Bill Text: IL SB3337 | 2015-2016 | 99th General Assembly | Enrolled

Bill Title: Amends the Property Tax Code. Provides that, for taxable year 2016 and thereafter, the amount of the senior citizens assessment freeze homestead exemption shall be the greater of (i) the amount of the exemption otherwise calculated under that Section of the Code or (ii) $2,000. Effective immediately.

Spectrum: Strong Partisan Bill (Democrat 12-1)

Status: (Enrolled - Dead) 2016-12-29 - Sent to the Governor [SB3337 Detail]

Download: Illinois-2015-SB3337-Enrolled.html

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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 27-5 and 27-25 and by adding Sections 27-100, 27-105,
627-110, 27-115, 27-120, and 27-125 as follows:
7 (35 ILCS 200/27-5)
8 Sec. 27-5. Short title; definitions. This Article may be
9cited as the Special Service Area Tax Law.
10 When used in this Article:
11 "Services contract" means an agreement between a service
12provider agency and a municipality or county for the purpose of
13providing special services in and for a special service area.
14 "Service provider agency" means an entity that enters into
15a services contract with a municipality or county for the
16purpose of providing special services in and for a special
17service area.
18 "Special Service Area" means a contiguous area within a
19municipality or county in which special governmental services
20are provided in addition to those services provided generally
21throughout the municipality or county, the cost of the special
22services to be paid from revenues collected from taxes levied
23or imposed upon property within that area. Territory shall be

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1considered contiguous for purposes of this Article even though
2certain completely surrounded portions of the territory are
3excluded from the special service area. A county may create a
4special service area within a municipality or municipalities
5when the municipality or municipalities consent to the creation
6of the special service area. A municipality may create a
7special service area within a municipality and the
8unincorporated area of a county or within another municipality
9when the county or other municipality consents to the creation
10of the special service area.
11 "Special service area commission" means a local board
12established by the corporate authorities of a municipality or
13county for the purpose of managing a particular special service
15 "Special Services" means all forms of services pertaining
16to the government and affairs of the municipality or county,
17including but not limited to weather modification and
18improvements permissible under Article 9 of the Illinois
19Municipal Code, and contracts for the supply of water as
20described in Section 11-124-1 of the Illinois Municipal Code
21which may be entered into by the municipality or by the county
22on behalf of a county service area.
23(Source: P.A. 86-1324; 88-445.)
24 (35 ILCS 200/27-25)
25 Sec. 27-25. Form of hearing notice. Taxes may be levied or

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1imposed by the municipality or county in the special service
2area at a rate or amount of tax sufficient to produce revenues
3required to provide the special services. Prior to the first
4levy of taxes in the special service area, notice shall be
5given and a hearing shall be held under the provisions of
6Sections 27-30 and 27-35. For purposes of this Section the
7notice shall include:
8 (a) The time and place of hearing;
9 (b) The boundaries of the area by legal description
10 and, where possible, by street location;
11 (c) The permanent tax index number of each parcel
12 located within the area;
13 (d) The nature of the proposed special services to be
14 provided within the special service area and a statement as
15 to whether the proposed special services are for new
16 construction, maintenance, or other purposes;
17 (d-5) The proposed amount of the tax levy for special
18 services for the initial year for which taxes will be
19 levied within the special service area;
20 (e) A notification that all interested persons,
21 including all persons owning taxable real property located
22 within the special service area, will be given an
23 opportunity to be heard at the hearing regarding the tax
24 levy and an opportunity to file objections to the amount of
25 the tax levy if the tax is a tax upon property; and
26 (f) The maximum rate of taxes to be extended within the

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1 special service area in any year and the maximum number of
2 years taxes will be levied if a maximum number of years is
3 to be established; and .
4 (g) If funds received through the special service area
5 are going to be used by a person or entity other than the
6 municipality or county, then a statement to that effect.
7 After the first levy of taxes within the special service
8area, taxes may continue to be levied in subsequent years
9without the requirement of an additional public hearing if the
10tax rate does not exceed the rate specified in the notice for
11the original public hearing and the taxes are not extended for
12a longer period than the number of years specified in the
13notice if a number of years is specified. Tax rates may be
14increased and the period specified may be extended, if notice
15is given and new public hearings are held in accordance with
16Sections 27-30 and 27-35.
17(Source: P.A. 97-1053, eff. 1-1-13.)
18 (35 ILCS 200/27-100 new)
19 Sec. 27-100. Special service area commissions.
20 (a) Notwithstanding any other provision of law, no member
21of a special service area commission may be an executive
22officer, owner, or member of the board of directors of the
23service provider agency selected for a services contract for
24that special service area.
25 (b) Notwithstanding any other provision of law, no business

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1owned by a member of a special service area commission may, for
2valuable consideration, provide goods or services as a
3subcontractor of a service provider agency pursuant to a
4services contract for the special service area that is the
5subject of that special service area commission. No business
6owned by an employee or elected official of a municipality may,
7for valuable consideration, provide goods or services as a
8subcontractor of a service provider agency pursuant to a
9services contract for any special service area located within
10that municipality.
11 (c) At least one membership position for a special service
12area commission in a special service area which contains one or
13more homestead properties, as defined in Section 15-175, shall
14be reserved as a first priority membership position for any
15owner of homestead property located within such special service
17 (35 ILCS 200/27-105 new)
18 Sec. 27-105. Lines of credit. Special service area
19commissions may not establish a loan or line of credit in
20connection with the special service area. Service provider
21agencies in those municipalities may establish a loan or line
22of credit in connection with the special service area; however,
23financing under this Section may not be secured by future tax
24revenue generated by the special service area.

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1 (35 ILCS 200/27-110 new)
2 Sec. 27-110. Special service area moneys used in the next
3fiscal year. Notwithstanding any other provision of law, if
4there is excess money remaining in a special service area fund
5at the end of a fiscal year, then the corporate authorities may
6authorize the use of that excess money to provide special
7services within the special service area in the next fiscal
8year, provided that the total amount used for purposes other
9than capital expenditures may not exceed 25% of the previous
10fiscal year's budget for the special service area.
11 (35 ILCS 200/27-115 new)
12 Sec. 27-115. Special service area audits. Each special
13service area commission shall cause an audit of the funds and
14accounts of the special service area to be submitted to the
15corporate authorities of the municipality at least annually.
16The audit shall be made in accordance with generally accepted
17auditing standards.
18 (35 ILCS 200/27-120 new)
19 Sec. 27-120. Exclusion of erroneously included property.
20If a property is determined by the corporate authorities of the
21municipality to be erroneously included in a special service
22area, the corporate authorities of the municipality may
23disconnect that property from the special service area solely
24by municipal action without regard to Section 27-60 or Section

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127-65 of this Act.
2 (35 ILCS 200/27-125 new)
3 Sec. 27-125. Administrative fees. Notwithstanding any
4other provision of law, an annual administrative fee may be
5charged for the administration of a special service area. Such
6annual administrative fee may be derived from the annual tax
7levy for each special service area. Any amount recommended by a
8special service area commission and approved as an
9administrative expense which may be paid to the service
10provider agency pursuant to the budget included in a services
11contract shall not exceed 30% of the annual tax levy for the
12special service area that is the subject of such services
13contract and is separate from any municipal administrative fee.
14 Section 99. Effective date. This Act takes effect upon
15becoming law.