HB4068 93RD GENERAL ASSEMBLY

LRB093 18265 SJM 43966 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4068

Introduced 1/15/2004, by Carole Pankau - Sidney H. Mathias - Paul D. Froehlich

SYNOPSIS AS INTRODUCED:

See Index

Amends the Property Tax Code. Amends the Senior Citizens Homestead Exemption provisions to provide that, if a property has been granted a homestead exemption under these provisions, then the person qualifying need not reapply for the exemption. Increases the ceiling for household income eligibility for the Senior Citizens Assessment Freeze Homestead Exemption provisions, for taxable years 2003 and thereafter, from $40,000 per year to $45,000 per year and provides that the exemption amount shall be $2,500 in all counties (now, $2,500 in Cook County and $2,000 in all other counties). Provides that the exemption amount for the general homestead exemption shall be $4,500 in all counties (now, $4,500 in Cook County and $3,500 in all other counties). Creates a general homestead exemption provision that applies only to counties subject to the Property Tax Extension Limitation Law. Provides that the amount of the exemption is the equalized assessed value of the homestead property for the current tax year minus the adjusted homestead value. Defines "adjusted homestead value" as the lesser of (i) the property's base homestead value increased by 7% for each tax year after 2002 through and including the current tax year or (ii) the property's equalized assessed value for the current tax year minus $4,500. Provides that "base homestead value" means the equalized assessed value of the property for tax year 2002 prior to exemptions, minus $4,500. Establishes procedures for determining the base homestead value of property improved after the 2002 tax year. Sunsets the provisions after the 2010 assessment year. Amends the Economic Development Area Tax Increment Allocation Act, the County Economic Development Project Area Property Tax Allocation Act, the County Economic Development Project Area Tax Increment Allocation Act of 1991, the Economic Development Project Area Tax Increment Allocation Act of 1995, the Tax Increment Allocation Redevelopment Act and the Industrial Jobs Recovery Law in the Illinois Municipal Code, the School Code, and the Criminal Code of 1961 to include a cross reference to the new general homestead exemption provision in the Property Tax Code. Amends the State Mandates Act to require implementation without reimbursement for the new general homestead exemption and the Senior Citizens Assessment Freeze Homestead Exemption. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning taxes.

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

4		Section 5. The Economic Development Area Tax Increment
5		Allocation Act is amended by changing Section 6 as follows:
6		(20 ILCS 620/6) (from Ch. 67 1/2, par. 1006)
7		Sec. 6. Filing with county clerk; certification of initial
8		equalized assessed value.
9		(a) The municipality shall file a certified copy of any
10		ordinance authorizing tax increment allocation financing for
11		an economic development project area with the county clerk, and
12		the county clerk shall immediately thereafter determine (1) the
13		most recently ascertained equalized assessed value of each lot,
14		block, tract or parcel of real property within the economic
15		development project area from which shall be deducted the
16		homestead exemptions provided by Sections 15-170, and 15-175,
17		and 15-176 of the Property Tax Code, which value shall be the
18		"initial equalized assessed value" of each such piece of
19		property, and (2) the total equalized assessed value of all
20		taxable real property within the economic development project
21		area by adding together the most recently ascertained equalized
22		assessed value of each taxable lot, block, tract, or parcel of
23		real property within such economic development project area,
24		from which shall be deducted the homestead exemptions provided
25		by Sections 15-170, and 15-175, and 15-176 of the Property Tax
26		Code, and shall certify such amount as the "total initial
27		equalized assessed value" of the taxable real property within
28		the economic development project area.
29		(b) After the county clerk has certified the "total initial
30		equalized assessed value" of the taxable real property in the
31		economic development project area, then in respect to every
32		taxing district containing an economic development project

1		area, the county clerk or any other official required by law to
2		ascertain the amount of the equalized assessed value of all
3		taxable property within that taxing district for the purpose of
4		computing the rate per cent of tax to be extended upon taxable
5		property within that taxing district, shall in every year that
6		tax increment allocation financing is in effect ascertain the
7		amount of value of taxable property in an economic development
8		project area by including in that amount the lower of the
9		current equalized assessed value or the certified "total
10		initial equalized assessed value" of all taxable real property
11		in such area. The rate per cent of tax determined shall be
12		extended to the current equalized assessed value of all
13		property in the economic development project area in the same
14		manner as the rate per cent of tax is extended to all other
15		taxable property in the taxing district. The method of
16		allocating taxes established under this Section shall
17		terminate when the municipality adopts an ordinance dissolving
18		the special tax allocation fund for the economic development
19		project area, terminating the economic development project
20		area, and terminating the use of tax increment allocation
21		financing for the economic development project area. This Act
22		shall not be construed as relieving property owners within an
23		economic development project area from paying a uniform rate of
24		taxes upon the current equalized assessed value of their
25		taxable property as provided in the Property Tax Code.
26		(Source: P.A. 88-670, eff. 12-2-94.)

27		Section 10. The Property Tax Code is amended by changing
28		Sections 14-15, 15-10, 15-170, 15-172, 15-175, and 20-178 and
29		by adding Section 15-176 as follows:
30		(35 ILCS 200/14-15)
31		Sec. 14-15. Certificate of error; counties of 3,000,000 or
32		more.
33		(a) In counties with 3,000,000 or more inhabitants, if,
34		after the assessment is certified pursuant to Section 16-150,

1		but subject to the limitations of subsection (c) of this
2		Section, the county assessor discovers an error or mistake in
3		the assessment, the assessor shall execute a certificate
4		setting forth the nature and cause of the error. The
5		certificate when endorsed by the county assessor, or when
6		endorsed by the county assessor and board of appeals (until the
7		first Monday in December 1998 and the board of review beginning
8		the first Monday in December 1998 and thereafter) where the
9		certificate is executed for any assessment which was the
10		subject of a complaint filed in the board of appeals (until the
11		first Monday in December 1998 and the board of review beginning
12		the first Monday in December 1998 and thereafter) for the tax
13		year for which the certificate is issued, may, either be
14		certified according to the procedure authorized by this Section
15		or be presented and received in evidence in any court of
16		competent jurisdiction. Certification is authorized, at the
17		discretion of the county assessor, for: (1) certificates of
18		error allowing homestead exemptions pursuant to Sections
19		15-170, 15-172, and 15-175, and 15-176; (2) certificates of
20		error on residential property of 6 units or less; (3)
21		certificates of error allowing exemption of the property
22		pursuant to Section 14-25; and (4) other certificates of error
23		reducing assessed value by less than $100,000. Any certificate
24		of error not certified shall be presented to the court. The
25		county assessor shall develop reasonable procedures for the
26		filing and processing of certificates of error. Prior to the
27		certification or presentation to the court, the county assessor
28		or his or her designee shall execute and include in the
29		certificate of error a statement attesting that all procedural
30		requirements pertaining to the issuance of the certificate of
31		error have been met and that in fact an error exists. When so
32		introduced in evidence such certificate shall become a part of
33		the court records, and shall not be removed from the files
34		except upon the order of the court.
35		Certificates of error that will be presented to the court
36		shall be filed as an objection in the application for judgment

1		and order of sale for the year in relation to which the
2		certificate is made or as an amendment to the objection under
3		subsection (b). Certificates of error that are to be certified
4		according to the procedure authorized by this Section need not
5		be presented to the court as an objection or an amendment under
6		subsection (b). The State's Attorney of the county in which the
7		property is situated shall mail a copy of any final judgment
8		entered by the court regarding any certificate of error to the
9		taxpayer of record for the year in question.
10		Any unpaid taxes after the entry of the final judgment by
11		the court or certification on certificates issued under this
12		Section may be included in a special tax sale, provided that an
13		advertisement is published and a notice is mailed to the person
14		in whose name the taxes were last assessed, in a form and
15		manner substantially similar to the advertisement and notice
16		required under Sections 21-110 and 21-135. The advertisement
17		and sale shall be subject to all provisions of law regulating
18		the annual advertisement and sale of delinquent property, to
19		the extent that those provisions may be made applicable.
20		A certificate of error certified under this Section shall
21		be given effect by the county treasurer, who shall mark the tax
22		books and, upon receipt of one of the following certificates
23		from the county assessor or the county assessor and the board
24		of review where the board of review is required to endorse the
25		certificate of error, shall issue refunds to the taxpayer
26		accordingly:
27		"CERTIFICATION
28		I, .................., county assessor, hereby certify
29		that the Certificates of Error set out on the attached list
30		have been duly issued to correct an error or mistake in the
31		assessment."
32		"CERTIFICATION
33		I, .................., county assessor, and we,
34		........................................................,

1		members of the board of review, hereby certify that the
2		Certificates of Error set out on the attached list have
3		been duly issued to correct an error or mistake in the
4		assessment and that any certificates of error required to
5		be endorsed by the board of review have been so endorsed."
6		The county treasurer has the power to mark the tax books to
7		reflect the issuance of certificates of error certified
8		according to the procedure authorized in this Section for
9		certificates of error issued under Section 14-25 or
10		certificates of error issued to and including 3 years after the
11		date on which the annual judgment and order of sale for that
12		tax year was first entered. The county treasurer has the power
13		to issue refunds to the taxpayer as set forth above until all
14		refunds authorized by this Section have been completed.
15		To the extent that the certificate of error obviates the
16		liability for nonpayment of taxes, certification of a
17		certificate of error according to the procedure authorized in
18		this Section shall operate to vacate any judgment or forfeiture
19		as to that year's taxes, and the warrant books and judgment
20		books shall be marked to reflect that the judgment or
21		forfeiture has been vacated.
22		(b) Nothing in subsection (a) of this Section shall be
23		construed to prohibit the execution, endorsement, issuance,
24		and adjudication of a certificate of error if (i) the annual
25		judgment and order of sale for the tax year in question is
26		reopened for further proceedings upon consent of the county
27		collector and county assessor, represented by the State's
28		Attorney, and (ii) a new final judgment is subsequently entered
29		pursuant to the certificate. This subsection (b) shall be
30		construed as declarative of existing law and not as a new
31		enactment.
32		(c) No certificate of error, other than a certificate to
33		establish an exemption under Section 14-25, shall be executed
34		for any tax year more than 3 years after the date on which the
35		annual judgment and order of sale for that tax year was first

1		entered, except that during calendar years 1999 and 2000 a
2		certificate of error may be executed for any tax year, provided
3		that the error or mistake in the assessment was discovered no
4		more than 3 years after the date on which the annual judgment
5		and order of sale for that tax year was first entered.
6		(d) The time limitation of subsection (c) shall not apply
7		to a certificate of error correcting an assessment to $1, under
8		Section 10-35, on a parcel that a subdivision or planned
9		development has acquired by adverse possession, if during the
10		tax year for which the certificate is executed the subdivision
11		or planned development used the parcel as common area, as
12		defined in Section 10-35, and if application for the
13		certificate of error is made prior to December 1, 1997.
14		(e) The changes made by this amendatory Act of the 91st
15		General Assembly apply to certificates of error issued before,
16		on, and after the effective date of this amendatory Act of the
17		91st General Assembly.
18		(Source: P.A. 90-4, eff. 3-7-97; 90-288, eff. 8-1-97; 90-655,
19		eff. 7-30-98; 91-393, eff. 7-30-99; 91-686, eff. 1-26-00.)
20		(35 ILCS 200/15-10)
21		Sec. 15-10. Exempt property; procedures for certification.
22		All property granted an exemption by the Department pursuant to
23		the requirements of Section 15-5 and described in the Sections
24		following Section 15-30 and preceding Section 16-5, to the
25		extent therein limited, is exempt from taxation. In order to
26		maintain that exempt status, the titleholder or the owner of
27		the beneficial interest of any property that is exempt must
28		file with the chief county assessment officer, on or before
29		January 31 of each year (May 31 in the case of property
30		exempted by Section 15-170), an affidavit stating whether there
31		has been any change in the ownership or use of the property or
32		the status of the owner-resident, or that a disabled veteran
33		who qualifies under Section 15-165 owned and used the property
34		as of January 1 of that year. The nature of any change shall be
35		stated in the affidavit. Failure to file an affidavit shall, in

1		the discretion of the assessment officer, constitute cause to
2		terminate the exemption of that property, notwithstanding any
3		other provision of this Code. Owners of 5 or more such exempt
4		parcels within a county may file a single annual affidavit in
5		lieu of an affidavit for each parcel. The assessment officer,
6		upon request, shall furnish an affidavit form to the owners, in
7		which the owner may state whether there has been any change in
8		the ownership or use of the property or status of the owner or
9		resident as of January 1 of that year. The owner of 5 or more
10		exempt parcels shall list all the properties giving the same
11		information for each parcel as required of owners who file
12		individual affidavits.
13		However, titleholders or owners of the beneficial interest
14		in any property exempted under any of the following provisions
15		are not required to submit an annual filing under this Section:
16		(1) Section 15-45 (burial grounds) in counties of less
17		than 3,000,000 inhabitants and owned by a not-for-profit
18		organization.
19		(2) Section 15-40.
20		(3) Section 15-50 (United States property).
21		If there is a change in use or ownership, however, notice
22		must be filed pursuant to Section 15-20.
23		An application for homestead exemptions shall be filed as
24		provided in Section 15-170 (senior citizens homestead
25		exemption), Section 15-172 (senior citizens assessment freeze
26		homestead exemption), and Sections Section 15-175 and
27		15-176(general homestead exemption), respectively.
28		(Source: P.A. 92-333, eff. 8-10-01; 92-729, eff. 7-25-02.)
29		(35 ILCS 200/15-170)
30		Sec. 15-170. Senior Citizens Homestead Exemption. An
31		annual homestead exemption limited, except as described here
32		with relation to cooperatives or life care facilities, to a
33		maximum reduction set forth below from the property's value, as
34		equalized or assessed by the Department, is granted for
35		property that is occupied as a residence by a person 65 years

1		of age or older who is liable for paying real estate taxes on
2		the property and is an owner of record of the property or has a
3		legal or equitable interest therein as evidenced by a written
4		instrument, except for a leasehold interest, other than a
5		leasehold interest of land on which a single family residence
6		is located, which is occupied as a residence by a person 65
7		years or older who has an ownership interest therein, legal,
8		equitable or as a lessee, and on which he or she is liable for
9		the payment of property taxes.
10		Before taxable year 2003, the maximum reduction shall be
11		$2,500 in counties with 3,000,000 or more inhabitants and
12		$2,000 in all other counties. For taxable years 2003 and
13		thereafter, the maximum reduction shall be $2,500 in all
14		counties.
15		For land improved with an apartment building owned and operated
16		as a cooperative, the maximum reduction from the value of the
17		property, as equalized by the Department, shall be multiplied
18		by the number of apartments or units occupied by a person 65
19		years of age or older who is liable, by contract with the owner
20		or owners of record, for paying property taxes on the property
21		and is an owner of record of a legal or equitable interest in
22		the cooperative apartment building, other than a leasehold
23		interest. For land improved with a life care facility, the
24		maximum reduction from the value of the property, as equalized
25		by the Department, shall be multiplied by the number of
26		apartments or units occupied by persons 65 years of age or
27		older, irrespective of any legal, equitable, or leasehold
28		interest in the facility, who are liable, under a contract with
29		the owner or owners of record of the facility, for paying
30		property taxes on the property. In a cooperative or a life care
31		facility where a homestead exemption has been granted, the
32		cooperative association or the management firm of the
33		cooperative or facility shall credit the savings resulting from
34		that exemption only to the apportioned tax liability of the
35		owner or resident who qualified for the exemption. Any person
36		who willfully refuses to so credit the savings shall be guilty

1		of a Class B misdemeanor. Under this Section and Sections
2		Section 15-175 and 15-176, "life care facility" means a
3		facility as defined in Section 2 of the Life Care Facilities
4		Act, with which the applicant for the homestead exemption has a
5		life care contract as defined in that Act.
6		When a homestead exemption has been granted under this
7		Section and the person qualifying subsequently becomes a
8		resident of a facility licensed under the Nursing Home Care
9		Act, the exemption shall continue so long as the residence
10		continues to be occupied by the qualifying person's spouse if
11		the spouse is 65 years of age or older, or if the residence
12		remains unoccupied but is still owned by the person qualified
13		for the homestead exemption.
14		A person who will be 65 years of age during the current
15		assessment year shall be eligible to apply for the homestead
16		exemption during that assessment year. Application shall be
17		made during the application period in effect for the county of
18		his residence.
19		Beginning with assessment year 2003, for taxes payable in
20		2004, property that is first occupied as a residence after
21		January 1 of any assessment year by a person who is eligible
22		for the senior citizens homestead exemption under this Section
23		must be granted a pro-rata exemption for the assessment year.
24		The amount of the pro-rata exemption is the exemption allowed
25		in the county under this Section divided by 365 and multiplied
26		by the number of days during the assessment year the property
27		is occupied as a residence by a person eligible for the
28		exemption under this Section. The chief county assessment
29		officer must adopt reasonable procedures to establish
30		eligibility for this pro-rata exemption.
31		The assessor or chief county assessment officer may
32		determine the eligibility of a life care facility to receive
33		the benefits provided by this Section, by affidavit,
34		application, visual inspection, questionnaire or other
35		reasonable methods in order to insure that the tax savings
36		resulting from the exemption are credited by the management

1		firm to the apportioned tax liability of each qualifying
2		resident. The assessor may request reasonable proof that the
3		management firm has so credited the exemption.
4		The chief county assessment officer of each county with
5		less than 3,000,000 inhabitants shall provide to each person
6		allowed a homestead exemption under this Section a form to
7		designate any other person to receive a duplicate of any notice
8		of delinquency in the payment of taxes assessed and levied
9		under this Code on the property of the person receiving the
10		exemption. The duplicate notice shall be in addition to the
11		notice required to be provided to the person receiving the
12		exemption, and shall be given in the manner required by this
13		Code. The person filing the request for the duplicate notice
14		shall pay a fee of $5 to cover administrative costs to the
15		supervisor of assessments, who shall then file the executed
16		designation with the county collector. Notwithstanding any
17		other provision of this Code to the contrary, the filing of
18		such an executed designation requires the county collector to
19		provide duplicate notices as indicated by the designation. A
20		designation may be rescinded by the person who executed such
21		designation at any time, in the manner and form required by the
22		chief county assessment officer.
23		The assessor or chief county assessment officer may
24		determine the eligibility of residential property to receive
25		the homestead exemption provided by this Section by
26		application, visual inspection, questionnaire or other
27		reasonable methods. The determination shall be made in
28		accordance with guidelines established by the Department.
29		In counties with less than 3,000,000 inhabitants, the
30		county board may by resolution provide that if a person has
31		been granted a homestead exemption under this Section, the
32		person qualifying need not reapply for the exemption.
33		If a property has been granted a homestead exemption under
34		this Section, the person qualifying need not reapply for the
35		exemption.
36		In counties with less than 3,000,000 inhabitants, if the

1		assessor or chief county assessment officer requires annual
2		application for verification of eligibility for an exemption
3		once granted under this Section, the application shall be
4		mailed to the taxpayer.
5		The assessor or chief county assessment officer shall
6		notify each person who qualifies for an exemption under this
7		Section that the person may also qualify for deferral of real
8		estate taxes under the Senior Citizens Real Estate Tax Deferral
9		Act. The notice shall set forth the qualifications needed for
10		deferral of real estate taxes, the address and telephone number
11		of county collector, and a statement that applications for
12		deferral of real estate taxes may be obtained from the county
13		collector.
14		Notwithstanding Sections 6 and 8 of the State Mandates Act,
15		no reimbursement by the State is required for the
16		implementation of any mandate created by this Section.
17		(Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03.)
18		(35 ILCS 200/15-172)
19		Sec. 15-172. Senior Citizens Assessment Freeze Homestead
20		Exemption.
21		(a) This Section may be cited as the Senior Citizens
22		Assessment Freeze Homestead Exemption.
23		(b) As used in this Section:
24		"Applicant" means an individual who has filed an
25		application under this Section.
26		"Base amount" means the base year equalized assessed value
27		of the residence plus the first year's equalized assessed value
28		of any added improvements which increased the assessed value of
29		the residence after the base year.
30		"Base year" means the taxable year prior to the taxable
31		year for which the applicant first qualifies and applies for
32		the exemption provided that in the prior taxable year the
33		property was improved with a permanent structure that was
34		occupied as a residence by the applicant who was liable for
35		paying real property taxes on the property and who was either

1		(i) an owner of record of the property or had legal or
2		equitable interest in the property as evidenced by a written
3		instrument or (ii) had a legal or equitable interest as a
4		lessee in the parcel of property that was single family
5		residence. If in any subsequent taxable year for which the
6		applicant applies and qualifies for the exemption the equalized
7		assessed value of the residence is less than the equalized
8		assessed value in the existing base year (provided that such
9		equalized assessed value is not based on an assessed value that
10		results from a temporary irregularity in the property that
11		reduces the assessed value for one or more taxable years), then
12		that subsequent taxable year shall become the base year until a
13		new base year is established under the terms of this paragraph.
14		For taxable year 1999 only, the Chief County Assessment Officer
15		shall review (i) all taxable years for which the applicant
16		applied and qualified for the exemption and (ii) the existing
17		base year. The assessment officer shall select as the new base
18		year the year with the lowest equalized assessed value. An
19		equalized assessed value that is based on an assessed value
20		that results from a temporary irregularity in the property that
21		reduces the assessed value for one or more taxable years shall
22		not be considered the lowest equalized assessed value. The
23		selected year shall be the base year for taxable year 1999 and
24		thereafter until a new base year is established under the terms
25		of this paragraph.
26		"Chief County Assessment Officer" means the County
27		Assessor or Supervisor of Assessments of the county in which
28		the property is located.
29		"Equalized assessed value" means the assessed value as
30		equalized by the Illinois Department of Revenue.
31		"Household" means the applicant, the spouse of the
32		applicant, and all persons using the residence of the applicant
33		as their principal place of residence.
34		"Household income" means the combined income of the members
35		of a household for the calendar year preceding the taxable
36		year.

1		"Income" has the same meaning as provided in Section 3.07
2		of the Senior Citizens and Disabled Persons Property Tax Relief
3		and Pharmaceutical Assistance Act, except that, beginning in
4		assessment year 2001, "income" does not include veteran's
5		benefits.
6		"Internal Revenue Code of 1986" means the United States
7		Internal Revenue Code of 1986 or any successor law or laws
8		relating to federal income taxes in effect for the year
9		preceding the taxable year.
10		"Life care facility that qualifies as a cooperative" means
11		a facility as defined in Section 2 of the Life Care Facilities
12		Act.
13		"Residence" means the principal dwelling place and
14		appurtenant structures used for residential purposes in this
15		State occupied on January 1 of the taxable year by a household
16		and so much of the surrounding land, constituting the parcel
17		upon which the dwelling place is situated, as is used for
18		residential purposes. If the Chief County Assessment Officer
19		has established a specific legal description for a portion of
20		property constituting the residence, then that portion of
21		property shall be deemed the residence for the purposes of this
22		Section.
23		"Taxable year" means the calendar year during which ad
24		valorem property taxes payable in the next succeeding year are
25		levied.
26		(c) Beginning in taxable year 1994, a senior citizens
27		assessment freeze homestead exemption is granted for real
28		property that is improved with a permanent structure that is
29		occupied as a residence by an applicant who (i) is 65 years of
30		age or older during the taxable year, (ii) has a household
31		income of $35,000 or less prior to taxable year 1999, or$40,000
32		or less in taxable years year 1999 through 2002, or $45,000 or
33		less in taxable year 2003 and thereafter, (iii) is liable for
34		paying real property taxes on the property, and (iv) is an
35		owner of record of the property or has a legal or equitable
36		interest in the property as evidenced by a written instrument.

1		This homestead exemption shall also apply to a leasehold
2		interest in a parcel of property improved with a permanent
3		structure that is a single family residence that is occupied as
4		a residence by a person who (i) is 65 years of age or older
5		during the taxable year, (ii) has a household income of $35,000
6		or less prior to taxable year 1999, or $40,000 or less in
7		taxable years year 1999 through 2002, or $45,000 or less in
8		taxable year 2003 and thereafter, (iii) has a legal or
9		equitable ownership interest in the property as lessee, and
10		(iv) is liable for the payment of real property taxes on that
11		property.
12		The amount of this exemption shall be the equalized
13		assessed value of the residence in the taxable year for which
14		application is made minus the base amount.
15		When the applicant is a surviving spouse of an applicant
16		for a prior year for the same residence for which an exemption
17		under this Section has been granted, the base year and base
18		amount for that residence are the same as for the applicant for
19		the prior year.
20		Each year at the time the assessment books are certified to
21		the County Clerk, the Board of Review or Board of Appeals shall
22		give to the County Clerk a list of the assessed values of
23		improvements on each parcel qualifying for this exemption that
24		were added after the base year for this parcel and that
25		increased the assessed value of the property.
26		In the case of land improved with an apartment building
27		owned and operated as a cooperative or a building that is a
28		life care facility that qualifies as a cooperative, the maximum
29		reduction from the equalized assessed value of the property is
30		limited to the sum of the reductions calculated for each unit
31		occupied as a residence by a person or persons (i) 65 years of
32		age or older, (ii) with a household income of $35,000 or less
33		prior to taxable year 1999, or $40,000 or less in taxable years
34		year 1999 through 2002, or $45,000 or less in taxable year
35		2003and thereafter, (iii) who is liable, by contract with the
36		owner or owners of record, for paying real property taxes on

1		the property, and (iv) who is an owner of record of a legal or
2		equitable interest in the cooperative apartment building,
3		other than a leasehold interest. In the instance of a
4		cooperative where a homestead exemption has been granted under
5		this Section, the cooperative association or its management
6		firm shall credit the savings resulting from that exemption
7		only to the apportioned tax liability of the owner who
8		qualified for the exemption. Any person who willfully refuses
9		to credit that savings to an owner who qualifies for the
10		exemption is guilty of a Class B misdemeanor.
11		When a homestead exemption has been granted under this
12		Section and an applicant then becomes a resident of a facility
13		licensed under the Nursing Home Care Act, the exemption shall
14		be granted in subsequent years so long as the residence (i)
15		continues to be occupied by the qualified applicant's spouse or
16		(ii) if remaining unoccupied, is still owned by the qualified
17		applicant for the homestead exemption.
18		Beginning January 1, 1997, when an individual dies who
19		would have qualified for an exemption under this Section, and
20		the surviving spouse does not independently qualify for this
21		exemption because of age, the exemption under this Section
22		shall be granted to the surviving spouse for the taxable year
23		preceding and the taxable year of the death, provided that,
24		except for age, the surviving spouse meets all other
25		qualifications for the granting of this exemption for those
26		years.
27		When married persons maintain separate residences, the
28		exemption provided for in this Section may be claimed by only
29		one of such persons and for only one residence.
30		For taxable year 1994 only, in counties having less than
31		3,000,000 inhabitants, to receive the exemption, a person shall
32		submit an application by February 15, 1995 to the Chief County
33		Assessment Officer of the county in which the property is
34		located. In counties having 3,000,000 or more inhabitants, for
35		taxable year 1994 and all subsequent taxable years, to receive
36		the exemption, a person may submit an application to the Chief

1		County Assessment Officer of the county in which the property
2		is located during such period as may be specified by the Chief
3		County Assessment Officer. The Chief County Assessment Officer
4		in counties of 3,000,000 or more inhabitants shall annually
5		give notice of the application period by mail or by
6		publication. In counties having less than 3,000,000
7		inhabitants, beginning with taxable year 1995 and thereafter,
8		to receive the exemption, a person shall submit an application
9		by July 1 of each taxable year to the Chief County Assessment
10		Officer of the county in which the property is located. A
11		county may, by ordinance, establish a date for submission of
12		applications that is different than July 1. The applicant shall
13		submit with the application an affidavit of the applicant's
14		total household income, age, marital status (and if married the
15		name and address of the applicant's spouse, if known), and
16		principal dwelling place of members of the household on January
17		1 of the taxable year. The Department shall establish, by rule,
18		a method for verifying the accuracy of affidavits filed by
19		applicants under this Section. The applications shall be
20		clearly marked as applications for the Senior Citizens
21		Assessment Freeze Homestead Exemption.
22		Notwithstanding any other provision to the contrary, in
23		counties having fewer than 3,000,000 inhabitants, if an
24		applicant fails to file the application required by this
25		Section in a timely manner and this failure to file is due to a
26		mental or physical condition sufficiently severe so as to
27		render the applicant incapable of filing the application in a
28		timely manner, the Chief County Assessment Officer may extend
29		the filing deadline for a period of 30 days after the applicant
30		regains the capability to file the application, but in no case
31		may the filing deadline be extended beyond 3 months of the
32		original filing deadline. In order to receive the extension
33		provided in this paragraph, the applicant shall provide the
34		Chief County Assessment Officer with a signed statement from
35		the applicant's physician stating the nature and extent of the
36		condition, that, in the physician's opinion, the condition was

1		so severe that it rendered the applicant incapable of filing
2		the application in a timely manner, and the date on which the
3		applicant regained the capability to file the application.
4		Beginning January 1, 1998, notwithstanding any other
5		provision to the contrary, in counties having fewer than
6		3,000,000 inhabitants, if an applicant fails to file the
7		application required by this Section in a timely manner and
8		this failure to file is due to a mental or physical condition
9		sufficiently severe so as to render the applicant incapable of
10		filing the application in a timely manner, the Chief County
11		Assessment Officer may extend the filing deadline for a period
12		of 3 months. In order to receive the extension provided in this
13		paragraph, the applicant shall provide the Chief County
14		Assessment Officer with a signed statement from the applicant's
15		physician stating the nature and extent of the condition, and
16		that, in the physician's opinion, the condition was so severe
17		that it rendered the applicant incapable of filing the
18		application in a timely manner.
19		In counties having less than 3,000,000 inhabitants, if an
20		applicant was denied an exemption in taxable year 1994 and the
21		denial occurred due to an error on the part of an assessment
22		official, or his or her agent or employee, then beginning in
23		taxable year 1997 the applicant's base year, for purposes of
24		determining the amount of the exemption, shall be 1993 rather
25		than 1994. In addition, in taxable year 1997, the applicant's
26		exemption shall also include an amount equal to (i) the amount
27		of any exemption denied to the applicant in taxable year 1995
28		as a result of using 1994, rather than 1993, as the base year,
29		(ii) the amount of any exemption denied to the applicant in
30		taxable year 1996 as a result of using 1994, rather than 1993,
31		as the base year, and (iii) the amount of the exemption
32		erroneously denied for taxable year 1994.
33		For purposes of this Section, a person who will be 65 years
34		of age during the current taxable year shall be eligible to
35		apply for the homestead exemption during that taxable year.
36		Application shall be made during the application period in

1		effect for the county of his or her residence.
2		The Chief County Assessment Officer may determine the
3		eligibility of a life care facility that qualifies as a
4		cooperative to receive the benefits provided by this Section by
5		use of an affidavit, application, visual inspection,
6		questionnaire, or other reasonable method in order to insure
7		that the tax savings resulting from the exemption are credited
8		by the management firm to the apportioned tax liability of each
9		qualifying resident. The Chief County Assessment Officer may
10		request reasonable proof that the management firm has so
11		credited that exemption.
12		Except as provided in this Section, all information
13		received by the chief county assessment officer or the
14		Department from applications filed under this Section, or from
15		any investigation conducted under the provisions of this
16		Section, shall be confidential, except for official purposes or
17		pursuant to official procedures for collection of any State or
18		local tax or enforcement of any civil or criminal penalty or
19		sanction imposed by this Act or by any statute or ordinance
20		imposing a State or local tax. Any person who divulges any such
21		information in any manner, except in accordance with a proper
22		judicial order, is guilty of a Class A misdemeanor.
23		Nothing contained in this Section shall prevent the
24		Director or chief county assessment officer from publishing or
25		making available reasonable statistics concerning the
26		operation of the exemption contained in this Section in which
27		the contents of claims are grouped into aggregates in such a
28		way that information contained in any individual claim shall
29		not be disclosed.
30		(d) Each Chief County Assessment Officer shall annually
31		publish a notice of availability of the exemption provided
32		under this Section. The notice shall be published at least 60
33		days but no more than 75 days prior to the date on which the
34		application must be submitted to the Chief County Assessment
35		Officer of the county in which the property is located. The
36		notice shall appear in a newspaper of general circulation in

1		the county.
2		(e) Notwithstanding Sections 6 and 8 of the State Mandates
3		Act, no reimbursement by the State is required for the
4		implementation of any mandate created by this Section.
5		(Source: P.A. 90-14, eff. 7-1-97; 90-204, eff. 7-25-97; 90-523,
6		eff. 11-13-97; 90-524, eff. 1-1-98; 90-531, eff. 1-1-98;
7		90-655, eff. 7-30-98; 91-45, eff. 6-30-99; 91-56, eff. 6-30-99;
8		91-819, eff. 6-13-00.)
9		(35 ILCS 200/15-175)
10		Sec. 15-175. General homestead exemption. Except as
11		provided in Section 15-176, homestead property is entitled to
12		an annual homestead exemption limited, except as described here
13		with relation to cooperatives, to a reduction in the equalized
14		assessed value of homestead property equal to the increase in
15		equalized assessed value for the current assessment year above
16		the equalized assessed value of the property for 1977, up to
17		the maximum reduction set forth below. If however, the 1977
18		equalized assessed value upon which taxes were paid is
19		subsequently determined by local assessing officials, the
20		Property Tax Appeal Board, or a court to have been excessive,
21		the equalized assessed value which should have been placed on
22		the property for 1977 shall be used to determine the amount of
23		the exemption.
24		Before taxable year 2003, the maximum reduction shall be
25		$4,500 in counties with 3,000,000 or more inhabitants and shall
26		be $3,500 in all other counties. Except as provided in Section
27		15-176, for taxable years 2003 an thereafter, the maximum
28		reduction shall be $4,500 in all counties.
29		In counties with fewer than 3,000,000 inhabitants, if,
30		based on the most recent assessment, the equalized assessed
31		value of the homestead property for the current assessment year
32		is greater than the equalized assessed value of the property
33		for 1977, the owner of the property shall automatically receive
34		the exemption granted under this Section in an amount equal to
35		the increase over the 1977 assessment up to the maximum

1		reduction set forth in this Section.
2		If in any assessment year beginning with the 2000
3		assessment year, homestead property has a pro-rata valuation
4		under Section 9-180 resulting in an increase in the assessed
5		valuation, a reduction in equalized assessed valuation equal to
6		the increase in equalized assessed value of the property for
7		the year of the pro-rata valuation above the equalized assessed
8		value of the property for 1977 shall be applied to the property
9		on a proportionate basis for the period the property qualified
10		as homestead property during the assessment year. The maximum
11		proportionate homestead exemption shall not exceed the maximum
12		homestead exemption allowed in the county under this Section
13		divided by 365 and multiplied by the number of days the
14		property qualified as homestead property.
15		"Homestead property" under this Section includes
16		residential property that is occupied by its owner or owners as
17		his or their principal dwelling place, or that is a leasehold
18		interest on which a single family residence is situated, which
19		is occupied as a residence by a person who has an ownership
20		interest therein, legal or equitable or as a lessee, and on
21		which the person is liable for the payment of property taxes.
22		For land improved with an apartment building owned and operated
23		as a cooperative or a building which is a life care facility as
24		defined in Section 15-170 and considered to be a cooperative
25		under Section 15-170, the maximum reduction from the equalized
26		assessed value shall be limited to the increase in the value
27		above the equalized assessed value of the property for 1977, up
28		to the maximum reduction set forth above, multiplied by the
29		number of apartments or units occupied by a person or persons
30		who is liable, by contract with the owner or owners of record,
31		for paying property taxes on the property and is an owner of
32		record of a legal or equitable interest in the cooperative
33		apartment building, other than a leasehold interest. For
34		purposes of this Section, the term "life care facility" has the
35		meaning stated in Section 15-170.
36		In a cooperative where a homestead exemption has been

1		granted, the cooperative association or its management firm
2		shall credit the savings resulting from that exemption only to
3		the apportioned tax liability of the owner who qualified for
4		the exemption. Any person who willfully refuses to so credit
5		the savings shall be guilty of a Class B misdemeanor.
6		Where married persons maintain and reside in separate
7		residences qualifying as homestead property, each residence
8		shall receive 50% of the total reduction in equalized assessed
9		valuation provided by this Section.
10		In counties with more than 3,000,000 inhabitants, the
11		assessor or chief county assessment officer may determine the
12		eligibility of residential property to receive the homestead
13		exemption by application, visual inspection, questionnaire or
14		other reasonable methods. The determination shall be made in
15		accordance with guidelines established by the Department.
16		In the event of a sale of homestead property the homestead
17		exemption shall remain in effect for the remainder of the
18		assessment year of the sale. The assessor or chief county
19		assessment officer may require the new owner of the property to
20		apply for the homestead exemption for the following assessment
21		year.
22		(Source: P.A. 90-368, eff. 1-1-98; 90-552, eff. 12-12-97;
23		90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)
24		(35 ILCS 200/15-176)
25		Sec. 15-176. General homestead exemption; counties subject
26		to the Property Tax Extension Limitation Law.
27		(a) In counties subject to the Property Tax Extension
28		Limitation Law, beginning with assessments made for the tax
29		year 2003 and for subsequent tax years, homestead property is
30		entitled to an annual homestead exemption equal to a reduction
31		in the property's equalized assessed value calculated as
32		provided in this Section.
33		(b) As used in this Section:
34		(1) "Assessor" means the supervisor of assessments or
35		the county assessor in each county.

1		(2) "Adjusted homestead value" means the lesser of the
2		following values:
3		(A) The property's base homestead value increased
4		by 7% for each tax year after 2002 through and
5		including the current tax year.
6		(B) The property's equalized assessed value for
7		the current tax year minus $4,500.
8		(3) "Base homestead value" means:
9		(A) The equalized assessed value of the property
10		for tax year 2002, prior to exemptions, minus $4,500,
11		provided that it was assessed for that year as
12		residential property qualified for any of the
13		homestead exemptions under Sections 15-170 through
14		15-175 of this Code, then in force, and further
15		provided that the property's assessment was not based
16		on a reduced assessed value resulting from a temporary
17		irregularity in the property for that year.
18		(B) If the property was not improved or otherwise
19		did not have a residential equalized assessed value for
20		tax year 2002 as provided in subdivision (b)(3)(A) of
21		this Section, then the "base homestead value" means the
22		base homestead value established by the assessor under
23		subsection (c).
24		(4) "Current tax year" means the tax year for which the
25		exemption under this Section is being applied.
26		(5) "Equalized assessed value" means the property's
27		assessed value as equalized by the Department.
28		(6) "Homestead" or "homestead property" means:
29		(A) Residential property that as of January 1 of
30		the tax year is occupied by its owner or owners as his,
31		her, or their principal dwelling place, or that is a
32		leasehold interest on which a single family residence
33		is situated, that is occupied as a residence by a
34		person who has a legal or equitable interest therein
35		evidenced by a written instrument, as an owner or as a
36		lessee, and on which the person is liable for the

1		payment of property taxes. Residential units in an
2		apartment building owned and operated as a
3		cooperative, or as a life care facility, which are
4		occupied by persons who hold a legal or equitable
5		interest in the cooperative apartment building or life
6		care facility as owners or lessees, and who are liable
7		by contract for the payment of property taxes, shall be
8		included within this definition of homestead property.
9		Residential property containing 6 or fewer dwelling
10		units shall also be included in this definition of
11		homestead property provided that at least one such unit
12		is occupied by the property's owner or owners as his,
13		her, or their principal dwelling place.
14		(B) A homestead includes the dwelling place,
15		appurtenant structures, and so much of the surrounding
16		land constituting the parcel on which the dwelling
17		place is situated as is used for residential purposes.
18		If the assessor has established a specific legal
19		description for a portion of property constituting the
20		homestead, then the homestead shall be limited to the
21		property within that description.
22		(7) "Life care facility" means a facility as defined in
23		Section 2 of the Life Care Facilities Act.
24		(c) If the property did not have a residential assessed
25		value for tax year 2002 as provided in subdivision (b)(3)(A) of
26		this Section, then the assessor shall first determine an
27		initial value for the property by comparison with assessed
28		values for tax year 2002 of other properties having physical
29		and economic characteristics similar to those of the subject
30		property, so that the initial value is uniform in relation to
31		assessed values of those other properties for tax year 2002.
32		The product of the initial value multiplied by the 2002
33		equalization factor for homestead properties in that county,
34		less $4,500, is the base homestead value.
35		For any tax year for which the assessor determines or
36		adjusts an initial value and hence a base homestead value under

1		this subsection (c), the initial value shall be subject to
2		review by the same procedures applicable to assessed values
3		established under this Code for that tax year.
4		(d) The base homestead value shall remain constant, except
5		that the assessor may revise it under the following
6		circumstances:
7		(1) If the equalized assessed value of a homestead
8		property for the current tax year is less than the previous
9		base homestead value for that property, then the current
10		equalized assessed value (provided it is not based on a
11		reduced assessed value resulting from a temporary
12		irregularity in the property) shall become the base
13		homestead value in subsequent tax years.
14		(2) For any year in which new buildings, structures, or
15		other improvements are constructed on the homestead
16		property that would increase its assessed value, the
17		assessor shall adjust the base homestead value as provided
18		in subsection (c) of this Section with due regard to the
19		value added by the new improvements.
20		(e) The amount of the exemption under this Section is the
21		equalized assessed value of the homestead property for the
22		current tax year, minus the adjusted homestead value. Provided,
23		however, that in the case of homestead property that also
24		qualifies for the exemption under Section 15-172, the property
25		is also entitled to the exemption under this Section, limited
26		to the amount of $4,500.
27		(f) In the case of an apartment building owned and operated
28		as a cooperative, or as a life care facility, that contains
29		residential units that qualify as homestead property under this
30		Section, the maximum cumulative exemption amount attributed to
31		the entire building or facility shall not exceed the sum of the
32		exemptions calculated for each qualified residential unit. The
33		cooperative association, management firm, or other person or
34		entity that manages or controls the cooperative apartment
35		building or life care facility shall credit the exemption
36		attributable to each residential unit only to the apportioned

1		tax liability of the owner or other person responsible for
2		payment of taxes as to that unit. Any person who willfully
3		refuses to so credit the exemption is guilty of a Class B
4		misdemeanor.
5		(g) When married persons maintain separate residences, the
6		exemption provided under this Section shall be claimed by only
7		one such person and for only one residence.
8		(h) In the event of a sale of the homestead property, the
9		exemption under this Section shall remain in effect for the
10		remainder of the tax year in which the sale occurs. The
11		assessor may require the new owner of the property to apply for
12		the exemption in the following year.
13		(i) The assessor may determine whether property qualifies
14		as a homestead under this Section by application, visual
15		inspection, questionnaire, or other reasonable methods. Each
16		year, at the time the assessment books are certified to the
17		county clerk by the board of review, the assessor shall furnish
18		to the county clerk a list of the properties qualified for the
19		homestead exemption under this Section. The list shall note the
20		base homestead value of each property to be used in the
21		calculation of the exemption for the current tax year.
22		(j) The provisions of this Section apply as follows:
23		(1) If the general assessment year for the property is
24		2003, this Section applies for assessment years 2003, 2004,
25		2005, 2006, 2007, 2008, 2009, and 2010. Thereafter, the
26		provisions of Section 15-175 apply.
27		(2) If the general assessment year for the property is
28		2004, this Section applies for assessment years 2004, 2005,
29		2006, 2007, 2008, 2009, and 2010. Thereafter, the
30		provisions of Section 15-175 apply.
31		(3) If the general assessment year for the property is
32		2005, this Section applies for assessment years 2005, 2006,
33		2007, 2008, 2009, and 2010. Thereafter, the provisions of
34		Section 15-175 apply.
35		(4) If the general assessment year for the property is
36		2006, this Section applies for assessment years 2006, 2007,

1		2008, 2009, and 2010. Thereafter, the provisions of Section
2		15-175 apply.
3		(k) Notwithstanding Sections 6 and 8 of the State Mandates
4		Act, no reimbursement by the State is required for the
5		implementation of any mandate created by this Section.
6		(35 ILCS 200/20-178)
7		Sec. 20-178. Certificate of error; refund; interest. When
8		the county collector makes any refunds due on certificates of
9		error issued under Sections 14-15 through 14-25 that have been
10		either certified or adjudicated, the county collector shall pay
11		the taxpayer interest on the amount of the refund at the rate
12		of 0.5% per month.
13		No interest shall be due under this Section for any time
14		prior to 60 days after the effective date of this amendatory
15		Act of the 91st General Assembly. For certificates of error
16		issued prior to the effective date of this amendatory Act of
17		the 91st General Assembly, the county collector shall pay the
18		taxpayer interest from 60 days after the effective date of this
19		amendatory Act of the 91st General Assembly until the date the
20		refund is paid. For certificates of error issued on or after
21		the effective date of this amendatory Act of the 91st General
22		Assembly, interest shall be paid from 60 days after the
23		certificate of error is issued by the chief county assessment
24		officer to the date the refund is made. To cover the cost of
25		interest, the county collector shall proportionately reduce
26		the distribution of taxes collected for each taxing district in
27		which the property is situated.
28		This Section shall not apply to any certificate of error
29		granting a homestead exemption under Section 15-170, 15-172,
30		or15-175, or 15-176.
31		(Source: P.A. 91-393, eff. 7-30-99.)

32		Section 15. The County Economic Development Project Area
33		Property Tax Allocation Act is amended by changing Section 6 as
34		follows:

1		(55 ILCS 85/6) (from Ch. 34, par. 7006)
2		Sec. 6. Filing with county clerk; certification of initial
3		equalized assessed value.
4		(a) The county shall file a certified copy of any ordinance
5		authorizing property tax allocation financing for an economic
6		development project area with the county clerk, and the county
7		clerk shall immediately thereafter determine (1) the most
8		recently ascertained equalized assessed value of each lot,
9		block, tract or parcel of real property within the economic
10		development project area from which shall be deducted the
11		homestead exemptions provided by Sections 15-170, and 15-175,
12		and 15-176 of the Property Tax Code, which value shall be the
13		"initial equalized assessed value" of each such piece of
14		property, and (2) the total equalized assessed value of all
15		taxable real property within the economic development project
16		area by adding together the most recently ascertained equalized
17		assessed value of each taxable lot, block, tract, or parcel of
18		real property within such economic development project area,
19		from which shall be deducted the homestead exemptions provided
20		by Sections 15-170, and 15-175, and 15-176 of the Property Tax
21		Code. Upon receiving written notice from the Department of its
22		approval and certification of such economic development
23		project area, the county clerk shall immediately certify such
24		amount as the "total initial equalized assessed value" of the
25		taxable property within the economic development project area.
26		(b) After the county clerk has certified the "total initial
27		equalized assessed value" of the taxable real property in the
28		economic development project area, then in respect to every
29		taxing district containing an economic development project
30		area, the county clerk or any other official required by law to
31		ascertain the amount of the equalized assessed value of all
32		taxable property within that taxing district for the purpose of
33		computing the rate percent of tax to be extended upon taxable
34		property within the taxing district, shall in every year that
35		property tax allocation financing is in effect ascertain the

1		amount of value of taxable property in an economic development
2		project area by including in that amount the lower of the
3		current equalized assessed value or the certified "total
4		initial equalized assessed value" of all taxable real property
5		in such area. The rate percent of tax determined shall be
6		extended to the current equalized assessed value of all
7		property in the economic development project area in the same
8		manner as the rate percent of tax is extended to all other
9		taxable property in the taxing district. The method of
10		allocating taxes established under this Section shall
11		terminate when the county adopts an ordinance dissolving the
12		special tax allocation fund for the economic development
13		project area. This Act shall not be construed as relieving
14		property owners within an economic development project area
15		from paying a uniform rate of taxes upon the current equalized
16		assessed value of their taxable property as provided in the
17		Property Tax Code.
18		(Source: P.A. 88-670, eff. 12-2-94.)

19		Section 20. The County Economic Development Project Area
20		Tax Increment Allocation Act of 1991 is amended by changing
21		Section 45 as follows:
22		(55 ILCS 90/45) (from Ch. 34, par. 8045)
23		Sec. 45. Filing with county clerk; certification of initial
24		equalized assessed value.
25		(a) A county that has by ordinance approved an economic
26		development plan, established an economic development project
27		area, and adopted tax increment allocation financing for that
28		area shall file certified copies of the ordinance or ordinances
29		with the county clerk. Upon receiving the ordinance or
30		ordinances, the county clerk shall immediately determine (i)
31		the most recently ascertained equalized assessed value of each
32		lot, block, tract, or parcel of real property within the
33		economic development project area from which shall be deducted
34		the homestead exemptions provided by Sections 15-170,

1		and15-175, and 15-176 of the Property Tax Code (that value
2		being the "initial equalized assessed value" of each such piece
3		of property) and (ii) the total equalized assessed value of all
4		taxable real property within the economic development project
5		area by adding together the most recently ascertained equalized
6		assessed value of each taxable lot, block, tract, or parcel of
7		real property within the economic development project area,
8		from which shall be deducted the homestead exemptions provided
9		by Sections 15-170 , and 15-175, and 15-176 of the Property Tax
10		Code, and shall certify that amount as the "total initial
11		equalized assessed value" of the taxable real property within
12		the economic development project area.
13		(b) After the county clerk has certified the "total initial
14		equalized assessed value" of the taxable real property in the
15		economic development project area, then in respect to every
16		taxing district containing an economic development project
17		area, the county clerk or any other official required by law to
18		ascertain the amount of the equalized assessed value of all
19		taxable property within the taxing district for the purpose of
20		computing the rate per cent of tax to be extended upon taxable
21		property within the taxing district shall, in every year that
22		tax increment allocation financing is in effect, ascertain the
23		amount of value of taxable property in an economic development
24		project area by including in that amount the lower of the
25		current equalized assessed value or the certified "total
26		initial equalized assessed value" of all taxable real property
27		in the area. The rate per cent of tax determined shall be
28		extended to the current equalized assessed value of all
29		property in the economic development project area in the same
30		manner as the rate per cent of tax is extended to all other
31		taxable property in the taxing district. The method of
32		extending taxes established under this Section shall terminate
33		when the county adopts an ordinance dissolving the special tax
34		allocation fund for the economic development project area. This
35		Act shall not be construed as relieving property owners within
36		an economic development project area from paying a uniform rate

1		of taxes upon the current equalized assessed value of their
2		taxable property as provided in the Property Tax Code.
3		(Source: P.A. 87-1; 88-670, eff. 12-2-94.)

4		Section 25. The Illinois Municipal Code is amended by
5		changing Sections 11-74.4-8, 11-74.4-9, and 11-74.6-40 as
6		follows:
7		(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
8		Sec. 11-74.4-8. Tax increment allocation financing. A
9		municipality may not adopt tax increment financing in a
10		redevelopment project area after the effective date of this
11		amendatory Act of 1997 that will encompass an area that is
12		currently included in an enterprise zone created under the
13		Illinois Enterprise Zone Act unless that municipality,
14		pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
15		amends the enterprise zone designating ordinance to limit the
16		eligibility for tax abatements as provided in Section 5.4.1 of
17		the Illinois Enterprise Zone Act. A municipality, at the time a
18		redevelopment project area is designated, may adopt tax
19		increment allocation financing by passing an ordinance
20		providing that the ad valorem taxes, if any, arising from the
21		levies upon taxable real property in such redevelopment project
22		area by taxing districts and tax rates determined in the manner
23		provided in paragraph (c) of Section 11-74.4-9 each year after
24		the effective date of the ordinance until redevelopment project
25		costs and all municipal obligations financing redevelopment
26		project costs incurred under this Division have been paid shall
27		be divided as follows:
28		(a) That portion of taxes levied upon each taxable lot,
29		block, tract or parcel of real property which is attributable
30		to the lower of the current equalized assessed value or the
31		initial equalized assessed value of each such taxable lot,
32		block, tract or parcel of real property in the redevelopment
33		project area shall be allocated to and when collected shall be
34		paid by the county collector to the respective affected taxing

1		districts in the manner required by law in the absence of the
2		adoption of tax increment allocation financing.
3		(b) Except from a tax levied by a township to retire bonds
4		issued to satisfy court-ordered damages, that portion, if any,
5		of such taxes which is attributable to the increase in the
6		current equalized assessed valuation of each taxable lot,
7		block, tract or parcel of real property in the redevelopment
8		project area over and above the initial equalized assessed
9		value of each property in the project area shall be allocated
10		to and when collected shall be paid to the municipal treasurer
11		who shall deposit said taxes into a special fund called the
12		special tax allocation fund of the municipality for the purpose
13		of paying redevelopment project costs and obligations incurred
14		in the payment thereof. In any county with a population of
15		3,000,000 or more that has adopted a procedure for collecting
16		taxes that provides for one or more of the installments of the
17		taxes to be billed and collected on an estimated basis, the
18		municipal treasurer shall be paid for deposit in the special
19		tax allocation fund of the municipality, from the taxes
20		collected from estimated bills issued for property in the
21		redevelopment project area, the difference between the amount
22		actually collected from each taxable lot, block, tract, or
23		parcel of real property within the redevelopment project area
24		and an amount determined by multiplying the rate at which taxes
25		were last extended against the taxable lot, block, track, or
26		parcel of real property in the manner provided in subsection
27		(c) of Section 11-74.4-9 by the initial equalized assessed
28		value of the property divided by the number of installments in
29		which real estate taxes are billed and collected within the
30		county; provided that the payments on or before December 31,
31		1999 to a municipal treasurer shall be made only if each of the
32		following conditions are met:
33		(1) The total equalized assessed value of the
34		redevelopment project area as last determined was not less
35		than 175% of the total initial equalized assessed value.
36		(2) Not more than 50% of the total equalized assessed

1		value of the redevelopment project area as last determined
2		is attributable to a piece of property assigned a single
3		real estate index number.
4		(3) The municipal clerk has certified to the county
5		clerk that the municipality has issued its obligations to
6		which there has been pledged the incremental property taxes
7		of the redevelopment project area or taxes levied and
8		collected on any or all property in the municipality or the
9		full faith and credit of the municipality to pay or secure
10		payment for all or a portion of the redevelopment project
11		costs. The certification shall be filed annually no later
12		than September 1 for the estimated taxes to be distributed
13		in the following year; however, for the year 1992 the
14		certification shall be made at any time on or before March
15		31, 1992.
16		(4) The municipality has not requested that the total
17		initial equalized assessed value of real property be
18		adjusted as provided in subsection (b) of Section
19		11-74.4-9.
20		The conditions of paragraphs (1) through (4) do not apply
21		after December 31, 1999 to payments to a municipal treasurer
22		made by a county with 3,000,000 or more inhabitants that has
23		adopted an estimated billing procedure for collecting taxes. If
24		a county that has adopted the estimated billing procedure makes
25		an erroneous overpayment of tax revenue to the municipal
26		treasurer, then the county may seek a refund of that
27		overpayment. The county shall send the municipal treasurer a
28		notice of liability for the overpayment on or before the
29		mailing date of the next real estate tax bill within the
30		county. The refund shall be limited to the amount of the
31		overpayment.
32		It is the intent of this Division that after the effective
33		date of this amendatory Act of 1988 a municipality's own ad
34		valorem tax arising from levies on taxable real property be
35		included in the determination of incremental revenue in the
36		manner provided in paragraph (c) of Section 11-74.4-9. If the

1		municipality does not extend such a tax, it shall annually
2		deposit in the municipality's Special Tax Increment Fund an
3		amount equal to 10% of the total contributions to the fund from
4		all other taxing districts in that year. The annual 10% deposit
5		required by this paragraph shall be limited to the actual
6		amount of municipally produced incremental tax revenues
7		available to the municipality from taxpayers located in the
8		redevelopment project area in that year if: (a) the plan for
9		the area restricts the use of the property primarily to
10		industrial purposes, (b) the municipality establishing the
11		redevelopment project area is a home-rule community with a 1990
12		population of between 25,000 and 50,000, (c) the municipality
13		is wholly located within a county with a 1990 population of
14		over 750,000 and (d) the redevelopment project area was
15		established by the municipality prior to June 1, 1990. This
16		payment shall be in lieu of a contribution of ad valorem taxes
17		on real property. If no such payment is made, any redevelopment
18		project area of the municipality shall be dissolved.
19		If a municipality has adopted tax increment allocation
20		financing by ordinance and the County Clerk thereafter
21		certifies the "total initial equalized assessed value as
22		adjusted" of the taxable real property within such
23		redevelopment project area in the manner provided in paragraph
24		(b) of Section 11-74.4-9, each year after the date of the
25		certification of the total initial equalized assessed value as
26		adjusted until redevelopment project costs and all municipal
27		obligations financing redevelopment project costs have been
28		paid the ad valorem taxes, if any, arising from the levies upon
29		the taxable real property in such redevelopment project area by
30		taxing districts and tax rates determined in the manner
31		provided in paragraph (c) of Section 11-74.4-9 shall be divided
32		as follows:
33		(1) That portion of the taxes levied upon each taxable
34		lot, block, tract or parcel of real property which is
35		attributable to the lower of the current equalized assessed
36		value or "current equalized assessed value as adjusted" or

1		the initial equalized assessed value of each such taxable
2		lot, block, tract, or parcel of real property existing at
3		the time tax increment financing was adopted, minus the
4		total current homestead exemptions provided by Sections
5		15-170, and 15-175, and 15-176 of the Property Tax Code in
6		the redevelopment project area shall be allocated to and
7		when collected shall be paid by the county collector to the
8		respective affected taxing districts in the manner
9		required by law in the absence of the adoption of tax
10		increment allocation financing.
11		(2) That portion, if any, of such taxes which is
12		attributable to the increase in the current equalized
13		assessed valuation of each taxable lot, block, tract, or
14		parcel of real property in the redevelopment project area,
15		over and above the initial equalized assessed value of each
16		property existing at the time tax increment financing was
17		adopted, minus the total current homestead exemptions
18		pertaining to each piece of property provided by Sections
19		15-170, and 15-175, and 15-176 of the Property Tax Code in
20		the redevelopment project area, shall be allocated to and
21		when collected shall be paid to the municipal Treasurer,
22		who shall deposit said taxes into a special fund called the
23		special tax allocation fund of the municipality for the
24		purpose of paying redevelopment project costs and
25		obligations incurred in the payment thereof.
26		The municipality may pledge in the ordinance the funds in
27		and to be deposited in the special tax allocation fund for the
28		payment of such costs and obligations. No part of the current
29		equalized assessed valuation of each property in the
30		redevelopment project area attributable to any increase above
31		the total initial equalized assessed value, or the total
32		initial equalized assessed value as adjusted, of such
33		properties shall be used in calculating the general State
34		school aid formula, provided for in Section 18-8 of the School
35		Code, until such time as all redevelopment project costs have
36		been paid as provided for in this Section.

1		Whenever a municipality issues bonds for the purpose of
2		financing redevelopment project costs, such municipality may
3		provide by ordinance for the appointment of a trustee, which
4		may be any trust company within the State, and for the
5		establishment of such funds or accounts to be maintained by
6		such trustee as the municipality shall deem necessary to
7		provide for the security and payment of the bonds. If such
8		municipality provides for the appointment of a trustee, such
9		trustee shall be considered the assignee of any payments
10		assigned by the municipality pursuant to such ordinance and
11		this Section. Any amounts paid to such trustee as assignee
12		shall be deposited in the funds or accounts established
13		pursuant to such trust agreement, and shall be held by such
14		trustee in trust for the benefit of the holders of the bonds,
15		and such holders shall have a lien on and a security interest
16		in such funds or accounts so long as the bonds remain
17		outstanding and unpaid. Upon retirement of the bonds, the
18		trustee shall pay over any excess amounts held to the
19		municipality for deposit in the special tax allocation fund.
20		When such redevelopment projects costs, including without
21		limitation all municipal obligations financing redevelopment
22		project costs incurred under this Division, have been paid, all
23		surplus funds then remaining in the special tax allocation fund
24		shall be distributed by being paid by the municipal treasurer
25		to the Department of Revenue, the municipality and the county
26		collector; first to the Department of Revenue and the
27		municipality in direct proportion to the tax incremental
28		revenue received from the State and the municipality, but not
29		to exceed the total incremental revenue received from the State
30		or the municipality less any annual surplus distribution of
31		incremental revenue previously made; with any remaining funds
32		to be paid to the County Collector who shall immediately
33		thereafter pay said funds to the taxing districts in the
34		redevelopment project area in the same manner and proportion as
35		the most recent distribution by the county collector to the
36		affected districts of real property taxes from real property in

1		the redevelopment project area.
2		Upon the payment of all redevelopment project costs, the
3		retirement of obligations, the distribution of any excess
4		monies pursuant to this Section, and final closing of the books
5		and records of the redevelopment project area, the municipality
6		shall adopt an ordinance dissolving the special tax allocation
7		fund for the redevelopment project area and terminating the
8		designation of the redevelopment project area as a
9		redevelopment project area. Title to real or personal property
10		and public improvements acquired by or for the municipality as
11		a result of the redevelopment project and plan shall vest in
12		the municipality when acquired and shall continue to be held by
13		the municipality after the redevelopment project area has been
14		terminated. Municipalities shall notify affected taxing
15		districts prior to November 1 if the redevelopment project area
16		is to be terminated by December 31 of that same year. If a
17		municipality extends estimated dates of completion of a
18		redevelopment project and retirement of obligations to finance
19		a redevelopment project, as allowed by this amendatory Act of
20		1993, that extension shall not extend the property tax
21		increment allocation financing authorized by this Section.
22		Thereafter the rates of the taxing districts shall be extended
23		and taxes levied, collected and distributed in the manner
24		applicable in the absence of the adoption of tax increment
25		allocation financing.
26		Nothing in this Section shall be construed as relieving
27		property in such redevelopment project areas from being
28		assessed as provided in the Property Tax Code or as relieving
29		owners of such property from paying a uniform rate of taxes, as
30		required by Section 4 of Article 9 of the Illinois
31		Constitution.
32		(Source: P.A. 92-16, eff. 6-28-01; 93-298, eff. 7-23-03.)
33		(65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
34		Sec. 11-74.4-9. Equalized assessed value of property.
35		(a) If a municipality by ordinance provides for tax

1		increment allocation financing pursuant to Section 11-74.4-8,
2		the county clerk immediately thereafter shall determine (1) the
3		most recently ascertained equalized assessed value of each lot,
4		block, tract or parcel of real property within such
5		redevelopment project area from which shall be deducted the
6		homestead exemptions provided by Sections 15-170, and 15-175,
7		and 15-176 of the Property Tax Code, which value shall be the
8		"initial equalized assessed value" of each such piece of
9		property, and (2) the total equalized assessed value of all
10		taxable real property within such redevelopment project area by
11		adding together the most recently ascertained equalized
12		assessed value of each taxable lot, block, tract, or parcel of
13		real property within such project area, from which shall be
14		deducted the homestead exemptions provided by Sections 15-170,
15		and 15-175, and 15-176 of the Property Tax Code, and shall
16		certify such amount as the "total initial equalized assessed
17		value" of the taxable real property within such project area.
18		(b) In reference to any municipality which has adopted tax
19		increment financing after January 1, 1978, and in respect to
20		which the county clerk has certified the "total initial
21		equalized assessed value" of the property in the redevelopment
22		area, the municipality may thereafter request the clerk in
23		writing to adjust the initial equalized value of all taxable
24		real property within the redevelopment project area by
25		deducting therefrom the exemptions provided for by Sections
26		15-170, and 15-175, and 15-176 of the Property Tax Code
27		applicable to each lot, block, tract or parcel of real property
28		within such redevelopment project area. The county clerk shall
29		immediately after the written request to adjust the total
30		initial equalized value is received determine the total
31		homestead exemptions in the redevelopment project area
32		provided by Sections 15-170, and 15-175, and 15-176 of the
33		Property Tax Code by adding together the homestead exemptions
34		provided by said Sections on each lot, block, tract or parcel
35		of real property within such redevelopment project area and
36		then shall deduct the total of said exemptions from the total

1		initial equalized assessed value. The county clerk shall then
2		promptly certify such amount as the "total initial equalized
3		assessed value as adjusted" of the taxable real property within
4		such redevelopment project area.
5		(c) After the county clerk has certified the "total initial
6		equalized assessed value" of the taxable real property in such
7		area, then in respect to every taxing district containing a
8		redevelopment project area, the county clerk or any other
9		official required by law to ascertain the amount of the
10		equalized assessed value of all taxable property within such
11		district for the purpose of computing the rate per cent of tax
12		to be extended upon taxable property within such district,
13		shall in every year that tax increment allocation financing is
14		in effect ascertain the amount of value of taxable property in
15		a redevelopment project area by including in such amount the
16		lower of the current equalized assessed value or the certified
17		"total initial equalized assessed value" of all taxable real
18		property in such area, except that after he has certified the
19		"total initial equalized assessed value as adjusted" he shall
20		in the year of said certification if tax rates have not been
21		extended and in every year thereafter that tax increment
22		allocation financing is in effect ascertain the amount of value
23		of taxable property in a redevelopment project area by
24		including in such amount the lower of the current equalized
25		assessed value or the certified "total initial equalized
26		assessed value as adjusted" of all taxable real property in
27		such area. The rate per cent of tax determined shall be
28		extended to the current equalized assessed value of all
29		property in the redevelopment project area in the same manner
30		as the rate per cent of tax is extended to all other taxable
31		property in the taxing district. The method of extending taxes
32		established under this Section shall terminate when the
33		municipality adopts an ordinance dissolving the special tax
34		allocation fund for the redevelopment project area. This
35		Division shall not be construed as relieving property owners
36		within a redevelopment project area from paying a uniform rate

1		of taxes upon the current equalized assessed value of their
2		taxable property as provided in the Property Tax Code.
3		(Source: P.A. 88-670, eff. 12-2-94.)
4		(65 ILCS 5/11-74.6-40)
5		Sec. 11-74.6-40. Equalized assessed value determination;
6		property tax extension.
7		(a) If a municipality by ordinance provides for tax
8		increment allocation financing under Section 11-74.6-35, the
9		county clerk immediately thereafter:
10		(1) shall determine the initial equalized assessed
11		value of each parcel of real property in the redevelopment
12		project area, which is the most recently established
13		equalized assessed value of each lot, block, tract or
14		parcel of taxable real property within the redevelopment
15		project area, minus the homestead exemptions provided by
16		Sections 15-170, and 15-175, and 15-176 of the Property Tax
17		Code; and
18		(2) shall certify to the municipality the total initial
19		equalized assessed value of all taxable real property
20		within the redevelopment project area.
21		(b) Any municipality that has established a vacant
22		industrial buildings conservation area may, by ordinance
23		passed after the adoption of tax increment allocation
24		financing, provide that the county clerk immediately
25		thereafter shall again determine:
26		(1) the updated initial equalized assessed value of
27		each lot, block, tract or parcel of real property, which is
28		the most recently ascertained equalized assessed value of
29		each lot, block, tract or parcel of real property within
30		the vacant industrial buildings conservation area; and
31		(2) the total updated initial equalized assessed value
32		of all taxable real property within the redevelopment
33		project area, which is the total of the updated initial
34		equalized assessed value of all taxable real property
35		within the vacant industrial buildings conservation area.

1		The county clerk shall certify to the municipality the
2		total updated initial equalized assessed value of all taxable
3		real property within the industrial buildings conservation
4		area.
5		(c) After the county clerk has certified the total initial
6		equalized assessed value or the total updated initial equalized
7		assessed value of the taxable real property in the area, for
8		each taxing district in which a redevelopment project area is
9		situated, the county clerk or any other official required by
10		law to determine the amount of the equalized assessed value of
11		all taxable property within the district for the purpose of
12		computing the percentage rate of tax to be extended upon
13		taxable property within the district, shall in every year that
14		tax increment allocation financing is in effect determine the
15		total equalized assessed value of taxable property in a
16		redevelopment project area by including in that amount the
17		lower of the current equalized assessed value or the certified
18		total initial equalized assessed value or, if the total of
19		updated equalized assessed value has been certified, the total
20		updated initial equalized assessed value of all taxable real
21		property in the redevelopment project area. After he has
22		certified the total initial equalized assessed value he shall
23		in the year of that certification, if tax rates have not been
24		extended, and in every subsequent year that tax increment
25		allocation financing is in effect, determine the amount of
26		equalized assessed value of taxable property in a redevelopment
27		project area by including in that amount the lower of the
28		current total equalized assessed value or the certified total
29		initial equalized assessed value or, if the total of updated
30		initial equalized assessed values have been certified, the
31		total updated initial equalized assessed value of all taxable
32		real property in the redevelopment project area.
33		(d) The percentage rate of tax determined shall be extended
34		on the current equalized assessed value of all property in the
35		redevelopment project area in the same manner as the rate per
36		cent of tax is extended to all other taxable property in the

1		taxing district. The method of extending taxes established
2		under this Section shall terminate when the municipality adopts
3		an ordinance dissolving the special tax allocation fund for the
4		redevelopment project area. This Law shall not be construed as
5		relieving property owners within a redevelopment project area
6		from paying a uniform rate of taxes upon the current equalized
7		assessed value of their taxable property as provided in the
8		Property Tax Code.
9		(Source: P.A. 88-537; 88-670, eff. 12-2-94.)

10		Section 30. The Economic Development Project Area Tax
11		Increment Allocation Act of 1995 is amended by changing Section
12		45 as follows:
13		(65 ILCS 110/45)
14		Sec. 45. Filing with county clerk; certification of initial
15		equalized assessed value.
16		(a) A municipality that has by ordinance approved an
17		economic development plan, established an economic development
18		project area, and adopted tax increment allocation financing
19		for that area shall file certified copies of the ordinance or
20		ordinances with the county clerk. Upon receiving the ordinance
21		or ordinances, the county clerk shall immediately determine (i)
22		the most recently ascertained equalized assessed value of each
23		lot, block, tract, or parcel of real property within the
24		economic development project area from which shall be deducted
25		the homestead exemptions provided by Sections 15-170,
26		and15-175, and 15-176 of the Property Tax Code (that value
27		being the "initial equalized assessed value" of each such piece
28		of property) and (ii) the total equalized assessed value of all
29		taxable real property within the economic development project
30		area by adding together the most recently ascertained equalized
31		assessed value of each taxable lot, block, tract, or parcel of
32		real property within the economic development project area,
33		from which shall be deducted the homestead exemptions provided
34		by Sections 15-170, and 15-175, and 15-176 of the Property Tax

1		Code, and shall certify that amount as the "total initial
2		equalized assessed value" of the taxable real property within
3		the economic development project area.
4		(b) After the county clerk has certified the "total initial
5		equalized assessed value" of the taxable real property in the
6		economic development project area, then in respect to every
7		taxing district containing an economic development project
8		area, the county clerk or any other official required by law to
9		ascertain the amount of the equalized assessed value of all
10		taxable property within the taxing district for the purpose of
11		computing the rate per cent of tax to be extended upon taxable
12		property within the taxing district shall, in every year that
13		tax increment allocation financing is in effect, ascertain the
14		amount of value of taxable property in an economic development
15		project area by including in that amount the lower of the
16		current equalized assessed value or the certified "total
17		initial equalized assessed value" of all taxable real property
18		in the area. The rate per cent of tax determined shall be
19		extended to the current equalized assessed value of all
20		property in the economic development project area in the same
21		manner as the rate per cent of tax is extended to all other
22		taxable property in the taxing district. The method of
23		extending taxes established under this Section shall terminate
24		when the municipality adopts an ordinance dissolving the
25		special tax allocation fund for the economic development
26		project area. This Act shall not be construed as relieving
27		owners or lessees of property within an economic development
28		project area from paying a uniform rate of taxes upon the
29		current equalized assessed value of their taxable property as
30		provided in the Property Tax Code.
31		(Source: P.A. 89-176, eff. 1-1-96.)

32		Section 35. The School Code is amended by changing Section
33		18-8.05 as follows:
34		(105 ILCS 5/18-8.05)

1		Sec. 18-8.05. Basis for apportionment of general State
2		financial aid and supplemental general State aid to the common
3		schools for the 1998-1999 and subsequent school years.
4		(A) General Provisions.
5		(1) The provisions of this Section apply to the 1998-1999
6		and subsequent school years. The system of general State
7		financial aid provided for in this Section is designed to
8		assure that, through a combination of State financial aid and
9		required local resources, the financial support provided each
10		pupil in Average Daily Attendance equals or exceeds a
11		prescribed per pupil Foundation Level. This formula approach
12		imputes a level of per pupil Available Local Resources and
13		provides for the basis to calculate a per pupil level of
14		general State financial aid that, when added to Available Local
15		Resources, equals or exceeds the Foundation Level. The amount
16		of per pupil general State financial aid for school districts,
17		in general, varies in inverse relation to Available Local
18		Resources. Per pupil amounts are based upon each school
19		district's Average Daily Attendance as that term is defined in
20		this Section.
21		(2) In addition to general State financial aid, school
22		districts with specified levels or concentrations of pupils
23		from low income households are eligible to receive supplemental
24		general State financial aid grants as provided pursuant to
25		subsection (H). The supplemental State aid grants provided for
26		school districts under subsection (H) shall be appropriated for
27		distribution to school districts as part of the same line item
28		in which the general State financial aid of school districts is
29		appropriated under this Section.
30		(3) To receive financial assistance under this Section,
31		school districts are required to file claims with the State
32		Board of Education, subject to the following requirements:
33		(a) Any school district which fails for any given
34		school year to maintain school as required by law, or to
35		maintain a recognized school is not eligible to file for

1		such school year any claim upon the Common School Fund. In
2		case of nonrecognition of one or more attendance centers in
3		a school district otherwise operating recognized schools,
4		the claim of the district shall be reduced in the
5		proportion which the Average Daily Attendance in the
6		attendance center or centers bear to the Average Daily
7		Attendance in the school district. A "recognized school"
8		means any public school which meets the standards as
9		established for recognition by the State Board of
10		Education. A school district or attendance center not
11		having recognition status at the end of a school term is
12		entitled to receive State aid payments due upon a legal
13		claim which was filed while it was recognized.
14		(b) School district claims filed under this Section are
15		subject to Sections 18-9, 18-10, and 18-12, except as
16		otherwise provided in this Section.
17		(c) If a school district operates a full year school
18		under Section 10-19.1, the general State aid to the school
19		district shall be determined by the State Board of
20		Education in accordance with this Section as near as may be
21		applicable.
22		(d) (Blank).
23		(4) Except as provided in subsections (H) and (L), the
24		board of any district receiving any of the grants provided for
25		in this Section may apply those funds to any fund so received
26		for which that board is authorized to make expenditures by law.
27		School districts are not required to exert a minimum
28		Operating Tax Rate in order to qualify for assistance under
29		this Section.
30		(5) As used in this Section the following terms, when
31		capitalized, shall have the meaning ascribed herein:
32		(a) "Average Daily Attendance": A count of pupil
33		attendance in school, averaged as provided for in
34		subsection (C) and utilized in deriving per pupil financial
35		support levels.
36		(b) "Available Local Resources": A computation of

1		local financial support, calculated on the basis of Average
2		Daily Attendance and derived as provided pursuant to
3		subsection (D).
4		(c) "Corporate Personal Property Replacement Taxes":
5		Funds paid to local school districts pursuant to "An Act in
6		relation to the abolition of ad valorem personal property
7		tax and the replacement of revenues lost thereby, and
8		amending and repealing certain Acts and parts of Acts in
9		connection therewith", certified August 14, 1979, as
10		amended (Public Act 81-1st S.S.-1).
11		(d) "Foundation Level": A prescribed level of per pupil
12		financial support as provided for in subsection (B).
13		(e) "Operating Tax Rate": All school district property
14		taxes extended for all purposes, except Bond and Interest,
15		Summer School, Rent, Capital Improvement, and Vocational
16		Education Building purposes.
17		(B) Foundation Level.
18		(1) The Foundation Level is a figure established by the
19		State representing the minimum level of per pupil financial
20		support that should be available to provide for the basic
21		education of each pupil in Average Daily Attendance. As set
22		forth in this Section, each school district is assumed to exert
23		a sufficient local taxing effort such that, in combination with
24		the aggregate of general State financial aid provided the
25		district, an aggregate of State and local resources are
26		available to meet the basic education needs of pupils in the
27		district.
28		(2) For the 1998-1999 school year, the Foundation Level of
29		support is $4,225. For the 1999-2000 school year, the
30		Foundation Level of support is $4,325. For the 2000-2001 school
31		year, the Foundation Level of support is $4,425.
32		(3) For the 2001-2002 school year and 2002-2003 school
33		year, the Foundation Level of support is $4,560.
34		(4) For the 2003-2004 school year and each school year
35		thereafter, the Foundation Level of support is $4,810 or such

1		greater amount as may be established by law by the General
2		Assembly.
3		(C) Average Daily Attendance.
4		(1) For purposes of calculating general State aid pursuant
5		to subsection (E), an Average Daily Attendance figure shall be
6		utilized. The Average Daily Attendance figure for formula
7		calculation purposes shall be the monthly average of the actual
8		number of pupils in attendance of each school district, as
9		further averaged for the best 3 months of pupil attendance for
10		each school district. In compiling the figures for the number
11		of pupils in attendance, school districts and the State Board
12		of Education shall, for purposes of general State aid funding,
13		conform attendance figures to the requirements of subsection
14		(F).
15		(2) The Average Daily Attendance figures utilized in
16		subsection (E) shall be the requisite attendance data for the
17		school year immediately preceding the school year for which
18		general State aid is being calculated or the average of the
19		attendance data for the 3 preceding school years, whichever is
20		greater. The Average Daily Attendance figures utilized in
21		subsection (H) shall be the requisite attendance data for the
22		school year immediately preceding the school year for which
23		general State aid is being calculated.
24		(D) Available Local Resources.
25		(1) For purposes of calculating general State aid pursuant
26		to subsection (E), a representation of Available Local
27		Resources per pupil, as that term is defined and determined in
28		this subsection, shall be utilized. Available Local Resources
29		per pupil shall include a calculated dollar amount representing
30		local school district revenues from local property taxes and
31		from Corporate Personal Property Replacement Taxes, expressed
32		on the basis of pupils in Average Daily Attendance.
33		(2) In determining a school district's revenue from local
34		property taxes, the State Board of Education shall utilize the

1		equalized assessed valuation of all taxable property of each
2		school district as of September 30 of the previous year. The
3		equalized assessed valuation utilized shall be obtained and
4		determined as provided in subsection (G).
5		(3) For school districts maintaining grades kindergarten
6		through 12, local property tax revenues per pupil shall be
7		calculated as the product of the applicable equalized assessed
8		valuation for the district multiplied by 3.00%, and divided by
9		the district's Average Daily Attendance figure. For school
10		districts maintaining grades kindergarten through 8, local
11		property tax revenues per pupil shall be calculated as the
12		product of the applicable equalized assessed valuation for the
13		district multiplied by 2.30%, and divided by the district's
14		Average Daily Attendance figure. For school districts
15		maintaining grades 9 through 12, local property tax revenues
16		per pupil shall be the applicable equalized assessed valuation
17		of the district multiplied by 1.05%, and divided by the
18		district's Average Daily Attendance figure.
19		(4) The Corporate Personal Property Replacement Taxes paid
20		to each school district during the calendar year 2 years before
21		the calendar year in which a school year begins, divided by the
22		Average Daily Attendance figure for that district, shall be
23		added to the local property tax revenues per pupil as derived
24		by the application of the immediately preceding paragraph (3).
25		The sum of these per pupil figures for each school district
26		shall constitute Available Local Resources as that term is
27		utilized in subsection (E) in the calculation of general State
28		aid.
29		(E) Computation of General State Aid.
30		(1) For each school year, the amount of general State aid
31		allotted to a school district shall be computed by the State
32		Board of Education as provided in this subsection.
33		(2) For any school district for which Available Local
34		Resources per pupil is less than the product of 0.93 times the
35		Foundation Level, general State aid for that district shall be

1		calculated as an amount equal to the Foundation Level minus
2		Available Local Resources, multiplied by the Average Daily
3		Attendance of the school district.
4		(3) For any school district for which Available Local
5		Resources per pupil is equal to or greater than the product of
6		0.93 times the Foundation Level and less than the product of
7		1.75 times the Foundation Level, the general State aid per
8		pupil shall be a decimal proportion of the Foundation Level
9		derived using a linear algorithm. Under this linear algorithm,
10		the calculated general State aid per pupil shall decline in
11		direct linear fashion from 0.07 times the Foundation Level for
12		a school district with Available Local Resources equal to the
13		product of 0.93 times the Foundation Level, to 0.05 times the
14		Foundation Level for a school district with Available Local
15		Resources equal to the product of 1.75 times the Foundation
16		Level. The allocation of general State aid for school districts
17		subject to this paragraph 3 shall be the calculated general
18		State aid per pupil figure multiplied by the Average Daily
19		Attendance of the school district.
20		(4) For any school district for which Available Local
21		Resources per pupil equals or exceeds the product of 1.75 times
22		the Foundation Level, the general State aid for the school
23		district shall be calculated as the product of $218 multiplied
24		by the Average Daily Attendance of the school district.
25		(5) The amount of general State aid allocated to a school
26		district for the 1999-2000 school year meeting the requirements
27		set forth in paragraph (4) of subsection (G) shall be increased
28		by an amount equal to the general State aid that would have
29		been received by the district for the 1998-1999 school year by
30		utilizing the Extension Limitation Equalized Assessed
31		Valuation as calculated in paragraph (4) of subsection (G) less
32		the general State aid allotted for the 1998-1999 school year.
33		This amount shall be deemed a one time increase, and shall not
34		affect any future general State aid allocations.
35		(F) Compilation of Average Daily Attendance.

1		(1) Each school district shall, by July 1 of each year,
2		submit to the State Board of Education, on forms prescribed by
3		the State Board of Education, attendance figures for the school
4		year that began in the preceding calendar year. The attendance
5		information so transmitted shall identify the average daily
6		attendance figures for each month of the school year. Beginning
7		with the general State aid claim form for the 2002-2003 school
8		year, districts shall calculate Average Daily Attendance as
9		provided in subdivisions (a), (b), and (c) of this paragraph
10		(1).
11		(a) In districts that do not hold year-round classes,
12		days of attendance in August shall be added to the month of
13		September and any days of attendance in June shall be added
14		to the month of May.
15		(b) In districts in which all buildings hold year-round
16		classes, days of attendance in July and August shall be
17		added to the month of September and any days of attendance
18		in June shall be added to the month of May.
19		(c) In districts in which some buildings, but not all,
20		hold year-round classes, for the non-year-round buildings,
21		days of attendance in August shall be added to the month of
22		September and any days of attendance in June shall be added
23		to the month of May. The average daily attendance for the
24		year-round buildings shall be computed as provided in
25		subdivision (b) of this paragraph (1). To calculate the
26		Average Daily Attendance for the district, the average
27		daily attendance for the year-round buildings shall be
28		multiplied by the days in session for the non-year-round
29		buildings for each month and added to the monthly
30		attendance of the non-year-round buildings.
31		Except as otherwise provided in this Section, days of
32		attendance by pupils shall be counted only for sessions of not
33		less than 5 clock hours of school work per day under direct
34		supervision of: (i) teachers, or (ii) non-teaching personnel or
35		volunteer personnel when engaging in non-teaching duties and
36		supervising in those instances specified in subsection (a) of

1		Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
2		of legal school age and in kindergarten and grades 1 through
3		12.
4		Days of attendance by tuition pupils shall be accredited
5		only to the districts that pay the tuition to a recognized
6		school.
7		(2) Days of attendance by pupils of less than 5 clock hours
8		of school shall be subject to the following provisions in the
9		compilation of Average Daily Attendance.
10		(a) Pupils regularly enrolled in a public school for
11		only a part of the school day may be counted on the basis
12		of 1/6 day for every class hour of instruction of 40
13		minutes or more attended pursuant to such enrollment,
14		unless a pupil is enrolled in a block-schedule format of 80
15		minutes or more of instruction, in which case the pupil may
16		be counted on the basis of the proportion of minutes of
17		school work completed each day to the minimum number of
18		minutes that school work is required to be held that day.
19		(b) Days of attendance may be less than 5 clock hours
20		on the opening and closing of the school term, and upon the
21		first day of pupil attendance, if preceded by a day or days
22		utilized as an institute or teachers' workshop.
23		(c) A session of 4 or more clock hours may be counted
24		as a day of attendance upon certification by the regional
25		superintendent, and approved by the State Superintendent
26		of Education to the extent that the district has been
27		forced to use daily multiple sessions.
28		(d) A session of 3 or more clock hours may be counted
29		as a day of attendance (1) when the remainder of the school
30		day or at least 2 hours in the evening of that day is
31		utilized for an in-service training program for teachers,
32		up to a maximum of 5 days per school year of which a
33		maximum of 4 days of such 5 days may be used for
34		parent-teacher conferences, provided a district conducts
35		an in-service training program for teachers which has been
36		approved by the State Superintendent of Education; or, in

1		lieu of 4 such days, 2 full days may be used, in which
2		event each such day may be counted as a day of attendance;
3		and (2) when days in addition to those provided in item (1)
4		are scheduled by a school pursuant to its school
5		improvement plan adopted under Article 34 or its revised or
6		amended school improvement plan adopted under Article 2,
7		provided that (i) such sessions of 3 or more clock hours
8		are scheduled to occur at regular intervals, (ii) the
9		remainder of the school days in which such sessions occur
10		are utilized for in-service training programs or other
11		staff development activities for teachers, and (iii) a
12		sufficient number of minutes of school work under the
13		direct supervision of teachers are added to the school days
14		between such regularly scheduled sessions to accumulate
15		not less than the number of minutes by which such sessions
16		of 3 or more clock hours fall short of 5 clock hours. Any
17		full days used for the purposes of this paragraph shall not
18		be considered for computing average daily attendance. Days
19		scheduled for in-service training programs, staff
20		development activities, or parent-teacher conferences may
21		be scheduled separately for different grade levels and
22		different attendance centers of the district.
23		(e) A session of not less than one clock hour of
24		teaching hospitalized or homebound pupils on-site or by
25		telephone to the classroom may be counted as 1/2 day of
26		attendance, however these pupils must receive 4 or more
27		clock hours of instruction to be counted for a full day of
28		attendance.
29		(f) A session of at least 4 clock hours may be counted
30		as a day of attendance for first grade pupils, and pupils
31		in full day kindergartens, and a session of 2 or more hours
32		may be counted as 1/2 day of attendance by pupils in
33		kindergartens which provide only 1/2 day of attendance.
34		(g) For children with disabilities who are below the
35		age of 6 years and who cannot attend 2 or more clock hours
36		because of their disability or immaturity, a session of not

1		less than one clock hour may be counted as 1/2 day of
2		attendance; however for such children whose educational
3		needs so require a session of 4 or more clock hours may be
4		counted as a full day of attendance.
5		(h) A recognized kindergarten which provides for only
6		1/2 day of attendance by each pupil shall not have more
7		than 1/2 day of attendance counted in any one day. However,
8		kindergartens may count 2 1/2 days of attendance in any 5
9		consecutive school days. When a pupil attends such a
10		kindergarten for 2 half days on any one school day, the
11		pupil shall have the following day as a day absent from
12		school, unless the school district obtains permission in
13		writing from the State Superintendent of Education.
14		Attendance at kindergartens which provide for a full day of
15		attendance by each pupil shall be counted the same as
16		attendance by first grade pupils. Only the first year of
17		attendance in one kindergarten shall be counted, except in
18		case of children who entered the kindergarten in their
19		fifth year whose educational development requires a second
20		year of kindergarten as determined under the rules and
21		regulations of the State Board of Education.
22		(G) Equalized Assessed Valuation Data.
23		(1) For purposes of the calculation of Available Local
24		Resources required pursuant to subsection (D), the State Board
25		of Education shall secure from the Department of Revenue the
26		value as equalized or assessed by the Department of Revenue of
27		all taxable property of every school district, together with
28		(i) the applicable tax rate used in extending taxes for the
29		funds of the district as of September 30 of the previous year
30		and (ii) the limiting rate for all school districts subject to
31		property tax extension limitations as imposed under the
32		Property Tax Extension Limitation Law. The Department of
33		Revenue shall add to the equalized assessed value of all
34		taxable property of each school district situated entirely or
35		partially within a county that is subject to the Property Tax

1		Extension Limitation Law an amount equal to the total amount by
2		which the homestead exemption allowed under Section 15-176 of
3		the Property Tax Code for real property situated in that school
4		district exceeds the total amount that would have been allowed
5		in that school district if the maximum reduction under Section
6		15-176 was $4,500. The county clerk of any county that is
7		subject to the Property Tax Extension Limitation Law shall
8		annually calculate and certify to the Department of Revenue for
9		each school district all homestead exemption amounts under
10		Section 15-176 of the Property Tax Code.
11		This equalized assessed valuation, as adjusted further by
12		the requirements of this subsection, shall be utilized in the
13		calculation of Available Local Resources.
14		(2) The equalized assessed valuation in paragraph (1) shall
15		be adjusted, as applicable, in the following manner:
16		(a) For the purposes of calculating State aid under
17		this Section, with respect to any part of a school district
18		within a redevelopment project area in respect to which a
19		municipality has adopted tax increment allocation
20		financing pursuant to the Tax Increment Allocation
21		Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
22		of the Illinois Municipal Code or the Industrial Jobs
23		Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
24		Illinois Municipal Code, no part of the current equalized
25		assessed valuation of real property located in any such
26		project area which is attributable to an increase above the
27		total initial equalized assessed valuation of such
28		property shall be used as part of the equalized assessed
29		valuation of the district, until such time as all
30		redevelopment project costs have been paid, as provided in
31		Section 11-74.4-8 of the Tax Increment Allocation
32		Redevelopment Act or in Section 11-74.6-35 of the
33		Industrial Jobs Recovery Law. For the purpose of the
34		equalized assessed valuation of the district, the total
35		initial equalized assessed valuation or the current
36		equalized assessed valuation, whichever is lower, shall be

1		used until such time as all redevelopment project costs
2		have been paid.
3		(b) The real property equalized assessed valuation for
4		a school district shall be adjusted by subtracting from the
5		real property value as equalized or assessed by the
6		Department of Revenue for the district an amount computed
7		by dividing the amount of any abatement of taxes under
8		Section 18-170 of the Property Tax Code by 3.00% for a
9		district maintaining grades kindergarten through 12, by
10		2.30% for a district maintaining grades kindergarten
11		through 8, or by 1.05% for a district maintaining grades 9
12		through 12 and adjusted by an amount computed by dividing
13		the amount of any abatement of taxes under subsection (a)
14		of Section 18-165 of the Property Tax Code by the same
15		percentage rates for district type as specified in this
16		subparagraph (b).
17		(3) For the 1999-2000 school year and each school year
18		thereafter, if a school district meets all of the criteria of
19		this subsection (G)(3), the school district's Available Local
20		Resources shall be calculated under subsection (D) using the
21		district's Extension Limitation Equalized Assessed Valuation
22		as calculated under this subsection (G)(3).
23		For purposes of this subsection (G)(3) the following terms
24		shall have the following meanings:
25		"Budget Year": The school year for which general State
26		aid is calculated and awarded under subsection (E).
27		"Base Tax Year": The property tax levy year used to
28		calculate the Budget Year allocation of general State aid.
29		"Preceding Tax Year": The property tax levy year
30		immediately preceding the Base Tax Year.
31		"Base Tax Year's Tax Extension": The product of the
32		equalized assessed valuation utilized by the County Clerk
33		in the Base Tax Year multiplied by the limiting rate as
34		calculated by the County Clerk and defined in the Property
35		Tax Extension Limitation Law.
36		"Preceding Tax Year's Tax Extension": The product of

1		the equalized assessed valuation utilized by the County
2		Clerk in the Preceding Tax Year multiplied by the Operating
3		Tax Rate as defined in subsection (A).
4		"Extension Limitation Ratio": A numerical ratio,
5		certified by the County Clerk, in which the numerator is
6		the Base Tax Year's Tax Extension and the denominator is
7		the Preceding Tax Year's Tax Extension.
8		"Operating Tax Rate": The operating tax rate as defined
9		in subsection (A).
10		If a school district is subject to property tax extension
11		limitations as imposed under the Property Tax Extension
12		Limitation Law, the State Board of Education shall calculate
13		the Extension Limitation Equalized Assessed Valuation of that
14		district. For the 1999-2000 school year, the Extension
15		Limitation Equalized Assessed Valuation of a school district as
16		calculated by the State Board of Education shall be equal to
17		the product of the district's 1996 Equalized Assessed Valuation
18		and the district's Extension Limitation Ratio. For the
19		2000-2001 school year and each school year thereafter, the
20		Extension Limitation Equalized Assessed Valuation of a school
21		district as calculated by the State Board of Education shall be
22		equal to the product of the Equalized Assessed Valuation last
23		used in the calculation of general State aid and the district's
24		Extension Limitation Ratio. If the Extension Limitation
25		Equalized Assessed Valuation of a school district as calculated
26		under this subsection (G)(3) is less than the district's
27		equalized assessed valuation as calculated pursuant to
28		subsections (G)(1) and (G)(2), then for purposes of calculating
29		the district's general State aid for the Budget Year pursuant
30		to subsection (E), that Extension Limitation Equalized
31		Assessed Valuation shall be utilized to calculate the
32		district's Available Local Resources under subsection (D).
33		(4) For the purposes of calculating general State aid for
34		the 1999-2000 school year only, if a school district
35		experienced a triennial reassessment on the equalized assessed
36		valuation used in calculating its general State financial aid

1		apportionment for the 1998-1999 school year, the State Board of
2		Education shall calculate the Extension Limitation Equalized
3		Assessed Valuation that would have been used to calculate the
4		district's 1998-1999 general State aid. This amount shall equal
5		the product of the equalized assessed valuation used to
6		calculate general State aid for the 1997-1998 school year and
7		the district's Extension Limitation Ratio. If the Extension
8		Limitation Equalized Assessed Valuation of the school district
9		as calculated under this paragraph (4) is less than the
10		district's equalized assessed valuation utilized in
11		calculating the district's 1998-1999 general State aid
12		allocation, then for purposes of calculating the district's
13		general State aid pursuant to paragraph (5) of subsection (E),
14		that Extension Limitation Equalized Assessed Valuation shall
15		be utilized to calculate the district's Available Local
16		Resources.
17		(5) For school districts having a majority of their
18		equalized assessed valuation in any county except Cook, DuPage,
19		Kane, Lake, McHenry, or Will, if the amount of general State
20		aid allocated to the school district for the 1999-2000 school
21		year under the provisions of subsection (E), (H), and (J) of
22		this Section is less than the amount of general State aid
23		allocated to the district for the 1998-1999 school year under
24		these subsections, then the general State aid of the district
25		for the 1999-2000 school year only shall be increased by the
26		difference between these amounts. The total payments made under
27		this paragraph (5) shall not exceed $14,000,000. Claims shall
28		be prorated if they exceed $14,000,000.
29		(H) Supplemental General State Aid.
30		(1) In addition to the general State aid a school district
31		is allotted pursuant to subsection (E), qualifying school
32		districts shall receive a grant, paid in conjunction with a
33		district's payments of general State aid, for supplemental
34		general State aid based upon the concentration level of
35		children from low-income households within the school

1		district. Supplemental State aid grants provided for school
2		districts under this subsection shall be appropriated for
3		distribution to school districts as part of the same line item
4		in which the general State financial aid of school districts is
5		appropriated under this Section. If the appropriation in any
6		fiscal year for general State aid and supplemental general
7		State aid is insufficient to pay the amounts required under the
8		general State aid and supplemental general State aid
9		calculations, then the State Board of Education shall ensure
10		that each school district receives the full amount due for
11		general State aid and the remainder of the appropriation shall
12		be used for supplemental general State aid, which the State
13		Board of Education shall calculate and pay to eligible
14		districts on a prorated basis.
15		(1.5) This paragraph (1.5) applies only to those school
16		years preceding the 2003-2004 school year. For purposes of this
17		subsection (H), the term "Low-Income Concentration Level"
18		shall be the low-income eligible pupil count from the most
19		recently available federal census divided by the Average Daily
20		Attendance of the school district. If, however, (i) the
21		percentage decrease from the 2 most recent federal censuses in
22		the low-income eligible pupil count of a high school district
23		with fewer than 400 students exceeds by 75% or more the
24		percentage change in the total low-income eligible pupil count
25		of contiguous elementary school districts, whose boundaries
26		are coterminous with the high school district, or (ii) a high
27		school district within 2 counties and serving 5 elementary
28		school districts, whose boundaries are coterminous with the
29		high school district, has a percentage decrease from the 2 most
30		recent federal censuses in the low-income eligible pupil count
31		and there is a percentage increase in the total low-income
32		eligible pupil count of a majority of the elementary school
33		districts in excess of 50% from the 2 most recent federal
34		censuses, then the high school district's low-income eligible
35		pupil count from the earlier federal census shall be the number
36		used as the low-income eligible pupil count for the high school

1		district, for purposes of this subsection (H). The changes made
2		to this paragraph (1) by Public Act 92-28 shall apply to
3		supplemental general State aid grants for school years
4		preceding the 2003-2004 school year that are paid in fiscal
5		year 1999 or thereafter and to any State aid payments made in
6		fiscal year 1994 through fiscal year 1998 pursuant to
7		subsection 1(n) of Section 18-8 of this Code (which was
8		repealed on July 1, 1998), and any high school district that is
9		affected by Public Act 92-28 is entitled to a recomputation of
10		its supplemental general State aid grant or State aid paid in
11		any of those fiscal years. This recomputation shall not be
12		affected by any other funding.
13		(1.10) This paragraph (1.10) applies to the 2003-2004
14		school year and each school year thereafter. For purposes of
15		this subsection (H), the term "Low-Income Concentration Level"
16		shall, for each fiscal year, be the low-income eligible pupil
17		count as of July 1 of the immediately preceding fiscal year (as
18		determined by the Department of Human Services based on the
19		number of pupils who are eligible for at least one of the
20		following low income programs: Medicaid, KidCare, TANF, or Food
21		Stamps, excluding pupils who are eligible for services provided
22		by the Department of Children and Family Services, averaged
23		over the 2 immediately preceding fiscal years for fiscal year
24		2004 and over the 3 immediately preceding fiscal years for each
25		fiscal year thereafter) divided by the Average Daily Attendance
26		of the school district.
27		(2) Supplemental general State aid pursuant to this
28		subsection (H) shall be provided as follows for the 1998-1999,
29		1999-2000, and 2000-2001 school years only:
30		(a) For any school district with a Low Income
31		Concentration Level of at least 20% and less than 35%, the
32		grant for any school year shall be $800 multiplied by the
33		low income eligible pupil count.
34		(b) For any school district with a Low Income
35		Concentration Level of at least 35% and less than 50%, the
36		grant for the 1998-1999 school year shall be $1,100

1		multiplied by the low income eligible pupil count.
2		(c) For any school district with a Low Income
3		Concentration Level of at least 50% and less than 60%, the
4		grant for the 1998-99 school year shall be $1,500
5		multiplied by the low income eligible pupil count.
6		(d) For any school district with a Low Income
7		Concentration Level of 60% or more, the grant for the
8		1998-99 school year shall be $1,900 multiplied by the low
9		income eligible pupil count.
10		(e) For the 1999-2000 school year, the per pupil amount
11		specified in subparagraphs (b), (c), and (d) immediately
12		above shall be increased to $1,243, $1,600, and $2,000,
13		respectively.
14		(f) For the 2000-2001 school year, the per pupil
15		amounts specified in subparagraphs (b), (c), and (d)
16		immediately above shall be $1,273, $1,640, and $2,050,
17		respectively.
18		(2.5) Supplemental general State aid pursuant to this
19		subsection (H) shall be provided as follows for the 2002-2003
20		school year:
21		(a) For any school district with a Low Income
22		Concentration Level of less than 10%, the grant for each
23		school year shall be $355 multiplied by the low income
24		eligible pupil count.
25		(b) For any school district with a Low Income
26		Concentration Level of at least 10% and less than 20%, the
27		grant for each school year shall be $675 multiplied by the
28		low income eligible pupil count.
29		(c) For any school district with a Low Income
30		Concentration Level of at least 20% and less than 35%, the
31		grant for each school year shall be $1,330 multiplied by
32		the low income eligible pupil count.
33		(d) For any school district with a Low Income
34		Concentration Level of at least 35% and less than 50%, the
35		grant for each school year shall be $1,362 multiplied by
36		the low income eligible pupil count.

1		(e) For any school district with a Low Income
2		Concentration Level of at least 50% and less than 60%, the
3		grant for each school year shall be $1,680 multiplied by
4		the low income eligible pupil count.
5		(f) For any school district with a Low Income
6		Concentration Level of 60% or more, the grant for each
7		school year shall be $2,080 multiplied by the low income
8		eligible pupil count.
9		(2.10) Except as otherwise provided, supplemental general
10		State aid pursuant to this subsection (H) shall be provided as
11		follows for the 2003-2004 school year and each school year
12		thereafter:
13		(a) For any school district with a Low Income
14		Concentration Level of 15% or less, the grant for each
15		school year shall be $355 multiplied by the low income
16		eligible pupil count.
17		(b) For any school district with a Low Income
18		Concentration Level greater than 15%, the grant for each
19		school year shall be $294.25 added to the product of $2,700
20		and the square of the Low Income Concentration Level, all
21		multiplied by the low income eligible pupil count.
22		For the 2003-2004 school year only, the grant shall be no
23		less than the grant for the 2002-2003 school year. For the
24		2004-2005 school year only, the grant shall be no less than the
25		grant for the 2002-2003 school year multiplied by 0.66. For the
26		2005-2006 school year only, the grant shall be no less than the
27		grant for the 2002-2003 school year multiplied by 0.33.
28		For the 2003-2004 school year only, the grant shall be no
29		greater than the grant received during the 2002-2003 school
30		year added to the product of 0.25 multiplied by the difference
31		between the grant amount calculated under subsection (a) or (b)
32		of this paragraph (2.10), whichever is applicable, and the
33		grant received during the 2002-2003 school year. For the
34		2004-2005 school year only, the grant shall be no greater than
35		the grant received during the 2002-2003 school year added to
36		the product of 0.50 multiplied by the difference between the

1		grant amount calculated under subsection (a) or (b) of this
2		paragraph (2.10), whichever is applicable, and the grant
3		received during the 2002-2003 school year. For the 2005-2006
4		school year only, the grant shall be no greater than the grant
5		received during the 2002-2003 school year added to the product
6		of 0.75 multiplied by the difference between the grant amount
7		calculated under subsection (a) or (b) of this paragraph
8		(2.10), whichever is applicable, and the grant received during
9		the 2002-2003 school year.
10		(3) School districts with an Average Daily Attendance of
11		more than 1,000 and less than 50,000 that qualify for
12		supplemental general State aid pursuant to this subsection
13		shall submit a plan to the State Board of Education prior to
14		October 30 of each year for the use of the funds resulting from
15		this grant of supplemental general State aid for the
16		improvement of instruction in which priority is given to
17		meeting the education needs of disadvantaged children. Such
18		plan shall be submitted in accordance with rules and
19		regulations promulgated by the State Board of Education.
20		(4) School districts with an Average Daily Attendance of
21		50,000 or more that qualify for supplemental general State aid
22		pursuant to this subsection shall be required to distribute
23		from funds available pursuant to this Section, no less than
24		$261,000,000 in accordance with the following requirements:
25		(a) The required amounts shall be distributed to the
26		attendance centers within the district in proportion to the
27		number of pupils enrolled at each attendance center who are
28		eligible to receive free or reduced-price lunches or
29		breakfasts under the federal Child Nutrition Act of 1966
30		and under the National School Lunch Act during the
31		immediately preceding school year.
32		(b) The distribution of these portions of supplemental
33		and general State aid among attendance centers according to
34		these requirements shall not be compensated for or
35		contravened by adjustments of the total of other funds
36		appropriated to any attendance centers, and the Board of

1		Education shall utilize funding from one or several sources
2		in order to fully implement this provision annually prior
3		to the opening of school.
4		(c) Each attendance center shall be provided by the
5		school district a distribution of noncategorical funds and
6		other categorical funds to which an attendance center is
7		entitled under law in order that the general State aid and
8		supplemental general State aid provided by application of
9		this subsection supplements rather than supplants the
10		noncategorical funds and other categorical funds provided
11		by the school district to the attendance centers.
12		(d) Any funds made available under this subsection that
13		by reason of the provisions of this subsection are not
14		required to be allocated and provided to attendance centers
15		may be used and appropriated by the board of the district
16		for any lawful school purpose.
17		(e) Funds received by an attendance center pursuant to
18		this subsection shall be used by the attendance center at
19		the discretion of the principal and local school council
20		for programs to improve educational opportunities at
21		qualifying schools through the following programs and
22		services: early childhood education, reduced class size or
23		improved adult to student classroom ratio, enrichment
24		programs, remedial assistance, attendance improvement, and
25		other educationally beneficial expenditures which
26		supplement the regular and basic programs as determined by
27		the State Board of Education. Funds provided shall not be
28		expended for any political or lobbying purposes as defined
29		by board rule.
30		(f) Each district subject to the provisions of this
31		subdivision (H)(4) shall submit an acceptable plan to meet
32		the educational needs of disadvantaged children, in
33		compliance with the requirements of this paragraph, to the
34		State Board of Education prior to July 15 of each year.
35		This plan shall be consistent with the decisions of local
36		school councils concerning the school expenditure plans

1		developed in accordance with part 4 of Section 34-2.3. The
2		State Board shall approve or reject the plan within 60 days
3		after its submission. If the plan is rejected, the district
4		shall give written notice of intent to modify the plan
5		within 15 days of the notification of rejection and then
6		submit a modified plan within 30 days after the date of the
7		written notice of intent to modify. Districts may amend
8		approved plans pursuant to rules promulgated by the State
9		Board of Education.
10		Upon notification by the State Board of Education that
11		the district has not submitted a plan prior to July 15 or a
12		modified plan within the time period specified herein, the
13		State aid funds affected by that plan or modified plan
14		shall be withheld by the State Board of Education until a
15		plan or modified plan is submitted.
16		If the district fails to distribute State aid to
17		attendance centers in accordance with an approved plan, the
18		plan for the following year shall allocate funds, in
19		addition to the funds otherwise required by this
20		subsection, to those attendance centers which were
21		underfunded during the previous year in amounts equal to
22		such underfunding.
23		For purposes of determining compliance with this
24		subsection in relation to the requirements of attendance
25		center funding, each district subject to the provisions of
26		this subsection shall submit as a separate document by
27		December 1 of each year a report of expenditure data for
28		the prior year in addition to any modification of its
29		current plan. If it is determined that there has been a
30		failure to comply with the expenditure provisions of this
31		subsection regarding contravention or supplanting, the
32		State Superintendent of Education shall, within 60 days of
33		receipt of the report, notify the district and any affected
34		local school council. The district shall within 45 days of
35		receipt of that notification inform the State
36		Superintendent of Education of the remedial or corrective

1		action to be taken, whether by amendment of the current
2		plan, if feasible, or by adjustment in the plan for the
3		following year. Failure to provide the expenditure report
4		or the notification of remedial or corrective action in a
5		timely manner shall result in a withholding of the affected
6		funds.
7		The State Board of Education shall promulgate rules and
8		regulations to implement the provisions of this
9		subsection. No funds shall be released under this
10		subdivision (H)(4) to any district that has not submitted a
11		plan that has been approved by the State Board of
12		Education.
13		(I) General State Aid for Newly Configured School Districts.
14		(1) For a new school district formed by combining property
15		included totally within 2 or more previously existing school
16		districts, for its first year of existence the general State
17		aid and supplemental general State aid calculated under this
18		Section shall be computed for the new district and for the
19		previously existing districts for which property is totally
20		included within the new district. If the computation on the
21		basis of the previously existing districts is greater, a
22		supplementary payment equal to the difference shall be made for
23		the first 4 years of existence of the new district.
24		(2) For a school district which annexes all of the
25		territory of one or more entire other school districts, for the
26		first year during which the change of boundaries attributable
27		to such annexation becomes effective for all purposes as
28		determined under Section 7-9 or 7A-8, the general State aid and
29		supplemental general State aid calculated under this Section
30		shall be computed for the annexing district as constituted
31		after the annexation and for the annexing and each annexed
32		district as constituted prior to the annexation; and if the
33		computation on the basis of the annexing and annexed districts
34		as constituted prior to the annexation is greater, a
35		supplementary payment equal to the difference shall be made for

1		the first 4 years of existence of the annexing school district
2		as constituted upon such annexation.
3		(3) For 2 or more school districts which annex all of the
4		territory of one or more entire other school districts, and for
5		2 or more community unit districts which result upon the
6		division (pursuant to petition under Section 11A-2) of one or
7		more other unit school districts into 2 or more parts and which
8		together include all of the parts into which such other unit
9		school district or districts are so divided, for the first year
10		during which the change of boundaries attributable to such
11		annexation or division becomes effective for all purposes as
12		determined under Section 7-9 or 11A-10, as the case may be, the
13		general State aid and supplemental general State aid calculated
14		under this Section shall be computed for each annexing or
15		resulting district as constituted after the annexation or
16		division and for each annexing and annexed district, or for
17		each resulting and divided district, as constituted prior to
18		the annexation or division; and if the aggregate of the general
19		State aid and supplemental general State aid as so computed for
20		the annexing or resulting districts as constituted after the
21		annexation or division is less than the aggregate of the
22		general State aid and supplemental general State aid as so
23		computed for the annexing and annexed districts, or for the
24		resulting and divided districts, as constituted prior to the
25		annexation or division, then a supplementary payment equal to
26		the difference shall be made and allocated between or among the
27		annexing or resulting districts, as constituted upon such
28		annexation or division, for the first 4 years of their
29		existence. The total difference payment shall be allocated
30		between or among the annexing or resulting districts in the
31		same ratio as the pupil enrollment from that portion of the
32		annexed or divided district or districts which is annexed to or
33		included in each such annexing or resulting district bears to
34		the total pupil enrollment from the entire annexed or divided
35		district or districts, as such pupil enrollment is determined
36		for the school year last ending prior to the date when the

1		change of boundaries attributable to the annexation or division
2		becomes effective for all purposes. The amount of the total
3		difference payment and the amount thereof to be allocated to
4		the annexing or resulting districts shall be computed by the
5		State Board of Education on the basis of pupil enrollment and
6		other data which shall be certified to the State Board of
7		Education, on forms which it shall provide for that purpose, by
8		the regional superintendent of schools for each educational
9		service region in which the annexing and annexed districts, or
10		resulting and divided districts are located.
11		(3.5) Claims for financial assistance under this
12		subsection (I) shall not be recomputed except as expressly
13		provided under this Section.
14		(4) Any supplementary payment made under this subsection
15		(I) shall be treated as separate from all other payments made
16		pursuant to this Section.
17		(J) Supplementary Grants in Aid.
18		(1) Notwithstanding any other provisions of this Section,
19		the amount of the aggregate general State aid in combination
20		with supplemental general State aid under this Section for
21		which each school district is eligible shall be no less than
22		the amount of the aggregate general State aid entitlement that
23		was received by the district under Section 18-8 (exclusive of
24		amounts received under subsections 5(p) and 5(p-5) of that
25		Section) for the 1997-98 school year, pursuant to the
26		provisions of that Section as it was then in effect. If a
27		school district qualifies to receive a supplementary payment
28		made under this subsection (J), the amount of the aggregate
29		general State aid in combination with supplemental general
30		State aid under this Section which that district is eligible to
31		receive for each school year shall be no less than the amount
32		of the aggregate general State aid entitlement that was
33		received by the district under Section 18-8 (exclusive of
34		amounts received under subsections 5(p) and 5(p-5) of that
35		Section) for the 1997-1998 school year, pursuant to the

1		provisions of that Section as it was then in effect.
2		(2) If, as provided in paragraph (1) of this subsection
3		(J), a school district is to receive aggregate general State
4		aid in combination with supplemental general State aid under
5		this Section for the 1998-99 school year and any subsequent
6		school year that in any such school year is less than the
7		amount of the aggregate general State aid entitlement that the
8		district received for the 1997-98 school year, the school
9		district shall also receive, from a separate appropriation made
10		for purposes of this subsection (J), a supplementary payment
11		that is equal to the amount of the difference in the aggregate
12		State aid figures as described in paragraph (1).
13		(3) (Blank).
14		(K) Grants to Laboratory and Alternative Schools.
15		In calculating the amount to be paid to the governing board
16		of a public university that operates a laboratory school under
17		this Section or to any alternative school that is operated by a
18		regional superintendent of schools, the State Board of
19		Education shall require by rule such reporting requirements as
20		it deems necessary.
21		As used in this Section, "laboratory school" means a public
22		school which is created and operated by a public university and
23		approved by the State Board of Education. The governing board
24		of a public university which receives funds from the State
25		Board under this subsection (K) may not increase the number of
26		students enrolled in its laboratory school from a single
27		district, if that district is already sending 50 or more
28		students, except under a mutual agreement between the school
29		board of a student's district of residence and the university
30		which operates the laboratory school. A laboratory school may
31		not have more than 1,000 students, excluding students with
32		disabilities in a special education program.
33		As used in this Section, "alternative school" means a
34		public school which is created and operated by a Regional
35		Superintendent of Schools and approved by the State Board of

1		Education. Such alternative schools may offer courses of
2		instruction for which credit is given in regular school
3		programs, courses to prepare students for the high school
4		equivalency testing program or vocational and occupational
5		training. A regional superintendent of schools may contract
6		with a school district or a public community college district
7		to operate an alternative school. An alternative school serving
8		more than one educational service region may be established by
9		the regional superintendents of schools of the affected
10		educational service regions. An alternative school serving
11		more than one educational service region may be operated under
12		such terms as the regional superintendents of schools of those
13		educational service regions may agree.
14		Each laboratory and alternative school shall file, on forms
15		provided by the State Superintendent of Education, an annual
16		State aid claim which states the Average Daily Attendance of
17		the school's students by month. The best 3 months' Average
18		Daily Attendance shall be computed for each school. The general
19		State aid entitlement shall be computed by multiplying the
20		applicable Average Daily Attendance by the Foundation Level as
21		determined under this Section.
22		(L) Payments, Additional Grants in Aid and Other Requirements.
23		(1) For a school district operating under the financial
24		supervision of an Authority created under Article 34A, the
25		general State aid otherwise payable to that district under this
26		Section, but not the supplemental general State aid, shall be
27		reduced by an amount equal to the budget for the operations of
28		the Authority as certified by the Authority to the State Board
29		of Education, and an amount equal to such reduction shall be
30		paid to the Authority created for such district for its
31		operating expenses in the manner provided in Section 18-11. The
32		remainder of general State school aid for any such district
33		shall be paid in accordance with Article 34A when that Article
34		provides for a disposition other than that provided by this
35		Article.

1		(2) (Blank).
2		(3) Summer school. Summer school payments shall be made as
3		provided in Section 18-4.3.
4		(M) Education Funding Advisory Board.
5		The Education Funding Advisory Board, hereinafter in this
6		subsection (M) referred to as the "Board", is hereby created.
7		The Board shall consist of 5 members who are appointed by the
8		Governor, by and with the advice and consent of the Senate. The
9		members appointed shall include representatives of education,
10		business, and the general public. One of the members so
11		appointed shall be designated by the Governor at the time the
12		appointment is made as the chairperson of the Board. The
13		initial members of the Board may be appointed any time after
14		the effective date of this amendatory Act of 1997. The regular
15		term of each member of the Board shall be for 4 years from the
16		third Monday of January of the year in which the term of the
17		member's appointment is to commence, except that of the 5
18		initial members appointed to serve on the Board, the member who
19		is appointed as the chairperson shall serve for a term that
20		commences on the date of his or her appointment and expires on
21		the third Monday of January, 2002, and the remaining 4 members,
22		by lots drawn at the first meeting of the Board that is held
23		after all 5 members are appointed, shall determine 2 of their
24		number to serve for terms that commence on the date of their
25		respective appointments and expire on the third Monday of
26		January, 2001, and 2 of their number to serve for terms that
27		commence on the date of their respective appointments and
28		expire on the third Monday of January, 2000. All members
29		appointed to serve on the Board shall serve until their
30		respective successors are appointed and confirmed. Vacancies
31		shall be filled in the same manner as original appointments. If
32		a vacancy in membership occurs at a time when the Senate is not
33		in session, the Governor shall make a temporary appointment
34		until the next meeting of the Senate, when he or she shall
35		appoint, by and with the advice and consent of the Senate, a

1		person to fill that membership for the unexpired term. If the
2		Senate is not in session when the initial appointments are
3		made, those appointments shall be made as in the case of
4		vacancies.
5		The Education Funding Advisory Board shall be deemed
6		established, and the initial members appointed by the Governor
7		to serve as members of the Board shall take office, on the date
8		that the Governor makes his or her appointment of the fifth
9		initial member of the Board, whether those initial members are
10		then serving pursuant to appointment and confirmation or
11		pursuant to temporary appointments that are made by the
12		Governor as in the case of vacancies.
13		The State Board of Education shall provide such staff
14		assistance to the Education Funding Advisory Board as is
15		reasonably required for the proper performance by the Board of
16		its responsibilities.
17		For school years after the 2000-2001 school year, the
18		Education Funding Advisory Board, in consultation with the
19		State Board of Education, shall make recommendations as
20		provided in this subsection (M) to the General Assembly for the
21		foundation level under subdivision (B)(3) of this Section and
22		for the supplemental general State aid grant level under
23		subsection (H) of this Section for districts with high
24		concentrations of children from poverty. The recommended
25		foundation level shall be determined based on a methodology
26		which incorporates the basic education expenditures of
27		low-spending schools exhibiting high academic performance. The
28		Education Funding Advisory Board shall make such
29		recommendations to the General Assembly on January 1 of odd
30		numbered years, beginning January 1, 2001.
31		(N) (Blank).
32		(O) References.
33		(1) References in other laws to the various subdivisions of
34		Section 18-8 as that Section existed before its repeal and

1		replacement by this Section 18-8.05 shall be deemed to refer to
2		the corresponding provisions of this Section 18-8.05, to the
3		extent that those references remain applicable.
4		(2) References in other laws to State Chapter 1 funds shall
5		be deemed to refer to the supplemental general State aid
6		provided under subsection (H) of this Section.
7		(Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,
8		eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 92-636,
9		eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 7-1-03.)

10		Section 40. The Criminal Code of 1961 is amended by
11		changing Section 17A-1 as follows:
12		(720 ILCS 5/17A-1) (from Ch. 38, par. 17A-1)
13		Sec. 17A-1. Persons under deportation order; ineligible
14		for benefits. An individual against whom a United States
15		Immigration Judge has issued an order of deportation which has
16		been affirmed by the Board of Immigration Review, as well as an
17		individual who appeals such an order pending appeal, under
18		paragraph 19 of Section 241(a) of the Immigration and
19		Nationality Act relating to persecution of others on account of
20		race, religion, national origin or political opinion under the
21		direction of or in association with the Nazi government of
22		Germany or its allies, shall be ineligible for the following
23		benefits authorized by State law:
24		(a) The homestead exemptions exemption and homestead
25		improvement exemption under Sections 15-170, 15-175,
26		15-176,and 15-180 of the Property Tax Code.
27		(b) Grants under the Senior Citizens and Disabled Persons
28		Property Tax Relief and Pharmaceutical Assistance Act.
29		(c) The double income tax exemption conferred upon persons
30		65 years of age or older by Section 204 of the Illinois Income
31		Tax Act.
32		(d) Grants provided by the Department on Aging.
33		(e) Reductions in vehicle registration fees under Section
34		3-806.3 of the Illinois Vehicle Code.

1		(f) Free fishing and reduced fishing license fees under
2		Sections 20-5 and 20-40 of the Fish and Aquatic Life Code.
3		(g) Tuition free courses for senior citizens under the
4		Senior Citizen Courses Act.
5		(h) Any benefits under the Illinois Public Aid Code.
6		(Source: P.A. 87-895; 88-670, eff. 12-2-94.)

7		Section 90. The State Mandates Act is amended by adding
8		Section 8.28 as follows:
9		(30 ILCS 805/8.28 new)
10		Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
11		of this Act, no reimbursement by the State is required for the
12		implementation of any mandate created by (i) the Senior
13		Citizens Assessment Freeze Homestead Exemption under Section
14		15-172 of the Property Tax Code or (ii) the General Homestead
15		Exemption in counties subject to the Property Tax Extension
16		Limitation Law under Section 15-176 of the Property Tax Code.

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