HB4680 98TH GENERAL ASSEMBLY

LRB098 17283 OMW 52377 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4680

Introduced , by Rep. Robert W. Pritchard

SYNOPSIS AS INTRODUCED:

105 ILCS 5/17-3	from Ch. 122, par. 17-3
105 ILCS 5/17-5	from Ch. 122, par. 17-5

Amends the School Code. Provides that no elementary or high school district established pursuant to the Conversion and Formation of School Districts Article may levy taxes for educational purposes at a rate greater than 2.0% of the value as equalized or assessed by the Department of Revenue or for operations and maintenance purposes at a rate greater than 0.375% of the value as equalized or assessed by the Department of Revenue. Provides that in districts maintaining grades 1 through 8 or grades 9 through 12, the maximum rate for educational purposes shall not exceed 3.5% of the value as equalized or assessed by the Department of Revenue for taxes levied for 2015 or prior years, shall not exceed 3.2% for taxes levied for 2016, shall not exceed 2.9% for taxes levied for 2017, shall not exceed 2.6% for taxes levied for 2018, shall not exceed 2.3% for taxes levied for 2019, and shall not exceed 2.0% for taxes levied for 2020 or thereafter (now, the maximum rate is 3.5%). Provides that in districts maintaining grades 1 through 8 or grades 9 through 12, the maximum rate for operations and maintenance purposes shall not exceed 0.55% for taxes levied for 2015 or prior years, shall not exceed 0.475% for taxes levied for 2016, shall not exceed 0.45% for taxes levied for 2017, shall not exceed 0.425% for taxes levied for 2018, shall not exceed 0.40% for taxes levied for 2019, and shall not exceed 0.375% for taxes levied for 2020 or thereafter (now, the maximum rate is 0.55%).

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

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

Section 5. The School Code is amended by changing Sections 17-3 and 17-5 and as follows:

(105 ILCS 5/17-3) (from Ch. 122, par. 17-3)

Sec. 17-3. Additional levies-Submission to voters.

(a) The school board in any district having a population of less than 500,000 inhabitants may, by proper resolution, cause a proposition to increase, for a limited period of not less than 3 nor more than 10 years or for an unlimited period, the annual tax rate for educational purposes to be submitted to the voters of such district at a regular scheduled election as follows:

(1) in districts maintaining grades 1 through 8, or grades 9 through 12, the maximum rate for educational purposes shall not exceed 3.5% of the value as equalized or assessed by the Department of Revenue for taxes levied for 2015 or prior years, shall not exceed 3.2% for taxes levied for 2016, shall not exceed 2.9% for taxes levied for 2017, shall not exceed 2.6% for taxes levied for 2018, shall not exceed 2.3% for taxes levied for 2019, and shall not exceed 2.0% for taxes levied for 2020 or thereafter;

(2) in districts maintaining grades 1 through 12 the maximum rate for educational purposes shall not exceed 4.00% of the value as equalized or assessed by the Department of Revenue except that if a single elementary district and a secondary district having boundaries that are coterminous form a community unit district on or after the effective date of this amendatory Act of the 94th General Assembly and the actual combined rate of the elementary district and secondary district prior to the formation of the community unit district is greater than 4.00%, then the maximum rate for educational purposes for such district shall be the following:

(A) For 2 years following the formation of the community unit district, the maximum rate shall equal the actual combined rate of the previous elementary district and secondary district.

(B) In each subsequent year, the maximum rate shall be reduced by 0.10% or reduced to 4.00%, whichever reduction is less. The school board may, by proper resolution, cause a proposition to increase the reduced rate, not to exceed the maximum rate in clause (A), to be submitted to the voters of the district at a regular scheduled election as provided under this Section. Nothing in this Section shall require that the maximum rate for educational purpose for a district maintaining grades one through 12 be reduced below 4.00%.

If the resolution of the school board seeks to increase the annual tax rate for educational purposes for a limited period of not less than 3 nor more than 10 years, the proposition shall so state and shall identify the years for which the tax increase is sought.

If a majority of the votes cast on the proposition is in favor thereof at an election for which the election authorities have given notice either (i) in accordance with Section 12-5 of the Election Code or (ii) by publication of a true and legible copy of the specimen ballot label containing the proposition in the form in which it appeared or will appear on the official ballot label on the day of the election at least 5 days before the day of the election in at least one newspaper published in and having a general circulation in the district, the school board may thereafter, until such authority is revoked in like manner, levy annually the tax so authorized; provided that if the proposition as approved limits the increase in the annual tax rate of the district for educational purposes to a period of not less than 3 nor more than 10 years, the district may, unless such authority is sooner revoked in like manner, levy annually the tax so authorized for the limited number of years approved by a majority of the votes cast on the proposition. Upon expiration of that limited period, the rate at which the district may annually levy its tax for educational purposes shall be the rate provided under Section 17-2, or the rate at which the district last levied its tax for educational purposes prior to approval of the proposition authorizing the levy of that tax at an increased rate, whichever is greater.

The school board shall certify the proposition to the proper election authorities in accordance with the general election law.

The provisions of this Section concerning notice of the tax rate increase referendum apply only to consolidated primary elections held prior to January 1, 2002 at which not less than 55% of the voters voting on the tax rate increase proposition voted in favor of the tax rate increase proposition.

(b) Beginning on the effective date of this amendatory Act of the 97th General Assembly, if a unit district is being established from an elementary district or districts and a high school district, pursuant to Article 11E of this Code, and the combined rate of the elementary district or districts and the high school district prior to the formation of the unit district is greater than 4.00% for educational purposes, then the maximum rate for educational purposes for the unit district shall be the following:

(1) For the first year following the formation of the new unit district, the maximum rate shall equal the lesser of the actual combined rate of the previous highest elementary district rate and the high school district rate or 6.40%.

(2) For the second year after the formation of the new unit district, the maximum rate shall equal the lesser of the actual combined rate of the previous highest elementary district rate and the high school district rate or 5.80%.

(3) For the third year after the formation of the new unit district, the maximum rate shall equal the lesser of the actual combined rate of the previous highest elementary district rate and the high school district rate or 5.20%.

(4) For the fourth year after the formation of the new unit district, the maximum rate shall equal the lesser of the actual combined rate of the previous highest elementary district rate and the high school district rate or 4.60%.

(5) For the fifth year after the formation of the new unit district and thereafter, the maximum rate shall be no greater than 4.00%.

(c) Beginning on the effective date of this amendatory Act of the 98th General Assembly, no elementary or high school district established pursuant to Article 11E of this Code may levy taxes for educational purposes at a rate greater than 2.0% of the value as equalized or assessed by the Department of Revenue.

(Source: P.A. 97-1022, eff. 1-1-13.)

(105 ILCS 5/17-5) (from Ch. 122, par. 17-5)

Sec. 17-5. Increase tax rates for operations and maintenance purposes-Maximum.

(a) The school board in any district having a population of less than 500,000 inhabitants may, by proper resolution, cause a proposition to increase the annual tax rate for operations and maintenance purposes to be submitted to the voters of the district at a regular scheduled election. The board shall certify the proposition to the proper election authority for submission to the elector in accordance with the general election law. In districts maintaining grades 1 through 8, or grades 9 through 12, the maximum rate for operations and maintenance purposes shall not exceed .55% for taxes levied for 2015 or prior years, shall not exceed 0.475% for taxes levied for 2016, shall not exceed 0.45% for taxes levied for 2017, shall not exceed 0.425% for taxes levied for 2018, shall not exceed 0.40% for taxes levied for 2019, and shall not exceed 0.375% for taxes levied for 2020 or thereafter; and in districts maintaining grades 1 through 12, the maximum rates for operations and maintenance purposes shall not exceed .75%, except that if a single elementary district and a secondary district having boundaries that are coterminous on the effective date of this amendatory Act form a community unit district as authorized under Section 11-6, the maximum rate for operation and maintenance purposes for such district shall not exceed 1.10% of the value as equalized or assessed by the Department of Revenue; and in such district maintaining grades 1 through 12, funds may, subject to the provisions of Section 17-5.1 accumulate to not more than 5% of the equalized assessed valuation of the district. No such accumulation shall ever be transferred or used for any other purpose. If a majority of the votes cast on the proposition is in favor thereof, the school board may thereafter, until such authority is revoked in like manner, levy annually a tax as authorized.

(b) Beginning on the effective date of this amendatory Act of the 97th General Assembly, if a unit district is being established from an elementary district or districts and a high school district, pursuant to Article 11E of this Code, and the combined rate of the elementary district or districts and the high school district prior to the formation of the unit district is greater than 0.75% for operations and maintenance purposes, then the maximum rate for operations and maintenance purposes for the unit district shall be the following:

(1) For the first year following formation of the new unit district, the maximum rate shall equal the lesser of the actual combined rate of the previous highest elementary district rate and the high school district rate or 1.03%.

(2) For the second year after formation of the new unit district, the maximum rate shall equal the lesser of the actual combined rate of the previous highest elementary district rate and the high school district rate or 0.96%.

(3) For the third year after the formation of the new unit district, the maximum rate shall equal the lesser of the actual combined rate of the previous highest elementary district rate and the high school district rate or 0.89%.

(4) For the fourth year after the formation of the new unit district, the maximum rate shall equal the lesser of the actual combined rate of the previous highest elementary district rate and the high school district rate or 0.82%.

(5) For the fifth year after the formation of the new unit district and thereafter, the maximum rate shall be no greater than 0.75%.

(c) Beginning on the effective date of this amendatory Act of the 98th General Assembly, no elementary or high school district established pursuant to Article 11E of this Code may levy taxes for operations and maintenance purposes at a rate greater than 0.375% of the value as equalized or assessed by the Department of Revenue.

(Source: P.A. 97-1022, eff. 1-1-13.)