SB2995 103RD GENERAL ASSEMBLY

LRB103 37908 RJT 68040 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2995

Introduced 2/2/2024, by Sen. Tom Bennett

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1015 new
105 ILCS 5/2-3.204 new

Amends the School Code. Provides that the State Board of Education shall establish and administer a program to award property tax relief grants to property taxpayers within school districts in this State. Provides that the State Board of Education shall work with county clerk's offices in this State to determine the amount given to each property taxpayer. Provides that moneys awarded to property taxpayers shall be distributed pro rata based on the amount a property taxpayer paid in taxes in the previous fiscal year. Creates the Education Property Tax Relief Fund as a special fund in the State treasury for the purpose of awarding grants. Amends the State Finance Act to make conforming changes. Effective immediately.

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Section 5.1015 as follows:

(30 ILCS 105/5.1015 new)

Sec. 5.1015. The Education Property Tax Relief Fund.

Section 15. The School Code is amended by adding Section 2-3.204 as follows:

(105 ILCS 5/2-3.204 new)

Sec. 2-3.204. School district property tax relief grant program.

(a) As used in this Section:

"Adjusted maximum aggregate property tax extension" means the highest aggregate property tax extension that a school district is authorized by law to levy, without regard to this Section, for the taxable year for which the adjusted maximum aggregate property tax extension is calculated, minus the grant amount received by the school district for the fiscal year that ends during the taxable year for which the adjusted maximum aggregate property tax extension is calculated.

"Aggregate property tax extension" means the annual corporate extension for the school district and those special purpose extensions that are made annually for a school district.

"Taxable year" means the calendar year during which property taxes payable in the next succeeding year are levied.

(b) For State fiscal year 2025 and each State fiscal year thereafter, the State Board of Education shall establish and administer a program to award property tax relief grants to property taxpayers within school districts in this State. The State Board of Education shall work with county clerk's offices in this State to determine the amount given to each property taxpayer. Moneys awarded to property taxpayers under this Section shall be distributed pro rata based on the amount a property taxpayer paid in taxes in the previous fiscal year. The total grant amount given to property taxpayers who live within a school district shall be based on the increase in a school district's adjusted maximum aggregate property tax extension for the taxable year that begins on January 1 of the fiscal year the grant is given in comparison to the previous fiscal year's aggregate property tax extension. Grants shall be awarded from moneys appropriated for that purpose from the Education Property Tax Relief Fund created in subsection (c).

(c) The Education Property Tax Relief Fund is created as a special fund in the State treasury. By September 1, 2024 and by September 1 of each year thereafter, the Governor's Office of Management and Budget shall certify to the State Comptroller and the State Treasurer an amount equal to the difference, if any, between (i) 25% of the total amount appropriated from all State general funds as part of the State budget for the fiscal year that begins on the immediately preceding July 1, including any amounts appropriated for the purpose of making grants under this Section, and (ii) the total amount appropriated by the State, including any continuing appropriations, for that fiscal year as State contributions to the retirement system established under Article 14 of the Illinois Pension Code, the retirement system established under Article 15 of the Illinois Pension Code, and the retirement system established under Article 16 of the Illinois Pension Code. Upon receiving the certified amount from the Governor's Office of Management and Budget, the State Comptroller shall order transferred and the State Treasurer shall transfer the certified amount from the General Revenue Fund to the Education Property Tax Relief Fund. Any unexpended amounts remaining in the Education Property Tax Relief Fund on the last day of the fiscal year shall be transferred from the Education Property Tax Relief Fund to the General Revenue Fund.

Section 99. Effective date. This Act takes effect upon becoming law.