65 ILCS 5/8-3-1
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-3-1)Sec. 8-3-1.   The corporate authorities may levy and collect taxes for  corporate purposes. They shall do this in the following manner:On or before the last Tuesday in December in each year,  the corporate authorities shall ascertain the total amount of  appropriations legally made or budgeted for and any amount deemed  necessary to defray additional expenses and liabilities for all  corporate purposes to be provided for by the tax levy of that year.  Then, by an ordinance specifying in detail in the manner authorized for  the annual appropriation ordinance or budget of the municipality, the  purposes for which the appropriations, budgeting or such additional  amounts deemed necessary have been made and the amount assignable for  each purpose respectively, the corporate authorities shall levy upon all  property subject to taxation within the municipality as that property is  assessed and equalized for state and county purposes for the current  year.A certified copy of this ordinance shall be filed with the county  clerk of the proper county. He shall ascertain the rate per cent which,  upon the value of all property subject to taxation within the  municipality, as that property is assessed or equalized by the  Department of Revenue, will produce a net amount of not  less than the total amount so directed to be levied. The county clerk  shall extend this tax in a separate column upon the books of the  collector of state and county taxes within the municipality.However, in ascertaining the rate per cent in municipalities having a  population of 500,000 or more, the county clerk shall not add to the  amount of the tax so levied for any purpose any amount to cover the loss  and cost of collecting the tax, except in the case of amounts levied for  the payment of bonded indebtedness, or interest thereon, and in the case  of amounts levied for the purposes of pension funds.Where the corporate limits of a municipality lie partly in 2 or more  counties, the corporate authorities shall ascertain the total amount of  all taxable property lying within the corporate limits of that  municipality in each county, as the property is assessed or  equalized by the Department of Revenue for the current year, and  shall certify the amount of taxable property in each county within that  municipality under the seal of the municipality, to the county clerk of  the county where the seat of government of the municipality is situated.  That county clerk shall ascertain the rate per cent which, upon the  total valuation of all property subject to taxation within that  municipality, ascertained as provided in this Section, will produce a  net amount not less than the total amount directed to be levied. As soon  as that rate per cent is ascertained, that clerk shall certify the rate  per cent under his signature and seal of office to the county clerk of each  other county wherein a portion of that municipality is situated. A  county clerk to whom a rate per cent is certified shall extend the tax  in a separate column upon the books of the collector of state and county  taxes for his county against all property in his county within the  limits of that municipality.But in municipalities with 500,000 or more inhabitants, the aggregate  amount of taxes so levied exclusive of the amount levied for the payment  of bonded indebtedness, or interest thereon, and exclusive of taxes  levied for the payment of judgments, for which a special tax is  authorized by law, and exclusive of the amounts levied for the purposes  of pension funds, working cash fund, public library, the propagation and preservation of community  trees, and exclusive of taxes levied pursuant to Section 19 of the  Illinois Emergency Services and Disaster Agency Act of 1975 and for the  general assistance for needy persons lawfully resident therein, shall not  exceed the estimated amount of taxes to be levied for each year for the  purposes specified in Sections 8-2-2 through 8-2-5 and set forth in its  annual appropriation ordinance and in any supplemental appropriation  ordinance authorized by law for that year.In municipalities with less than 500,000 inhabitants, the aggregate  amount of taxes so levied for any one year, exclusive of the amount  levied for the payment of bonded indebtedness, or interest thereon, and  exclusive of taxes levied pursuant to Section 13 of the Illinois Civil  Defense Act of 1951 and exclusive of taxes authorized by this Code or other  Acts which by their terms provide that those taxes shall be in addition to  taxes for general purposes authorized under this Section, shall not exceed  the rate of .25%, or the rate limit in effect on July 1, 1967, whichever is  greater, and on a permanent basis, upon the aggregate valuation of all  property within the municipality subject to taxation therein, as the  property is equalized or assessed by the Department of Revenue for the  current year. However, if the maximum rate of such municipality for general  corporate purposes is less than .20% on July 1, 1967, the corporate  authorities may, without referendum, increase such maximum rate not to  exceed .25%; but such maximum rate shall not be raised by more than 1/2 of  such increase in any one year.However, if the corporate authorities of a municipality with less  than 500,000 inhabitants desire to levy in any one year more than .25%,  or the rate limit in effect on July 1, 1967, whichever is greater, and  on a permanent basis, but not more than .4375% for general corporate  purposes, exclusive of the amount levied for the payment of bonded  indebtedness, or interest thereon, and exclusive of taxes authorized by  this Code or other Acts which by their terms provide that those taxes  shall be in addition to taxes for general purposes authorized under this  Section the corporate authorities, by ordinance, stating the per cent  so desired, may order a proposition for the additional amount to be  submitted to the electors of that municipality at any election. The clerk  shall certify the proposition to the proper election authority who shall  submit the question to the electors at such election. If a majority of the  votes cast on the proposition  are in favor of the proposition, the  corporate authorities of that municipality may levy annually for general  corporate purposes, exclusive of the amount levied for the payment of  bonded indebtedness, or interest thereon, and exclusive of taxes authorized  by this Code or other Acts which by their terms provide that those taxes  are in addition to taxes for general purposes authorized under this  Section a tax in excess of .25%, or the rate in effect on July 1, 1967,  whichever is greater, and on a permanent basis, but not exceeding the per  cent mentioned in the proposition.Any municipality voting after August 1, 1969, to increase its rate  limitation for general corporate purposes under this Section shall  establish such increased rate limitation on an ongoing basis unless  otherwise changed by referendum.In municipalities that are not home rule units, any funds on hand at the  end of the fiscal year, which funds are not pledged for or allocated to a  particular purpose, may by action of the corporate authorities be  transferred to the capital improvement fund and accumulated therein, but  the total amount accumulated in such fund may not exceed 3% of the  aggregate assessed valuation of all taxable property in the municipality.  (Source: P.A. 102-587, eff. 1-1-22.)