99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4263

Introduced , by Rep. Jack D. Franks

SYNOPSIS AS INTRODUCED:

`35 ILCS 200/18-185`
`35 ILCS 200/18-205`
`35 ILCS 200/18-213`
`35 ILCS 200/18-214`
`35 ILCS 200/18-242 new`
`105 ILCS 5/18-21 new`
`30 ILCS 805/8.39 new`

Amends the Property Tax Code. Provides that, for the 2016 and 2017 levy years, the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units and school districts. Provides that, for the 2016 and 2017 levy years, the extension limitation under the Property Tax Extension Limitation Law is 0% or the rate of increase approved by the voters. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement. Amends the School Code. Creates a General State Aid Committee to propose a revised school funding formula for Illinois schools. 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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1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Property Tax Code is amended by changing

5 Sections 18-185, 18-205, 18-213, and 18-214 and by adding

6 Section 18-242 as follows:

7 (35 ILCS 200/18-185)

8 Sec. 18-185. Short title; definitions. This Division 5 may

9 be cited as the Property Tax Extension Limitation Law. As used

10 in this Division 5:

11 "Consumer Price Index" means the Consumer Price Index for

12 All Urban Consumers for all items published by the United

13 States Department of Labor.

14 "Extension limitation", for levy years other than 2016 and

15 2017,means (a) the lesser of 5% or the percentage increase in

16 the Consumer Price Index during the 12-month calendar year

17 preceding the levy year or (b) the rate of increase approved by

18 voters under Section 18-205.

19 "Extension limitation", for levy years 2016 and 2017, means

20 0% or the rate of increase approved by the voters under Section

21 18-205.

22 "Affected county" means a county of 3,000,000 or more

23 inhabitants or a county contiguous to a county of 3,000,000 or

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1 more inhabitants.

2 "Taxing district" has the same meaning provided in Section

3 1-150, except as otherwise provided in this Section. For the

4 1991 through 1994 levy years only, "taxing district" includes

5 only each non-home rule taxing district having the majority of

6 its 1990 equalized assessed value within any county or counties

7 contiguous to a county with 3,000,000 or more inhabitants.

8 Beginning with the 1995 levy yearand through the 2015 levy

9 year, and beginning again with the 2018 levy year, "taxing

10 district" includes only each non-home rule taxing district

11 subject to this Law before the 1995 levy year and each non-home

12 rule taxing district not subject to this Law before the 1995

13 levy year having the majority of its 1994 equalized assessed

14 value in an affected county or counties. Beginning with the

15 levy year in which this Law becomes applicable to a taxing

16 district as provided in Section 18-213, "taxing district" also

17 includes those taxing districts made subject to this Law as

18 provided in Section 18-213.For levy years 2016 and 2017,

19 "taxing district" means each unit of local government, school

20 district, or community college district in the State with the

21 power to levy taxes, including, but not limited to, home rule

22 units and taxing districts that were not subject to this Law

23 prior to the effective date of this amendatory Act of the 99th

24 General Assembly.

25 "Aggregate extension" for taxing districts to which this

26 Law applied before the 1995 levy year means the annual

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1 corporate extension for the taxing district and those special

2 purpose extensions that are made annually for the taxing

3 district, excluding special purpose extensions: (a) made for

4 the taxing district to pay interest or principal on general

5 obligation bonds that were approved by referendum; (b) made for

6 any taxing district to pay interest or principal on general

7 obligation bonds issued before October 1, 1991; (c) made for

8 any taxing district to pay interest or principal on bonds

9 issued to refund or continue to refund those bonds issued

10 before October 1, 1991; (d) made for any taxing district to pay

11 interest or principal on bonds issued to refund or continue to

12 refund bonds issued after October 1, 1991 that were approved by

13 referendum; (e) made for any taxing district to pay interest or

14 principal on revenue bonds issued before October 1, 1991 for

15 payment of which a property tax levy or the full faith and

16 credit of the unit of local government is pledged; however, a

17 tax for the payment of interest or principal on those bonds

18 shall be made only after the governing body of the unit of

19 local government finds that all other sources for payment are

20 insufficient to make those payments; (f) made for payments

21 under a building commission lease when the lease payments are

22 for the retirement of bonds issued by the commission before

23 October 1, 1991, to pay for the building project; (g) made for

24 payments due under installment contracts entered into before

25 October 1, 1991; (h) made for payments of principal and

26 interest on bonds issued under the Metropolitan Water

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1 Reclamation District Act to finance construction projects

2 initiated before October 1, 1991; (i) made for payments of

3 principal and interest on limited bonds, as defined in Section

4 3 of the Local Government Debt Reform Act, in an amount not to

5 exceed the debt service extension base less the amount in items

6 (b), (c), (e), and (h) of this definition for non-referendum

7 obligations, except obligations initially issued pursuant to

8 referendum; (j) made for payments of principal and interest on

9 bonds issued under Section 15 of the Local Government Debt

10 Reform Act; (k) made by a school district that participates in

11 the Special Education District of Lake County, created by

12 special education joint agreement under Section 10-22.31 of the

13 School Code, for payment of the school district's share of the

14 amounts required to be contributed by the Special Education

15 District of Lake County to the Illinois Municipal Retirement

16 Fund under Article 7 of the Illinois Pension Code; the amount

17 of any extension under this item (k) shall be certified by the

18 school district to the county clerk; (l) made to fund expenses

19 of providing joint recreational programs for the handicapped

20 under Section 5-8 of the Park District Code or Section 11-95-14

21 of the Illinois Municipal Code; (m) made for temporary

22 relocation loan repayment purposes pursuant to Sections 2-3.77

23 and 17-2.2d of the School Code; (n) made for payment of

24 principal and interest on any bonds issued under the authority

25 of Section 17-2.2d of the School Code; (o) made for

26 contributions to a firefighter's pension fund created under

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1 Article 4 of the Illinois Pension Code, to the extent of the

2 amount certified under item (5) of Section 4-134 of the

3 Illinois Pension Code; and (p) made for road purposes in the

4 first year after a township assumes the rights, powers, duties,

5 assets, property, liabilities, obligations, and

6 responsibilities of a road district abolished under the

7 provisions of Section 6-133 of the Illinois Highway Code.

8 "Aggregate extension" for the taxing districts to which

9 this Law did not apply before the 1995 levy year (except taxing

10 districts subject to this Law in accordance with Section 18-213

11 or this amendatory Act of the 99th General Assembly) means the

12 annual corporate extension for the taxing district and those

13 special purpose extensions that are made annually for the

14 taxing district, excluding special purpose extensions: (a)

15 made for the taxing district to pay interest or principal on

16 general obligation bonds that were approved by referendum; (b)

17 made for any taxing district to pay interest or principal on

18 general obligation bonds issued before March 1, 1995; (c) made

19 for any taxing district to pay interest or principal on bonds

20 issued to refund or continue to refund those bonds issued

21 before March 1, 1995; (d) made for any taxing district to pay

22 interest or principal on bonds issued to refund or continue to

23 refund bonds issued after March 1, 1995 that were approved by

24 referendum; (e) made for any taxing district to pay interest or

25 principal on revenue bonds issued before March 1, 1995 for

26 payment of which a property tax levy or the full faith and

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1 credit of the unit of local government is pledged; however, a

2 tax for the payment of interest or principal on those bonds

3 shall be made only after the governing body of the unit of

4 local government finds that all other sources for payment are

5 insufficient to make those payments; (f) made for payments

6 under a building commission lease when the lease payments are

7 for the retirement of bonds issued by the commission before

8 March 1, 1995 to pay for the building project; (g) made for

9 payments due under installment contracts entered into before

10 March 1, 1995; (h) made for payments of principal and interest

11 on bonds issued under the Metropolitan Water Reclamation

12 District Act to finance construction projects initiated before

13 October 1, 1991; (h-4) made for stormwater management purposes

14 by the Metropolitan Water Reclamation District of Greater

15 Chicago under Section 12 of the Metropolitan Water Reclamation

16 District Act; (i) made for payments of principal and interest

17 on limited bonds, as defined in Section 3 of the Local

18 Government Debt Reform Act, in an amount not to exceed the debt

19 service extension base less the amount in items (b), (c), and

20 (e) of this definition for non-referendum obligations, except

21 obligations initially issued pursuant to referendum and bonds

22 described in subsection (h) of this definition; (j) made for

23 payments of principal and interest on bonds issued under

24 Section 15 of the Local Government Debt Reform Act; (k) made

25 for payments of principal and interest on bonds authorized by

26 Public Act 88-503 and issued under Section 20a of the Chicago

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1 Park District Act for aquarium or museum projects; (l) made for

2 payments of principal and interest on bonds authorized by

3 Public Act 87-1191 or 93-601 and (i) issued pursuant to Section

4 21.2 of the Cook County Forest Preserve District Act, (ii)

5 issued under Section 42 of the Cook County Forest Preserve

6 District Act for zoological park projects, or (iii) issued

7 under Section 44.1 of the Cook County Forest Preserve District

8 Act for botanical gardens projects; (m) made pursuant to

9 Section 34-53.5 of the School Code, whether levied annually or

10 not; (n) made to fund expenses of providing joint recreational

11 programs for the handicapped under Section 5-8 of the Park

12 District Code or Section 11-95-14 of the Illinois Municipal

13 Code; (o) made by the Chicago Park District for recreational

14 programs for the handicapped under subsection (c) of Section

15 7.06 of the Chicago Park District Act; (p) made for

16 contributions to a firefighter's pension fund created under

17 Article 4 of the Illinois Pension Code, to the extent of the

18 amount certified under item (5) of Section 4-134 of the

19 Illinois Pension Code; and (q) made by Ford Heights School

20 District 169 under Section 17-9.02 of the School Code.

21 "Aggregate extension" for all taxing districts to which

22 this Law applies in accordance with Section 18-213, except for

23 those taxing districts subject to paragraph (2) of subsection

24 (e) of Section 18-213, means the annual corporate extension for

25 the taxing district and those special purpose extensions that

26 are made annually for the taxing district, excluding special

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1 purpose extensions: (a) made for the taxing district to pay

2 interest or principal on general obligation bonds that were

3 approved by referendum; (b) made for any taxing district to pay

4 interest or principal on general obligation bonds issued before

5 the date on which the referendum making this Law applicable to

6 the taxing district is held; (c) made for any taxing district

7 to pay interest or principal on bonds issued to refund or

8 continue to refund those bonds issued before the date on which

9 the referendum making this Law applicable to the taxing

10 district is held; (d) made for any taxing district to pay

11 interest or principal on bonds issued to refund or continue to

12 refund bonds issued after the date on which the referendum

13 making this Law applicable to the taxing district is held if

14 the bonds were approved by referendum after the date on which

15 the referendum making this Law applicable to the taxing

16 district is held; (e) made for any taxing district to pay

17 interest or principal on revenue bonds issued before the date

18 on which the referendum making this Law applicable to the

19 taxing district is held for payment of which a property tax

20 levy or the full faith and credit of the unit of local

21 government is pledged; however, a tax for the payment of

22 interest or principal on those bonds shall be made only after

23 the governing body of the unit of local government finds that

24 all other sources for payment are insufficient to make those

25 payments; (f) made for payments under a building commission

26 lease when the lease payments are for the retirement of bonds

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1 issued by the commission before the date on which the

2 referendum making this Law applicable to the taxing district is

3 held to pay for the building project; (g) made for payments due

4 under installment contracts entered into before the date on

5 which the referendum making this Law applicable to the taxing

6 district is held; (h) made for payments of principal and

7 interest on limited bonds, as defined in Section 3 of the Local

8 Government Debt Reform Act, in an amount not to exceed the debt

9 service extension base less the amount in items (b), (c), and

10 (e) of this definition for non-referendum obligations, except

11 obligations initially issued pursuant to referendum; (i) made

12 for payments of principal and interest on bonds issued under

13 Section 15 of the Local Government Debt Reform Act; (j) made

14 for a qualified airport authority to pay interest or principal

15 on general obligation bonds issued for the purpose of paying

16 obligations due under, or financing airport facilities

17 required to be acquired, constructed, installed or equipped

18 pursuant to, contracts entered into before March 1, 1996 (but

19 not including any amendments to such a contract taking effect

20 on or after that date); (k) made to fund expenses of providing

21 joint recreational programs for the handicapped under Section

22 5-8 of the Park District Code or Section 11-95-14 of the

23 Illinois Municipal Code; (l) made for contributions to a

24 firefighter's pension fund created under Article 4 of the

25 Illinois Pension Code, to the extent of the amount certified

26 under item (5) of Section 4-134 of the Illinois Pension Code;

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1 and (m) made for the taxing district to pay interest or

2 principal on general obligation bonds issued pursuant to

3 Section 19-3.10 of the School Code.

4 "Aggregate extension" for all taxing districts to which

5 this Law applies in accordance with paragraph (2) of subsection

6 (e) of Section 18-213 or this amendatory Act of the 99th

7 General Assemblymeans the annual corporate extension for the

8 taxing district and those special purpose extensions that are

9 made annually for the taxing district, excluding special

10 purpose extensions: (a) made for the taxing district to pay

11 interest or principal on general obligation bonds that were

12 approved by referendum; (b) made for any taxing district to pay

13 interest or principal on general obligation bonds issued before

14 the effective date of this amendatory Act of 1997; (c) made for

15 any taxing district to pay interest or principal on bonds

16 issued to refund or continue to refund those bonds issued

17 before the effective date of this amendatory Act of 1997; (d)

18 made for any taxing district to pay interest or principal on

19 bonds issued to refund or continue to refund bonds issued after

20 the effective date of this amendatory Act of 1997 if the bonds

21 were approved by referendum after the effective date of this

22 amendatory Act of 1997; (e) made for any taxing district to pay

23 interest or principal on revenue bonds issued before the

24 effective date of this amendatory Act of 1997 for payment of

25 which a property tax levy or the full faith and credit of the

26 unit of local government is pledged; however, a tax for the

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1 payment of interest or principal on those bonds shall be made

2 only after the governing body of the unit of local government

3 finds that all other sources for payment are insufficient to

4 make those payments; (f) made for payments under a building

5 commission lease when the lease payments are for the retirement

6 of bonds issued by the commission before the effective date of

7 this amendatory Act of 1997 to pay for the building project;

8 (g) made for payments due under installment contracts entered

9 into before the effective date of this amendatory Act of 1997;

10 (h) made for payments of principal and interest on limited

11 bonds, as defined in Section 3 of the Local Government Debt

12 Reform Act, in an amount not to exceed the debt service

13 extension base less the amount in items (b), (c), and (e) of

14 this definition for non-referendum obligations, except

15 obligations initially issued pursuant to referendum; (i) made

16 for payments of principal and interest on bonds issued under

17 Section 15 of the Local Government Debt Reform Act; (j) made

18 for a qualified airport authority to pay interest or principal

19 on general obligation bonds issued for the purpose of paying

20 obligations due under, or financing airport facilities

21 required to be acquired, constructed, installed or equipped

22 pursuant to, contracts entered into before March 1, 1996 (but

23 not including any amendments to such a contract taking effect

24 on or after that date); (k) made to fund expenses of providing

25 joint recreational programs for the handicapped under Section

26 5-8 of the Park District Code or Section 11-95-14 of the

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1 Illinois Municipal Code; and (l) made for contributions to a

2 firefighter's pension fund created under Article 4 of the

3 Illinois Pension Code, to the extent of the amount certified

4 under item (5) of Section 4-134 of the Illinois Pension Code.

5 "Debt service extension base" means an amount equal to that

6 portion of the extension for a taxing district for the 1994

7 levy year, or for those taxing districts subject to this Law in

8 accordance with Section 18-213, except for those subject to

9 paragraph (2) of subsection (e) of Section 18-213, for the levy

10 year in which the referendum making this Law applicable to the

11 taxing district is held, or for those taxing districts subject

12 to this Law in accordance with paragraph (2) of subsection (e)

13 of Section 18-213 for the 1996 levy year, constituting an

14 extension for payment of principal and interest on bonds issued

15 by the taxing district without referendum, but not including

16 excluded non-referendum bonds. For park districts (i) that were

17 first subject to this Law in 1991 or 1995 and (ii) whose

18 extension for the 1994 levy year for the payment of principal

19 and interest on bonds issued by the park district without

20 referendum (but not including excluded non-referendum bonds)

21 was less than 51% of the amount for the 1991 levy year

22 constituting an extension for payment of principal and interest

23 on bonds issued by the park district without referendum (but

24 not including excluded non-referendum bonds), "debt service

25 extension base" means an amount equal to that portion of the

26 extension for the 1991 levy year constituting an extension for

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1 payment of principal and interest on bonds issued by the park

2 district without referendum (but not including excluded

3 non-referendum bonds). A debt service extension base

4 established or increased at any time pursuant to any provision

5 of this Law, except Section 18-212, shall be increased each

6 year commencing with the later of (i) the 2009 levy year or

7 (ii) the first levy year in which this Law becomes applicable

8 to the taxing district, by the lesser of 5% or the percentage

9 increase in the Consumer Price Index during the 12-month

10 calendar year preceding the levy year. The debt service

11 extension base may be established or increased as provided

12 under Section 18-212. "Excluded non-referendum bonds" means

13 (i) bonds authorized by Public Act 88-503 and issued under

14 Section 20a of the Chicago Park District Act for aquarium and

15 museum projects; (ii) bonds issued under Section 15 of the

16 Local Government Debt Reform Act; or (iii) refunding

17 obligations issued to refund or to continue to refund

18 obligations initially issued pursuant to referendum.

19 "Special purpose extensions" include, but are not limited

20 to, extensions for levies made on an annual basis for

21 unemployment and workers' compensation, self-insurance,

22 contributions to pension plans, and extensions made pursuant to

23 Section 6-601 of the Illinois Highway Code for a road

24 district's permanent road fund whether levied annually or not.

25 The extension for a special service area is not included in the

26 aggregate extension.

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1 "Aggregate extension base" means the taxing district's

2 last preceding aggregate extension as adjusted under Sections

3 18-135, 18-215, and 18-230. An adjustment under Section 18-135

4 shall be made for the 2007 levy year and all subsequent levy

5 years whenever one or more counties within which a taxing

6 district is located (i) used estimated valuations or rates when

7 extending taxes in the taxing district for the last preceding

8 levy year that resulted in the over or under extension of

9 taxes, or (ii) increased or decreased the tax extension for the

10 last preceding levy year as required by Section 18-135(c).

11 Whenever an adjustment is required under Section 18-135, the

12 aggregate extension base of the taxing district shall be equal

13 to the amount that the aggregate extension of the taxing

14 district would have been for the last preceding levy year if

15 either or both (i) actual, rather than estimated, valuations or

16 rates had been used to calculate the extension of taxes for the

17 last levy year, or (ii) the tax extension for the last

18 preceding levy year had not been adjusted as required by

19 subsection (c) of Section 18-135.

20 Notwithstanding any other provision of law, for levy year

21 2012, the aggregate extension base for West Northfield School

22 District No. 31 in Cook County shall be $12,654,592.

23 "Levy year" has the same meaning as "year" under Section

24 1-155.

25 "New property" means (i) the assessed value, after final

26 board of review or board of appeals action, of new improvements

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1 or additions to existing improvements on any parcel of real

2 property that increase the assessed value of that real property

3 during the levy year multiplied by the equalization factor

4 issued by the Department under Section 17-30, (ii) the assessed

5 value, after final board of review or board of appeals action,

6 of real property not exempt from real estate taxation, which

7 real property was exempt from real estate taxation for any

8 portion of the immediately preceding levy year, multiplied by

9 the equalization factor issued by the Department under Section

10 17-30, including the assessed value, upon final stabilization

11 of occupancy after new construction is complete, of any real

12 property located within the boundaries of an otherwise or

13 previously exempt military reservation that is intended for

14 residential use and owned by or leased to a private corporation

15 or other entity, (iii) in counties that classify in accordance

16 with Section 4 of Article IX of the Illinois Constitution, an

17 incentive property's additional assessed value resulting from

18 a scheduled increase in the level of assessment as applied to

19 the first year final board of review market value, and (iv) any

20 increase in assessed value due to oil or gas production from an

21 oil or gas well required to be permitted under the Hydraulic

22 Fracturing Regulatory Act that was not produced in or accounted

23 for during the previous levy year. In addition, the county

24 clerk in a county containing a population of 3,000,000 or more

25 shall include in the 1997 recovered tax increment value for any

26 school district, any recovered tax increment value that was

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1 applicable to the 1995 tax year calculations.

2 "Qualified airport authority" means an airport authority

3 organized under the Airport Authorities Act and located in a

4 county bordering on the State of Wisconsin and having a

5 population in excess of 200,000 and not greater than 500,000.

6 "Recovered tax increment value" means, except as otherwise

7 provided in this paragraph, the amount of the current year's

8 equalized assessed value, in the first year after a

9 municipality terminates the designation of an area as a

10 redevelopment project area previously established under the

11 Tax Increment Allocation Development Act in the Illinois

12 Municipal Code, previously established under the Industrial

13 Jobs Recovery Law in the Illinois Municipal Code, previously

14 established under the Economic Development Project Area Tax

15 Increment Act of 1995, or previously established under the

16 Economic Development Area Tax Increment Allocation Act, of each

17 taxable lot, block, tract, or parcel of real property in the

18 redevelopment project area over and above the initial equalized

19 assessed value of each property in the redevelopment project

20 area. For the taxes which are extended for the 1997 levy year,

21 the recovered tax increment value for a non-home rule taxing

22 district that first became subject to this Law for the 1995

23 levy year because a majority of its 1994 equalized assessed

24 value was in an affected county or counties shall be increased

25 if a municipality terminated the designation of an area in 1993

26 as a redevelopment project area previously established under

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1 the Tax Increment Allocation Development Act in the Illinois

2 Municipal Code, previously established under the Industrial

3 Jobs Recovery Law in the Illinois Municipal Code, or previously

4 established under the Economic Development Area Tax Increment

5 Allocation Act, by an amount equal to the 1994 equalized

6 assessed value of each taxable lot, block, tract, or parcel of

7 real property in the redevelopment project area over and above

8 the initial equalized assessed value of each property in the

9 redevelopment project area. In the first year after a

10 municipality removes a taxable lot, block, tract, or parcel of

11 real property from a redevelopment project area established

12 under the Tax Increment Allocation Development Act in the

13 Illinois Municipal Code, the Industrial Jobs Recovery Law in

14 the Illinois Municipal Code, or the Economic Development Area

15 Tax Increment Allocation Act, "recovered tax increment value"

16 means the amount of the current year's equalized assessed value

17 of each taxable lot, block, tract, or parcel of real property

18 removed from the redevelopment project area over and above the

19 initial equalized assessed value of that real property before

20 removal from the redevelopment project area.

21 Except as otherwise provided in this Section, "limiting

22 rate" means a fraction the numerator of which is the last

23 preceding aggregate extension base times an amount equal to one

24 plus the extension limitation defined in this Section and the

25 denominator of which is the current year's equalized assessed

26 value of all real property in the territory under the

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1 jurisdiction of the taxing district during the prior levy year.

2 For those taxing districts that reduced their aggregate

3 extension for the last preceding levy year, the highest

4 aggregate extension in any of the last 3 preceding levy years

5 shall be used for the purpose of computing the limiting rate.

6 The denominator shall not include new property or the recovered

7 tax increment value. If a new rate, a rate decrease, or a

8 limiting rate increase has been approved at an election held

9 after March 21, 2006, then (i) the otherwise applicable

10 limiting rate shall be increased by the amount of the new rate

11 or shall be reduced by the amount of the rate decrease, as the

12 case may be, or (ii) in the case of a limiting rate increase,

13 the limiting rate shall be equal to the rate set forth in the

14 proposition approved by the voters for each of the years

15 specified in the proposition, after which the limiting rate of

16 the taxing district shall be calculated as otherwise provided.

17 In the case of a taxing district that obtained referendum

18 approval for an increased limiting rate on March 20, 2012, the

19 limiting rate for tax year 2012 shall be the rate that

20 generates the approximate total amount of taxes extendable for

21 that tax year, as set forth in the proposition approved by the

22 voters; this rate shall be the final rate applied by the county

23 clerk for the aggregate of all capped funds of the district for

24 tax year 2012.

25 (Source: P.A. 97-611, eff. 1-1-12; 97-1154, eff. 1-25-13; 98-6,

26 eff. 3-29-13; 98-23, eff. 6-17-13.)

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1 (35 ILCS 200/18-205)

2 Sec. 18-205. Referendum to increase the extension

3 limitation. A taxing district is limited to an extension

4 limitation as defined in Section 18-185 ~~of 5% or the percentage~~

5 ~~increase in the Consumer Price Index during the 12-month~~

6 ~~calendar year preceding the levy year, whichever is less~~. A

7 taxing district may increase its extension limitation for one

8 or more levy years if that taxing district holds a referendum

9 before the levy date for the first levy year at which a

10 majority of voters voting on the issue approves adoption of a

11 higher extension limitation. Referenda shall be conducted at a

12 regularly scheduled election in accordance with the Election

13 Code. For referenda to increase the extension limitation for

14 levy years other than 2016 and 2017, the ~~The~~ question shall be

15 presented in substantially the following manner~~for all~~

16 ~~elections held after March 21, 2006~~:

17 Shall the extension limitation under the Property Tax

18 Extension Limitation Law for (insert the legal name,

19 number, if any, and county or counties of the taxing

20 district and geographic or other common name by which a

21 school or community college district is known and referred

22 to), Illinois, be increased from the lesser of 5% or the

23 percentage increase in the Consumer Price Index over the

24 prior levy year to (insert the percentage of the proposed

25 increase)% per year for (insert each levy year for which

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1 the increased extension limitation will apply)?

2 For referenda to increase the extension limitation for levy

3 years 2016 and 2017, the question shall be presented in

4 substantially the following manner:

5 Shall the extension limitation under the Property Tax

6 Extension Limitation Law for (insert the legal name,

7 number, if any, and county or counties of the taxing

8 district and geographic or other common name by which a

9 school or community college district is known and referred

10 to), Illinois, be increased from 0% to (insert the

11 percentage of the proposed increase)% per year for (insert

12 each levy year for which the increased extension limitation

13 will apply)?

14 The votes must be recorded as "Yes" or "No".

15 If a majority of voters voting on the issue approves the

16 adoption of the increase, the increase shall be applicable for

17 each levy year specified.

18 The ballot for any question submitted pursuant to this

19 Section shall have printed thereon, but not as a part of the

20 question submitted, only the following supplemental

21 information (which shall be supplied to the election authority

22 by the taxing district) in substantially the following form:

23 (1) For the (insert the first levy year for which the

24 increased extension limitation will be applicable) levy

25 year the approximate amount of the additional tax

26 extendable against property containing a single family

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1 residence and having a fair market value at the time of the

2 referendum of $100,000 is estimated to be $....

3 (2) Based upon an average annual percentage increase

4 (or decrease) in the market value of such property of ...%

5 (insert percentage equal to the average annual percentage

6 increase or decrease for the prior 3 levy years, at the

7 time the submission of the question is initiated by the

8 taxing district, in the amount of (A) the equalized

9 assessed value of the taxable property in the taxing

10 district less (B) the new property included in the

11 equalized assessed value), the approximate amount of the

12 additional tax extendable against such property for the ...

13 levy year is estimated to be $... and for the ... levy year

14 is estimated to be $....

15 Paragraph (2) shall be included only if the increased

16 extension limitation will be applicable for more than one year

17 and shall list each levy year for which the increased extension

18 limitation will be applicable. The additional tax shown for

19 each levy year shall be the approximate dollar amount of the

20 increase over the amount of the most recently completed

21 extension at the time the submission of the question is

22 initiated by the taxing district. The approximate amount of the

23 additional tax extendable shown in paragraphs (1) and (2) shall

24 be calculated by multiplying $100,000 (the fair market value of

25 the property without regard to any property tax exemptions) by

26 (i) the percentage level of assessment prescribed for that

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1 property by statute, or by ordinance of the county board in

2 counties that classify property for purposes of taxation in

3 accordance with Section 4 of Article IX of the Illinois

4 Constitution; (ii) the most recent final equalization factor

5 certified to the county clerk by the Department of Revenue at

6 the time the taxing district initiates the submission of the

7 proposition to the electors; (iii) the last known aggregate

8 extension base of the taxing district at the time the

9 submission of the question is initiated by the taxing district;

10 and (iv) the difference between the percentage increase

11 proposed in the question and (A) the lesser of 5% or the

12 percentage increase in the Consumer Price Index for the prior

13 levy year (or an estimate of the percentage increase for the

14 prior levy year if the increase is unavailable at the time the

15 submission of the question is initiated by the taxing district)

16 or (B) 0%, as applicable; and dividing the result by the last

17 known equalized assessed value of the taxing district at the

18 time the submission of the question is initiated by the taxing

19 district. This amendatory Act of the 97th General Assembly is

20 intended to clarify the existing requirements of this Section,

21 and shall not be construed to validate any prior non-compliant

22 referendum language. Any notice required to be published in

23 connection with the submission of the question shall also

24 contain this supplemental information and shall not contain any

25 other supplemental information. Any error, miscalculation, or

26 inaccuracy in computing any amount set forth on the ballot or

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1 in the notice that is not deliberate shall not invalidate or

2 affect the validity of any proposition approved. Notice of the

3 referendum shall be published and posted as otherwise required

4 by law, and the submission of the question shall be initiated

5 as provided by law.

6 (Source: P.A. 97-1087, eff. 8-24-12.)

7 (35 ILCS 200/18-213)

8 Sec. 18-213. Referenda on applicability of the Property Tax

9 Extension Limitation Law.

10 (a) The provisions of this Section do not apply to a taxing

11 district subject to this Law because a majority of its 1990

12 equalized assessed value is in a county or counties contiguous

13 to a county of 3,000,000 or more inhabitants, or because a

14 majority of its 1994 equalized assessed value is in an affected

15 county and the taxing district was not subject to this Law

16 before the 1995 levy year.

17 (b) Except with respect to the 2016 and 2017 levy years,

18 the ~~The~~ county board of a county that is not subject to this

19 Law may, by ordinance or resolution, submit to the voters of

20 the county the question of whether to make all non-home rule

21 taxing districts that have all or a portion of their equalized

22 assessed valuation situated in the county subject to this Law

23 in the manner set forth in this Section.

24 For purposes of this Section only:

25 "Taxing district" has the same meaning provided in Section

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1 1-150.

2 "Equalized assessed valuation" means the equalized

3 assessed valuation for a taxing district for the immediately

4 preceding levy year.

5 (c) The ordinance or resolution shall request the

6 submission of the proposition at any election, except a

7 consolidated primary election, for the purpose of voting for or

8 against making the Property Tax Extension Limitation Law

9 applicable to all non-home rule taxing districts that have all

10 or a portion of their equalized assessed valuation situated in

11 the county.

12 The question shall be placed on a separate ballot and shall

13 be in substantially the following form:

14 Shall the Property Tax Extension Limitation Law (35

15 ILCS 200/18-185 through 18-245), which limits annual

16 property tax extension increases, apply to non-home rule

17 taxing districts with all or a portion of their equalized

18 assessed valuation located in (name of county)?

19 Votes on the question shall be recorded as "yes" or "no".

20 (d) The county clerk shall order the proposition submitted

21 to the electors of the county at the election specified in the

22 ordinance or resolution. If part of the county is under the

23 jurisdiction of a board or boards of election commissioners,

24 the county clerk shall submit a certified copy of the ordinance

25 or resolution to each board of election commissioners, which

26 shall order the proposition submitted to the electors of the

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1 taxing district within its jurisdiction at the election

2 specified in the ordinance or resolution.

3 (e) (1) With respect to taxing districts having all of

4 their equalized assessed valuation located in the county,

5 if a majority of the votes cast on the proposition are in

6 favor of the proposition, then this Law becomes applicable

7 to the taxing district beginning on January 1 of the year

8 following the date of the referendum.

9 (2) With respect to taxing districts that meet all the

10 following conditions this Law shall become applicable to

11 the taxing district beginning on January 1, 1997. The

12 districts to which this paragraph (2) is applicable

13 (A) do not have all of their equalized assessed

14 valuation located in a single county,

15 (B) have equalized assessed valuation in an

16 affected county,

17 (C) meet the condition that each county, other than

18 an affected county, in which any of the equalized

19 assessed valuation of the taxing district is located

20 has held a referendum under this Section at any

21 election, except a consolidated primary election, held

22 prior to the effective date of this amendatory Act of

23 1997, and

24 (D) have a majority of the district's equalized

25 assessed valuation located in one or more counties in

26 each of which the voters have approved a referendum

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1 under this Section prior to the effective date of this

2 amendatory Act of 1997. For purposes of this Section,

3 in determining whether a majority of the equalized

4 assessed valuation of the taxing district is located in

5 one or more counties in which the voters have approved

6 a referendum under this Section, the equalized

7 assessed valuation of the taxing district in any

8 affected county shall be included with the equalized

9 assessed value of the taxing district in counties in

10 which the voters have approved the referendum.

11 (3) With respect to taxing districts that do not have

12 all of their equalized assessed valuation located in a

13 single county and to which paragraph (2) of subsection (e)

14 is not applicable, if each county other than an affected

15 county in which any of the equalized assessed valuation of

16 the taxing district is located has held a referendum under

17 this Section at any election, except a consolidated primary

18 election, held in any year and if a majority of the

19 equalized assessed valuation of the taxing district is

20 located in one or more counties that have each approved a

21 referendum under this Section, then this Law shall become

22 applicable to the taxing district on January 1 of the year

23 following the year in which the last referendum in a county

24 in which the taxing district has any equalized assessed

25 valuation is held. For the purposes of this Law, the last

26 referendum shall be deemed to be the referendum making this

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1 Law applicable to the taxing district. For purposes of this

2 Section, in determining whether a majority of the equalized

3 assessed valuation of the taxing district is located in one

4 or more counties that have approved a referendum under this

5 Section, the equalized assessed valuation of the taxing

6 district in any affected county shall be included with the

7 equalized assessed value of the taxing district in counties

8 that have approved the referendum.

9 (f) Immediately after a referendum is held under this

10 Section, the county clerk of the county holding the referendum

11 shall give notice of the referendum having been held and its

12 results to all taxing districts that have all or a portion of

13 their equalized assessed valuation located in the county, the

14 county clerk of any other county in which any of the equalized

15 assessed valuation of any taxing district is located, and the

16 Department of Revenue. After the last referendum affecting a

17 multi-county taxing district is held, the Department of Revenue

18 shall determine whether the taxing district is subject to this

19 Law and, if so, shall notify the taxing district and the county

20 clerks of all of the counties in which a portion of the

21 equalized assessed valuation of the taxing district is located

22 that, beginning the following January 1, the taxing district is

23 subject to this Law. For each taxing district subject to

24 paragraph (2) of subsection (e) of this Section, the Department

25 of Revenue shall notify the taxing district and the county

26 clerks of all of the counties in which a portion of the

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1 equalized assessed valuation of the taxing district is located

2 that, beginning January 1, 1997, the taxing district is subject

3 to this Law.

4 (g) Referenda held under this Section shall be conducted in

5 accordance with the Election Code.

6 (Source: P.A. 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.)

7 (35 ILCS 200/18-214)

8 Sec. 18-214. Referenda on removal of the applicability of

9 the Property Tax Extension Limitation Law to non-home rule

10 taxing districts.

11 (a) The provisions of this Section do not apply to a taxing

12 district that is subject to this Law because a majority of its

13 1990 equalized assessed value is in a county or counties

14 contiguous to a county of 3,000,000 or more inhabitants, or

15 because a majority of its 1994 equalized assessed value is in

16 an affected county and the taxing district was not subject to

17 this Law before the 1995 levy year.

18 (b) For purposes of this Section only:

19 "Taxing district" means any non-home rule taxing district

20 that became subject to this Law under Section 18-213 of this

21 Law.

22 "Equalized assessed valuation" means the equalized

23 assessed valuation for a taxing district for the immediately

24 preceding levy year.

25 (c) The county board of a county that became subject to

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1 this Law by a referendum approved by the voters of the county

2 under Section 18-213 may, by ordinance or resolution, in the

3 manner set forth in this Section, submit to the voters of the

4 county the question of whether this Law applies to all non-home

5 rule taxing districts that have all or a portion of their

6 equalized assessed valuation situated in the county in the

7 manner set forth in this Section.

8 (d) The ordinance or resolution shall request the

9 submission of the proposition at any election, except a

10 consolidated primary election, for the purpose of voting for or

11 against the continued application of the Property Tax Extension

12 Limitation Law to all non-home rule taxing districts that have

13 all or a portion of their equalized assessed valuation situated

14 in the county.

15 The question shall be placed on a separate ballot and shall

16 be in substantially the following form:

17 Shall the Property Tax Extension Limitation Law (35

18 ILCS 200/18-185 through 35 ILCS 200/18-245), which limits

19 annual property tax extension increases, apply to non-home

20 rule taxing districts with all or a portion of their

21 equalized assessed valuation located in (name of county)?

22 Votes on the question shall be recorded as "yes" or "no".

23 (e) The county clerk shall order the proposition submitted

24 to the electors of the county at the election specified in the

25 ordinance or resolution. If part of the county is under the

26 jurisdiction of a board or boards of election commissioners,

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1 the county clerk shall submit a certified copy of the ordinance

2 or resolution to each board of election commissioners, which

3 shall order the proposition submitted to the electors of the

4 taxing district within its jurisdiction at the election

5 specified in the ordinance or resolution.

6 (f) With respect to taxing districts having all of their

7 equalized assessed valuation located in one county, if a

8 majority of the votes cast on the proposition are against the

9 proposition, then this Law shall not apply to the taxing

10 district beginning on January 1 of the year following the date

11 of the referendum.

12 (g) With respect to taxing districts that do not have all

13 of their equalized assessed valuation located in a single

14 county, if both of the following conditions are met, then this

15 Law shall no longer apply to the taxing district beginning on

16 January 1 of the year following the date of the referendum.

17 (1) Each county in which the district has any equalized

18 assessed valuation must either, (i) have held a referendum

19 under this Section, (ii) be an affected county, or (iii)

20 have held a referendum under Section 18-213 at which the

21 voters rejected the proposition at the most recent election

22 at which the question was on the ballot in the county.

23 (2) The majority of the equalized assessed valuation of

24 the taxing district, other than any equalized assessed

25 valuation in an affected county, is in one or more counties

26 in which the voters rejected the proposition. For purposes

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1 of this Section, in determining whether a majority of the

2 equalized assessed valuation of the taxing district is

3 located in one or more counties in which the voters have

4 rejected the proposition under this Section, the equalized

5 assessed valuation of any taxing district in a county which

6 has held a referendum under Section 18-213 at which the

7 voters rejected that proposition, at the most recent

8 election at which the question was on the ballot in the

9 county, will be included with the equalized assessed value

10 of the taxing district in counties in which the voters have

11 rejected the referendum held under this Section.

12 (h) Immediately after a referendum is held under this

13 Section, the county clerk of the county holding the referendum

14 shall give notice of the referendum having been held and its

15 results to all taxing districts that have all or a portion of

16 their equalized assessed valuation located in the county, the

17 county clerk of any other county in which any of the equalized

18 assessed valuation of any such taxing district is located, and

19 the Department of Revenue. After the last referendum affecting

20 a multi-county taxing district is held, the Department of

21 Revenue shall determine whether the taxing district is no

22 longer subject to this Law and, if the taxing district is no

23 longer subject to this Law, the Department of Revenue shall

24 notify the taxing district and the county clerks of all of the

25 counties in which a portion of the equalized assessed valuation

26 of the taxing district is located that, beginning on January 1

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1 of the year following the date of the last referendum, the

2 taxing district is no longer subject to this Law.

3 (i) Notwithstanding any other provision of law, no

4 referendum may be submitted under this Section for levy years

5 2016 or 2017.

6 (Source: P.A. 89-718, eff. 3-7-97.)

7 (35 ILCS 200/18-242 new)

8 Sec. 18-242. Home rule. This Division 5 is a limitation,

9 under subsection (g) of Section 6 of Article VII of the

10 Illinois Constitution, on the power of home rule units to tax.

11 Section 10. The School Code is amended by adding Section

12 18-21 as follows:

13 (105 ILCS 5/18-21 new)

14 Sec. 18-21. General State Aid Committee.

15 (a) There is created a General State Aid Committee to

16 propose a revised school funding formula for Illinois schools.

17 The Committee shall consist of the following members, all of

18 whom shall serve without compensation but shall be reimbursed

19 for their travel expenses from appropriations to the State

20 Board of Education available for that purpose and subject to

21 the rules of the Legislative Travel Control Board:

22 (1) an expert knowledgeable in the comparison of

23 funding systems across states, appointed by the State

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1 Superintendent;

2 (2) an expert knowledgeable in evidence-based

3 approaches to definitions of adequacy, appointed by the

4 State Superintendent;

5 (3) an expert knowledgeable in weighted student

6 funding systems, appointed by the State Superintendent;

7 (4) three individuals who have studied this State's

8 funding system in detail and have done analysis of

9 different funding options, appointed by the State

10 Superintendent;

11 (5) an individual representing a statewide school

12 alliance, appointed by the State Superintendent;

13 (6) an individual representing an organization that

14 represents large unit districts, appointed by the State

15 Superintendent;

16 (7) an individual representing a low-income large unit

17 district, appointed by the State Superintendent;

18 (8) an individual representing a low-income rural

19 district, appointed by the State Superintendent;

20 (9) an individual representing a statewide

21 professional teachers' organization, appointed by the

22 State Superintendent;

23 (10) an individual representing a different statewide

24 professional teachers' organization, appointed by the

25 State Superintendent;

26 (11) an individual representing a professional

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1 teachers' organization in a city having a population

2 exceeding 500,000, appointed by the State Superintendent;

3 and

4 (12) an individual appointed by the Chicago Board of

5 Education.

6 (b) The General State Aid Committee shall meet within 30

7 days of the effective date of this amendatory Act of the 99th

8 General Assembly. Thereafter, the Committee shall meet at the

9 call of the co-chairpersons. The State Board of Education shall

10 provide administrative and other support to the Committee.

11 (c) The General State Aid Committee shall propose a new

12 school funding formula for public schools in this State. The

13 Committee must establish a school funding formula that provides

14 adequate, equitable, transparent, and accountable distribution

15 of funds to school districts that will prepare students for

16 success after high school.

17 (d) The Committee shall submit its proposed school funding

18 formula to the General Assembly for consideration on or before

19 July 1, 2016 by filing copies of its proposal as provided in

20 Section 3.1 of the General Assembly Organization Act. Upon

21 filing its proposal, the Committee is dissolved.

22 (e) This Section is repealed on December 31, 2017.

23 Section 90. The State Mandates Act is amended by adding

24 Section 8.39 as follows:

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1 (30 ILCS 805/8.39 new)

2 Sec. 8.39. Exempt mandate. Notwithstanding Sections 6 and 8

3 of this Act, no reimbursement by the State is required for the

4 implementation of any mandate created by this amendatory Act of

5 the 99th General Assembly.