101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5577

 

Introduced , by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/2-3.170

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


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
52-3.170 as follows:
 
6    (105 ILCS 5/2-3.170)
7    Sec. 2-3.170. Property tax relief pool grants.
8    (a) As used in this Section,
9    "EAV" means equalized assessed valuation as defined under
10Section 18-8.15 of this Code.
11    "Property tax multiplier" equals one minus the square of
12the school district's Local Capacity Percentage, as defined in
13Section 18-8.15 of this Code.
14    "Local capacity percentage multiplier" means one minus the
15school district's Local Capacity Percentage, as defined in
16Section 18-8.15.
17    "State Board" means the State Board of Education.
18    (b) Subject to appropriation, the State Board shall provide
19grants to eligible school districts that provide tax relief to
20the school district's residents, which may be no greater than
211% of EAV for a unit district, 0.69% of EAV for an elementary
22school district, or 0.31% of EAV for a high school district, as
23provided in this Section.

 

 

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1    (b-5) School districts may apply for property tax relief
2under this Section concurrently to setting their levy for the
3fiscal year. The intended relief may not be greater than 1% of
4the EAV for a unit district, 0.69% of the EAV for an elementary
5school district, or 0.31% of the EAV for a high school
6district, multiplied by the school district's local capacity
7percentage multiplier. The State Board shall process
8applications for relief, providing a grant to those districts
9with the highest operating tax rate, as determined by those
10districts with the highest percentage of the simple average
11operating tax rate of districts of the same type, either
12elementary, high school, or unit, first, in an amount equal to
13the intended relief multiplied by the property tax multiplier.
14The State Board shall provide grants to school districts in
15order of priority until the property tax relief pool is
16exhausted. If more school districts apply for relief under this
17subsection than there are funds available, the State Board must
18distribute the grants and prorate any remaining funds to the
19final school district that qualifies for grant relief. The
20abatement amount for that district must be equal to the grant
21amount divided by the property tax multiplier.
22    If a school district receives the State Board's approval of
23a grant under this Section by March 1 of the fiscal year, the
24school district shall present a duly authorized and approved
25abatement resolution by March 30 of the fiscal year to the
26county clerk of each county in which the school files its levy,

 

 

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1authorizing the county clerk to lower the school district's
2levy by the amount designated in its application to the State
3Board. When the preceding requisites are satisfied, the county
4clerk shall reduce the amount collected for the school district
5by the amount indicated in the school district's abatement
6resolution for that fiscal year.
7    (c) (Blank).
8    (d) School districts seeking grants under this Section
9shall apply to the State Board each year. All applications to
10the State Board for grants shall include the amount of the tax
11relief intended by the school district.
12    (e) Each year, based on the most recent available data
13provided by school districts pursuant to Section 18-8.15 of
14this Code, the State Board shall calculate the order of
15priority for grant eligibility under subsection (b-5) and
16publish a list of the school districts eligible for relief. The
17State Board shall provide grants in the manner provided under
18subsection (b-5).
19    (f) The State Board shall publish a final list of eligible
20grant recipients and provide payment of the grants by March 1
21of each year.
22    (g) If notice of eligibility from the State Board is
23received by a school district by March 1, then by March 30, the
24school district shall file an abatement of its property tax
25levy in an amount equal to the grant received under this
26Section divided by the property tax multiplier. Payment of all

 

 

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1grant amounts shall be made by June 1 each fiscal year. The
2State Superintendent of Education shall establish the timeline
3in such cases in which notice cannot be made by March 1.
4    (h) The total property tax relief allowable to a school
5district under this Section shall be calculated based on the
6total amount of reduction in the school district's aggregate
7extension. The total grant shall be equal to the reduction,
8multiplied by the property tax multiplier. The reduction shall
9be equal to 1% of a district's EAV for a unit school district,
100.69% for an elementary school district, or 0.31% for a high
11school district, multiplied by the school district's local
12capacity percentage multiplier.
13    (i) If the State Board does not expend all appropriations
14allocated pursuant to this Section, then any remaining funds
15shall be allocated pursuant to Section 18-8.15 of this Code.
16    (j) The State Board shall prioritize payments under Section
1718-8.15 of this Code over payments under this Section, if
18necessary.
19    (k) Any grants received by a school district shall be
20included in future calculations of that school district's Base
21Funding Minimum under Section 18-8.15 of this Code. Beginning
22with Fiscal Year 2020, if a school district receives a grant
23under this Section, the school district must present to the
24county clerk a duly authorized and approved abatement
25resolution by March 30 for the year in which the school
26district receives the grant and the successive fiscal year

 

 

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1following the receipt of the grant, authorizing the county
2clerk to lower the school district's levy by the amount
3designated in its original application to the State Board.
4After receiving a resolution, the county clerk must reduce the
5amount collected for the school district by the amount
6indicated in the school district's abatement resolution for
7that fiscal year. If a school district does not abate in this
8amount for the successive fiscal year, the grant amount may not
9be included in the school district's Base Funding Minimum under
10Section 18-8.15 in the fiscal year following the tax year in
11which the abatement is not authorized and in any future fiscal
12year thereafter, and the county clerk must notify the State
13Board of the increase no later 30 days after it occurs.
14    (l) In the immediate 2 consecutive tax years year following
15receipt of a Property Tax Pool Relief Grant, the aggregate
16extension base levy of any school district receiving a grant
17under this Section, for purposes of the Property Tax Extension
18Limitation Law, shall include the tax relief the school
19district provided in the previous taxable year under this
20Section.
21(Source: P.A. 100-465, eff. 8-31-17; 100-582, eff. 3-23-18;
22100-863, eff. 8-14-18; 101-17, eff. 6-14-19.)
 
23    Section 99. Effective date. This Act takes effect July 1,
242020.