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90_HB3117
15 ILCS 20/38.4 new
30 ILCS 105/5.480 new
30 ILCS 115/7 new
35 ILCS 200/18-162 new
35 ILCS 200/18-255
35 ILCS 200/20-15
35 ILCS 200/21-30
Amends the State Finance Act and the State Revenue
Sharing Act to create the Property Tax Relief Fund. Provides
that the Governor shall include in each State budget a
transfer, and shall direct the transfer of, as soon as
practical after July 1, 1998 and each July 1 thereafter an
amount equal to 25% of the projected revenue growth in the
State's general funds, as estimated by the Bureau of the
Budget, into the Property Tax Relief Fund, a special fund
created in the State treasury. Provides that beginning July
1, 1999 and each July 1 thereafter the Governor shall also
provide for deposit into the Fund of an amount equal to the
amount deposited into the Fund in the previous fiscal year.
Provides for distribution of the Fund, as determined by the
Department of Revenue, to school districts subject to the
School Code. Amends the Property Tax Code to provide for
abatement of a portion of real property taxes based on the
amount of funds distributed to the school district in which
the property is located from the Property Tax Relief Fund.
Amends the Civil Administrative Code of Illinois to provide
that the Governor shall include in each State budget a
transfer, and shall direct the transfer of, as soon as
practical after July 1, 1998 and each July 1 thereafter an
amount equal to 25% of the projected revenue growth in the
State's general fund into the Education Assistance Fund.
Effective July 1, 1998.
LRB9009005KDksA
LRB9009005KDksA
1 AN ACT in relation to property taxes, amending named
2 Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Civil Administrative Code of Illinois is
6 amended by adding Section 38.4 as follows:
7 (15 ILCS 20/38.4 new)
8 Sec. 38.4. Fund Education First. The Governor shall
9 include in each State budget a transfer, and the Governor
10 shall direct the transfer of, as soon as practical after July
11 1, 1998 and each July 1 thereafter an amount equal to 25% of
12 the projected revenue growth in the State's general funds, as
13 estimated by the Bureau of the Budget, into the Education
14 Assistance Fund.
15 Section 10. The State Finance Act is amended by adding
16 Section 5.480 as follows:
17 (30 ILCS 105/5.480 new)
18 Sec. 5.480. The Property Tax Relief Fund.
19 Section 15. The State Revenue Sharing Act is amended by
20 adding Section 7 as follows:
21 (30 ILCS 115/7 new)
22 Sec. 7. Property Tax Relief Fund. There is hereby
23 created the Property Tax Relief Fund, a special fund in the
24 State Treasury.
25 For purposes of this Section, "Department" means the
26 Department of Revenue and "levy year" has the same meaning as
27 "year" under Section 1-155 of the Property Tax Code.
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1 For purposes of this Section, "allocation basis levy
2 year" is the levy year 2 years prior to the distribution
3 year.
4 For purposes of this Section, the "operating tax rate"
5 shall consist of all school district property taxes extended
6 for all purposes, except community college educational
7 purposes for the payment of tuition under Section 6-1 of the
8 Public Community College Act, Bond and Interest, Summer
9 School, Rent, Capital Improvement, and Vocational Education
10 Building purposes.
11 The Governor shall include in each State budget a
12 transfer, and the Governor shall direct the transfer of, into
13 the Property Tax Relief Fund (i) as soon as practical after
14 July 1, 1998 and each July 1 thereafter an amount equal to
15 25% of the projected revenue growth in the State's general
16 funds, as estimated by the Bureau of the Budget, and (ii) as
17 soon as practical after July 1, 1999 and each July 1
18 thereafter an amount equal to the amount that was deposited
19 into the Property Tax Relief Fund in the immediately
20 preceding fiscal year.
21 By December 1 of each year, beginning December 1, 1998,
22 the Bureau of the Budget shall certify to the Department of
23 Revenue its estimate of the funds that will be available for
24 distribution from the Property Tax Relief Fund in the next
25 calendar year.
26 The Department shall determine the amount to be
27 distributed to the County Treasurer of each county for each
28 school district subject to the School Code in the county from
29 the Property Tax Relief Fund for each calendar year,
30 beginning in 1999. On or before January 1, 1999 and each
31 January 1 thereafter, the Department shall certify to each
32 county clerk the amount to be distributed for each school
33 district in the county that year. The amount shall equal the
34 Bureau of the Budget's estimate of the funds available for
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1 the Property Tax Relief Fund for the fiscal year in effect at
2 the beginning of the calendar year in which the funds will be
3 distributed multiplied by an allocation factor for each
4 school district. The allocation factor shall equal the
5 amount extended for the operating tax rate of each county's
6 portion of each school district on the classes of property
7 eligible for the School Tax Abatement under Section 18-162 of
8 the Property Tax Code divided by the sum of the total of such
9 extensions for all school districts in the State. The data
10 used in determining this factor shall be the most recent
11 available to the Department submitted by the County Clerk of
12 each county pursuant to Section 18-255 of the Property Tax
13 Code by October 1 prior to the Department's certification to
14 the county clerks under this Section.
15 On February 1, 1999 and on February 1 of each calendar
16 year thereafter, the Department shall certify to the State
17 Comptroller an amount to be paid over to the county treasurer
18 in any county with 3,000,000 or more inhabitants, which is
19 required by Section 21-30 of the Property Tax Code to send an
20 estimated property tax bill by January 31 annually and an
21 actual tax bill by June 30 annually, equal to 50% of the
22 amount certified by the Department to be distributed to the
23 school districts in that county under this Section. On May
24 15, 1999 and on May 15 of each calendar year thereafter, the
25 Department shall certify to the State Comptroller an amount
26 to be paid over to the county treasurer in each county of
27 fewer than 3,000,000 inhabitants equal to 50% of the amount
28 certified by the Department to be distributed to the school
29 districts in each such county under this Section. On August
30 15, 1999, and on August 15 of each calendar year thereafter,
31 the Department shall certify to the State Comptroller an
32 amount to be paid over to the county treasurer of each county
33 in the State equal to 50% of the amount certified by the
34 Department to be distributed to the school districts in each
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1 county under this Section. The State Comptroller shall pay
2 from the Property Tax Relief Fund all amounts certified to
3 the State Comptroller under this Section.
4 The county treasurer shall promptly distribute the funds
5 to each school district based on the amount certified to the
6 county clerk by the Department under this Section.
7 Beginning with the January 1, 2000 certification by the
8 Department to the county clerks under this Section, and each
9 January 1 thereafter, the Department shall recalculate the
10 previous year's allocation factor for each school district
11 using the most recent available extension information
12 supplied under Section 18-255 of the Property Tax Code for
13 property taxes extended for the allocation basis levy year
14 applicable to the previous year's allocation. The current
15 year's allocation shall be adjusted by the difference between
16 this recalculation of the previous year's allocation and the
17 actual allocation and distribution in the previous year.
18 Section 20. The Property Tax Code is amended by changing
19 Sections 18-255, 20-15, and 21-30 and adding Section 18-162
20 as follows:
21 (35 ILCS 200/18-162 new)
22 Sec. 18-162. School Tax Abatement. Beginning with taxes
23 levied for 1998 and extended in 1999, after determining the
24 final extension for a parcel or that portion of a parcel that
25 is eligible for the General Homestead Exemption under Section
26 15-175, or for that parcel or that portion of a parcel or
27 farm improvement that is eligible for assessment as a farm
28 under Sections 10-110 through 10-140, the county clerk shall
29 abate part of that extension for each school district subject
30 to the School Code in which the parcel or portion of a parcel
31 or farm improvement is located. The rate for this abatement
32 shall be calculated by the county clerk by dividing the
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1 amount certified by the Department under Section 7 of the
2 State Revenue Sharing Act to be distributed from the Property
3 Tax Relief Fund for the county's portion of the school
4 district divided by the equalized assessed valuation used in
5 calculating tax rates under Section 18-45 in the school
6 district in the county of those parcels or portions of
7 parcels or farm improvements eligible for abatement under
8 this Section. In no event shall an abatement under this
9 Section reduce the taxpayer's liability under the Code by
10 more than 50% of his or her overall extension.
11 (35 ILCS 200/18-255)
12 Sec. 18-255. Abstract of assessments and extensions.
13 Within 30 days of completing the When the collector's books
14 are completed, the county clerk shall make a complete
15 statement of the assessment and extensions, in conformity to
16 the instructions of the Department. The clerk shall certify
17 the statement to the Department. Beginning with the 1997 levy
18 year, the Department shall require the statement to include a
19 separate listing of the extensions subject to abatement
20 pursuant to Section 18-162. If the county clerk is unable to
21 complete the statement for the 1997 levy year prior to
22 September 1, 1998, the county clerk shall provide such
23 separate listing for the 1996 levy year by September 1, 1998.
24 (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)
25 (35 ILCS 200/20-15)
26 Sec. 20-15. Information on bill or separate statement.
27 The amount of tax due and rates shown on the tax bill
28 pursuant to this Section shall be net of any abatement under
29 Section 18-162 of the Property Tax Code. There shall be
30 printed on each bill, or on a separate slip which shall be
31 mailed with the bill:
32 (a) a statement itemizing the rate at which taxes
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1 have been extended for each of the taxing districts in
2 the county in whose district the property is located, and
3 in those counties utilizing electronic data processing
4 equipment the dollar amount of tax due from the person
5 assessed allocable to each of those taxing districts,
6 including a separate statement of the dollar amount of
7 tax due which is allocable to a tax levied under the
8 Illinois Local Library Act or to any other tax levied by
9 a municipality or township for public library purposes,
10 (b) a separate statement for each of the taxing
11 districts of the dollar amount of tax due which is
12 allocable to a tax levied under the Illinois Pension Code
13 or to any other tax levied by a municipality or township
14 for public pension or retirement purposes,
15 (c) the total tax rate,
16 (d) the total amount of tax due, and
17 (e) the amount by which the total tax and the tax
18 allocable to each taxing district differs from the
19 taxpayer's last prior tax bill, and.
20 (f) the amount of tax abated under Section 18-162
21 labeled "Your School Tax Refund".
22 The county treasurer shall ensure that only those taxing
23 districts in which a parcel of property is located shall be
24 listed on the bill for that property.
25 In all counties the statement shall also provide:
26 (1) the property index number or other suitable
27 description,
28 (2) the assessment of the property,
29 (3) the equalization factors imposed by the county
30 and by the Department, and
31 (4) the equalized assessment resulting from the
32 application of the equalization factors to the basic
33 assessment.
34 In all counties which do not classify property for
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1 purposes of taxation, for property on which a single family
2 residence is situated the statement shall also include a
3 statement to reflect the fair cash value determined for the
4 property. In all counties which classify property for
5 purposes of taxation in accordance with Section 4 of Article
6 IX of the Illinois Constitution, for parcels of residential
7 property in the lowest assessment classification the
8 statement shall also include a statement to reflect the fair
9 cash value determined for the property.
10 In counties which use the estimated or accelerated
11 billing methods, these statements shall only be provided with
12 the final installment of taxes due, except that the statement
13 under item (f) shall be included with both installments in
14 those counties under estimated or accelerated billing
15 methods, the first billing showing the amount deducted from
16 the first installment, and the final billing showing the
17 total tax abated for the levy year under Section 18-162. The
18 provisions of this Section create a mandatory statutory duty.
19 They are not merely directory or discretionary. The failure
20 or neglect of the collector to mail the bill, or the failure
21 of the taxpayer to receive the bill, shall not affect the
22 validity of any tax, or the liability for the payment of any
23 tax.
24 (Source: P.A. 87-818; 88-455; incorporates 88-262; 88-670,
25 eff. 12-2-94.)
26 (35 ILCS 200/21-30)
27 Sec. 21-30. Accelerated billing. Except as provided in
28 this Section and Section 21-40, in counties with 3,000,000 or
29 more inhabitants, by January 31 annually, estimated tax bills
30 setting out the first installment of property taxes for the
31 preceding year, payable in that year, shall be prepared and
32 mailed. The first installment of taxes on the estimated tax
33 bills shall be computed at 50% of the total of each tax bill
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1 before the abatement of taxes under Section 18-162 for the
2 preceding year, less an estimate of half of the School Tax
3 Abatement for the current year for eligible parcels and
4 portions of parcels and farm improvements based on a rate
5 calculated by the county clerk by dividing 50% of the amount
6 certified by the Department under Section 7 of the State
7 Revenue Sharing Act to be distributed from the Property Tax
8 Relief Fund for the county's portion of the school district
9 by the equalized assessed valuation used in calculating tax
10 rates for the preceding year under Section 18-45 in the
11 school district in the county of those parcels or portions of
12 parcels or farm improvements eligible for an abatement under
13 this Section. By June 30 annually, actual tax bills shall be
14 prepared and mailed. These bills shall set out total taxes
15 due and the amount of estimated taxes billed in the first
16 installment, and shall state the balance of taxes due for
17 that year as represented by the sum derived from subtracting
18 the amount of the first installment from the total taxes due
19 for that year.
20 The county board may provide by ordinance, in counties
21 with 3,000,000 or more inhabitants, for taxes to be paid in 4
22 installments. For the levy year for which the ordinance is
23 first effective and each subsequent year, estimated tax bills
24 setting out the first, second, and third installment of taxes
25 for the preceding year, payable in that year, shall be
26 prepared and mailed not later than the date specified by
27 ordinance. Each installment on estimated tax bills shall be
28 computed at 25% of the total of each tax bill for the
29 preceding year. By the date specified in the ordinance,
30 actual tax bills shall be prepared and mailed. These bills
31 shall set out total taxes due and the amount of estimated
32 taxes billed in the first, second, and third installments and
33 shall state the balance of taxes due for that year as
34 represented by the sum derived from subtracting the amount of
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1 the estimated installments from the total taxes due for that
2 year.
3 The county board of any county with less than 3,000,000
4 inhabitants may, by ordinance or resolution, adopt an
5 accelerated method of tax billing. The county board may
6 subsequently rescind the ordinance or resolution and revert
7 to the method otherwise provided for in this Code.
8 Taxes levied on homestead property in which a member of
9 the National Guard or reserves of the armed forces of the
10 United States who was called to active duty on or after
11 August 1, 1990, and who has an ownership interest shall not
12 be deemed delinquent and no interest shall accrue or be
13 charged as a penalty on such taxes due and payable in 1991 or
14 1992 until one year after that member returns to civilian
15 status.
16 (Source: P.A. 87-17; 87-340; 87-895; 88-455.)
17 Section 99. Effective date. This Act takes effect July
18 1, 1998.