Bill Text: IL HB5577 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the School Code. Provides that in the immediate 2 consecutive tax years (rather than in the tax year) following receipt of a Property Tax Pool Relief Grant, the aggregate extension base (rather than the aggregate levy) of any school district receiving a grant, for purposes of the Property Tax Extension Limitation Law, shall include the tax relief the school district provided in the previous taxable year. Effective July 1, 2020.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5577 Detail]

Download: Illinois-2019-HB5577-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5577 Introduced , by Rep. William Davis SYNOPSIS AS INTRODUCED:
105 ILCS 5/2-3.170
Amends the School Code. Provides that in the immediate 2 consecutive tax years (rather than in the tax year) following receipt of a Property Tax Pool Relief Grant, the aggregate extension base (rather than the aggregate levy) of any school district receiving a grant, for purposes of the Property Tax Extension Limitation Law, shall include the tax relief the school district provided in the previous taxable year. Effective July 1, 2020.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing Section
2-3.170 as follows:
(105 ILCS 5/2-3.170)
Sec. 2-3.170. Property tax relief pool grants.
(a) As used in this Section,
"EAV" means equalized assessed valuation as defined under
Section 18-8.15 of this Code.
"Property tax multiplier" equals one minus the square of
the school district's Local Capacity Percentage, as defined in
Section 18-8.15 of this Code.
"Local capacity percentage multiplier" means one minus the
school district's Local Capacity Percentage, as defined in
Section 18-8.15.
"State Board" means the State Board of Education.
(b) Subject to appropriation, the State Board shall provide
grants to eligible school districts that provide tax relief to
the school district's residents, which may be no greater than
1% of EAV for a unit district, 0.69% of EAV for an elementary
school district, or 0.31% of EAV for a high school district, as
provided in this Section.

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(b-5) School districts may apply for property tax relief
under this Section concurrently to setting their levy for the
fiscal year. The intended relief may not be greater than 1% of
the EAV for a unit district, 0.69% of the EAV for an elementary
school district, or 0.31% of the EAV for a high school
district, multiplied by the school district's local capacity
percentage multiplier. The State Board shall process
applications for relief, providing a grant to those districts
with the highest operating tax rate, as determined by those
districts with the highest percentage of the simple average
operating tax rate of districts of the same type, either
elementary, high school, or unit, first, in an amount equal to
the intended relief multiplied by the property tax multiplier.
The State Board shall provide grants to school districts in
order of priority until the property tax relief pool is
exhausted. If more school districts apply for relief under this
subsection than there are funds available, the State Board must
distribute the grants and prorate any remaining funds to the
final school district that qualifies for grant relief. The
abatement amount for that district must be equal to the grant
amount divided by the property tax multiplier.
If a school district receives the State Board's approval of
a grant under this Section by March 1 of the fiscal year, the
school district shall present a duly authorized and approved
abatement resolution by March 30 of the fiscal year to the
county clerk of each county in which the school files its levy,

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authorizing the county clerk to lower the school district's
levy by the amount designated in its application to the State
Board. When the preceding requisites are satisfied, the county
clerk shall reduce the amount collected for the school district
by the amount indicated in the school district's abatement
resolution for that fiscal year.
(c) (Blank).
(d) School districts seeking grants under this Section
shall apply to the State Board each year. All applications to
the State Board for grants shall include the amount of the tax
relief intended by the school district.
(e) Each year, based on the most recent available data
provided by school districts pursuant to Section 18-8.15 of
this Code, the State Board shall calculate the order of
priority for grant eligibility under subsection (b-5) and
publish a list of the school districts eligible for relief. The
State Board shall provide grants in the manner provided under
subsection (b-5).
(f) The State Board shall publish a final list of eligible
grant recipients and provide payment of the grants by March 1
of each year.
(g) If notice of eligibility from the State Board is
received by a school district by March 1, then by March 30, the
school district shall file an abatement of its property tax
levy in an amount equal to the grant received under this
Section divided by the property tax multiplier. Payment of all

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grant amounts shall be made by June 1 each fiscal year. The
State Superintendent of Education shall establish the timeline
in such cases in which notice cannot be made by March 1.
(h) The total property tax relief allowable to a school
district under this Section shall be calculated based on the
total amount of reduction in the school district's aggregate
extension. The total grant shall be equal to the reduction,
multiplied by the property tax multiplier. The reduction shall
be equal to 1% of a district's EAV for a unit school district,
0.69% for an elementary school district, or 0.31% for a high
school district, multiplied by the school district's local
capacity percentage multiplier.
(i) If the State Board does not expend all appropriations
allocated pursuant to this Section, then any remaining funds
shall be allocated pursuant to Section 18-8.15 of this Code.
(j) The State Board shall prioritize payments under Section
18-8.15 of this Code over payments under this Section, if
necessary.
(k) Any grants received by a school district shall be
included in future calculations of that school district's Base
Funding Minimum under Section 18-8.15 of this Code. Beginning
with Fiscal Year 2020, if a school district receives a grant
under this Section, the school district must present to the
county clerk a duly authorized and approved abatement
resolution by March 30 for the year in which the school
district receives the grant and the successive fiscal year

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following the receipt of the grant, authorizing the county
clerk to lower the school district's levy by the amount
designated in its original application to the State Board.
After receiving a resolution, the county clerk must reduce the
amount collected for the school district by the amount
indicated in the school district's abatement resolution for
that fiscal year. If a school district does not abate in this
amount for the successive fiscal year, the grant amount may not
be included in the school district's Base Funding Minimum under
Section 18-8.15 in the fiscal year following the tax year in
which the abatement is not authorized and in any future fiscal
year thereafter, and the county clerk must notify the State
Board of the increase no later 30 days after it occurs.
(l) In the immediate 2 consecutive tax years year following
receipt of a Property Tax Pool Relief Grant, the aggregate
extension base levy of any school district receiving a grant
under this Section, for purposes of the Property Tax Extension
Limitation Law, shall include the tax relief the school
district provided in the previous taxable year under this
Section.
(Source: P.A. 100-465, eff. 8-31-17; 100-582, eff. 3-23-18;
100-863, eff. 8-14-18; 101-17, eff. 6-14-19.)
Section 99. Effective date. This Act takes effect July 1,
2020.