101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0924

 

Introduced , 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 in its educational fund, then the school district's extension for educational 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 for educational purposes shall be reduced by an amount equal to the difference between the district's educational reserve amount for the immediately preceding levy year and a reserve amount of 60% for that levy year. Effective July 1, 2020.


LRB101 05498 HLH 50513 b

 

 

A BILL FOR

 

HB0924LRB101 05498 HLH 50513 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 in its educational fund, 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 educational 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

 

 

HB0924- 2 -LRB101 05498 HLH 50513 b

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 for
5a particular levy year, the county clerk shall calculate 2
6separate limiting rates, one for educational purposes under
7this Section and one for the sum of all other funds that are
8included in the district's aggregate extension under the
9Property Tax Extension Limitation Law.
10    (d) For a school district that has reserves of 50% or more
11but not more than 60% in its educational fund at the end of the
12immediately preceding levy year, as determined by the State
13Board of Education, "educational limiting rate" means a
14fraction the numerator of which is the district's last
15preceding extension for educational purposes and the
16denominator of which is the current year's equalized assessed
17value of all real property in the territory under the
18jurisdiction of the district during the prior levy year. For a
19school district that has reserves of 60% or more at the end of
20the immediately preceding levy year, as determined by the State
21Board of Education, "educational limiting rate" means a
22fraction (i) the numerator of which is the district's last
23preceding extension for educational purposes minus the
24difference between the district's educational reserve amount
25for the immediately preceding levy year and a reserve amount of
2660% for that levy year and (ii) the denominator of which is the

 

 

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

 

 

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1    (35 ILCS 200/20-15)
2    Sec. 20-15. Information on bill or separate statement.
3There shall be printed on each bill, or on a separate slip
4which shall be mailed with the bill:
5        (a) a statement itemizing the rate at which taxes have
6    been extended for each of the taxing districts in the
7    county in whose district the property is located, and in
8    those counties utilizing electronic data processing
9    equipment the dollar amount of tax due from the person
10    assessed allocable to each of those taxing districts,
11    including a separate statement of the dollar amount of tax
12    due which is allocable to a tax levied under the Illinois
13    Local Library Act or to any other tax levied by a
14    municipality or township for public library purposes,
15        (b) a separate statement for each of the taxing
16    districts of the dollar amount of tax due which is
17    allocable to a tax levied under the Illinois Pension Code
18    or to any other tax levied by a municipality or township
19    for public pension or retirement purposes,
20        (c) the total tax rate,
21        (d) the total amount of tax due, and
22        (e) the amount by which the total tax and the tax
23    allocable to each taxing district differs from the
24    taxpayer's last prior tax bill, and .
25        (f) if the property is located in a school district
26    that had its extension for educational purposes reduced by

 

 

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

 

 

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1accordance with Section 4 of Article IX of the Illinois
2Constitution, for parcels of residential property in the lowest
3assessment classification the statement shall also include a
4statement to reflect the fair cash value determined for the
5property.
6    In all counties, the statement must include information
7that certain taxpayers may be eligible for tax exemptions,
8abatements, and other assistance programs and that, for more
9information, taxpayers should consult with the office of their
10township or county assessor and with the Illinois Department of
11Revenue.
12    In counties which use the estimated or accelerated billing
13methods, these statements shall only be provided with the final
14installment of taxes due. The provisions of this Section create
15a mandatory statutory duty. They are not merely directory or
16discretionary. The failure or neglect of the collector to mail
17the bill, or the failure of the taxpayer to receive the bill,
18shall not affect the validity of any tax, or the liability for
19the payment of any tax.
20(Source: P.A. 99-143, eff. 7-27-15; 100-621, eff. 7-20-18.)
 
21    Section 99. Effective date. This Act takes effect July 1,
222020.