103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3645

 

Introduced 2/17/2023, by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/Art. 18 Div. 7 heading new
35 ILCS 200/18-280 new
35 ILCS 200/18-285 new
35 ILCS 200/18-290 new
35 ILCS 200/20-15

    Amends the Property Tax Code. Creates the School District Extension Freeze Law. Provides that, if at the end of any levy year, a school district has reserves of 50% or more of its operating budget, then the school district's extension for all purposes may not exceed its extension for the previous levy year. Provides that, if the school district has reserves of 60% or more at the end of the immediately preceding levy year, then the district's extension shall be reduced by an amount equal to the difference between the district's reserve amount for the immediately preceding levy year and a reserve amount of 60% for that levy year. Effective July 1, 2023.


LRB103 27821 HLH 54199 b

 

 

A BILL FOR

 

HB3645LRB103 27821 HLH 54199 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by adding
5Division 7 to Article 18 and by changing Section 20-15 as
6follows:
 
7    (35 ILCS 200/Art. 18 Div. 7 heading new)
8
Division 7. School District Extension Freeze Law

 
9    (35 ILCS 200/18-280 new)
10    Sec. 18-280. Short title. This Division 7 may be cited as
11the School District Extension Freeze Law.
 
12    (35 ILCS 200/18-285 new)
13    Sec. 18-285. Limitation.
14    (a) If, at the end of any levy year, any school district
15has reserves of 50% or more of its operating budget, as
16determined by the State Board of Education, then, for the next
17levy year, the county clerk shall extend a rate for that
18district for all purposes that is no greater than the
19educational limiting rate.
20    (b) Each school district shall transmit to the State Board
21of Education any information required by the State Board of

 

 

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1Education, by rule, for the purposes of making the
2determination required under this Section.
3    (c) In the case of a school district that is subject to
4both the Property Tax Extension Limitation Law and this Law,
5the provisions of the Property Tax Extension Limitation Law
6shall be suspended for that district for any levy year in which
7the district is subject to the educational limiting rate under
8this Division.
9    (d) For a school district that has reserves of 50% or more
10but not more than 60% of its operating budget at the end of the
11immediately preceding levy year, as determined by the State
12Board of Education, "educational limiting rate" means a
13fraction the numerator of which is the district's last
14preceding extension for all purposes and the denominator of
15which is the current year's equalized assessed value of all
16real property in the territory under the jurisdiction of the
17district during the prior levy year. For a school district
18that has reserves of 60% or more of its operating budget at the
19end of the immediately preceding levy year, as determined by
20the State Board of Education, "educational limiting rate"
21means a fraction (i) the numerator of which is the district's
22last preceding extension for all purposes minus the difference
23between the district's reserve amount for the immediately
24preceding levy year and a reserve amount of 60% for that levy
25year and (ii) the denominator of which is the current year's
26equalized assessed value of all real property in the territory

 

 

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1under the jurisdiction of the taxing district during the prior
2levy year. In either case, the denominator shall not include
3new property or the recovered tax increment value, as defined
4in the Property Tax Extension Limitation Law.
 
5    (35 ILCS 200/18-290 new)
6    Sec. 18-290. Referendum to increase the educational
7limiting rate. A school district may increase its educational
8limiting rate for one or more levy years if the district holds
9a referendum before the levy date for the first levy year at
10which a majority of voters voting on the issue approves the
11higher educational limiting rate. Referenda shall be conducted
12at a regularly scheduled election in accordance with the
13Election Code. The question shall be presented in
14substantially the following manner:
15        Shall the educational limiting rate for (school
16    district) be increased from (applicable educational
17    limiting rate) to (insert proposed educational limiting
18    rate) for (insert each levy year for which the increased
19    extension limitation will apply)?
20    The votes must be recorded as "Yes" or "No".
21    If a majority of voters voting on the issue approves the
22adoption of the increase, the increase shall be applicable for
23each levy year specified.
 
24    (35 ILCS 200/20-15)

 

 

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1    Sec. 20-15. Information on bill or separate statement.
2There shall be printed on each bill, or on a separate slip
3which shall be mailed with the bill:
4        (a) a statement itemizing the rate at which taxes have
5    been extended for each of the taxing districts in the
6    county in whose district the property is located, and in
7    those counties utilizing electronic data processing
8    equipment the dollar amount of tax due from the person
9    assessed allocable to each of those taxing districts,
10    including a separate statement of the dollar amount of tax
11    due which is allocable to a tax levied under the Illinois
12    Local Library Act or to any other tax levied by a
13    municipality or township for public library purposes,
14        (b) a separate statement for each of the taxing
15    districts of the dollar amount of tax due which is
16    allocable to a tax levied under the Illinois Pension Code
17    or to any other tax levied by a municipality or township
18    for public pension or retirement purposes,
19        (b-5) a list of each tax increment financing (TIF)
20    district in which the property is located and the dollar
21    amount of tax due that is allocable to the TIF district,
22        (c) the total tax rate,
23        (d) the total amount of tax due, and
24        (e) the amount by which the total tax and the tax
25    allocable to each taxing district differs from the
26    taxpayer's last prior tax bill, and .

 

 

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1    (f) if the property is located in a school district that
2had its extension reduced by operation of the School District
3Extension Freeze Law because it retained reserves of 60% or
4more at the end of the immediately preceding levy year, then a
5separate statement setting forth the amount by which the
6extension for educational purposes was reduced.
7    The county treasurer shall ensure that only those taxing
8districts in which a parcel of property is located shall be
9listed on the bill for that property.
10    In all counties the statement shall also provide:
11        (1) the property index number or other suitable
12    description,
13        (2) the assessment of the property,
14        (3) the statutory amount of each homestead exemption
15    applied to the property,
16        (4) the assessed value of the property after
17    application of all homestead exemptions,
18        (5) the equalization factors imposed by the county and
19    by the Department, and
20        (6) the equalized assessment resulting from the
21    application of the equalization factors to the basic
22    assessment.
23    In all counties which do not classify property for
24purposes of taxation, for property on which a single family
25residence is situated the statement shall also include a
26statement to reflect the fair cash value determined for the

 

 

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1property. In all counties which classify property for purposes
2of taxation in accordance with Section 4 of Article IX of the
3Illinois Constitution, for parcels of residential property in
4the lowest assessment classification the statement shall also
5include a statement to reflect the fair cash value determined
6for the property.
7    In all counties, the statement must include information
8that certain taxpayers may be eligible for tax exemptions,
9abatements, and other assistance programs and that, for more
10information, taxpayers should consult with the office of their
11township or county assessor and with the Illinois Department
12of Revenue.
13    In counties which use the estimated or accelerated billing
14methods, these statements shall only be provided with the
15final installment of taxes due. The provisions of this Section
16create a mandatory statutory duty. They are not merely
17directory or discretionary. The failure or neglect of the
18collector to mail the bill, or the failure of the taxpayer to
19receive the bill, shall not affect the validity of any tax, or
20the liability for the payment of any tax.
21(Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)
 
22    Section 99. Effective date. This Act takes effect July 1,
232023.