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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3645 Introduced , by Rep. Fred Crespo SYNOPSIS AS INTRODUCED:
| | 35 ILCS 200/Art. 18 Div. 7 heading new | | 35 ILCS 200/18-280 new | | 35 ILCS 200/18-285 new | | 35 ILCS 200/18-290 new | | 35 ILCS 200/20-15 | |
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Amends the Property Tax Code. Creates the School District Extension Freeze Law. Provides that, if at the end of any levy year, a school district has reserves of 50% or more of its operating budget, then the school district's extension for all purposes may not exceed its extension for the previous levy year. Provides that, if the school district has reserves of 60% or more at the end of the immediately preceding levy year, then the district's extension shall be reduced by an amount equal to the difference between the district's reserve amount for the immediately preceding levy year and a reserve amount of 60% for that levy year. Effective July 1, 2023.
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| | A BILL FOR |
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| | HB3645 | | LRB103 27821 HLH 54199 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by adding |
| 5 | | Division 7 to Article 18 and by changing Section 20-15 as |
| 6 | | follows:
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| 7 | | (35 ILCS 200/Art. 18 Div. 7 heading new) |
| 8 | | Division 7. School District Extension Freeze Law
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| 9 | | (35 ILCS 200/18-280 new) |
| 10 | | Sec. 18-280. Short title. This Division 7 may be cited as |
| 11 | | the School District Extension Freeze Law.
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| 12 | | (35 ILCS 200/18-285 new) |
| 13 | | Sec. 18-285. Limitation. |
| 14 | | (a) If, at the end of any levy year, any school district |
| 15 | | has reserves of 50% or more of its operating budget, as |
| 16 | | determined by the State Board of Education, then, for the next |
| 17 | | levy year, the county clerk shall extend a rate for that |
| 18 | | district for all purposes that is no greater than the |
| 19 | | educational limiting rate. |
| 20 | | (b) Each school district shall transmit to the State Board |
| 21 | | of Education any information required by the State Board of |
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| 1 | | Education, by rule, for the purposes of making the |
| 2 | | determination required under this Section. |
| 3 | | (c) In the case of a school district that is subject to |
| 4 | | both the Property Tax Extension Limitation Law and this Law, |
| 5 | | the provisions of the Property Tax Extension Limitation Law |
| 6 | | shall be suspended for that district for any levy year in which |
| 7 | | the district is subject to the educational limiting rate under |
| 8 | | this Division. |
| 9 | | (d) For a school district that has reserves of 50% or more |
| 10 | | but not more than 60% of its operating budget at the end of the |
| 11 | | immediately preceding levy year, as determined by the State |
| 12 | | Board of Education, "educational limiting rate" means a |
| 13 | | fraction the numerator of which is the district's last |
| 14 | | preceding extension for all purposes and the denominator of |
| 15 | | which is the current year's equalized assessed value of all |
| 16 | | real property in the territory under the jurisdiction of the |
| 17 | | district during the prior levy year. For a school district |
| 18 | | that has reserves of 60% or more of its operating budget at the |
| 19 | | end of the immediately preceding levy year, as determined by |
| 20 | | the State Board of Education, "educational limiting rate" |
| 21 | | means a fraction (i) the numerator of which is the district's |
| 22 | | last preceding extension for all purposes minus the difference |
| 23 | | between the district's reserve amount for the immediately |
| 24 | | preceding levy year and a reserve amount of 60% for that levy |
| 25 | | year and (ii) the denominator of which is the current year's |
| 26 | | equalized assessed value of all real property in the territory |
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| 1 | | under the jurisdiction of the taxing district during the prior |
| 2 | | levy year. In either case, the denominator shall not include |
| 3 | | new property or the recovered tax increment value, as defined |
| 4 | | in the Property Tax Extension Limitation Law.
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| 5 | | (35 ILCS 200/18-290 new) |
| 6 | | Sec. 18-290. Referendum to increase the educational |
| 7 | | limiting rate. A school district may increase its educational |
| 8 | | limiting rate for one or more levy years if the district holds |
| 9 | | a referendum before the levy date for the first levy year at |
| 10 | | which a majority of voters voting on the issue approves the |
| 11 | | higher educational limiting rate. Referenda shall be conducted |
| 12 | | at a regularly scheduled election in accordance with the |
| 13 | | Election Code. The question shall be presented in |
| 14 | | substantially the following manner: |
| 15 | | Shall the educational limiting rate for (school |
| 16 | | district) be increased from (applicable educational |
| 17 | | limiting rate) to (insert proposed educational limiting |
| 18 | | rate) for (insert each levy year for which the increased |
| 19 | | extension limitation will apply)? |
| 20 | | The votes must be recorded as "Yes" or "No". |
| 21 | | If a majority of voters voting on the issue approves the |
| 22 | | adoption of the increase, the increase shall be applicable for |
| 23 | | each levy year specified.
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| 24 | | (35 ILCS 200/20-15)
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| 1 | | Sec. 20-15. Information on bill or separate statement. |
| 2 | | There shall be
printed on each bill, or on a separate slip |
| 3 | | which shall be mailed with the
bill:
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| 4 | | (a) a statement itemizing the rate at which taxes have |
| 5 | | been extended for
each of the taxing districts in the |
| 6 | | county in whose district the property is
located, and in |
| 7 | | those counties utilizing
electronic data processing |
| 8 | | equipment the dollar amount of tax due from the
person |
| 9 | | assessed allocable to each of those taxing districts, |
| 10 | | including a
separate statement of the dollar amount of tax |
| 11 | | due which is allocable to a tax
levied under the Illinois |
| 12 | | Local Library Act or to any other tax levied by a
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| 13 | | municipality or township for public library purposes,
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| 14 | | (b) a separate statement for each of the taxing |
| 15 | | districts of the dollar
amount of tax due which is |
| 16 | | allocable to a tax levied under the Illinois Pension
Code |
| 17 | | or to any other tax levied by a municipality or township |
| 18 | | for public
pension or retirement purposes,
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| 19 | | (b-5) a list of each tax increment financing (TIF) |
| 20 | | district in which the property is located and the dollar |
| 21 | | amount of tax due that is allocable to the TIF district, |
| 22 | | (c) the total tax rate,
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| 23 | | (d) the total amount of tax due, and
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| 24 | | (e) the amount by which the total tax and the tax |
| 25 | | allocable to each taxing
district differs from the |
| 26 | | taxpayer's last prior tax bill, and .
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| 1 | | (f) if the property is located in a school district
that |
| 2 | | had its extension reduced by operation of the School
District |
| 3 | | Extension Freeze Law because it retained reserves of 60% or |
| 4 | | more at the end of the immediately preceding levy
year, then a |
| 5 | | separate statement setting forth the amount
by which the |
| 6 | | extension for educational purposes was
reduced. |
| 7 | | The county treasurer shall ensure that only those taxing |
| 8 | | districts in
which a parcel of property is located shall be |
| 9 | | listed on the bill for that
property.
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| 10 | | In all counties the statement shall also provide:
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| 11 | | (1) the property index number or other suitable |
| 12 | | description,
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| 13 | | (2) the assessment of the property,
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| 14 | | (3) the statutory amount of each homestead exemption |
| 15 | | applied to the property, |
| 16 | | (4) the assessed value of the property after |
| 17 | | application of all homestead exemptions, |
| 18 | | (5) the equalization factors imposed by the county and |
| 19 | | by the Department,
and
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| 20 | | (6) the equalized assessment resulting from the |
| 21 | | application of the
equalization factors to the basic |
| 22 | | assessment.
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| 23 | | In all counties which do not classify property for |
| 24 | | purposes of taxation, for
property on which a single family |
| 25 | | residence is situated the statement shall
also include a |
| 26 | | statement to reflect the fair cash value determined for the
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| 1 | | property. In all counties which classify property for purposes |
| 2 | | of taxation in
accordance with Section 4 of Article IX of the |
| 3 | | Illinois Constitution, for
parcels of residential property in |
| 4 | | the lowest assessment classification the
statement shall also |
| 5 | | include a statement to reflect the fair cash value
determined |
| 6 | | for the property.
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| 7 | | In all counties, the statement must include information |
| 8 | | that certain
taxpayers may be eligible for tax exemptions, |
| 9 | | abatements, and other assistance programs and that, for more |
| 10 | | information, taxpayers should consult with the office of their |
| 11 | | township or county assessor and with the Illinois Department |
| 12 | | of Revenue.
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| 13 | | In counties which use the estimated or accelerated billing |
| 14 | | methods, these
statements shall only be provided with the |
| 15 | | final installment of taxes due. The
provisions of this Section |
| 16 | | create a mandatory statutory duty. They are not
merely |
| 17 | | directory or discretionary. The failure or neglect of the |
| 18 | | collector to
mail the bill, or the failure of the taxpayer to |
| 19 | | receive the bill, shall not
affect the validity of any tax, or |
| 20 | | the liability for the payment of any tax.
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| 21 | | (Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)
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