1-150 and
includes home rule units.
"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

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the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made for
any taxing district to pay interest or principal on general
obligation bonds issued before October 1, 1991; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before October 1, 1991; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after October 1, 1991 that were approved by
referendum; (e) made for any taxing district to pay interest or
principal on revenue bonds issued before October 1, 1991 for
payment of which a property tax levy or the full faith and
credit of the unit of local government is pledged; however, a
tax for the payment of interest or principal on those bonds
shall be made only after the governing body of the unit of
local government finds that all other sources for payment are
insufficient to make those payments; (f) made for payments
under a building commission lease when the lease payments are
for the retirement of bonds issued by the commission before
October 1, 1991, to pay for the building project; (g) made for
payments due under installment contracts entered into before
October 1, 1991; (h) made for payments of principal and
interest on bonds issued under the Metropolitan Water
Reclamation District Act to finance construction projects
initiated before October 1, 1991; (i) made for payments of
principal and interest on limited bonds, as defined in Section

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

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first year after a township assumes the rights, powers, duties,
assets, property, liabilities, obligations, and
responsibilities of a road district abolished under the
provisions of Section 6-133 of the Illinois Highway Code.
"Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except taxing
districts subject to this Law in accordance with Section 18-213
or this amendatory Act of the 100th General Assembly) 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

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local government finds that all other sources for payment are
insufficient to make those payments; (f) made for payments
under a building commission lease when the lease payments are
for the retirement of bonds issued by the commission before
March 1, 1995 to pay for the building project; (g) made for
payments due under installment contracts entered into before
March 1, 1995; (h) made for payments of principal and interest
on bonds issued under the Metropolitan Water Reclamation
District Act to finance construction projects initiated before
October 1, 1991; (h-4) made for stormwater management purposes
by the Metropolitan Water Reclamation District of Greater
Chicago under Section 12 of the Metropolitan Water Reclamation
District Act; (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 subsection (h) 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; (l) made for
payments of principal and interest on bonds authorized by
Public Act 87-1191 or 93-601 and (i) issued pursuant to Section

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

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purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the date on which the referendum making this Law applicable to
the taxing district is held; (c) made for any taxing district
to pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the date on which
the referendum making this Law applicable to the taxing
district is held; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after the date on which the referendum
making this Law applicable to the taxing district is held if
the bonds were approved by referendum after the date on which
the referendum making this Law applicable to the taxing
district is held; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the date
on which the referendum making this Law applicable to the
taxing district is held for payment of which a property tax
levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds

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issued by the commission before the date on which the
referendum making this Law applicable to the taxing district is
held to pay for the building project; (g) made for payments due
under installment contracts entered into before the date on
which the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the debt
service extension base less the amount in items (b), (c), and
(e) of this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing
joint recreational programs for persons with disabilities
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code; (l) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code;

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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 or this amendatory Act of the 100th
General Assembly means the annual corporate extension for the
taxing district and those special purpose extensions that are
made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the effective date of this amendatory Act of 1997; (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 effective date of this amendatory Act of 1997; (d)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund bonds issued after
the effective date of this amendatory Act of 1997 if the bonds
were approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 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

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payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the retirement
of bonds issued by the commission before the effective date of
this amendatory Act of 1997 to pay for the building project;
(g) made for payments due under installment contracts entered
into before the effective date of this amendatory Act of 1997;
(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

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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.
In addition, for taxing districts that became subject to the
Law as a result of this amendatory Act of the 100th General
Assembly, "aggregate extension" does not include special
purpose extensions made for the payment of principal and
interest on bonds or other evidences of indebtedness issued by
the taxing district prior to the effective date of this
amendatory Act of the 100th General Assembly.
"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

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referendum (but not including excluded non-referendum bonds)
was less than 51% of the amount for the 1991 levy year
constituting an extension for payment of principal and interest
on bonds issued by the park district without referendum (but
not including excluded non-referendum bonds), "debt service
extension base" means an amount equal to that portion of the
extension for the 1991 levy year constituting an extension for
payment of principal and interest on bonds issued by the park
district without referendum (but not including excluded
non-referendum bonds). A debt service extension base
established or increased at any time pursuant to any provision
of this Law, except Section 18-212, shall be increased each
year commencing with the later of (i) the 2009 levy year or
(ii) the first levy year in which this Law becomes applicable
to the taxing district, by (A) for levy years prior to the 2018
levy year and for levy year 2022 and thereafter, 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) for levy years 2018 through 2021, 0%. 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

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obligations initially issued pursuant to referendum.
"Special purpose extensions" include, but are not limited
to, extensions for levies made on an annual basis for
unemployment and workers' compensation, self-insurance,
contributions to pension plans, and extensions made pursuant to
Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or not.
The extension for a special service area is not included in the
aggregate extension.
"Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-135, 18-215, and 18-230, or the aggregate extension base set
by referendum under Section 18-206, whichever is less and
18-206. 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

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calculate the extension of taxes for the last levy year, or
(ii) the tax extension for the last preceding levy year had not
been adjusted as required by subsection (c) of Section 18-135.
Notwithstanding any other provision of law, for levy year
2012, the aggregate extension base for West Northfield School
District No. 31 in Cook County shall be $12,654,592.
"Levy year" has the same meaning as "year" under Section
1-155.
"New property" means (i) the assessed value, after final
board of review or board of appeals action, of new improvements
or additions to existing improvements on any parcel of real
property that increase the assessed value of that real property
during the levy year multiplied by the equalization factor
issued by the Department under Section 17-30, (ii) the assessed
value, after final board of review or board of appeals action,
of real property not exempt from real estate taxation, which
real property was exempt from real estate taxation for any
portion of the immediately preceding levy year, multiplied by
the equalization factor issued by the Department under Section
17-30, including the assessed value, upon final stabilization
of occupancy after new construction is complete, of any real
property located within the boundaries of an otherwise or
previously exempt military reservation that is intended for
residential use and owned by or leased to a private corporation
or other entity, (iii) in counties that classify in accordance
with Section 4 of Article IX of the Illinois Constitution, an

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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 Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, previously
established under the Economic Development Project Area Tax
Increment Act of 1995, or previously established under the
Economic Development Area Tax Increment Allocation Act, of each

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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 Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, or previously
established under the Economic Development Area Tax Increment
Allocation Act, by an amount equal to the 1994 equalized
assessed value of each taxable lot, block, tract, or parcel of
real property in the redevelopment project area over and above
the initial equalized assessed value of each property in the
redevelopment project area. In the first year after a
municipality removes a taxable lot, block, tract, or parcel of
real property from a redevelopment project area established
under the Tax Increment Allocation Development 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

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of each taxable lot, block, tract, or parcel of real property
removed from the redevelopment project area over and above the
initial equalized assessed value of that real property before
removal from the redevelopment project area.
Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to one
plus the extension limitation defined in this Section and the
denominator of which is the current year's equalized assessed
value of all real property in the territory under the
jurisdiction of the taxing district during the prior levy year.
For those taxing districts that reduced their aggregate
extension for the last preceding levy year, except for school
districts that reduced their extension for educational
purposes pursuant to Section 18-206, the highest aggregate
extension in any of the last 3 preceding levy years shall be
used for the purpose of computing the limiting rate.
Notwithstanding any other provision of law, if the voters of
the taxing district approve a reduced aggregate extension base,
as provided in Section 18-206, then that reduced aggregate
extension base shall be used for the purpose of computing the
limiting rate. The denominator shall not include new property
or the recovered tax increment value. If a new rate, a rate
decrease, or a limiting rate increase has been approved at an
election held after March 21, 2006, then (i) the otherwise
applicable limiting rate shall be increased by the amount of

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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. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
100-465, eff. 8-31-17.)
(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 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

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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 (extension limitation
under 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
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

HB5731 - 21 - LRB100 19720 HLH 34994 b
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
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

HB5731 - 22 - LRB100 19720 HLH 34994 b
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 (A) the 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 district)
or (B) 0%, as applicable; 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

HB5731 - 23 - LRB100 19720 HLH 34994 b
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 200/18-206 new)
Sec. 18-206. Referendum to reduce the aggregate extension
base.
(a) Notwithstanding any other provision of law, if a
written petition is submitted to the corporate authorities of a
taxing district calling for a referendum on the question of
whether or not the aggregate extension base of the taxing
district should be reduced and setting forth the amount of the
reduction, signed by a number of voters of the taxing district
equal to at least 5% of the total votes cast for candidates for
Governor in the preceding gubernatorial election by the
registered voters of the taxing district, then the corporate
authorities of the taxing district shall adopt a resolution for
the submission of that proposition at the next regular election
held in that taxing district. The corporate authorities shall
certify the resolution and the proposition to the proper

HB5731 - 24 - LRB100 19720 HLH 34994 b
election officials, who shall submit the proposition at the
election in accordance with the general election law.
(b) The question shall be in substantially the following
form:
Shall the aggregate extension base for (taxing
district) for (levy year or levy years) be reduced from
(statutory aggregate extension base) to (proposed
aggregate extension base)?
The votes must be recorded as "Yes" or "No". If a majority
of voters voting on the issue approves the reduction, then the
reduction shall be applicable for the levy year or levy years
specified, but shall not exceed a 4-year period.
The ballot for any question submitted pursuant to this
Section shall have printed thereon, but not as a part of the
question submitted, the following supplemental information
(which shall be supplied to the election authority by the
taxing district) in substantially the following form:
For the (levy year or levy years) the reduction in the
amount of taxes 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
$....
(35 ILCS 200/18-212)
Sec. 18-212. Referendum on debt service extension base. A
taxing district may establish or increase its debt service

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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. Except with respect to levy years 2018 through
2021, a 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
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
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

HB5731 - 26 - LRB100 19720 HLH 34994 b
service extension base to be increased each year by 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.)
(35 ILCS 200/18-214)
Sec. 18-214. Referenda on removal of the applicability of
the Property Tax Extension Limitation Law to non-home rule
taxing districts.
(a) The provisions of this Section do not apply to a taxing
district that is subject to this Law because a majority of its
1990 equalized assessed value is in a county or counties
contiguous to a county of 3,000,000 or more inhabitants, or
because a majority of its 1994 equalized assessed value is in
an affected county and the taxing district was not subject to
this Law before the 1995 levy year.
(b) For purposes of this Section only:
"Taxing district" means any non-home rule taxing district
that became subject to this Law under Section 18-213 of this

HB5731 - 27 - LRB100 19720 HLH 34994 b
Law.
"Equalized assessed valuation" means the equalized
assessed valuation for a taxing district for the immediately
preceding levy year.
(c) The county board of a county that became subject to
this Law by a referendum approved by the voters of the county
under Section 18-213 may, by ordinance or resolution, in the
manner set forth in this Section, submit to the voters of the
county the question of whether this Law applies to all non-home
rule taxing districts that have all or a portion of their
equalized assessed valuation situated in the county in the
manner set forth in this Section.
(d) The ordinance or resolution shall request the
submission of the proposition at any election, except a
consolidated primary election, for the purpose of voting for or
against the continued application of the Property Tax Extension
Limitation Law to all non-home rule taxing districts that have
all or a portion of their equalized assessed valuation situated
in the county.
The question shall be placed on a separate ballot and shall
be in substantially the following form:
Shall the Property Tax Extension Limitation Law (35
ILCS 200/18-185 through 35 ILCS 200/18-245), which limits
annual property tax extension increases, apply to non-home
rule taxing districts with all or a portion of their
equalized assessed valuation located in (name of county)?

HB5731 - 28 - LRB100 19720 HLH 34994 b
Votes on the question shall be recorded as "yes" or "no".
(e) The county clerk shall order the proposition submitted
to the electors of the county at the election specified in the
ordinance or resolution. If part of the county is under the
jurisdiction of a board or boards of election commissioners,
the county clerk shall submit a certified copy of the ordinance
or resolution to each board of election commissioners, which
shall order the proposition submitted to the electors of the
taxing district within its jurisdiction at the election
specified in the ordinance or resolution.
(f) With respect to taxing districts having all of their
equalized assessed valuation located in one county, if a
majority of the votes cast on the proposition are against the
proposition, then this Law shall not apply to the taxing
district beginning on January 1 of the year following the date
of the referendum.
(g) With respect to taxing districts that do not have all
of their equalized assessed valuation located in a single
county, if both of the following conditions are met, then this
Law shall no longer apply to the taxing district beginning on
January 1 of the year following the date of the referendum.
(1) Each county in which the district has any equalized
assessed valuation must either, (i) have held a referendum
under this Section, (ii) be an affected county, or (iii)
have held a referendum under Section 18-213 at which the
voters rejected the proposition at the most recent election

HB5731 - 29 - LRB100 19720 HLH 34994 b
at which the question was on the ballot in the county.
(2) The majority of the equalized assessed valuation of
the taxing district, other than any equalized assessed
valuation in an affected county, is in one or more counties
in which the voters rejected the proposition. For purposes
of this Section, in determining whether a majority of the
equalized assessed valuation of the taxing district is
located in one or more counties in which the voters have
rejected the proposition under this Section, the equalized
assessed valuation of any taxing district in a county which
has held a referendum under Section 18-213 at which the
voters rejected that proposition, at the most recent
election at which the question was on the ballot in the
county, will be included with the equalized assessed value
of the taxing district in counties in which the voters have
rejected the referendum held under this Section.
(h) Immediately after a referendum is held under this
Section, the county clerk of the county holding the referendum
shall give notice of the referendum having been held and its
results to all taxing districts that have all or a portion of
their equalized assessed valuation located in the county, the
county clerk of any other county in which any of the equalized
assessed valuation of any such taxing district is located, and
the Department of Revenue. After the last referendum affecting
a multi-county taxing district is held, the Department of
Revenue shall determine whether the taxing district is no

HB5731 - 30 - LRB100 19720 HLH 34994 b
longer subject to this Law and, if the taxing district is no
longer subject to this Law, the Department of Revenue shall
notify the taxing district and the county clerks of all of the
counties in which a portion of the equalized assessed valuation
of the taxing district is located that, beginning on January 1
of the year following the date of the last referendum, the
taxing district is no longer subject to this Law.
(i) Notwithstanding any other provision of law, no
referendum may be submitted under this Section for levy years
2018 through 2021.
(Source: P.A. 89-718, eff. 3-7-97.)
(35 ILCS 200/18-216 new)
Sec. 18-216. Extension of amendatory Act.
(a) Notwithstanding any other provision of law, during
calendar years 2018 through 2022, the corporate authorities of
any taxing district may, by resolution, submit to the voters of
the taxing district the question of whether or not to continue
to apply the provisions of this amendatory Act of the 100th
General Assembly concerning the Property Tax Extension
Limitation Law to the taxing district for a period not to
exceed 4 years. In addition, if a written petition calling for
a referendum on that question signed by a number of voters of
the taxing district equal to at least 5% of the total votes
cast for candidates for Governor in the preceding gubernatorial
election by the registered voters of the taxing district is

HB5731 - 31 - LRB100 19720 HLH 34994 b
submitted to the corporate authorities of the taxing district,
then the corporate authorities shall adopt a resolution for the
submission of that proposition at the next regular election
held in that taxing district. Such a petition shall be
submitted to the corporate authorities no later than September
30, 2021. In either case, the corporate authorities shall
certify the resolution and the proposition to the proper
election officials, who shall submit the proposition at the
election in accordance with the general election law.
(b) The question shall be in substantially the following
form:
Shall the provisions of (insert Public Act number),
commonly referred to as the Property Tax Freeze, be
continued for (name of taxing district) for a period of
(number of years, not to exceed 4 years) years? This would
mean that (taxing district) may not increase its annual
corporate extension or certain special purpose extensions
without referendum approval.
Votes shall be recorded as "yes" or "no".
If a majority of the votes cast on the proposition are in
favor of the proposition, then the provisions of this
amendatory Act of the 100th General Assembly concerning the
Property Tax Extension Limitation Law shall continue to apply
to the taxing district for the period of time specified in the
proposition.
(c) As used in this Section, "taxing district" includes

HB5731 - 32 - LRB100 19720 HLH 34994 b
each taxing district that is subject to this Law for the 2018
and 2019 levy years.
(35 ILCS 200/18-242 new)
Sec. 18-242. Home rule. This Division 5 is a limitation,
under subsection (g) of Section 6 of Article VII of the
Illinois Constitution, on the power of home rule units to tax.
Section 90. The State Mandates Act is amended by adding
Section 8.42 as follows:
(30 ILCS 805/8.42 new)
Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 100th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.