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.



LRB099 13256 HLH 37358 b


FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB4263LRB099 13256 HLH 37358 b



1 AN ACT concerning revenue.


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

3represented in the General Assembly:



4 Section 5. The Property Tax Code is amended by changing 
5Sections 18-185, 18-205, 18-213, and 18-214 and by adding 
6Section 18-242 as follows:

7 (35 ILCS 200/18-185)

8 Sec. 18-185. Short title; definitions.  This Division 5 may 
9be cited as the
Property Tax Extension Limitation Law. As used 
10in this Division 5:


11 "Consumer Price Index" means the Consumer Price Index for 
12All Urban
Consumers for all items published by the United 
13States Department of Labor.


14 "Extension limitation", for levy years other than 2016 and 
152017, means (a) the lesser of 5% or the percentage increase
in 
16the Consumer Price Index during the 12-month calendar year 
17preceding the
levy year or (b) the rate of increase approved by 
18voters under Section 18-205.


19 "Extension limitation", for levy years 2016 and 2017, means 
200% or the rate of increase approved by the voters under Section 
2118-205. 
22 "Affected county" means a county of 3,000,000 or more 
23inhabitants or a
county contiguous to a county of 3,000,000 or 
 
 
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1more inhabitants.


2 "Taxing district" has the same meaning provided in Section 
31-150, except as
otherwise provided in this Section. For the 
41991 through 1994 levy years only,
"taxing district" includes 
5only each non-home rule taxing district having the
majority of 
6its
1990 equalized assessed value within any county or counties 
7contiguous to a
county with 3,000,000 or more inhabitants. 
8Beginning with the 1995 levy
year and through the 2015 levy 
9year, and beginning again with the 2018 levy year, "taxing 
10district" includes only each non-home rule taxing district

11subject to this Law before the 1995 levy year and each non-home 
12rule
taxing district not subject to this Law before the 1995 
13levy year having the
majority of its 1994 equalized assessed 
14value in an affected county or
counties. Beginning with the 
15levy year in
which this Law becomes applicable to a taxing 
16district as
provided in Section 18-213, "taxing district" also 
17includes those taxing
districts made subject to this Law as 
18provided in Section 18-213.
For levy years 2016 and 2017, 
19"taxing district" means each unit of local government, school 
20district, or community college district in the State with the 
21power to levy taxes, including, but not limited to, home rule 
22units and taxing districts that were not subject to this Law 
23prior to the effective date of this amendatory Act of the 99th 
24General Assembly. 

25 "Aggregate extension" for taxing districts to which this 
26Law applied before
the 1995 levy year means the annual 
 
 
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1corporate extension for the taxing
district and those special 
2purpose extensions that are made annually for
the taxing 
3district, excluding special purpose extensions: (a) made for 
4the
taxing district to pay interest or principal on general 
5obligation bonds
that were approved by referendum; (b) made for 
6any taxing district to pay
interest or principal on general 
7obligation bonds issued before October 1,
1991; (c) made for 
8any taxing district to pay interest or principal on bonds

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

2initiated before October 1, 1991; (i) made for payments of 
3principal and
interest on limited bonds, as defined in Section 
43 of the Local Government Debt
Reform Act, in an amount not to 
5exceed the debt service extension base less
the amount in items 
6(b), (c), (e), and (h) of this definition for
non-referendum 
7obligations, except obligations initially issued pursuant to

8referendum; (j) made for payments of principal and interest on 
9bonds
issued under Section 15 of the Local Government Debt 
10Reform Act; (k)
made
by a school district that participates in 
11the Special Education District of
Lake County, created by 
12special education joint agreement under Section
10-22.31 of the 
13School Code, for payment of the school district's share of the

14amounts required to be contributed by the Special Education 
15District of Lake
County to the Illinois Municipal Retirement 
16Fund under Article 7 of the
Illinois Pension Code; the amount 
17of any extension under this item (k) shall be
certified by the 
18school district to the county clerk; (l) made to fund
expenses 
19of providing joint recreational programs for the handicapped 
20under
Section 5-8 of
the
Park District Code or Section 11-95-14 
21of the Illinois Municipal Code; (m) made for temporary 
22relocation loan repayment purposes pursuant to Sections 2-3.77 
23and 17-2.2d of the School Code; (n) made for payment of 
24principal and interest on any bonds issued under the authority 
25of Section 17-2.2d of the School Code; (o) made for 
26contributions to a firefighter's pension fund created under 
 
 
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1Article 4 of the Illinois Pension Code, to the extent of the 
2amount certified under item (5) of Section 4-134 of the 
3Illinois Pension Code; and (p) made for road purposes in the 
4first year after a township assumes the rights, powers, duties, 
5assets, property, liabilities, obligations, and

6responsibilities of a road district abolished under the 
7provisions of Section 6-133 of the Illinois Highway Code.


8 "Aggregate extension" for the taxing districts to which 
9this Law did not
apply before the 1995 levy year (except taxing 
10districts subject to this Law
in
accordance with Section 18-213 
11or this amendatory Act of the 99th General Assembly) means the 
12annual corporate extension for the
taxing district and those 
13special purpose extensions that are made annually for
the 
14taxing district, excluding special purpose extensions: (a) 
15made for the
taxing district to pay interest or principal on 
16general obligation bonds that
were approved by referendum; (b) 
17made for any taxing district to pay interest
or principal on 
18general obligation bonds issued before March 1, 1995; (c) made

19for any taxing district to pay interest or principal on bonds 
20issued to refund
or continue to refund those bonds issued 
21before March 1, 1995; (d) made for any
taxing district to pay 
22interest or principal on bonds issued to refund or
continue to 
23refund bonds issued after March 1, 1995 that were approved by

24referendum; (e) made for any taxing district to pay interest or 
25principal on
revenue bonds issued before March 1, 1995 for 
26payment of which a property tax
levy or the full faith and 
 
 
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1credit of the unit of local government is pledged;
however, a 
2tax for the payment of interest or principal on those bonds 
3shall be
made only after the governing body of the unit of 
4local government finds that
all other sources for payment are 
5insufficient to make those payments; (f) made
for payments 
6under a building commission lease when the lease payments are 
7for
the retirement of bonds issued by the commission before 
8March 1, 1995 to
pay for the building project; (g) made for 
9payments due under installment
contracts entered into before 
10March 1, 1995; (h) made for payments of
principal and interest 
11on bonds issued under the Metropolitan Water Reclamation

12District Act to finance construction projects initiated before 
13October 1,
1991; (h-4) made for stormwater management purposes 
14by the Metropolitan Water Reclamation District of Greater 
15Chicago under Section 12 of the Metropolitan Water Reclamation 
16District Act; (i) made for payments of principal and interest 
17on limited bonds,
as defined in Section 3 of the Local 
18Government Debt Reform Act, in an amount
not to exceed the debt 
19service extension base less the amount in items (b),
(c), and 
20(e) of this definition for non-referendum obligations, except

21obligations initially issued pursuant to referendum and bonds 
22described in
subsection (h) of this definition; (j) made for 
23payments of
principal and interest on bonds issued under 
24Section 15 of the Local Government
Debt Reform Act; (k) made 
25for payments of principal and interest on bonds
authorized by 
26Public Act 88-503 and issued under Section 20a of the Chicago

 
 
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1Park District Act for aquarium or
museum projects; (l) made for 
2payments of principal and interest on
bonds
authorized by 
3Public Act 87-1191 or 93-601 and (i) issued pursuant to Section 
421.2 of the Cook County Forest
Preserve District Act, (ii) 
5issued under Section 42 of the Cook County
Forest Preserve 
6District Act for zoological park projects, or (iii) issued

7under Section 44.1 of the Cook County Forest Preserve District 
8Act for
botanical gardens projects; (m) made
pursuant
to 
9Section 34-53.5 of the School Code, whether levied annually or 
10not;
(n) made to fund expenses of providing joint recreational 
11programs for the
handicapped under Section 5-8 of the Park

12District Code or Section 11-95-14 of the Illinois Municipal 
13Code;
(o) made by the
Chicago Park
District for recreational 
14programs for the handicapped under subsection (c) of
Section

157.06 of the Chicago Park District Act; (p) made for 
16contributions to a firefighter's pension fund created under 
17Article 4 of the Illinois Pension Code, to the extent of the 
18amount certified under item (5) of Section 4-134 of the 
19Illinois Pension Code; and (q) made by Ford Heights School 
20District 169 under Section 17-9.02 of the School Code.


21 "Aggregate extension" for all taxing districts to which 
22this Law applies in
accordance with Section 18-213, except for 
23those taxing districts subject to
paragraph (2) of subsection 
24(e) of Section 18-213, means the annual corporate
extension for 
25the
taxing district and those special purpose extensions that 
26are made annually for
the taxing district, excluding special 
 
 
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1purpose extensions: (a) made for the
taxing district to pay 
2interest or principal on general obligation bonds that
were 
3approved by referendum; (b) made for any taxing district to pay 
4interest
or principal on general obligation bonds issued before 
5the date on which the
referendum making this
Law applicable to 
6the taxing district is held; (c) made
for any taxing district 
7to pay interest or principal on bonds issued to refund
or 
8continue to refund those bonds issued before the date on which 
9the
referendum making this Law
applicable to the taxing 
10district is held;
(d) made for any
taxing district to pay 
11interest or principal on bonds issued to refund or
continue to 
12refund bonds issued after the date on which the referendum 
13making
this Law
applicable to the taxing district is held if 
14the bonds were approved by
referendum after the date on which 
15the referendum making this Law
applicable to the taxing 
16district is held; (e) made for any
taxing district to pay 
17interest or principal on
revenue bonds issued before the date 
18on which the referendum making this Law
applicable to the

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

20levy or the full faith and credit of the unit of local 
21government is pledged;
however, a tax for the payment of 
22interest or principal on those bonds shall be
made only after 
23the governing body of the unit of local government finds that

24all other sources for payment are insufficient to make those 
25payments; (f) made
for payments under a building commission 
26lease when the lease payments are for
the retirement of bonds 
 
 
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1issued by the commission before the date on which the

2referendum making this
Law applicable to the taxing district is 
3held to
pay for the building project; (g) made for payments due 
4under installment
contracts entered into before the date on 
5which the referendum making this Law
applicable to
the taxing 
6district is held;
(h) made for payments
of principal and 
7interest on limited bonds,
as defined in Section 3 of the Local 
8Government Debt Reform Act, in an amount
not to exceed the debt 
9service extension base less the amount in items (b),
(c), and 
10(e) of this definition for non-referendum obligations, except

11obligations initially issued pursuant to referendum; (i) made 
12for payments
of
principal and interest on bonds issued under 
13Section 15 of the Local Government
Debt Reform Act;
(j)
made 
14for a qualified airport authority to pay interest or principal 
15on
general obligation bonds issued for the purpose of paying 
16obligations due
under, or financing airport facilities 
17required to be acquired, constructed,
installed or equipped 
18pursuant to, contracts entered into before March
1, 1996 (but 
19not including any amendments to such a contract taking effect 
20on
or after that date); (k) made to fund expenses of providing 
21joint
recreational programs for the handicapped under Section 
225-8 of
the
Park District Code or Section 11-95-14 of the 
23Illinois Municipal Code; (l) made for contributions to a 
24firefighter's pension fund created under Article 4 of the 
25Illinois Pension Code, to the extent of the amount certified 
26under item (5) of Section 4-134 of the Illinois Pension Code; 
 
 
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1and (m) made for the taxing district to pay interest or 
2principal on general obligation bonds issued pursuant to 
3Section 19-3.10 of the School Code.


4 "Aggregate extension" for all taxing districts to which 
5this Law applies in
accordance with paragraph (2) of subsection 
6(e) of Section 18-213 or this amendatory Act of the 99th 
7General Assembly means the
annual corporate extension for the

8taxing district and those special purpose extensions that are 
9made annually for
the taxing district, excluding special 
10purpose extensions: (a) made for the
taxing district to pay 
11interest or principal on general obligation bonds that
were 
12approved by referendum; (b) made for any taxing district to pay 
13interest
or principal on general obligation bonds issued before 
14the effective date of
this amendatory Act of 1997;
(c) made
for 
15any taxing district to pay interest or principal on bonds 
16issued to refund
or continue to refund those bonds issued 
17before the effective date
of this amendatory Act of 1997;
(d) 
18made for any
taxing district to pay interest or principal on 
19bonds issued to refund or
continue to refund bonds issued after 
20the effective date of this amendatory Act
of 1997 if the bonds 
21were approved by referendum after the effective date of
this 
22amendatory Act of 1997;
(e) made for any
taxing district to pay 
23interest or principal on
revenue bonds issued before the 
24effective date of this amendatory Act of 1997
for payment of 
25which a property tax
levy or the full faith and credit of the 
26unit of local government is pledged;
however, a tax for the 
 
 
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1payment of interest or principal on those bonds shall be
made 
2only after the governing body of the unit of local government 
3finds that
all other sources for payment are insufficient to 
4make those payments; (f) made
for payments under a building 
5commission lease when the lease payments are for
the retirement 
6of bonds issued by the commission before the effective date
of 
7this amendatory Act of 1997
to
pay for the building project; 
8(g) made for payments due under installment
contracts entered 
9into before the effective date of this amendatory Act of
1997;

10(h) made for payments
of principal and interest on limited 
11bonds,
as defined in Section 3 of the Local Government Debt 
12Reform Act, in an amount
not to exceed the debt service 
13extension base less the amount in items (b),
(c), and (e) of 
14this definition for non-referendum obligations, except

15obligations initially issued pursuant to referendum; (i) made 
16for payments
of
principal and interest on bonds issued under 
17Section 15 of the Local Government
Debt Reform Act;
(j)
made 
18for a qualified airport authority to pay interest or principal 
19on
general obligation bonds issued for the purpose of paying 
20obligations due
under, or financing airport facilities 
21required to be acquired, constructed,
installed or equipped 
22pursuant to, contracts entered into before March
1, 1996 (but 
23not including any amendments to such a contract taking effect 
24on
or after that date); (k) made to fund expenses of providing 
25joint
recreational programs for the handicapped under Section 
265-8 of
the
Park District Code or Section 11-95-14 of the 
 
 
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1Illinois Municipal Code; and (l) made for contributions to a 
2firefighter's pension fund created under Article 4 of the 
3Illinois Pension Code, to the extent of the amount certified 
4under item (5) of Section 4-134 of the Illinois Pension Code.


5 "Debt service extension base" means an amount equal to that 
6portion of the
extension for a taxing district for the 1994 
7levy year, or for those taxing
districts subject to this Law in 
8accordance with Section 18-213, except for
those subject to 
9paragraph (2) of subsection (e) of Section 18-213, for the
levy

10year in which the referendum making this Law applicable to the 
11taxing district
is held, or for those taxing districts subject 
12to this Law in accordance with
paragraph (2) of subsection (e) 
13of Section 18-213 for the 1996 levy year,
constituting an

14extension for payment of principal and interest on bonds issued 
15by the taxing
district without referendum, but not including 
16excluded non-referendum bonds. For park districts (i) that were 
17first
subject to this Law in 1991 or 1995 and (ii) whose 
18extension for the 1994 levy
year for the payment of principal 
19and interest on bonds issued by the park
district without 
20referendum (but not including excluded non-referendum bonds)

21was less than 51% of the amount for the 1991 levy year 
22constituting an
extension for payment of principal and interest 
23on bonds issued by the park
district without referendum (but 
24not including excluded non-referendum bonds),
"debt service 
25extension base" means an amount equal to that portion of the

26extension for the 1991 levy year constituting an extension for 
 
 
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1payment of
principal and interest on bonds issued by the park 
2district without referendum
(but not including excluded 
3non-referendum bonds). A debt service extension base 
4established or increased at any time pursuant to any provision 
5of this Law, except Section 18-212, shall be increased each 
6year commencing with the later of (i) the 2009 levy year or 
7(ii) the first levy year in which this Law becomes applicable 
8to the taxing district, by the lesser of 5% or the percentage 
9increase in the Consumer Price Index during the 12-month 
10calendar year preceding the levy year. The debt service 
11extension
base may be established or increased as provided 
12under Section 18-212.
"Excluded non-referendum bonds" means 
13(i) bonds authorized by Public
Act 88-503 and issued under 
14Section 20a of the Chicago Park District Act for
aquarium and 
15museum projects; (ii) bonds issued under Section 15 of the

16Local Government Debt Reform Act; or (iii) refunding 
17obligations issued
to refund or to continue to refund 
18obligations initially issued pursuant to
referendum.


19 "Special purpose extensions" include, but are not limited 
20to, extensions
for levies made on an annual basis for 
21unemployment and workers'
compensation, self-insurance, 
22contributions to pension plans, and extensions
made pursuant to 
23Section 6-601 of the Illinois Highway Code for a road

24district's permanent road fund whether levied annually or not. 
25The
extension for a special service area is not included in the

26aggregate extension.


 
 
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1 "Aggregate extension base" means the taxing district's 
2last preceding
aggregate extension as adjusted under Sections 
318-135, 18-215,
and 18-230.
An adjustment under Section 18-135 
4shall be made for the 2007 levy year and all subsequent levy 
5years whenever one or more counties within which a taxing 
6district is located (i) used estimated valuations or rates when 
7extending taxes in the taxing district for the last preceding 
8levy year that resulted in the over or under extension of 
9taxes, or (ii) increased or decreased the tax extension for the 
10last preceding levy year as required by Section 18-135(c). 
11Whenever an adjustment is required under Section 18-135, the 
12aggregate extension base of the taxing district shall be equal 
13to the amount that the aggregate extension of the taxing 
14district would have been for the last preceding levy year if 
15either or both (i) actual, rather than estimated, valuations or 
16rates had been used to calculate the extension of taxes for the 
17last levy year, or (ii) the tax extension for the last 
18preceding levy year had not been adjusted as required by 
19subsection (c) of Section 18-135.

20 Notwithstanding any other provision of law, for levy year 
212012, the aggregate extension base for West Northfield School 
22District No. 31 in Cook County shall be $12,654,592. 
23 "Levy year" has the same meaning as "year" under Section

241-155.


25 "New property" means (i) the assessed value, after final 
26board of review or
board of appeals action, of new improvements 
 
 
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1or additions to existing
improvements on any parcel of real 
2property that increase the assessed value of
that real property 
3during the levy year multiplied by the equalization factor

4issued by the Department under Section 17-30, (ii) the assessed 
5value, after
final board of review or board of appeals action, 
6of real property not exempt
from real estate taxation, which 
7real property was exempt from real estate
taxation for any 
8portion of the immediately preceding levy year, multiplied by

9the equalization factor issued by the Department under Section 
1017-30, including the assessed value, upon final stabilization 
11of occupancy after new construction is complete, of any real 
12property located within the boundaries of an otherwise or 
13previously exempt military reservation that is intended for 
14residential use and owned by or leased to a private corporation 
15or other entity,
(iii) in counties that classify in accordance 
16with Section 4 of Article
IX of the
Illinois Constitution, an 
17incentive property's additional assessed value
resulting from 
18a
scheduled increase in the level of assessment as applied to 
19the first year
final board of
review market value, and (iv) any 
20increase in assessed value due to oil or gas production from an 
21oil or gas well required to be permitted under the Hydraulic 
22Fracturing Regulatory Act that was not produced in or accounted 
23for during the previous levy year.
In addition, the county 
24clerk in a county containing a population of
3,000,000 or more 
25shall include in the 1997
recovered tax increment value for any 
26school district, any recovered tax
increment value that was 
 
 
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1applicable to the 1995 tax year calculations.


2 "Qualified airport authority" means an airport authority 
3organized under
the Airport Authorities Act and located in a 
4county bordering on the State of
Wisconsin and having a 
5population in excess of 200,000 and not greater than
500,000.


6 "Recovered tax increment value" means, except as otherwise 
7provided in this
paragraph, the amount of the current year's 
8equalized assessed value, in the
first year after a 
9municipality terminates
the designation of an area as a 
10redevelopment project area previously
established under the 
11Tax Increment Allocation Development Act in the Illinois

12Municipal Code, previously established under the Industrial 
13Jobs Recovery Law
in the Illinois Municipal Code, previously 
14established under the Economic Development Project Area Tax 
15Increment Act of 1995, or previously established under the 
16Economic
Development Area Tax Increment Allocation Act, of each 
17taxable lot, block,
tract, or parcel of real property in the 
18redevelopment project area over and
above the initial equalized 
19assessed value of each property in the
redevelopment project 
20area.
For the taxes which are extended for the 1997 levy year, 
21the recovered tax
increment value for a non-home rule taxing 
22district that first became subject
to this Law for the 1995 
23levy year because a majority of its 1994 equalized
assessed 
24value was in an affected county or counties shall be increased 
25if a
municipality terminated the designation of an area in 1993 
26as a redevelopment
project area previously established under 
 
 
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1the Tax Increment Allocation
Development Act in the Illinois 
2Municipal Code, previously established under
the Industrial 
3Jobs Recovery Law in the Illinois Municipal Code, or previously

4established under the Economic Development Area Tax Increment 
5Allocation Act,
by an amount equal to the 1994 equalized 
6assessed value of each taxable lot,
block, tract, or parcel of 
7real property in the redevelopment project area over
and above 
8the initial equalized assessed value of each property in the

9redevelopment project area.
In the first year after a 
10municipality
removes a taxable lot, block, tract, or parcel of 
11real property from a
redevelopment project area established 
12under the Tax Increment Allocation
Development Act in the 
13Illinois
Municipal Code, the Industrial Jobs Recovery Law
in 
14the Illinois Municipal Code, or the Economic
Development Area 
15Tax Increment Allocation Act, "recovered tax increment value"

16means the amount of the current year's equalized assessed value 
17of each taxable
lot, block, tract, or parcel of real property 
18removed from the redevelopment
project area over and above the 
19initial equalized assessed value of that real
property before 
20removal from the redevelopment project area.


21 Except as otherwise provided in this Section, "limiting 
22rate" means a
fraction the numerator of which is the last

23preceding aggregate extension base times an amount equal to one 
24plus the
extension limitation defined in this Section and the 
25denominator of which
is the current year's equalized assessed 
26value of all real property in the
territory under the 
 
 
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1jurisdiction of the taxing district during the prior
levy year. 
2For those taxing districts that reduced their aggregate

3extension for the last preceding levy year, the highest 
4aggregate extension
in any of the last 3 preceding levy years 
5shall be used for the purpose of
computing the limiting rate. 
6The denominator shall not include new
property or the recovered 
7tax increment
value.
If a new rate, a rate decrease, or a 
8limiting rate increase has been approved at an election held 
9after March 21, 2006, then (i) the otherwise applicable 
10limiting rate shall be increased by the amount of the new rate 
11or shall be reduced by the amount of the rate decrease, as the 
12case may be, or (ii) in the case of a limiting rate increase, 
13the limiting rate shall be equal to the rate set forth
in the 
14proposition approved by the voters for each of the years 
15specified in the proposition, after
which the limiting rate of 
16the taxing district shall be calculated as otherwise provided. 
17In the case of a taxing district that obtained referendum 
18approval for an increased limiting rate on March 20, 2012, the 
19limiting rate for tax year 2012 shall be the rate that 
20generates the approximate total amount of taxes extendable for 
21that tax year, as set forth in the proposition approved by the 
22voters; this rate shall be the final rate applied by the county 
23clerk for the aggregate of all capped funds of the district for 
24tax year 2012.

25(Source: P.A. 97-611, eff. 1-1-12; 97-1154, eff. 1-25-13; 98-6, 
26eff. 3-29-13; 98-23, eff. 6-17-13.)





 
 
HB4263- 19 -LRB099 13256 HLH 37358 b


1 (35 ILCS 200/18-205)



2 Sec. 18-205. Referendum to increase the extension 
3limitation. A taxing
district is limited to an extension 
4limitation as defined in Section 18-185 of 5% or the percentage 
5increase
in the Consumer Price Index during the 12-month 
6calendar year preceding the
levy year, whichever is less. A 
7taxing district may increase its extension
limitation for one 
8or more levy years if that taxing district holds a referendum

9before the levy date for the first levy year at which a 
10majority of voters voting on the issue approves
adoption of a 
11higher extension limitation. Referenda shall be conducted at a

12regularly scheduled election in accordance with the Election 
13Code. For referenda to increase the extension limitation for 
14levy years other than 2016 and 2017, the The question shall be 
15presented in
substantially the following manner for all 
16elections 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 
 
 
HB4263- 20 -LRB099 13256 HLH 37358 b


1 the increased extension limitation will apply)?
2 For referenda to increase the extension limitation for levy 
3years 2016 and 2017, the question shall be presented in

4substantially 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)? 
14The votes must be recorded as "Yes" or "No".


15If a majority of voters voting on the issue approves the 
16adoption of
the increase, the increase shall be applicable for 
17each
levy year specified.

18 The ballot for any question submitted pursuant to this 
19Section shall have printed thereon, but not as a part of the 
20question submitted, only the following supplemental 
21information (which shall be supplied to the election authority 
22by 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 
16extension limitation will be applicable for more than one year 
17and shall list each levy year for which the increased extension 
18limitation will be applicable. The additional tax shown for 
19each levy year shall be the approximate dollar amount of the 
20increase over the amount of the most recently completed 
21extension at the time the submission of the question is 
22initiated by the taxing district. The approximate amount of the 
23additional tax extendable shown in paragraphs (1) and (2) shall 
24be calculated by multiplying $100,000 (the fair market value of 
25the property without regard to any property tax exemptions) by 
26(i) the percentage level of assessment prescribed for that 
 
 
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1property by statute, or by ordinance of the county board in 
2counties that classify property for purposes of taxation in 
3accordance with Section 4 of Article IX of the Illinois 
4Constitution; (ii) the most recent final equalization factor 
5certified to the county clerk by the Department of Revenue at 
6the time the taxing district initiates the submission of the 
7proposition to the electors; (iii) the last known aggregate 
8extension base of the taxing district at the time the 
9submission of the question is initiated by the taxing district; 
10and (iv) the difference between the percentage increase 
11proposed in the question and (A) the lesser of 5% or the 
12percentage increase in the Consumer Price Index for the prior 
13levy year (or an estimate of the percentage increase for the 
14prior levy year if the increase is unavailable at the time the 
15submission of the question is initiated by the taxing district) 
16or (B) 0%, as applicable; and dividing the result by the last 
17known equalized assessed value of the taxing district at the 
18time the submission of the question is initiated by the taxing 
19district. This amendatory Act of the 97th General Assembly is 
20intended to clarify the existing requirements of this Section, 
21and shall not be construed to validate any prior non-compliant 
22referendum language. Any notice required to be published in 
23connection with the submission of the question shall also 
24contain this supplemental information and shall not contain any 
25other supplemental information. Any error, miscalculation, or 
26inaccuracy in computing any amount set forth on the ballot or 
 
 
HB4263- 23 -LRB099 13256 HLH 37358 b


1in the notice that is not deliberate shall not invalidate or 
2affect the validity of any proposition approved. Notice of the 
3referendum shall be published and posted as otherwise required 
4by law, and the submission of the question shall be initiated 
5as 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 
9Extension
Limitation Law.

10 (a) The provisions of this Section do not apply to a taxing 
11district
subject
to this Law because a majority of its 1990 
12equalized assessed value is in a
county or counties contiguous 
13to a county of 3,000,000 or more inhabitants, or
because a 
14majority of its 1994 equalized assessed value is in an affected

15county and the taxing district was not subject to this Law 
16before the 1995 levy
year.

17 (b) Except with respect to the 2016 and 2017 levy years, 
18the The county board of a county that is not subject to this 
19Law
may, by ordinance or resolution, submit to the voters of 
20the
county the question of whether to
make all non-home rule 
21taxing districts
that
have all or a portion of their equalized 
22assessed valuation
situated in the county subject to this Law 
23in 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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11-150.

2 "Equalized
assessed valuation" means the equalized 
3assessed valuation for a taxing
district for the immediately 
4preceding levy year.

5 (c) The ordinance or resolution shall request the 
6submission of
the
proposition at any election, except a 
7consolidated primary election, for the
purpose of voting for or 
8against making the Property
Tax Extension Limitation Law 
9applicable to all non-home rule taxing districts
that have all

10or a
portion of their equalized assessed valuation situated in 
11the county.

12 The question shall be placed on a separate
ballot and shall 
13be 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)?

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

20 (d) The county clerk
shall order the proposition submitted 
21to the electors of the county
at the election specified in the 
22ordinance or resolution.
If part of the county is under the 
23jurisdiction of
a board or boards of election commissioners, 
24the county clerk
shall submit a certified copy of
the ordinance 
25or resolution to each board of election commissioners,
which 
26shall order the
proposition submitted to the electors of the 
 
 
HB4263- 25 -LRB099 13256 HLH 37358 b


1taxing district within its
jurisdiction at the election 
2specified 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 
 
 
HB4263- 26 -LRB099 13256 HLH 37358 b


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 
 
 
HB4263- 27 -LRB099 13256 HLH 37358 b


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 
10Section, the county
clerk of the
county holding the referendum 
11shall give notice of the referendum having been
held and its 
12results to all taxing districts that have all
or a portion of 
13their equalized assessed valuation located in the county, the

14county clerk of any other county in which any of the equalized 
15assessed
valuation of any taxing district is located, and the 
16Department of Revenue.
After the last referendum affecting a 
17multi-county taxing district is held, the
Department of Revenue

18shall determine whether the taxing district is subject to this 
19Law
and, if so, shall notify the taxing district and the county 
20clerks of all of
the
counties in which a portion of the 
21equalized assessed valuation of the
taxing district is located 
22that, beginning the following January 1, the
taxing
district is 
23subject to this Law.
For each taxing district subject to 
24paragraph (2) of subsection (e) of this
Section, the Department 
25of Revenue shall notify the taxing district and the
county 
26clerks of all of the counties in which a portion of the 
 
 
HB4263- 28 -LRB099 13256 HLH 37358 b


1equalized
assessed valuation of the taxing district is located 
2that, beginning January 1,
1997, the taxing district is subject 
3to this Law.

4 (g) Referenda held under this Section shall be conducted in 
5accordance 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 
9the Property Tax
Extension Limitation Law to non-home rule 
10taxing districts.

11 (a) The provisions of this Section do not apply to a taxing 
12district that is
subject to this Law because a majority of its 
131990 equalized assessed value is
in a county or counties 
14contiguous to a county of 3,000,000 or more
inhabitants, or 
15because a majority of its 1994 equalized assessed value is in

16an
affected county and the taxing district was not subject to 
17this Law before the
1995 levy year.

18 (b) For purposes of this Section only:

19 "Taxing district" means any non-home rule taxing district 
20that became subject
to this Law under Section 18-213 of this 
21Law.

22 "Equalized assessed valuation" means the equalized 
23assessed valuation for a
taxing district for the immediately 
24preceding levy year.

25 (c) The county board of a county that became subject to 
 
 
HB4263- 29 -LRB099 13256 HLH 37358 b


1this Law by a
referendum approved by the voters of the county 
2under Section 18-213 may, by
ordinance or resolution, in the 
3manner set forth in this Section, submit to the
voters of the 
4county the question of whether this Law applies to all non-home

5rule taxing
districts that have all or a portion of their 
6equalized assessed valuation
situated in the county in the 
7manner set forth in this Section.

8 (d) The ordinance or resolution shall request the 
9submission of the
proposition at any election, except a 
10consolidated primary election, for the
purpose of voting for or 
11against the continued application of the Property Tax
Extension 
12Limitation Law to all non-home rule taxing districts that have 
13all or
a portion of their equalized assessed valuation situated 
14in the county.

15 The question shall be placed on a separate ballot and shall 
16be 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)?

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

23 (e) The county clerk shall order the proposition submitted 
24to the electors
of the county at the election specified in the 
25ordinance or resolution. If
part of the county is under the 
26jurisdiction of a board or boards of election
commissioners, 
 
 
HB4263- 30 -LRB099 13256 HLH 37358 b


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

2or resolution to each board of election commissioners, which 
3shall order the
proposition submitted to the electors of the 
4taxing district within its
jurisdiction at the election 
5specified in the ordinance or resolution.

6 (f) With respect to taxing districts having all of their 
7equalized assessed
valuation located in one county, if a 
8majority of the votes cast on the
proposition are against the 
9proposition, then this Law shall not apply to the
taxing 
10district beginning on January 1 of the year following the date 
11of
the referendum.

12 (g) With respect to taxing districts that do not have all 
13of their
equalized assessed valuation located in a single 
14county, if both of the
following conditions are met, then this 
15Law shall no longer apply to the taxing
district beginning on 
16January 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 
 
 
HB4263- 31 -LRB099 13256 HLH 37358 b


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 
13Section, the county
clerk of the county holding the referendum 
14shall give notice of the referendum
having been held and its 
15results to all taxing districts that have all or a
portion of 
16their equalized assessed valuation located in the county, the 
17county
clerk of any other county in which any of the equalized 
18assessed valuation of
any such taxing district is located, and 
19the Department of Revenue. After the
last
referendum affecting 
20a multi-county taxing district is held, the Department of

21Revenue shall determine whether the taxing district is no 
22longer subject to
this Law and, if the taxing district is no 
23longer subject to this Law, the
Department of Revenue shall 
24notify the taxing district and the county clerks of
all of the 
25counties in which a portion of the equalized assessed valuation 
26of
the taxing district is located that, beginning on January 1 
 
 
HB4263- 32 -LRB099 13256 HLH 37358 b


1of the
year following the date of the last
referendum, the 
2taxing district is no longer subject to this Law.

3 (i) Notwithstanding any other provision of law, no 
4referendum may be submitted under this Section for levy years 
52016 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, 
9under
subsection
(g) of Section 6 of Article VII of the 
10Illinois Constitution, on the power of
home rule units to tax.

11 Section 10. The School Code is amended by adding Section 
1218-21 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 
16propose a revised school funding formula for Illinois schools. 
17The Committee shall consist of the following members, all of 
18whom shall serve without compensation but shall be reimbursed 
19for their travel expenses from appropriations to the State 
20Board of Education available for that purpose and subject to 
21the 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 
 
 
HB4263- 33 -LRB099 13256 HLH 37358 b


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 
 
 
HB4263- 34 -LRB099 13256 HLH 37358 b


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 
7days of the effective date of this amendatory Act of the 99th 
8General Assembly. Thereafter, the Committee shall meet at the 
9call of the co-chairpersons. The State Board of Education shall 
10provide administrative and other support to the Committee.
11 (c) The General State Aid Committee shall propose a new 
12school funding formula for public schools in this State. The 
13Committee must establish a school funding formula that provides

14adequate, equitable, transparent, and accountable distribution 
15of funds to school districts that will prepare students for 
16success after high school.
17 (d) The Committee shall submit its proposed school funding 
18formula to the General Assembly for consideration on or before 
19July 1, 2016 by filing copies of its proposal as provided in 
20Section 3.1 of the General Assembly Organization Act. Upon 
21filing 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 
24Section 8.39 as follows:

 
 
HB4263- 35 -LRB099 13256 HLH 37358 b


1 (30 ILCS 805/8.39 new)
2 Sec. 8.39. Exempt mandate. Notwithstanding Sections 6 and 8 
3of this Act, no reimbursement by the State is required for the 
4implementation of any mandate created by this amendatory Act of 
5the 99th General Assembly.