Bill Text: IL HB4568 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a levy authorized for contributions to a Firefighters' Pension Fund for a municipality with a population of 500,000 or less is not considered a new rate. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-04-19 - Rule 19(a) / Re-referred to Rules Committee [HB4568 Detail]

Download: Illinois-2023-HB4568-Engrossed.html

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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Section 18-190 as follows:
(35 ILCS 200/18-190)
Sec. 18-190. Direct referendum; new rate or increased
limiting rate.
(a) If a new rate is authorized by statute to be imposed
without referendum or is subject to a backdoor referendum, as
defined in Section 28-2 of the Election Code, the governing
body of the affected taxing district before levying the new
rate shall submit the new rate to direct referendum under the
provisions of this Section and of Article 28 of the Election
Code. Notwithstanding any other provision of law, the levies
authorized by Sections 4-118, 21-110, and 21-110.1 of the
Illinois Pension Code shall not be considered new rates;
however, nothing in this amendatory Act of the 98th General
Assembly or this amendatory Act of the 103rd General Assembly
authorizes a taxing district to increase its limiting rate or
its aggregate extension without first obtaining referendum
approval as provided in this Section. Notwithstanding the
provisions, requirements, or limitations of any other law, any

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tax levied for the 2005 levy year and all subsequent levy years
by any taxing district subject to this Law may be extended at a
rate exceeding the rate established for that tax by referendum
or statute, provided that the rate does not exceed the
statutory ceiling above which the tax is not authorized to be
further increased either by referendum or in any other manner.
Notwithstanding the provisions, requirements, or limitations
of any other law, all taxing districts subject to this Law
shall follow the provisions of this Section whenever seeking
referenda approval after March 21, 2006 to (i) levy a new tax
rate authorized by statute or (ii) increase the limiting rate
applicable to the taxing district. All taxing districts
subject to this Law are authorized to seek referendum approval
of each proposition described and set forth in this Section.
The proposition seeking to obtain referendum approval to
levy a new tax rate as authorized in clause (i) shall be in
substantially the following form:
Shall ... (insert legal name, number, if any, and
county or counties of taxing district and geographic or
other common name by which a school or community college
district is known and referred to), Illinois, be
authorized to levy a new tax for ... purposes and have an
additional tax of ...% of the equalized assessed value of
the taxable property therein extended for such purposes?
The votes must be recorded as "Yes" or "No".
The proposition seeking to obtain referendum approval to

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increase the limiting rate as authorized in clause (ii) shall
be in substantially the following form:
Shall the limiting rate under the Property Tax
Extension Limitation Law for ... (insert legal name,
number, if any, and county or counties of taxing district
and geographic or other common name by which a school or
community college district is known and referred to),
Illinois, be increased by an additional amount equal to
...% above the limiting rate for the purpose of...(insert
purpose) for levy year ... (insert the most recent levy
year for which the limiting rate of the taxing district is
known at the time the submission of the proposition is
initiated by the taxing district) and be equal to ...% of
the equalized assessed value of the taxable property
therein for levy year(s) (insert each levy year for which
the increase will be applicable, which years must be
consecutive and may not exceed 4)?
The votes must be recorded as "Yes" or "No".
The ballot for any proposition submitted pursuant to this
Section shall have printed thereon, but not as a part of the
proposition submitted, only the following supplemental
information (which shall be supplied to the election authority
by the taxing district) in substantially the following form:
(1) The approximate amount of taxes extendable at the
most recently extended limiting rate is $..., and the
approximate amount of taxes extendable if the proposition

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is approved is $....
(2) For the ... (insert the first levy year for which
the new rate or increased limiting rate will be
applicable) levy year the approximate amount of the
additional tax extendable against property containing a
single family residence and having a fair market value at
the time of the referendum of $100,000 is estimated to be
$....
(3) Based upon an average annual percentage increase
(or decrease) in the market value of such property of %...
(insert percentage equal to the average annual percentage
increase or decrease for the prior 3 levy years, at the
time the submission of the proposition is initiated by the
taxing district, in the amount of (A) the equalized
assessed value of the taxable property in the taxing
district less (B) the new property included in the
equalized assessed value), the approximate amount of the
additional tax extendable against such property for the
... levy year is estimated to be $... and for the ... levy
year is estimated to be $ ....
(4) If the proposition is approved, the aggregate
extension for ... (insert each levy year for which the
increase will apply) will be determined by the limiting
rate set forth in the proposition, rather than the
otherwise applicable limiting rate calculated under the
provisions of the Property Tax Extension Limitation Law

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(commonly known as the Property Tax Cap Law).
The approximate amount of taxes extendable shown in paragraph
(1) shall be computed upon the last known equalized assessed
value of taxable property in the taxing district (at the time
the submission of the proposition is initiated by the taxing
district). Paragraph (3) shall be included only if the
increased limiting rate will be applicable for more than one
levy year and shall list each levy year for which the increased
limiting rate will be applicable. The additional tax shown for
each levy year shall be the approximate dollar amount of the
increase over the amount of the most recently completed
extension at the time the submission of the proposition is
initiated by the taxing district. The approximate amount of
the additional taxes extendable shown in paragraphs (2) and
(3) shall be calculated by multiplying $100,000 (the fair
market value of the property without regard to any property
tax exemptions) by (i) the percentage level of assessment
prescribed for that property by statute, or by ordinance of
the county board in counties that classify property for
purposes of taxation in accordance with Section 4 of Article
IX of the Illinois Constitution; (ii) the most recent final
equalization factor certified to the county clerk by the
Department of Revenue at the time the taxing district
initiates the submission of the proposition to the electors;
and (iii) either the new rate or the amount by which the
limiting rate is to be increased. This amendatory Act of the

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97th General Assembly is intended to clarify the existing
requirements of this Section, and shall not be construed to
validate any prior non-compliant referendum language.
Paragraph (4) shall be included if the proposition concerns a
limiting rate increase but shall not be included if the
proposition concerns a new rate. Any notice required to be
published in connection with the submission of the proposition
shall also contain this supplemental information and shall not
contain any other supplemental information regarding the
proposition. Any error, miscalculation, or inaccuracy in
computing any amount set forth on the ballot and in the notice
that is not deliberate shall not invalidate or affect the
validity of any proposition approved. Notice of the referendum
shall be published and posted as otherwise required by law,
and the submission of the proposition shall be initiated as
provided by law.
If a majority of all ballots cast on the proposition are in
favor of the proposition, the following provisions shall be
applicable to the extension of taxes for the taxing district:
(A) a new tax rate shall be first effective for the
levy year in which the new rate is approved;
(B) if the proposition provides for a new tax rate,
the taxing district is authorized to levy a tax after the
canvass of the results of the referendum by the election
authority for the purposes for which the tax is
authorized;

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(C) a limiting rate increase shall be first effective
for the levy year in which the limiting rate increase is
approved, provided that the taxing district may elect to
have a limiting rate increase be effective for the levy
year prior to the levy year in which the limiting rate
increase is approved unless the extension of taxes for the
prior levy year occurs 30 days or less after the canvass of
the results of the referendum by the election authority in
any county in which the taxing district is located;
(D) in order for the limiting rate increase to be
first effective for the levy year prior to the levy year of
the referendum, the taxing district must certify its
election to have the limiting rate increase be effective
for the prior levy year to the clerk of each county in
which the taxing district is located not more than 2 days
after the date the results of the referendum are canvassed
by the election authority; and
(E) if the proposition provides for a limiting rate
increase, the increase may be effective regardless of
whether the proposition is approved before or after the
taxing district adopts or files its levy for any levy
year.
Rates required to extend taxes on levies subject to a
backdoor referendum in each year there is a levy are not new
rates or rate increases under this Section if a levy has been
made for the fund in one or more of the preceding 3 levy years.

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Changes made by this amendatory Act of 1997 to this Section in
reference to rates required to extend taxes on levies subject
to a backdoor referendum in each year there is a levy are
declarative of existing law and not a new enactment.
(b) Whenever other applicable law authorizes a taxing
district subject to the limitation with respect to its
aggregate extension provided for in this Law to issue bonds or
other obligations either without referendum or subject to
backdoor referendum, the taxing district may elect for each
separate bond issuance to submit the question of the issuance
of the bonds or obligations directly to the voters of the
taxing district, and if the referendum passes the taxing
district is not required to comply with any backdoor
referendum procedures or requirements set forth in the other
applicable law. The direct referendum shall be initiated by
ordinance or resolution of the governing body of the taxing
district, and the question shall be certified to the proper
election authorities in accordance with the provisions of the
Election Code.
(Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)