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105 ILCS 5/2-3.170
(105 ILCS 5/2-3.170)
Property tax relief pool grants.
(a) As used in this Section,
"EAV" means equalized assessed valuation as defined under Section 18-8.15 of this Code.
"Property tax multiplier" equals one minus the square of the school district's Local Capacity Percentage, as defined in Section 18-8.15 of this Code.
"State Board" means the State Board of Education.
"Unit equivalent tax rate" means the Adjusted Operating Tax Rate, as defined in Section 18-8.15 of this Code, multiplied by a factor of 1 for unit school districts, 13/9 for elementary school districts, and 13/4 for high school districts.
(b) Subject to appropriation, the State Board shall provide grants to eligible school districts that provide tax relief to the school district's residents, which may be no greater than 1% of EAV for a unit district, 0.69% of EAV for an elementary school district, or 0.31% of EAV for a high school district, as provided in this Section.
(b-5) Each year, the State Board shall set a threshold above which any school district in this State may apply for property tax relief under this Section. School districts may apply for this relief concurrently to setting their levy for the fiscal year. The intended relief may not be greater than 1% of the EAV for a unit district, 0.69% of the EAV for an elementary school district, or 0.31% of the EAV for a high school district. The State Board shall process applications for relief, providing a grant to those districts with the highest unit equivalent tax rate first, in an amount equal to the intended relief multiplied by the property tax multiplier. The State Board shall provide grants to school districts in order of priority until the property tax relief pool is exhausted.
If a school district receives the State Board's approval of a grant under this Section by March 1 of the fiscal year, the school district shall present a duly authorized and approved abatement resolution by March 30 of the fiscal year to the county clerk, authorizing the county clerk to lower the school district's levy by the amount designated in its application to the State Board. When the preceding requisites are satisfied, the county clerk shall reduce the amount collected for the school district by the amount indicated in the school district's abatement resolution for that fiscal year.
(c) Each year, the State Board shall publish an estimated threshold unit equivalent tax rate. School districts whose adjusted operating tax rate, as defined in this Section, is greater than the estimated threshold unit equivalent tax rate are eligible for relief under this Section. This estimated tax rate shall be based on the most recent available data provided by school districts pursuant to Section 18-8.15 of this Code. The State Board shall estimate this property tax rate based on the amount appropriated to the grant program and the assumption that a set of school districts, based on criteria established by the State Board, will apply for grants under this Section. The criteria shall be based on reasonable assumptions about when school districts will apply for the grant.
(d) School districts seeking grants under this Section shall apply to the State Board each year. All applications to the State Board for grants shall include the amount of the tax relief intended by the school district.
(e) Each year, based on the most recent available data provided by school districts pursuant to Section 18-8.15 of this Code, the State Board shall calculate the unit equivalent tax rate, based on the applications received by the State Board, above which the appropriations are sufficient to provide relief and publish a list of the school districts eligible for relief. The State Board shall first provide grants to those districts with the highest unit equivalent tax rates.
(f) The State Board shall publish a final list of grant recipients and provide payment of the grants by March 1 of each year.
(g) If notice of payment from the State Board is received by a school district by March 1, then by March 30, the school district shall file an abatement of its property tax levy in an amount equal to the grant received under this Section divided by the property tax multiplier. Payment of all grant amounts shall be made by June 1 each fiscal year. The State Superintendent of Education shall establish the timeline in such cases in which notice cannot be made by March 1.
(h) The total property tax relief allowable to a school district under this Section shall be calculated based on the total amount of reduction in the school district's aggregate extension. The total grant shall be equal to the reduction, multiplied by the property tax multiplier. The reduction shall be limited to the lesser of (i) 1% of a district's EAV for a unit school district, 0.69% for an elementary school district, or 0.31% for a high school district or (ii) the amount that the unit equivalent tax rate is greater than the threshold unit equivalent tax rate determined by the State Board, multiplied by the school district's EAV. If clause (ii) of this subsection (h) is the lesser value and the difference between the school district's unit equivalent tax rate and the threshold unit equivalent tax rate is less than 1%, then the difference is multiplied by 1 for a unit school district, by 0.69 for an elementary school district, or by 0.31 for a high school district.
(i) If the State Board does not expend all appropriations allocated pursuant to this Section, then any remaining funds shall be allocated pursuant to Section 18-8.15 of this Code.
(j) The State Board shall prioritize payments under Section 18-8.15 of this Code over payments under this Section, if necessary.
(k) Any grants received by a school district shall be included in future calculations of that school district's Base Funding Minimum under Section 18-8.15 of this Code.
(l) In the tax year following receipt of a Property Tax Pool Relief Grant, the aggregate levy of any school district receiving a grant under this Section, for purposes of the Property Tax Extension Limitation Law, shall include the tax relief the school district provided in the previous taxable year under this Section.
(Source: P.A. 100-465, eff. 8-31-17; 100-582, eff. 3-23-18; 100-863, eff. 8-14-18.)