SB1498ham011 93RD GENERAL ASSEMBLY

Lisa M. Dugan

Filed: 02/19/04

09300SB1498ham011 LRB093 06568 RCE 47732 a

AMENDMENT TO SENATE BILL 1498

AMENDMENT NO. ____. Amend Senate Bill 1498, AS AMENDED, by replacing everything after the enacting clause with the following:

5		"Section 5. The Economic Development Area Tax Increment
6		Allocation Act is amended by changing Section 6 as follows:
7		(20 ILCS 620/6) (from Ch. 67 1/2, par. 1006)
8		Sec. 6. Filing with county clerk; certification of initial
9		equalized assessed value.
10		(a) The municipality shall file a certified copy of any
11		ordinance authorizing tax increment allocation financing for
12		an economic development project area with the county clerk, and
13		the county clerk shall immediately thereafter determine (1) the
14		most recently ascertained equalized assessed value of each lot,
15		block, tract or parcel of real property within the economic
16		development project area from which shall be deducted the
17		homestead exemptions provided by Sections 15-170, and 15-175,
18		and 15-176 of the Property Tax Code, which value shall be the
19		"initial equalized assessed value" of each such piece of
20		property, and (2) the total equalized assessed value of all
21		taxable real property within the economic development project
22		area by adding together the most recently ascertained equalized
23		assessed value of each taxable lot, block, tract, or parcel of
24		real property within such economic development project area,

1		from which shall be deducted the homestead exemptions provided
2		by Sections 15-170, and 15-175, and 15-176 of the Property Tax
3		Code, and shall certify such amount as the "total initial
4		equalized assessed value" of the taxable real property within
5		the economic development project area.
6		(b) After the county clerk has certified the "total initial
7		equalized assessed value" of the taxable real property in the
8		economic development project area, then in respect to every
9		taxing district containing an economic development project
10		area, the county clerk or any other official required by law to
11		ascertain the amount of the equalized assessed value of all
12		taxable property within that taxing district for the purpose of
13		computing the rate per cent of tax to be extended upon taxable
14		property within that taxing district, shall in every year that
15		tax increment allocation financing is in effect ascertain the
16		amount of value of taxable property in an economic development
17		project area by including in that amount the lower of the
18		current equalized assessed value or the certified "total
19		initial equalized assessed value" of all taxable real property
20		in such area. The rate per cent of tax determined shall be
21		extended to the current equalized assessed value of all
22		property in the economic development project area in the same
23		manner as the rate per cent of tax is extended to all other
24		taxable property in the taxing district. The method of
25		allocating taxes established under this Section shall
26		terminate when the municipality adopts an ordinance dissolving
27		the special tax allocation fund for the economic development
28		project area, terminating the economic development project
29		area, and terminating the use of tax increment allocation
30		financing for the economic development project area. This Act
31		shall not be construed as relieving property owners within an
32		economic development project area from paying a uniform rate of
33		taxes upon the current equalized assessed value of their
34		taxable property as provided in the Property Tax Code.

1		(Source: P.A. 88-670, eff. 12-2-94.)

2		Section 10. The Property Tax Code is amended by changing
3		Sections 14-15, 15-10, 15-170, 15-175, and 20-178 and by adding
4		Section 15-176 as follows:
5		(35 ILCS 200/14-15)
6		Sec. 14-15. Certificate of error; counties of 3,000,000 or
7		more.
8		(a) In counties with 3,000,000 or more inhabitants, if,
9		after the assessment is certified pursuant to Section 16-150,
10		but subject to the limitations of subsection (c) of this
11		Section, the county assessor discovers an error or mistake in
12		the assessment, the assessor shall execute a certificate
13		setting forth the nature and cause of the error. The
14		certificate when endorsed by the county assessor, or when
15		endorsed by the county assessor and board of appeals (until the
16		first Monday in December 1998 and the board of review beginning
17		the first Monday in December 1998 and thereafter) where the
18		certificate is executed for any assessment which was the
19		subject of a complaint filed in the board of appeals (until the
20		first Monday in December 1998 and the board of review beginning
21		the first Monday in December 1998 and thereafter) for the tax
22		year for which the certificate is issued, may, either be
23		certified according to the procedure authorized by this Section
24		or be presented and received in evidence in any court of
25		competent jurisdiction. Certification is authorized, at the
26		discretion of the county assessor, for: (1) certificates of
27		error allowing homestead exemptions pursuant to Sections
28		15-170, 15-172, and 15-175, and 15-176; (2) certificates of
29		error on residential property of 6 units or less; (3)
30		certificates of error allowing exemption of the property
31		pursuant to Section 14-25; and (4) other certificates of error
32		reducing assessed value by less than $100,000. Any certificate

1		of error not certified shall be presented to the court. The
2		county assessor shall develop reasonable procedures for the
3		filing and processing of certificates of error. Prior to the
4		certification or presentation to the court, the county assessor
5		or his or her designee shall execute and include in the
6		certificate of error a statement attesting that all procedural
7		requirements pertaining to the issuance of the certificate of
8		error have been met and that in fact an error exists. When so
9		introduced in evidence such certificate shall become a part of
10		the court records, and shall not be removed from the files
11		except upon the order of the court.
12		Certificates of error that will be presented to the court
13		shall be filed as an objection in the application for judgment
14		and order of sale for the year in relation to which the
15		certificate is made or as an amendment to the objection under
16		subsection (b). Certificates of error that are to be certified
17		according to the procedure authorized by this Section need not
18		be presented to the court as an objection or an amendment under
19		subsection (b). The State's Attorney of the county in which the
20		property is situated shall mail a copy of any final judgment
21		entered by the court regarding any certificate of error to the
22		taxpayer of record for the year in question.
23		Any unpaid taxes after the entry of the final judgment by
24		the court or certification on certificates issued under this
25		Section may be included in a special tax sale, provided that an
26		advertisement is published and a notice is mailed to the person
27		in whose name the taxes were last assessed, in a form and
28		manner substantially similar to the advertisement and notice
29		required under Sections 21-110 and 21-135. The advertisement
30		and sale shall be subject to all provisions of law regulating
31		the annual advertisement and sale of delinquent property, to
32		the extent that those provisions may be made applicable.
33		A certificate of error certified under this Section shall
34		be given effect by the county treasurer, who shall mark the tax

1		books and, upon receipt of one of the following certificates
2		from the county assessor or the county assessor and the board
3		of review where the board of review is required to endorse the
4		certificate of error, shall issue refunds to the taxpayer
5		accordingly:
6		"CERTIFICATION
7		I, .................., county assessor, hereby certify
8		that the Certificates of Error set out on the attached list
9		have been duly issued to correct an error or mistake in the
10		assessment."
11		"CERTIFICATION
12		I, .................., county assessor, and we,
13		........................................................,
14		members of the board of review, hereby certify that the
15		Certificates of Error set out on the attached list have
16		been duly issued to correct an error or mistake in the
17		assessment and that any certificates of error required to
18		be endorsed by the board of review have been so endorsed."
19		The county treasurer has the power to mark the tax books to
20		reflect the issuance of certificates of error certified
21		according to the procedure authorized in this Section for
22		certificates of error issued under Section 14-25 or
23		certificates of error issued to and including 3 years after the
24		date on which the annual judgment and order of sale for that
25		tax year was first entered. The county treasurer has the power
26		to issue refunds to the taxpayer as set forth above until all
27		refunds authorized by this Section have been completed.
28		To the extent that the certificate of error obviates the
29		liability for nonpayment of taxes, certification of a
30		certificate of error according to the procedure authorized in
31		this Section shall operate to vacate any judgment or forfeiture

1		as to that year's taxes, and the warrant books and judgment
2		books shall be marked to reflect that the judgment or
3		forfeiture has been vacated.
4		(b) Nothing in subsection (a) of this Section shall be
5		construed to prohibit the execution, endorsement, issuance,
6		and adjudication of a certificate of error if (i) the annual
7		judgment and order of sale for the tax year in question is
8		reopened for further proceedings upon consent of the county
9		collector and county assessor, represented by the State's
10		Attorney, and (ii) a new final judgment is subsequently entered
11		pursuant to the certificate. This subsection (b) shall be
12		construed as declarative of existing law and not as a new
13		enactment.
14		(c) No certificate of error, other than a certificate to
15		establish an exemption under Section 14-25, shall be executed
16		for any tax year more than 3 years after the date on which the
17		annual judgment and order of sale for that tax year was first
18		entered, except that during calendar years 1999 and 2000 a
19		certificate of error may be executed for any tax year, provided
20		that the error or mistake in the assessment was discovered no
21		more than 3 years after the date on which the annual judgment
22		and order of sale for that tax year was first entered.
23		(d) The time limitation of subsection (c) shall not apply
24		to a certificate of error correcting an assessment to $1, under
25		Section 10-35, on a parcel that a subdivision or planned
26		development has acquired by adverse possession, if during the
27		tax year for which the certificate is executed the subdivision
28		or planned development used the parcel as common area, as
29		defined in Section 10-35, and if application for the
30		certificate of error is made prior to December 1, 1997.
31		(e) The changes made by this amendatory Act of the 91st
32		General Assembly apply to certificates of error issued before,
33		on, and after the effective date of this amendatory Act of the
34		91st General Assembly.

1		(Source: P.A. 90-4, eff. 3-7-97; 90-288, eff. 8-1-97; 90-655,
2		eff. 7-30-98; 91-393, eff. 7-30-99; 91-686, eff. 1-26-00.)
3		(35 ILCS 200/15-10)
4		Sec. 15-10. Exempt property; procedures for certification.
5		All property granted an exemption by the Department pursuant to
6		the requirements of Section 15-5 and described in the Sections
7		following Section 15-30 and preceding Section 16-5, to the
8		extent therein limited, is exempt from taxation. In order to
9		maintain that exempt status, the titleholder or the owner of
10		the beneficial interest of any property that is exempt must
11		file with the chief county assessment officer, on or before
12		January 31 of each year (May 31 in the case of property
13		exempted by Section 15-170), an affidavit stating whether there
14		has been any change in the ownership or use of the property or
15		the status of the owner-resident, or that a disabled veteran
16		who qualifies under Section 15-165 owned and used the property
17		as of January 1 of that year. The nature of any change shall be
18		stated in the affidavit. Failure to file an affidavit shall, in
19		the discretion of the assessment officer, constitute cause to
20		terminate the exemption of that property, notwithstanding any
21		other provision of this Code. Owners of 5 or more such exempt
22		parcels within a county may file a single annual affidavit in
23		lieu of an affidavit for each parcel. The assessment officer,
24		upon request, shall furnish an affidavit form to the owners, in
25		which the owner may state whether there has been any change in
26		the ownership or use of the property or status of the owner or
27		resident as of January 1 of that year. The owner of 5 or more
28		exempt parcels shall list all the properties giving the same
29		information for each parcel as required of owners who file
30		individual affidavits.
31		However, titleholders or owners of the beneficial interest
32		in any property exempted under any of the following provisions
33		are not required to submit an annual filing under this Section:

1		(1) Section 15-45 (burial grounds) in counties of less
2		than 3,000,000 inhabitants and owned by a not-for-profit
3		organization.
4		(2) Section 15-40.
5		(3) Section 15-50 (United States property).
6		If there is a change in use or ownership, however, notice
7		must be filed pursuant to Section 15-20.
8		An application for homestead exemptions shall be filed as
9		provided in Section 15-170 (senior citizens homestead
10		exemption), Section 15-172 (senior citizens assessment freeze
11		homestead exemption), and Sections Section 15-175 and 15-176
12		(general homestead exemption), respectively.
13		(Source: P.A. 92-333, eff. 8-10-01; 92-729, eff. 7-25-02.)
14		(35 ILCS 200/15-170)
15		Sec. 15-170. Senior Citizens Homestead Exemption. An
16		annual homestead exemption limited, except as described here
17		with relation to cooperatives or life care facilities, to a
18		maximum reduction set forth below from the property's value, as
19		equalized or assessed by the Department, is granted for
20		property that is occupied as a residence by a person 65 years
21		of age or older who is liable for paying real estate taxes on
22		the property and is an owner of record of the property or has a
23		legal or equitable interest therein as evidenced by a written
24		instrument, except for a leasehold interest, other than a
25		leasehold interest of land on which a single family residence
26		is located, which is occupied as a residence by a person 65
27		years or older who has an ownership interest therein, legal,
28		equitable or as a lessee, and on which he or she is liable for
29		the payment of property taxes. The maximum reduction shall be
30		$2,500 in counties with 3,000,000 or more inhabitants and
31		$2,000 in all other counties. For land improved with an
32		apartment building owned and operated as a cooperative, the
33		maximum reduction from the value of the property, as equalized

1		by the Department, shall be multiplied by the number of
2		apartments or units occupied by a person 65 years of age or
3		older who is liable, by contract with the owner or owners of
4		record, for paying property taxes on the property and is an
5		owner of record of a legal or equitable interest in the
6		cooperative apartment building, other than a leasehold
7		interest. For land improved with a life care facility, the
8		maximum reduction from the value of the property, as equalized
9		by the Department, shall be multiplied by the number of
10		apartments or units occupied by persons 65 years of age or
11		older, irrespective of any legal, equitable, or leasehold
12		interest in the facility, who are liable, under a contract with
13		the owner or owners of record of the facility, for paying
14		property taxes on the property. In a cooperative or a life care
15		facility where a homestead exemption has been granted, the
16		cooperative association or the management firm of the
17		cooperative or facility shall credit the savings resulting from
18		that exemption only to the apportioned tax liability of the
19		owner or resident who qualified for the exemption. Any person
20		who willfully refuses to so credit the savings shall be guilty
21		of a Class B misdemeanor. Under this Section and Sections
22		Section 15-175 and 15-176, "life care facility" means a
23		facility as defined in Section 2 of the Life Care Facilities
24		Act, with which the applicant for the homestead exemption has a
25		life care contract as defined in that Act.
26		When a homestead exemption has been granted under this
27		Section and the person qualifying subsequently becomes a
28		resident of a facility licensed under the Nursing Home Care
29		Act, the exemption shall continue so long as the residence
30		continues to be occupied by the qualifying person's spouse if
31		the spouse is 65 years of age or older, or if the residence
32		remains unoccupied but is still owned by the person qualified
33		for the homestead exemption.
34		A person who will be 65 years of age during the current

1		assessment year shall be eligible to apply for the homestead
2		exemption during that assessment year. Application shall be
3		made during the application period in effect for the county of
4		his residence.
5		Beginning with assessment year 2003, for taxes payable in
6		2004, property that is first occupied as a residence after
7		January 1 of any assessment year by a person who is eligible
8		for the senior citizens homestead exemption under this Section
9		must be granted a pro-rata exemption for the assessment year.
10		The amount of the pro-rata exemption is the exemption allowed
11		in the county under this Section divided by 365 and multiplied
12		by the number of days during the assessment year the property
13		is occupied as a residence by a person eligible for the
14		exemption under this Section. The chief county assessment
15		officer must adopt reasonable procedures to establish
16		eligibility for this pro-rata exemption.
17		The assessor or chief county assessment officer may
18		determine the eligibility of a life care facility to receive
19		the benefits provided by this Section, by affidavit,
20		application, visual inspection, questionnaire or other
21		reasonable methods in order to insure that the tax savings
22		resulting from the exemption are credited by the management
23		firm to the apportioned tax liability of each qualifying
24		resident. The assessor may request reasonable proof that the
25		management firm has so credited the exemption.
26		The chief county assessment officer of each county with
27		less than 3,000,000 inhabitants shall provide to each person
28		allowed a homestead exemption under this Section a form to
29		designate any other person to receive a duplicate of any notice
30		of delinquency in the payment of taxes assessed and levied
31		under this Code on the property of the person receiving the
32		exemption. The duplicate notice shall be in addition to the
33		notice required to be provided to the person receiving the
34		exemption, and shall be given in the manner required by this

1		Code. The person filing the request for the duplicate notice
2		shall pay a fee of $5 to cover administrative costs to the
3		supervisor of assessments, who shall then file the executed
4		designation with the county collector. Notwithstanding any
5		other provision of this Code to the contrary, the filing of
6		such an executed designation requires the county collector to
7		provide duplicate notices as indicated by the designation. A
8		designation may be rescinded by the person who executed such
9		designation at any time, in the manner and form required by the
10		chief county assessment officer.
11		The assessor or chief county assessment officer may
12		determine the eligibility of residential property to receive
13		the homestead exemption provided by this Section by
14		application, visual inspection, questionnaire or other
15		reasonable methods. The determination shall be made in
16		accordance with guidelines established by the Department.
17		In counties with less than 3,000,000 inhabitants, the
18		county board may by resolution provide that if a person has
19		been granted a homestead exemption under this Section, the
20		person qualifying need not reapply for the exemption.
21		In counties with less than 3,000,000 inhabitants, if the
22		assessor or chief county assessment officer requires annual
23		application for verification of eligibility for an exemption
24		once granted under this Section, the application shall be
25		mailed to the taxpayer.
26		The assessor or chief county assessment officer shall
27		notify each person who qualifies for an exemption under this
28		Section that the person may also qualify for deferral of real
29		estate taxes under the Senior Citizens Real Estate Tax Deferral
30		Act. The notice shall set forth the qualifications needed for
31		deferral of real estate taxes, the address and telephone number
32		of county collector, and a statement that applications for
33		deferral of real estate taxes may be obtained from the county
34		collector.

1		Notwithstanding Sections 6 and 8 of the State Mandates Act,
2		no reimbursement by the State is required for the
3		implementation of any mandate created by this Section.
4		(Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03.)
5		(35 ILCS 200/15-175)
6		Sec. 15-175. General homestead exemption. Except as
7		provided in Section 15-176, homestead property is entitled to
8		an annual homestead exemption limited, except as described here
9		with relation to cooperatives, to a reduction in the equalized
10		assessed value of homestead property equal to the increase in
11		equalized assessed value for the current assessment year above
12		the equalized assessed value of the property for 1977, up to
13		the maximum reduction set forth below. If however, the 1977
14		equalized assessed value upon which taxes were paid is
15		subsequently determined by local assessing officials, the
16		Property Tax Appeal Board, or a court to have been excessive,
17		the equalized assessed value which should have been placed on
18		the property for 1977 shall be used to determine the amount of
19		the exemption.
20		Except as provided in Section 15-176, the maximum reduction
21		shall be $4,500 in counties with 3,000,000 or more inhabitants
22		and $3,500 in all other counties.
23		In counties with fewer than 3,000,000 inhabitants, if,
24		based on the most recent assessment, the equalized assessed
25		value of the homestead property for the current assessment year
26		is greater than the equalized assessed value of the property
27		for 1977, the owner of the property shall automatically receive
28		the exemption granted under this Section in an amount equal to
29		the increase over the 1977 assessment up to the maximum
30		reduction set forth in this Section.
31		If in any assessment year beginning with the 2000
32		assessment year, homestead property has a pro-rata valuation
33		under Section 9-180 resulting in an increase in the assessed

1		valuation, a reduction in equalized assessed valuation equal to
2		the increase in equalized assessed value of the property for
3		the year of the pro-rata valuation above the equalized assessed
4		value of the property for 1977 shall be applied to the property
5		on a proportionate basis for the period the property qualified
6		as homestead property during the assessment year. The maximum
7		proportionate homestead exemption shall not exceed the maximum
8		homestead exemption allowed in the county under this Section
9		divided by 365 and multiplied by the number of days the
10		property qualified as homestead property.
11		"Homestead property" under this Section includes
12		residential property that is occupied by its owner or owners as
13		his or their principal dwelling place, or that is a leasehold
14		interest on which a single family residence is situated, which
15		is occupied as a residence by a person who has an ownership
16		interest therein, legal or equitable or as a lessee, and on
17		which the person is liable for the payment of property taxes.
18		For land improved with an apartment building owned and operated
19		as a cooperative or a building which is a life care facility as
20		defined in Section 15-170 and considered to be a cooperative
21		under Section 15-170, the maximum reduction from the equalized
22		assessed value shall be limited to the increase in the value
23		above the equalized assessed value of the property for 1977, up
24		to the maximum reduction set forth above, multiplied by the
25		number of apartments or units occupied by a person or persons
26		who is liable, by contract with the owner or owners of record,
27		for paying property taxes on the property and is an owner of
28		record of a legal or equitable interest in the cooperative
29		apartment building, other than a leasehold interest. For
30		purposes of this Section, the term "life care facility" has the
31		meaning stated in Section 15-170.
32		In a cooperative where a homestead exemption has been
33		granted, the cooperative association or its management firm
34		shall credit the savings resulting from that exemption only to

1		the apportioned tax liability of the owner who qualified for
2		the exemption. Any person who willfully refuses to so credit
3		the savings shall be guilty of a Class B misdemeanor.
4		Where married persons maintain and reside in separate
5		residences qualifying as homestead property, each residence
6		shall receive 50% of the total reduction in equalized assessed
7		valuation provided by this Section.
8		In counties with more than 3,000,000 inhabitants, the
9		assessor or chief county assessment officer may determine the
10		eligibility of residential property to receive the homestead
11		exemption by application, visual inspection, questionnaire or
12		other reasonable methods. The determination shall be made in
13		accordance with guidelines established by the Department.
14		In counties with fewer than 3,000,000 inhabitants, in the
15		event of a sale of homestead property the homestead exemption
16		shall remain in effect for the remainder of the assessment year
17		of the sale. The assessor or chief county assessment officer
18		may require the new owner of the property to apply for the
19		homestead exemption for the following assessment year.
20		(Source: P.A. 90-368, eff. 1-1-98; 90-552, eff. 12-12-97;
21		90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)
22		(35 ILCS 200/15-176 new)
23		Sec. 15-176. Alternative general homestead exemption.
24		(a) For the assessment years as determined under subsection
25		(j), in any county that has elected, by an ordinance in
26		accordance with subsection (k), to be subject to the provisions
27		of this Section in lieu of the provisions of Section 15-175,
28		homestead property is entitled to an annual homestead exemption
29		equal to a reduction in the property's equalized assessed value
30		calculated as provided in this Section.
31		(b) As used in this Section:
32		(1) "Assessor" means the supervisor of assessments or
33		the chief county assessment officer of each county.

1		(2) "Adjusted homestead value" means the lesser of the
2		following values:
3		(A) The property's base homestead value increased
4		by 7% for each tax year after the base year through and
5		including the current tax year, or, if the property is
6		sold or ownership is otherwise transferred, the
7		property's base homestead value increased by 7% for
8		each tax year after the year of the sale or transfer
9		through and including the current tax year. The
10		increase by 7% each year is an increase by 7% over the
11		prior year.
12		(B) The property's equalized assessed value for
13		the current tax year minus $4,500 in Cook County or
14		$3,500 in all other counties.
15		(3) "Base homestead value".
16		(A) Except as provided in subdivision ((b)(3)(B),
17		"base homestead value" means the equalized assessed
18		value of the property for the base year prior to
19		exemptions, minus $4,500 in Cook County or $3,500 in
20		all other counties, provided that it was assessed for
21		that year as residential property qualified for any of
22		the homestead exemptions under Sections 15-170 through
23		15-175 of this Code, then in force, and further
24		provided that the property's assessment was not based
25		on a reduced assessed value resulting from a temporary
26		irregularity in the property for that year. Except as
27		provided in subdivision (b)(3)(B), if the property did
28		not have a residential equalized assessed value for the
29		base year, then "base homestead value" means the base
30		homestead value established by the assessor under
31		subsection (c).
32		(B) If the property is sold or ownership is
33		otherwise transferred, other than sales or transfers
34		between spouses or between a parent and a child, "base

1		homestead value" means the equalized assessed value of
2		the property at the time of the sale or transfer prior
3		to exemptions, minus $4,500 in Cook County or $3,500 in
4		all other counties, provided that it was assessed as
5		residential property qualified for any of the
6		homestead exemptions under Sections 15-170 through
7		15-175 of this Code, then in force, and further
8		provided that the property's assessment was not based
9		on a reduced assessed value resulting from a temporary
10		irregularity in the property.
11		(3.5) "Base year" means (i) tax year 2002 in Cook
12		County or (ii) tax year 2002 or 2003 in all other counties
13		in accordance with the designation made by the county as
14		provided in subsection (k).
15		(4) "Current tax year" means the tax year for which the
16		exemption under this Section is being applied.
17		(5) "Equalized assessed value" means the property's
18		assessed value as equalized by the Department.
19		(6) "Homestead" or "homestead property" means:
20		(A) Residential property that as of January 1 of
21		the tax year is occupied by its owner or owners as his,
22		her, or their principal dwelling place, or that is a
23		leasehold interest on which a single family residence
24		is situated, that is occupied as a residence by a
25		person who has a legal or equitable interest therein
26		evidenced by a written instrument, as an owner or as a
27		lessee, and on which the person is liable for the
28		payment of property taxes. Residential units in an
29		apartment building owned and operated as a
30		cooperative, or as a life care facility, which are
31		occupied by persons who hold a legal or equitable
32		interest in the cooperative apartment building or life
33		care facility as owners or lessees, and who are liable
34		by contract for the payment of property taxes, shall be

1		included within this definition of homestead property.
2		Residential property containing 6 or fewer dwelling
3		units shall also be included in this definition of
4		homestead property provided that at least one such unit
5		is occupied by the property's owner or owners as his,
6		her, or their principal dwelling place.
7		(B) A homestead includes the dwelling place,
8		appurtenant structures, and so much of the surrounding
9		land constituting the parcel on which the dwelling
10		place is situated as is used for residential purposes.
11		If the assessor has established a specific legal
12		description for a portion of property constituting the
13		homestead, then the homestead shall be limited to the
14		property within that description.
15		(7) "Life care facility" means a facility as defined in
16		Section 2 of the Life Care Facilities Act.
17		(c) If the property did not have a residential equalized
18		assessed value for the base year as provided in subdivision
19		(b)(3)(A) of this Section, then the assessor shall first
20		determine an initial value for the property by comparison with
21		assessed values for the base year of other properties having
22		physical and economic characteristics similar to those of the
23		subject property, so that the initial value is uniform in
24		relation to assessed values of those other properties for the
25		base year. The product of the initial value multiplied by the
26		equalized factor for the base year for homestead properties in
27		that county, less $4,500 in Cook County or $3,500 in all other
28		counties, is the base homestead value.
29		For any tax year for which the assessor determines or
30		adjusts an initial value and hence a base homestead value under
31		this subsection (c), the initial value shall be subject to
32		review by the same procedures applicable to assessed values
33		established under this Code for that tax year.
34		(d) The base homestead value shall remain constant, except

1		that the assessor may revise it under the following
2		circumstances:
3		(1) If the equalized assessed value of a homestead
4		property for the current tax year is less than the previous
5		base homestead value for that property, then the current
6		equalized assessed value (provided it is not based on a
7		reduced assessed value resulting from a temporary
8		irregularity in the property) shall become the base
9		homestead value in subsequent tax years.
10		(2) For any year in which new buildings, structures, or
11		other improvements are constructed on the homestead
12		property that would increase its assessed value, the
13		assessor shall adjust the base homestead value as provided
14		in subsection (c) of this Section with due regard to the
15		value added by the new improvements.
16		(3) If the property is sold or ownership is otherwise
17		transferred, the base homestead value of the property shall
18		be adjusted as provided in subdivision (b)(3)(B). This item
19		(3) does not apply to sales or transfers between spouses or
20		between a parent and a child.
21		(4) If the assessor discovers an error in fact on the
22		property record card or in the posting of the assessed
23		value onto the assessment rolls, such error shall be
24		corrected and the assessment recalculated, and the base
25		homestead value shall be adjusted to reflect the corrected,
26		recalculated assessment.
27		(e) The amount of the exemption under this Section is the
28		equalized assessed value of the homestead property for the
29		current tax year, minus the adjusted homestead value, with the
30		following exceptions:
31		(1) The exemption under this Section shall not exceed
32		$25,000 for any taxable year.
33		(2) In the case of homestead property that also
34		qualifies for the exemption under Section 15-172, the

1		property is entitled to the exemption under this Section,
2		limited to the amount of $4,500 in Cook County or $3,500 in
3		all other counties.
4		(f) In the case of an apartment building owned and operated
5		as a cooperative, or as a life care facility, that contains
6		residential units that qualify as homestead property under this
7		Section, the maximum cumulative exemption amount attributed to
8		the entire building or facility shall not exceed the sum of the
9		exemptions calculated for each qualified residential unit. The
10		cooperative association, management firm, or other person or
11		entity that manages or controls the cooperative apartment
12		building or life care facility shall credit the exemption
13		attributable to each residential unit only to the apportioned
14		tax liability of the owner or other person responsible for
15		payment of taxes as to that unit. Any person who willfully
16		refuses to so credit the exemption is guilty of a Class B
17		misdemeanor.
18		(g) When married persons maintain separate residences, the
19		exemption provided under this Section shall be claimed by only
20		one such person and for only one residence.
21		(h) In the event of a sale or other transfer in ownership
22		of the homestead property, the exemption under this Section
23		shall remain in effect for the remainder of the tax year in
24		which the sale or transfer occurs, but (other than for sales or
25		transfers between spouses or between a parent and a child)
26		shall be calculated using the new base homestead value as
27		provided in subdivision (b)(3)(B). The assessor may require the
28		new owner of the property to apply for the exemption in the
29		following year.
30		(i) The assessor may determine whether property qualifies
31		as a homestead under this Section by application, visual
32		inspection, questionnaire, or other reasonable methods. Each
33		year, at the time the assessment books are certified to the
34		county clerk by the board of review, the assessor shall furnish

1		to the county clerk a list of the properties qualified for the
2		homestead exemption under this Section. The list shall note the
3		base homestead value of each property to be used in the
4		calculation of the exemption for the current tax year.
5		(j) In counties with 3,000,000 or more inhabitants, the
6		provisions of this Section apply as follows:
7		(1) If the general assessment year for the property is
8		2003, this Section applies for assessment years 2003, 2004,
9		and 2005. Thereafter, the provisions of Section 15-175
10		apply.
11		(2) If the general assessment year for the property is
12		2004, this Section applies for assessment years 2004, 2005,
13		and 2006. Thereafter, the provisions of Section 15-175
14		apply.
15		(3) If the general assessment year for the property is
16		2005, this Section applies for assessment years 2005, 2006,
17		and 2007. Thereafter, the provisions of Section 15-175
18		apply.
19		In counties with less than 3,000,000 inhabitants, this
20		Section applies for assessment years (i) 2003, 2004, and 2005
21		if 2002 is the designated base year or (ii) 2004, 2005, and
22		2006 if 2003 is the designated base year. Thereafter, the
23		provisions of Section 15-175 apply.
24		(k) To be subject to the provisions of this Section in lieu
25		of Section 15-175, a county must adopt an ordinance to subject
26		itself to the provisions of this Section within 6 months after
27		the effective date of this amendatory Act of the 93rd General
28		Assembly. In a county other than Cook County, the ordinance
29		must designate either tax year 2002 or tax year 2003 as the
30		base year.
31		(l) Notwithstanding Sections 6 and 8 of the State Mandates
32		Act, no reimbursement by the State is required for the
33		implementation of any mandate created by this Section.

1		(35 ILCS 200/20-178)
2		Sec. 20-178. Certificate of error; refund; interest. When
3		the county collector makes any refunds due on certificates of
4		error issued under Sections 14-15 through 14-25 that have been
5		either certified or adjudicated, the county collector shall pay
6		the taxpayer interest on the amount of the refund at the rate
7		of 0.5% per month.
8		No interest shall be due under this Section for any time
9		prior to 60 days after the effective date of this amendatory
10		Act of the 91st General Assembly. For certificates of error
11		issued prior to the effective date of this amendatory Act of
12		the 91st General Assembly, the county collector shall pay the
13		taxpayer interest from 60 days after the effective date of this
14		amendatory Act of the 91st General Assembly until the date the
15		refund is paid. For certificates of error issued on or after
16		the effective date of this amendatory Act of the 91st General
17		Assembly, interest shall be paid from 60 days after the
18		certificate of error is issued by the chief county assessment
19		officer to the date the refund is made. To cover the cost of
20		interest, the county collector shall proportionately reduce
21		the distribution of taxes collected for each taxing district in
22		which the property is situated.
23		This Section shall not apply to any certificate of error
24		granting a homestead exemption under Section 15-170, 15-172, or
25		15-175, or 15-176.
26		(Source: P.A. 91-393, eff. 7-30-99.)

27		Section 13. The Longtime Owner-Occupant Property Tax
28		Relief Act is amended by changing Section 20 as follows:
29		(35 ILCS 250/20)
30		Sec. 20. Conditions of deferral or exemption.
31		(a) Any deferral or exemption of payment of an increase in
32		real property taxes granted under this Act shall be limited to

1		real property that meets both of the following conditions:
2		(1) The property is owned and occupied by a longtime
3		owner-occupant.
4		(2) The property is the principal residence and
5		domicile of the longtime owner-occupant.
6		The corporate authorities of a county, by ordinance or
7		resolution, may impose additional criteria for qualifying for a
8		deferral or exemption under this Act including, but not limited
9		to, (i) requiring the owner-occupant to have owned and occupied
10		the same dwelling place as principal residence and domicile for
11		a period of more than 10 years, (ii) establishing age criteria
12		for eligibility of an owner-occupant, and (iii) establishing
13		income criteria for eligibility of an owner-occupant. A
14		deferral or exemption, or combination thereof, under an
15		ordinance or resolution adopted pursuant to this Act, may not
16		exceed $25,000 in equalized assessed value per tax year.
17		(b) No penalties or interest shall accrue on the portion of
18		any deferral granted under this Act.
19		(c) Except as provided in subsection (d) of Section 15,
20		school districts and municipalities within a county to which
21		this Act applies may determine whether financial need, age, or
22		both, of the longtime owner-occupant shall be used to determine
23		eligibility.
24		(Source: P.A. 90-648, eff. 7-24-98.)

25		Section 15. The County Economic Development Project Area
26		Property Tax Allocation Act is amended by changing Section 6 as
27		follows:
28		(55 ILCS 85/6) (from Ch. 34, par. 7006)
29		Sec. 6. Filing with county clerk; certification of initial
30		equalized assessed value.
31		(a) The county shall file a certified copy of any ordinance
32		authorizing property tax allocation financing for an economic

1		development project area with the county clerk, and the county
2		clerk shall immediately thereafter determine (1) the most
3		recently ascertained equalized assessed value of each lot,
4		block, tract or parcel of real property within the economic
5		development project area from which shall be deducted the
6		homestead exemptions provided by Sections 15-170, and 15-175,
7		and 15-176 of the Property Tax Code, which value shall be the
8		"initial equalized assessed value" of each such piece of
9		property, and (2) the total equalized assessed value of all
10		taxable real property within the economic development project
11		area by adding together the most recently ascertained equalized
12		assessed value of each taxable lot, block, tract, or parcel of
13		real property within such economic development project area,
14		from which shall be deducted the homestead exemptions provided
15		by Sections 15-170, and 15-175, and 15-176 of the Property Tax
16		Code. Upon receiving written notice from the Department of its
17		approval and certification of such economic development
18		project area, the county clerk shall immediately certify such
19		amount as the "total initial equalized assessed value" of the
20		taxable property within the economic development project area.
21		(b) After the county clerk has certified the "total initial
22		equalized assessed value" of the taxable real property in the
23		economic development project area, then in respect to every
24		taxing district containing an economic development project
25		area, the county clerk or any other official required by law to
26		ascertain the amount of the equalized assessed value of all
27		taxable property within that taxing district for the purpose of
28		computing the rate percent of tax to be extended upon taxable
29		property within the taxing district, shall in every year that
30		property tax allocation financing is in effect ascertain the
31		amount of value of taxable property in an economic development
32		project area by including in that amount the lower of the
33		current equalized assessed value or the certified "total
34		initial equalized assessed value" of all taxable real property

1		in such area. The rate percent of tax determined shall be
2		extended to the current equalized assessed value of all
3		property in the economic development project area in the same
4		manner as the rate percent of tax is extended to all other
5		taxable property in the taxing district. The method of
6		allocating taxes established under this Section shall
7		terminate when the county adopts an ordinance dissolving the
8		special tax allocation fund for the economic development
9		project area. This Act shall not be construed as relieving
10		property owners within an economic development project area
11		from paying a uniform rate of taxes upon the current equalized
12		assessed value of their taxable property as provided in the
13		Property Tax Code.
14		(Source: P.A. 88-670, eff. 12-2-94.)

15		Section 20. The County Economic Development Project Area
16		Tax Increment Allocation Act of 1991 is amended by changing
17		Section 45 as follows:
18		(55 ILCS 90/45) (from Ch. 34, par. 8045)
19		Sec. 45. Filing with county clerk; certification of initial
20		equalized assessed value.
21		(a) A county that has by ordinance approved an economic
22		development plan, established an economic development project
23		area, and adopted tax increment allocation financing for that
24		area shall file certified copies of the ordinance or ordinances
25		with the county clerk. Upon receiving the ordinance or
26		ordinances, the county clerk shall immediately determine (i)
27		the most recently ascertained equalized assessed value of each
28		lot, block, tract, or parcel of real property within the
29		economic development project area from which shall be deducted
30		the homestead exemptions provided by Sections 15-170, and
31		15-175, and 15-176 of the Property Tax Code (that value being
32		the "initial equalized assessed value" of each such piece of

1		property) and (ii) the total equalized assessed value of all
2		taxable real property within the economic development project
3		area by adding together the most recently ascertained equalized
4		assessed value of each taxable lot, block, tract, or parcel of
5		real property within the economic development project area,
6		from which shall be deducted the homestead exemptions provided
7		by Sections 15-170, and 15-175, and 15-176 of the Property Tax
8		Code, and shall certify that amount as the "total initial
9		equalized assessed value" of the taxable real property within
10		the economic development project area.
11		(b) After the county clerk has certified the "total initial
12		equalized assessed value" of the taxable real property in the
13		economic development project area, then in respect to every
14		taxing district containing an economic development project
15		area, the county clerk or any other official required by law to
16		ascertain the amount of the equalized assessed value of all
17		taxable property within the taxing district for the purpose of
18		computing the rate per cent of tax to be extended upon taxable
19		property within the taxing district shall, in every year that
20		tax increment allocation financing is in effect, ascertain the
21		amount of value of taxable property in an economic development
22		project area by including in that amount the lower of the
23		current equalized assessed value or the certified "total
24		initial equalized assessed value" of all taxable real property
25		in the area. The rate per cent of tax determined shall be
26		extended to the current equalized assessed value of all
27		property in the economic development project area in the same
28		manner as the rate per cent of tax is extended to all other
29		taxable property in the taxing district. The method of
30		extending taxes established under this Section shall terminate
31		when the county adopts an ordinance dissolving the special tax
32		allocation fund for the economic development project area. This
33		Act shall not be construed as relieving property owners within
34		an economic development project area from paying a uniform rate

1		of taxes upon the current equalized assessed value of their
2		taxable property as provided in the Property Tax Code.
3		(Source: P.A. 87-1; 88-670, eff. 12-2-94.)

4		Section 25. The Illinois Municipal Code is amended by
5		changing Sections 11-74.4-8, 11-74.4-9, and 11-74.6-40 as
6		follows:
7		(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
8		Sec. 11-74.4-8. Tax increment allocation financing. A
9		municipality may not adopt tax increment financing in a
10		redevelopment project area after the effective date of this
11		amendatory Act of 1997 that will encompass an area that is
12		currently included in an enterprise zone created under the
13		Illinois Enterprise Zone Act unless that municipality,
14		pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
15		amends the enterprise zone designating ordinance to limit the
16		eligibility for tax abatements as provided in Section 5.4.1 of
17		the Illinois Enterprise Zone Act. A municipality, at the time a
18		redevelopment project area is designated, may adopt tax
19		increment allocation financing by passing an ordinance
20		providing that the ad valorem taxes, if any, arising from the
21		levies upon taxable real property in such redevelopment project
22		area by taxing districts and tax rates determined in the manner
23		provided in paragraph (c) of Section 11-74.4-9 each year after
24		the effective date of the ordinance until redevelopment project
25		costs and all municipal obligations financing redevelopment
26		project costs incurred under this Division have been paid shall
27		be divided as follows:
28		(a) That portion of taxes levied upon each taxable lot,
29		block, tract or parcel of real property which is attributable
30		to the lower of the current equalized assessed value or the
31		initial equalized assessed value of each such taxable lot,
32		block, tract or parcel of real property in the redevelopment

1		project area shall be allocated to and when collected shall be
2		paid by the county collector to the respective affected taxing
3		districts in the manner required by law in the absence of the
4		adoption of tax increment allocation financing.
5		(b) Except from a tax levied by a township to retire bonds
6		issued to satisfy court-ordered damages, that portion, if any,
7		of such taxes which is attributable to the increase in the
8		current equalized assessed valuation of each taxable lot,
9		block, tract or parcel of real property in the redevelopment
10		project area over and above the initial equalized assessed
11		value of each property in the project area shall be allocated
12		to and when collected shall be paid to the municipal treasurer
13		who shall deposit said taxes into a special fund called the
14		special tax allocation fund of the municipality for the purpose
15		of paying redevelopment project costs and obligations incurred
16		in the payment thereof. In any county with a population of
17		3,000,000 or more that has adopted a procedure for collecting
18		taxes that provides for one or more of the installments of the
19		taxes to be billed and collected on an estimated basis, the
20		municipal treasurer shall be paid for deposit in the special
21		tax allocation fund of the municipality, from the taxes
22		collected from estimated bills issued for property in the
23		redevelopment project area, the difference between the amount
24		actually collected from each taxable lot, block, tract, or
25		parcel of real property within the redevelopment project area
26		and an amount determined by multiplying the rate at which taxes
27		were last extended against the taxable lot, block, track, or
28		parcel of real property in the manner provided in subsection
29		(c) of Section 11-74.4-9 by the initial equalized assessed
30		value of the property divided by the number of installments in
31		which real estate taxes are billed and collected within the
32		county; provided that the payments on or before December 31,
33		1999 to a municipal treasurer shall be made only if each of the
34		following conditions are met:

1		(1) The total equalized assessed value of the
2		redevelopment project area as last determined was not less
3		than 175% of the total initial equalized assessed value.
4		(2) Not more than 50% of the total equalized assessed
5		value of the redevelopment project area as last determined
6		is attributable to a piece of property assigned a single
7		real estate index number.
8		(3) The municipal clerk has certified to the county
9		clerk that the municipality has issued its obligations to
10		which there has been pledged the incremental property taxes
11		of the redevelopment project area or taxes levied and
12		collected on any or all property in the municipality or the
13		full faith and credit of the municipality to pay or secure
14		payment for all or a portion of the redevelopment project
15		costs. The certification shall be filed annually no later
16		than September 1 for the estimated taxes to be distributed
17		in the following year; however, for the year 1992 the
18		certification shall be made at any time on or before March
19		31, 1992.
20		(4) The municipality has not requested that the total
21		initial equalized assessed value of real property be
22		adjusted as provided in subsection (b) of Section
23		11-74.4-9.
24		The conditions of paragraphs (1) through (4) do not apply
25		after December 31, 1999 to payments to a municipal treasurer
26		made by a county with 3,000,000 or more inhabitants that has
27		adopted an estimated billing procedure for collecting taxes. If
28		a county that has adopted the estimated billing procedure makes
29		an erroneous overpayment of tax revenue to the municipal
30		treasurer, then the county may seek a refund of that
31		overpayment. The county shall send the municipal treasurer a
32		notice of liability for the overpayment on or before the
33		mailing date of the next real estate tax bill within the
34		county. The refund shall be limited to the amount of the

1		overpayment.
2		It is the intent of this Division that after the effective
3		date of this amendatory Act of 1988 a municipality's own ad
4		valorem tax arising from levies on taxable real property be
5		included in the determination of incremental revenue in the
6		manner provided in paragraph (c) of Section 11-74.4-9. If the
7		municipality does not extend such a tax, it shall annually
8		deposit in the municipality's Special Tax Increment Fund an
9		amount equal to 10% of the total contributions to the fund from
10		all other taxing districts in that year. The annual 10% deposit
11		required by this paragraph shall be limited to the actual
12		amount of municipally produced incremental tax revenues
13		available to the municipality from taxpayers located in the
14		redevelopment project area in that year if: (a) the plan for
15		the area restricts the use of the property primarily to
16		industrial purposes, (b) the municipality establishing the
17		redevelopment project area is a home-rule community with a 1990
18		population of between 25,000 and 50,000, (c) the municipality
19		is wholly located within a county with a 1990 population of
20		over 750,000 and (d) the redevelopment project area was
21		established by the municipality prior to June 1, 1990. This
22		payment shall be in lieu of a contribution of ad valorem taxes
23		on real property. If no such payment is made, any redevelopment
24		project area of the municipality shall be dissolved.
25		If a municipality has adopted tax increment allocation
26		financing by ordinance and the County Clerk thereafter
27		certifies the "total initial equalized assessed value as
28		adjusted" of the taxable real property within such
29		redevelopment project area in the manner provided in paragraph
30		(b) of Section 11-74.4-9, each year after the date of the
31		certification of the total initial equalized assessed value as
32		adjusted until redevelopment project costs and all municipal
33		obligations financing redevelopment project costs have been
34		paid the ad valorem taxes, if any, arising from the levies upon

1		the taxable real property in such redevelopment project area by
2		taxing districts and tax rates determined in the manner
3		provided in paragraph (c) of Section 11-74.4-9 shall be divided
4		as follows:
5		(1) That portion of the taxes levied upon each taxable
6		lot, block, tract or parcel of real property which is
7		attributable to the lower of the current equalized assessed
8		value or "current equalized assessed value as adjusted" or
9		the initial equalized assessed value of each such taxable
10		lot, block, tract, or parcel of real property existing at
11		the time tax increment financing was adopted, minus the
12		total current homestead exemptions provided by Sections
13		15-170, and 15-175, and 15-176 of the Property Tax Code in
14		the redevelopment project area shall be allocated to and
15		when collected shall be paid by the county collector to the
16		respective affected taxing districts in the manner
17		required by law in the absence of the adoption of tax
18		increment allocation financing.
19		(2) That portion, if any, of such taxes which is
20		attributable to the increase in the current equalized
21		assessed valuation of each taxable lot, block, tract, or
22		parcel of real property in the redevelopment project area,
23		over and above the initial equalized assessed value of each
24		property existing at the time tax increment financing was
25		adopted, minus the total current homestead exemptions
26		pertaining to each piece of property provided by Sections
27		15-170, and 15-175, and 15-176 of the Property Tax Code in
28		the redevelopment project area, shall be allocated to and
29		when collected shall be paid to the municipal Treasurer,
30		who shall deposit said taxes into a special fund called the
31		special tax allocation fund of the municipality for the
32		purpose of paying redevelopment project costs and
33		obligations incurred in the payment thereof.
34		The municipality may pledge in the ordinance the funds in

1		and to be deposited in the special tax allocation fund for the
2		payment of such costs and obligations. No part of the current
3		equalized assessed valuation of each property in the
4		redevelopment project area attributable to any increase above
5		the total initial equalized assessed value, or the total
6		initial equalized assessed value as adjusted, of such
7		properties shall be used in calculating the general State
8		school aid formula, provided for in Section 18-8 of the School
9		Code, until such time as all redevelopment project costs have
10		been paid as provided for in this Section.
11		Whenever a municipality issues bonds for the purpose of
12		financing redevelopment project costs, such municipality may
13		provide by ordinance for the appointment of a trustee, which
14		may be any trust company within the State, and for the
15		establishment of such funds or accounts to be maintained by
16		such trustee as the municipality shall deem necessary to
17		provide for the security and payment of the bonds. If such
18		municipality provides for the appointment of a trustee, such
19		trustee shall be considered the assignee of any payments
20		assigned by the municipality pursuant to such ordinance and
21		this Section. Any amounts paid to such trustee as assignee
22		shall be deposited in the funds or accounts established
23		pursuant to such trust agreement, and shall be held by such
24		trustee in trust for the benefit of the holders of the bonds,
25		and such holders shall have a lien on and a security interest
26		in such funds or accounts so long as the bonds remain
27		outstanding and unpaid. Upon retirement of the bonds, the
28		trustee shall pay over any excess amounts held to the
29		municipality for deposit in the special tax allocation fund.
30		When such redevelopment projects costs, including without
31		limitation all municipal obligations financing redevelopment
32		project costs incurred under this Division, have been paid, all
33		surplus funds then remaining in the special tax allocation fund
34		shall be distributed by being paid by the municipal treasurer

1		to the Department of Revenue, the municipality and the county
2		collector; first to the Department of Revenue and the
3		municipality in direct proportion to the tax incremental
4		revenue received from the State and the municipality, but not
5		to exceed the total incremental revenue received from the State
6		or the municipality less any annual surplus distribution of
7		incremental revenue previously made; with any remaining funds
8		to be paid to the County Collector who shall immediately
9		thereafter pay said funds to the taxing districts in the
10		redevelopment project area in the same manner and proportion as
11		the most recent distribution by the county collector to the
12		affected districts of real property taxes from real property in
13		the redevelopment project area.
14		Upon the payment of all redevelopment project costs, the
15		retirement of obligations, the distribution of any excess
16		monies pursuant to this Section, and final closing of the books
17		and records of the redevelopment project area, the municipality
18		shall adopt an ordinance dissolving the special tax allocation
19		fund for the redevelopment project area and terminating the
20		designation of the redevelopment project area as a
21		redevelopment project area. Title to real or personal property
22		and public improvements acquired by or for the municipality as
23		a result of the redevelopment project and plan shall vest in
24		the municipality when acquired and shall continue to be held by
25		the municipality after the redevelopment project area has been
26		terminated. Municipalities shall notify affected taxing
27		districts prior to November 1 if the redevelopment project area
28		is to be terminated by December 31 of that same year. If a
29		municipality extends estimated dates of completion of a
30		redevelopment project and retirement of obligations to finance
31		a redevelopment project, as allowed by this amendatory Act of
32		1993, that extension shall not extend the property tax
33		increment allocation financing authorized by this Section.
34		Thereafter the rates of the taxing districts shall be extended

1		and taxes levied, collected and distributed in the manner
2		applicable in the absence of the adoption of tax increment
3		allocation financing.
4		Nothing in this Section shall be construed as relieving
5		property in such redevelopment project areas from being
6		assessed as provided in the Property Tax Code or as relieving
7		owners of such property from paying a uniform rate of taxes, as
8		required by Section 4 of Article 9 of the Illinois
9		Constitution.
10		(Source: P.A. 92-16, eff. 6-28-01; 93-298, eff. 7-23-03.)
11		(65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
12		Sec. 11-74.4-9. Equalized assessed value of property.
13		(a) If a municipality by ordinance provides for tax
14		increment allocation financing pursuant to Section 11-74.4-8,
15		the county clerk immediately thereafter shall determine (1) the
16		most recently ascertained equalized assessed value of each lot,
17		block, tract or parcel of real property within such
18		redevelopment project area from which shall be deducted the
19		homestead exemptions provided by Sections 15-170, and 15-175,
20		and 15-176 of the Property Tax Code, which value shall be the
21		"initial equalized assessed value" of each such piece of
22		property, and (2) the total equalized assessed value of all
23		taxable real property within such redevelopment project area by
24		adding together the most recently ascertained equalized
25		assessed value of each taxable lot, block, tract, or parcel of
26		real property within such project area, from which shall be
27		deducted the homestead exemptions provided by Sections 15-170,
28		and 15-175, and 15-176 of the Property Tax Code, and shall
29		certify such amount as the "total initial equalized assessed
30		value" of the taxable real property within such project area.
31		(b) In reference to any municipality which has adopted tax
32		increment financing after January 1, 1978, and in respect to
33		which the county clerk has certified the "total initial

1		equalized assessed value" of the property in the redevelopment
2		area, the municipality may thereafter request the clerk in
3		writing to adjust the initial equalized value of all taxable
4		real property within the redevelopment project area by
5		deducting therefrom the exemptions provided for by Sections
6		15-170, and 15-175, and 15-176 of the Property Tax Code
7		applicable to each lot, block, tract or parcel of real property
8		within such redevelopment project area. The county clerk shall
9		immediately after the written request to adjust the total
10		initial equalized value is received determine the total
11		homestead exemptions in the redevelopment project area
12		provided by Sections 15-170, and 15-175, and 15-176 of the
13		Property Tax Code by adding together the homestead exemptions
14		provided by said Sections on each lot, block, tract or parcel
15		of real property within such redevelopment project area and
16		then shall deduct the total of said exemptions from the total
17		initial equalized assessed value. The county clerk shall then
18		promptly certify such amount as the "total initial equalized
19		assessed value as adjusted" of the taxable real property within
20		such redevelopment project area.
21		(c) After the county clerk has certified the "total initial
22		equalized assessed value" of the taxable real property in such
23		area, then in respect to every taxing district containing a
24		redevelopment project area, the county clerk or any other
25		official required by law to ascertain the amount of the
26		equalized assessed value of all taxable property within such
27		district for the purpose of computing the rate per cent of tax
28		to be extended upon taxable property within such district,
29		shall in every year that tax increment allocation financing is
30		in effect ascertain the amount of value of taxable property in
31		a redevelopment project area by including in such amount the
32		lower of the current equalized assessed value or the certified
33		"total initial equalized assessed value" of all taxable real
34		property in such area, except that after he has certified the

1		"total initial equalized assessed value as adjusted" he shall
2		in the year of said certification if tax rates have not been
3		extended and in every year thereafter that tax increment
4		allocation financing is in effect ascertain the amount of value
5		of taxable property in a redevelopment project area by
6		including in such amount the lower of the current equalized
7		assessed value or the certified "total initial equalized
8		assessed value as adjusted" of all taxable real property in
9		such area. The rate per cent of tax determined shall be
10		extended to the current equalized assessed value of all
11		property in the redevelopment project area in the same manner
12		as the rate per cent of tax is extended to all other taxable
13		property in the taxing district. The method of extending taxes
14		established under this Section shall terminate when the
15		municipality adopts an ordinance dissolving the special tax
16		allocation fund for the redevelopment project area. This
17		Division shall not be construed as relieving property owners
18		within a redevelopment project area from paying a uniform rate
19		of taxes upon the current equalized assessed value of their
20		taxable property as provided in the Property Tax Code.
21		(Source: P.A. 88-670, eff. 12-2-94.)
22		(65 ILCS 5/11-74.6-40)
23		Sec. 11-74.6-40. Equalized assessed value determination;
24		property tax extension.
25		(a) If a municipality by ordinance provides for tax
26		increment allocation financing under Section 11-74.6-35, the
27		county clerk immediately thereafter:
28		(1) shall determine the initial equalized assessed
29		value of each parcel of real property in the redevelopment
30		project area, which is the most recently established
31		equalized assessed value of each lot, block, tract or
32		parcel of taxable real property within the redevelopment
33		project area, minus the homestead exemptions provided by

1		Sections 15-170, and 15-175, and 15-176 of the Property Tax
2		Code; and
3		(2) shall certify to the municipality the total initial
4		equalized assessed value of all taxable real property
5		within the redevelopment project area.
6		(b) Any municipality that has established a vacant
7		industrial buildings conservation area may, by ordinance
8		passed after the adoption of tax increment allocation
9		financing, provide that the county clerk immediately
10		thereafter shall again determine:
11		(1) the updated initial equalized assessed value of
12		each lot, block, tract or parcel of real property, which is
13		the most recently ascertained equalized assessed value of
14		each lot, block, tract or parcel of real property within
15		the vacant industrial buildings conservation area; and
16		(2) the total updated initial equalized assessed value
17		of all taxable real property within the redevelopment
18		project area, which is the total of the updated initial
19		equalized assessed value of all taxable real property
20		within the vacant industrial buildings conservation area.
21		The county clerk shall certify to the municipality the
22		total updated initial equalized assessed value of all taxable
23		real property within the industrial buildings conservation
24		area.
25		(c) After the county clerk has certified the total initial
26		equalized assessed value or the total updated initial equalized
27		assessed value of the taxable real property in the area, for
28		each taxing district in which a redevelopment project area is
29		situated, the county clerk or any other official required by
30		law to determine the amount of the equalized assessed value of
31		all taxable property within the district for the purpose of
32		computing the percentage rate of tax to be extended upon
33		taxable property within the district, shall in every year that
34		tax increment allocation financing is in effect determine the

1		total equalized assessed value of taxable property in a
2		redevelopment project area by including in that amount the
3		lower of the current equalized assessed value or the certified
4		total initial equalized assessed value or, if the total of
5		updated equalized assessed value has been certified, the total
6		updated initial equalized assessed value of all taxable real
7		property in the redevelopment project area. After he has
8		certified the total initial equalized assessed value he shall
9		in the year of that certification, if tax rates have not been
10		extended, and in every subsequent year that tax increment
11		allocation financing is in effect, determine the amount of
12		equalized assessed value of taxable property in a redevelopment
13		project area by including in that amount the lower of the
14		current total equalized assessed value or the certified total
15		initial equalized assessed value or, if the total of updated
16		initial equalized assessed values have been certified, the
17		total updated initial equalized assessed value of all taxable
18		real property in the redevelopment project area.
19		(d) The percentage rate of tax determined shall be extended
20		on the current equalized assessed value of all property in the
21		redevelopment project area in the same manner as the rate per
22		cent of tax is extended to all other taxable property in the
23		taxing district. The method of extending taxes established
24		under this Section shall terminate when the municipality adopts
25		an ordinance dissolving the special tax allocation fund for the
26		redevelopment project area. This Law shall not be construed as
27		relieving property owners within a redevelopment project area
28		from paying a uniform rate of taxes upon the current equalized
29		assessed value of their taxable property as provided in the
30		Property Tax Code.
31		(Source: P.A. 88-537; 88-670, eff. 12-2-94.)

32		Section 30. The Economic Development Project Area Tax
33		Increment Allocation Act of 1995 is amended by changing Section

1		45 as follows:
2		(65 ILCS 110/45)
3		Sec. 45. Filing with county clerk; certification of initial
4		equalized assessed value.
5		(a) A municipality that has by ordinance approved an
6		economic development plan, established an economic development
7		project area, and adopted tax increment allocation financing
8		for that area shall file certified copies of the ordinance or
9		ordinances with the county clerk. Upon receiving the ordinance
10		or ordinances, the county clerk shall immediately determine (i)
11		the most recently ascertained equalized assessed value of each
12		lot, block, tract, or parcel of real property within the
13		economic development project area from which shall be deducted
14		the homestead exemptions provided by Sections 15-170, and
15		15-175, and 15-176 of the Property Tax Code (that value being
16		the "initial equalized assessed value" of each such piece of
17		property) and (ii) the total equalized assessed value of all
18		taxable real property within the economic development project
19		area by adding together the most recently ascertained equalized
20		assessed value of each taxable lot, block, tract, or parcel of
21		real property within the economic development project area,
22		from which shall be deducted the homestead exemptions provided
23		by Sections 15-170, and 15-175, and 15-176 of the Property Tax
24		Code, and shall certify that amount as the "total initial
25		equalized assessed value" of the taxable real property within
26		the economic development project area.
27		(b) After the county clerk has certified the "total initial
28		equalized assessed value" of the taxable real property in the
29		economic development project area, then in respect to every
30		taxing district containing an economic development project
31		area, the county clerk or any other official required by law to
32		ascertain the amount of the equalized assessed value of all
33		taxable property within the taxing district for the purpose of

1		computing the rate per cent of tax to be extended upon taxable
2		property within the taxing district shall, in every year that
3		tax increment allocation financing is in effect, ascertain the
4		amount of value of taxable property in an economic development
5		project area by including in that amount the lower of the
6		current equalized assessed value or the certified "total
7		initial equalized assessed value" of all taxable real property
8		in the area. The rate per cent of tax determined shall be
9		extended to the current equalized assessed value of all
10		property in the economic development project area in the same
11		manner as the rate per cent of tax is extended to all other
12		taxable property in the taxing district. The method of
13		extending taxes established under this Section shall terminate
14		when the municipality adopts an ordinance dissolving the
15		special tax allocation fund for the economic development
16		project area. This Act shall not be construed as relieving
17		owners or lessees of property within an economic development
18		project area from paying a uniform rate of taxes upon the
19		current equalized assessed value of their taxable property as
20		provided in the Property Tax Code.
21		(Source: P.A. 89-176, eff. 1-1-96.)

22		Section 35. The School Code is amended by changing Section
23		18-8.05 as follows:
24		(105 ILCS 5/18-8.05)
25		Sec. 18-8.05. Basis for apportionment of general State
26		financial aid and supplemental general State aid to the common
27		schools for the 1998-1999 and subsequent school years.
28		(A) General Provisions.
29		(1) The provisions of this Section apply to the 1998-1999
30		and subsequent school years. The system of general State
31		financial aid provided for in this Section is designed to

1		assure that, through a combination of State financial aid and
2		required local resources, the financial support provided each
3		pupil in Average Daily Attendance equals or exceeds a
4		prescribed per pupil Foundation Level. This formula approach
5		imputes a level of per pupil Available Local Resources and
6		provides for the basis to calculate a per pupil level of
7		general State financial aid that, when added to Available Local
8		Resources, equals or exceeds the Foundation Level. The amount
9		of per pupil general State financial aid for school districts,
10		in general, varies in inverse relation to Available Local
11		Resources. Per pupil amounts are based upon each school
12		district's Average Daily Attendance as that term is defined in
13		this Section.
14		(2) In addition to general State financial aid, school
15		districts with specified levels or concentrations of pupils
16		from low income households are eligible to receive supplemental
17		general State financial aid grants as provided pursuant to
18		subsection (H). The supplemental State aid grants provided for
19		school districts under subsection (H) shall be appropriated for
20		distribution to school districts as part of the same line item
21		in which the general State financial aid of school districts is
22		appropriated under this Section.
23		(3) To receive financial assistance under this Section,
24		school districts are required to file claims with the State
25		Board of Education, subject to the following requirements:
26		(a) Any school district which fails for any given
27		school year to maintain school as required by law, or to
28		maintain a recognized school is not eligible to file for
29		such school year any claim upon the Common School Fund. In
30		case of nonrecognition of one or more attendance centers in
31		a school district otherwise operating recognized schools,
32		the claim of the district shall be reduced in the
33		proportion which the Average Daily Attendance in the
34		attendance center or centers bear to the Average Daily

1		Attendance in the school district. A "recognized school"
2		means any public school which meets the standards as
3		established for recognition by the State Board of
4		Education. A school district or attendance center not
5		having recognition status at the end of a school term is
6		entitled to receive State aid payments due upon a legal
7		claim which was filed while it was recognized.
8		(b) School district claims filed under this Section are
9		subject to Sections 18-9, 18-10, and 18-12, except as
10		otherwise provided in this Section.
11		(c) If a school district operates a full year school
12		under Section 10-19.1, the general State aid to the school
13		district shall be determined by the State Board of
14		Education in accordance with this Section as near as may be
15		applicable.
16		(d) (Blank).
17		(4) Except as provided in subsections (H) and (L), the
18		board of any district receiving any of the grants provided for
19		in this Section may apply those funds to any fund so received
20		for which that board is authorized to make expenditures by law.
21		School districts are not required to exert a minimum
22		Operating Tax Rate in order to qualify for assistance under
23		this Section.
24		(5) As used in this Section the following terms, when
25		capitalized, shall have the meaning ascribed herein:
26		(a) "Average Daily Attendance": A count of pupil
27		attendance in school, averaged as provided for in
28		subsection (C) and utilized in deriving per pupil financial
29		support levels.
30		(b) "Available Local Resources": A computation of
31		local financial support, calculated on the basis of Average
32		Daily Attendance and derived as provided pursuant to
33		subsection (D).
34		(c) "Corporate Personal Property Replacement Taxes":

1		Funds paid to local school districts pursuant to "An Act in
2		relation to the abolition of ad valorem personal property
3		tax and the replacement of revenues lost thereby, and
4		amending and repealing certain Acts and parts of Acts in
5		connection therewith", certified August 14, 1979, as
6		amended (Public Act 81-1st S.S.-1).
7		(d) "Foundation Level": A prescribed level of per pupil
8		financial support as provided for in subsection (B).
9		(e) "Operating Tax Rate": All school district property
10		taxes extended for all purposes, except Bond and Interest,
11		Summer School, Rent, Capital Improvement, and Vocational
12		Education Building purposes.
13		(B) Foundation Level.
14		(1) The Foundation Level is a figure established by the
15		State representing the minimum level of per pupil financial
16		support that should be available to provide for the basic
17		education of each pupil in Average Daily Attendance. As set
18		forth in this Section, each school district is assumed to exert
19		a sufficient local taxing effort such that, in combination with
20		the aggregate of general State financial aid provided the
21		district, an aggregate of State and local resources are
22		available to meet the basic education needs of pupils in the
23		district.
24		(2) For the 1998-1999 school year, the Foundation Level of
25		support is $4,225. For the 1999-2000 school year, the
26		Foundation Level of support is $4,325. For the 2000-2001 school
27		year, the Foundation Level of support is $4,425.
28		(3) For the 2001-2002 school year and 2002-2003 school
29		year, the Foundation Level of support is $4,560.
30		(4) For the 2003-2004 school year and each school year
31		thereafter, the Foundation Level of support is $4,810 or such
32		greater amount as may be established by law by the General
33		Assembly.

1		(C) Average Daily Attendance.
2		(1) For purposes of calculating general State aid pursuant
3		to subsection (E), an Average Daily Attendance figure shall be
4		utilized. The Average Daily Attendance figure for formula
5		calculation purposes shall be the monthly average of the actual
6		number of pupils in attendance of each school district, as
7		further averaged for the best 3 months of pupil attendance for
8		each school district. In compiling the figures for the number
9		of pupils in attendance, school districts and the State Board
10		of Education shall, for purposes of general State aid funding,
11		conform attendance figures to the requirements of subsection
12		(F).
13		(2) The Average Daily Attendance figures utilized in
14		subsection (E) shall be the requisite attendance data for the
15		school year immediately preceding the school year for which
16		general State aid is being calculated or the average of the
17		attendance data for the 3 preceding school years, whichever is
18		greater. The Average Daily Attendance figures utilized in
19		subsection (H) shall be the requisite attendance data for the
20		school year immediately preceding the school year for which
21		general State aid is being calculated.
22		(D) Available Local Resources.
23		(1) For purposes of calculating general State aid pursuant
24		to subsection (E), a representation of Available Local
25		Resources per pupil, as that term is defined and determined in
26		this subsection, shall be utilized. Available Local Resources
27		per pupil shall include a calculated dollar amount representing
28		local school district revenues from local property taxes and
29		from Corporate Personal Property Replacement Taxes, expressed
30		on the basis of pupils in Average Daily Attendance.
31		(2) In determining a school district's revenue from local
32		property taxes, the State Board of Education shall utilize the

1		equalized assessed valuation of all taxable property of each
2		school district as of September 30 of the previous year. The
3		equalized assessed valuation utilized shall be obtained and
4		determined as provided in subsection (G).
5		(3) For school districts maintaining grades kindergarten
6		through 12, local property tax revenues per pupil shall be
7		calculated as the product of the applicable equalized assessed
8		valuation for the district multiplied by 3.00%, and divided by
9		the district's Average Daily Attendance figure. For school
10		districts maintaining grades kindergarten through 8, local
11		property tax revenues per pupil shall be calculated as the
12		product of the applicable equalized assessed valuation for the
13		district multiplied by 2.30%, and divided by the district's
14		Average Daily Attendance figure. For school districts
15		maintaining grades 9 through 12, local property tax revenues
16		per pupil shall be the applicable equalized assessed valuation
17		of the district multiplied by 1.05%, and divided by the
18		district's Average Daily Attendance figure.
19		(4) The Corporate Personal Property Replacement Taxes paid
20		to each school district during the calendar year 2 years before
21		the calendar year in which a school year begins, divided by the
22		Average Daily Attendance figure for that district, shall be
23		added to the local property tax revenues per pupil as derived
24		by the application of the immediately preceding paragraph (3).
25		The sum of these per pupil figures for each school district
26		shall constitute Available Local Resources as that term is
27		utilized in subsection (E) in the calculation of general State
28		aid.
29		(E) Computation of General State Aid.
30		(1) For each school year, the amount of general State aid
31		allotted to a school district shall be computed by the State
32		Board of Education as provided in this subsection.
33		(2) For any school district for which Available Local

1		Resources per pupil is less than the product of 0.93 times the
2		Foundation Level, general State aid for that district shall be
3		calculated as an amount equal to the Foundation Level minus
4		Available Local Resources, multiplied by the Average Daily
5		Attendance of the school district.
6		(3) For any school district for which Available Local
7		Resources per pupil is equal to or greater than the product of
8		0.93 times the Foundation Level and less than the product of
9		1.75 times the Foundation Level, the general State aid per
10		pupil shall be a decimal proportion of the Foundation Level
11		derived using a linear algorithm. Under this linear algorithm,
12		the calculated general State aid per pupil shall decline in
13		direct linear fashion from 0.07 times the Foundation Level for
14		a school district with Available Local Resources equal to the
15		product of 0.93 times the Foundation Level, to 0.05 times the
16		Foundation Level for a school district with Available Local
17		Resources equal to the product of 1.75 times the Foundation
18		Level. The allocation of general State aid for school districts
19		subject to this paragraph 3 shall be the calculated general
20		State aid per pupil figure multiplied by the Average Daily
21		Attendance of the school district.
22		(4) For any school district for which Available Local
23		Resources per pupil equals or exceeds the product of 1.75 times
24		the Foundation Level, the general State aid for the school
25		district shall be calculated as the product of $218 multiplied
26		by the Average Daily Attendance of the school district.
27		(5) The amount of general State aid allocated to a school
28		district for the 1999-2000 school year meeting the requirements
29		set forth in paragraph (4) of subsection (G) shall be increased
30		by an amount equal to the general State aid that would have
31		been received by the district for the 1998-1999 school year by
32		utilizing the Extension Limitation Equalized Assessed
33		Valuation as calculated in paragraph (4) of subsection (G) less
34		the general State aid allotted for the 1998-1999 school year.

1		This amount shall be deemed a one time increase, and shall not
2		affect any future general State aid allocations.
3		(F) Compilation of Average Daily Attendance.
4		(1) Each school district shall, by July 1 of each year,
5		submit to the State Board of Education, on forms prescribed by
6		the State Board of Education, attendance figures for the school
7		year that began in the preceding calendar year. The attendance
8		information so transmitted shall identify the average daily
9		attendance figures for each month of the school year. Beginning
10		with the general State aid claim form for the 2002-2003 school
11		year, districts shall calculate Average Daily Attendance as
12		provided in subdivisions (a), (b), and (c) of this paragraph
13		(1).
14		(a) In districts that do not hold year-round classes,
15		days of attendance in August shall be added to the month of
16		September and any days of attendance in June shall be added
17		to the month of May.
18		(b) In districts in which all buildings hold year-round
19		classes, days of attendance in July and August shall be
20		added to the month of September and any days of attendance
21		in June shall be added to the month of May.
22		(c) In districts in which some buildings, but not all,
23		hold year-round classes, for the non-year-round buildings,
24		days of attendance in August shall be added to the month of
25		September and any days of attendance in June shall be added
26		to the month of May. The average daily attendance for the
27		year-round buildings shall be computed as provided in
28		subdivision (b) of this paragraph (1). To calculate the
29		Average Daily Attendance for the district, the average
30		daily attendance for the year-round buildings shall be
31		multiplied by the days in session for the non-year-round
32		buildings for each month and added to the monthly
33		attendance of the non-year-round buildings.

1		Except as otherwise provided in this Section, days of
2		attendance by pupils shall be counted only for sessions of not
3		less than 5 clock hours of school work per day under direct
4		supervision of: (i) teachers, or (ii) non-teaching personnel or
5		volunteer personnel when engaging in non-teaching duties and
6		supervising in those instances specified in subsection (a) of
7		Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
8		of legal school age and in kindergarten and grades 1 through
9		12.
10		Days of attendance by tuition pupils shall be accredited
11		only to the districts that pay the tuition to a recognized
12		school.
13		(2) Days of attendance by pupils of less than 5 clock hours
14		of school shall be subject to the following provisions in the
15		compilation of Average Daily Attendance.
16		(a) Pupils regularly enrolled in a public school for
17		only a part of the school day may be counted on the basis
18		of 1/6 day for every class hour of instruction of 40
19		minutes or more attended pursuant to such enrollment,
20		unless a pupil is enrolled in a block-schedule format of 80
21		minutes or more of instruction, in which case the pupil may
22		be counted on the basis of the proportion of minutes of
23		school work completed each day to the minimum number of
24		minutes that school work is required to be held that day.
25		(b) Days of attendance may be less than 5 clock hours
26		on the opening and closing of the school term, and upon the
27		first day of pupil attendance, if preceded by a day or days
28		utilized as an institute or teachers' workshop.
29		(c) A session of 4 or more clock hours may be counted
30		as a day of attendance upon certification by the regional
31		superintendent, and approved by the State Superintendent
32		of Education to the extent that the district has been
33		forced to use daily multiple sessions.
34		(d) A session of 3 or more clock hours may be counted

1		as a day of attendance (1) when the remainder of the school
2		day or at least 2 hours in the evening of that day is
3		utilized for an in-service training program for teachers,
4		up to a maximum of 5 days per school year of which a
5		maximum of 4 days of such 5 days may be used for
6		parent-teacher conferences, provided a district conducts
7		an in-service training program for teachers which has been
8		approved by the State Superintendent of Education; or, in
9		lieu of 4 such days, 2 full days may be used, in which
10		event each such day may be counted as a day of attendance;
11		and (2) when days in addition to those provided in item (1)
12		are scheduled by a school pursuant to its school
13		improvement plan adopted under Article 34 or its revised or
14		amended school improvement plan adopted under Article 2,
15		provided that (i) such sessions of 3 or more clock hours
16		are scheduled to occur at regular intervals, (ii) the
17		remainder of the school days in which such sessions occur
18		are utilized for in-service training programs or other
19		staff development activities for teachers, and (iii) a
20		sufficient number of minutes of school work under the
21		direct supervision of teachers are added to the school days
22		between such regularly scheduled sessions to accumulate
23		not less than the number of minutes by which such sessions
24		of 3 or more clock hours fall short of 5 clock hours. Any
25		full days used for the purposes of this paragraph shall not
26		be considered for computing average daily attendance. Days
27		scheduled for in-service training programs, staff
28		development activities, or parent-teacher conferences may
29		be scheduled separately for different grade levels and
30		different attendance centers of the district.
31		(e) A session of not less than one clock hour of
32		teaching hospitalized or homebound pupils on-site or by
33		telephone to the classroom may be counted as 1/2 day of
34		attendance, however these pupils must receive 4 or more

1		clock hours of instruction to be counted for a full day of
2		attendance.
3		(f) A session of at least 4 clock hours may be counted
4		as a day of attendance for first grade pupils, and pupils
5		in full day kindergartens, and a session of 2 or more hours
6		may be counted as 1/2 day of attendance by pupils in
7		kindergartens which provide only 1/2 day of attendance.
8		(g) For children with disabilities who are below the
9		age of 6 years and who cannot attend 2 or more clock hours
10		because of their disability or immaturity, a session of not
11		less than one clock hour may be counted as 1/2 day of
12		attendance; however for such children whose educational
13		needs so require a session of 4 or more clock hours may be
14		counted as a full day of attendance.
15		(h) A recognized kindergarten which provides for only
16		1/2 day of attendance by each pupil shall not have more
17		than 1/2 day of attendance counted in any one day. However,
18		kindergartens may count 2 1/2 days of attendance in any 5
19		consecutive school days. When a pupil attends such a
20		kindergarten for 2 half days on any one school day, the
21		pupil shall have the following day as a day absent from
22		school, unless the school district obtains permission in
23		writing from the State Superintendent of Education.
24		Attendance at kindergartens which provide for a full day of
25		attendance by each pupil shall be counted the same as
26		attendance by first grade pupils. Only the first year of
27		attendance in one kindergarten shall be counted, except in
28		case of children who entered the kindergarten in their
29		fifth year whose educational development requires a second
30		year of kindergarten as determined under the rules and
31		regulations of the State Board of Education.
32		(G) Equalized Assessed Valuation Data.
33		(1) For purposes of the calculation of Available Local

1		Resources required pursuant to subsection (D), the State Board
2		of Education shall secure from the Department of Revenue the
3		value as equalized or assessed by the Department of Revenue of
4		all taxable property of every school district, together with
5		(i) the applicable tax rate used in extending taxes for the
6		funds of the district as of September 30 of the previous year
7		and (ii) the limiting rate for all school districts subject to
8		property tax extension limitations as imposed under the
9		Property Tax Extension Limitation Law.
10		The Department of Revenue shall add to the equalized
11		assessed value of all taxable property of each school district
12		situated entirely or partially within a county subject to the
13		alternative general homestead exemption provisions of Section
14		15-176 of the Property Tax Code an amount equal to the total
15		amount by which the homestead exemption allowed under Section
16		15-176 of the Property Tax Code for real property situated in
17		that school district exceeds the total amount that would have
18		been allowed in that school district if the maximum reduction
19		under Section 15-176 was $4,500 in Cook County or $3,500 in all
20		other counties. The county clerk of any county subject to the
21		alternative general homestead exemption provisions of Section
22		15-176 of the Property Tax Code shall annually calculate and
23		certify to the Department of Revenue for each school district
24		all homestead exemption amounts under Section 15-176 of the
25		Property Tax Code. It is the intent of this paragraph that if
26		the general homestead exemption for a parcel of property is
27		determined under Section 15-176 of the Property Tax Code rather
28		than Section 15-175, then the calculation of Available Local
29		Resources shall not be affected by the difference, if any,
30		between the amount of the general homestead exemption allowed
31		for that parcel of property under Section 15-176 of the
32		Property Tax Code and the amount that would have been allowed
33		had the general homestead exemption for that parcel of property
34		been determined under Section 15-175 of the Property Tax Code.

1		This equalized assessed valuation, as adjusted further by
2		the requirements of this subsection, shall be utilized in the
3		calculation of Available Local Resources.
4		(2) The equalized assessed valuation in paragraph (1) shall
5		be adjusted, as applicable, in the following manner:
6		(a) For the purposes of calculating State aid under
7		this Section, with respect to any part of a school district
8		within a redevelopment project area in respect to which a
9		municipality has adopted tax increment allocation
10		financing pursuant to the Tax Increment Allocation
11		Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
12		of the Illinois Municipal Code or the Industrial Jobs
13		Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
14		Illinois Municipal Code, no part of the current equalized
15		assessed valuation of real property located in any such
16		project area which is attributable to an increase above the
17		total initial equalized assessed valuation of such
18		property shall be used as part of the equalized assessed
19		valuation of the district, until such time as all
20		redevelopment project costs have been paid, as provided in
21		Section 11-74.4-8 of the Tax Increment Allocation
22		Redevelopment Act or in Section 11-74.6-35 of the
23		Industrial Jobs Recovery Law. For the purpose of the
24		equalized assessed valuation of the district, the total
25		initial equalized assessed valuation or the current
26		equalized assessed valuation, whichever is lower, shall be
27		used until such time as all redevelopment project costs
28		have been paid.
29		(b) The real property equalized assessed valuation for
30		a school district shall be adjusted by subtracting from the
31		real property value as equalized or assessed by the
32		Department of Revenue for the district an amount computed
33		by dividing the amount of any abatement of taxes under
34		Section 18-170 of the Property Tax Code by 3.00% for a

1		district maintaining grades kindergarten through 12, by
2		2.30% for a district maintaining grades kindergarten
3		through 8, or by 1.05% for a district maintaining grades 9
4		through 12 and adjusted by an amount computed by dividing
5		the amount of any abatement of taxes under subsection (a)
6		of Section 18-165 of the Property Tax Code by the same
7		percentage rates for district type as specified in this
8		subparagraph (b).
9		(3) For the 1999-2000 school year and each school year
10		thereafter, if a school district meets all of the criteria of
11		this subsection (G)(3), the school district's Available Local
12		Resources shall be calculated under subsection (D) using the
13		district's Extension Limitation Equalized Assessed Valuation
14		as calculated under this subsection (G)(3).
15		For purposes of this subsection (G)(3) the following terms
16		shall have the following meanings:
17		"Budget Year": The school year for which general State
18		aid is calculated and awarded under subsection (E).
19		"Base Tax Year": The property tax levy year used to
20		calculate the Budget Year allocation of general State aid.
21		"Preceding Tax Year": The property tax levy year
22		immediately preceding the Base Tax Year.
23		"Base Tax Year's Tax Extension": The product of the
24		equalized assessed valuation utilized by the County Clerk
25		in the Base Tax Year multiplied by the limiting rate as
26		calculated by the County Clerk and defined in the Property
27		Tax Extension Limitation Law.
28		"Preceding Tax Year's Tax Extension": The product of
29		the equalized assessed valuation utilized by the County
30		Clerk in the Preceding Tax Year multiplied by the Operating
31		Tax Rate as defined in subsection (A).
32		"Extension Limitation Ratio": A numerical ratio,
33		certified by the County Clerk, in which the numerator is
34		the Base Tax Year's Tax Extension and the denominator is

1		the Preceding Tax Year's Tax Extension.
2		"Operating Tax Rate": The operating tax rate as defined
3		in subsection (A).
4		If a school district is subject to property tax extension
5		limitations as imposed under the Property Tax Extension
6		Limitation Law, the State Board of Education shall calculate
7		the Extension Limitation Equalized Assessed Valuation of that
8		district. For the 1999-2000 school year, the Extension
9		Limitation Equalized Assessed Valuation of a school district as
10		calculated by the State Board of Education shall be equal to
11		the product of the district's 1996 Equalized Assessed Valuation
12		and the district's Extension Limitation Ratio. For the
13		2000-2001 school year and each school year thereafter, the
14		Extension Limitation Equalized Assessed Valuation of a school
15		district as calculated by the State Board of Education shall be
16		equal to the product of the Equalized Assessed Valuation last
17		used in the calculation of general State aid and the district's
18		Extension Limitation Ratio. If the Extension Limitation
19		Equalized Assessed Valuation of a school district as calculated
20		under this subsection (G)(3) is less than the district's
21		equalized assessed valuation as calculated pursuant to
22		subsections (G)(1) and (G)(2), then for purposes of calculating
23		the district's general State aid for the Budget Year pursuant
24		to subsection (E), that Extension Limitation Equalized
25		Assessed Valuation shall be utilized to calculate the
26		district's Available Local Resources under subsection (D).
27		(4) For the purposes of calculating general State aid for
28		the 1999-2000 school year only, if a school district
29		experienced a triennial reassessment on the equalized assessed
30		valuation used in calculating its general State financial aid
31		apportionment for the 1998-1999 school year, the State Board of
32		Education shall calculate the Extension Limitation Equalized
33		Assessed Valuation that would have been used to calculate the
34		district's 1998-1999 general State aid. This amount shall equal

1		the product of the equalized assessed valuation used to
2		calculate general State aid for the 1997-1998 school year and
3		the district's Extension Limitation Ratio. If the Extension
4		Limitation Equalized Assessed Valuation of the school district
5		as calculated under this paragraph (4) is less than the
6		district's equalized assessed valuation utilized in
7		calculating the district's 1998-1999 general State aid
8		allocation, then for purposes of calculating the district's
9		general State aid pursuant to paragraph (5) of subsection (E),
10		that Extension Limitation Equalized Assessed Valuation shall
11		be utilized to calculate the district's Available Local
12		Resources.
13		(5) For school districts having a majority of their
14		equalized assessed valuation in any county except Cook, DuPage,
15		Kane, Lake, McHenry, or Will, if the amount of general State
16		aid allocated to the school district for the 1999-2000 school
17		year under the provisions of subsection (E), (H), and (J) of
18		this Section is less than the amount of general State aid
19		allocated to the district for the 1998-1999 school year under
20		these subsections, then the general State aid of the district
21		for the 1999-2000 school year only shall be increased by the
22		difference between these amounts. The total payments made under
23		this paragraph (5) shall not exceed $14,000,000. Claims shall
24		be prorated if they exceed $14,000,000.
25		(H) Supplemental General State Aid.
26		(1) In addition to the general State aid a school district
27		is allotted pursuant to subsection (E), qualifying school
28		districts shall receive a grant, paid in conjunction with a
29		district's payments of general State aid, for supplemental
30		general State aid based upon the concentration level of
31		children from low-income households within the school
32		district. Supplemental State aid grants provided for school
33		districts under this subsection shall be appropriated for

1		distribution to school districts as part of the same line item
2		in which the general State financial aid of school districts is
3		appropriated under this Section. If the appropriation in any
4		fiscal year for general State aid and supplemental general
5		State aid is insufficient to pay the amounts required under the
6		general State aid and supplemental general State aid
7		calculations, then the State Board of Education shall ensure
8		that each school district receives the full amount due for
9		general State aid and the remainder of the appropriation shall
10		be used for supplemental general State aid, which the State
11		Board of Education shall calculate and pay to eligible
12		districts on a prorated basis.
13		(1.5) This paragraph (1.5) applies only to those school
14		years preceding the 2003-2004 school year. For purposes of this
15		subsection (H), the term "Low-Income Concentration Level"
16		shall be the low-income eligible pupil count from the most
17		recently available federal census divided by the Average Daily
18		Attendance of the school district. If, however, (i) the
19		percentage decrease from the 2 most recent federal censuses in
20		the low-income eligible pupil count of a high school district
21		with fewer than 400 students exceeds by 75% or more the
22		percentage change in the total low-income eligible pupil count
23		of contiguous elementary school districts, whose boundaries
24		are coterminous with the high school district, or (ii) a high
25		school district within 2 counties and serving 5 elementary
26		school districts, whose boundaries are coterminous with the
27		high school district, has a percentage decrease from the 2 most
28		recent federal censuses in the low-income eligible pupil count
29		and there is a percentage increase in the total low-income
30		eligible pupil count of a majority of the elementary school
31		districts in excess of 50% from the 2 most recent federal
32		censuses, then the high school district's low-income eligible
33		pupil count from the earlier federal census shall be the number
34		used as the low-income eligible pupil count for the high school

1		district, for purposes of this subsection (H). The changes made
2		to this paragraph (1) by Public Act 92-28 shall apply to
3		supplemental general State aid grants for school years
4		preceding the 2003-2004 school year that are paid in fiscal
5		year 1999 or thereafter and to any State aid payments made in
6		fiscal year 1994 through fiscal year 1998 pursuant to
7		subsection 1(n) of Section 18-8 of this Code (which was
8		repealed on July 1, 1998), and any high school district that is
9		affected by Public Act 92-28 is entitled to a recomputation of
10		its supplemental general State aid grant or State aid paid in
11		any of those fiscal years. This recomputation shall not be
12		affected by any other funding.
13		(1.10) This paragraph (1.10) applies to the 2003-2004
14		school year and each school year thereafter. For purposes of
15		this subsection (H), the term "Low-Income Concentration Level"
16		shall, for each fiscal year, be the low-income eligible pupil
17		count as of July 1 of the immediately preceding fiscal year (as
18		determined by the Department of Human Services based on the
19		number of pupils who are eligible for at least one of the
20		following low income programs: Medicaid, KidCare, TANF, or Food
21		Stamps, excluding pupils who are eligible for services provided
22		by the Department of Children and Family Services, averaged
23		over the 2 immediately preceding fiscal years for fiscal year
24		2004 and over the 3 immediately preceding fiscal years for each
25		fiscal year thereafter) divided by the Average Daily Attendance
26		of the school district.
27		(2) Supplemental general State aid pursuant to this
28		subsection (H) shall be provided as follows for the 1998-1999,
29		1999-2000, and 2000-2001 school years only:
30		(a) For any school district with a Low Income
31		Concentration Level of at least 20% and less than 35%, the
32		grant for any school year shall be $800 multiplied by the
33		low income eligible pupil count.
34		(b) For any school district with a Low Income

1		Concentration Level of at least 35% and less than 50%, the
2		grant for the 1998-1999 school year shall be $1,100
3		multiplied by the low income eligible pupil count.
4		(c) For any school district with a Low Income
5		Concentration Level of at least 50% and less than 60%, the
6		grant for the 1998-99 school year shall be $1,500
7		multiplied by the low income eligible pupil count.
8		(d) For any school district with a Low Income
9		Concentration Level of 60% or more, the grant for the
10		1998-99 school year shall be $1,900 multiplied by the low
11		income eligible pupil count.
12		(e) For the 1999-2000 school year, the per pupil amount
13		specified in subparagraphs (b), (c), and (d) immediately
14		above shall be increased to $1,243, $1,600, and $2,000,
15		respectively.
16		(f) For the 2000-2001 school year, the per pupil
17		amounts specified in subparagraphs (b), (c), and (d)
18		immediately above shall be $1,273, $1,640, and $2,050,
19		respectively.
20		(2.5) Supplemental general State aid pursuant to this
21		subsection (H) shall be provided as follows for the 2002-2003
22		school year:
23		(a) For any school district with a Low Income
24		Concentration Level of less than 10%, the grant for each
25		school year shall be $355 multiplied by the low income
26		eligible pupil count.
27		(b) For any school district with a Low Income
28		Concentration Level of at least 10% and less than 20%, the
29		grant for each school year shall be $675 multiplied by the
30		low income eligible pupil count.
31		(c) For any school district with a Low Income
32		Concentration Level of at least 20% and less than 35%, the
33		grant for each school year shall be $1,330 multiplied by
34		the low income eligible pupil count.

1		(d) For any school district with a Low Income
2		Concentration Level of at least 35% and less than 50%, the
3		grant for each school year shall be $1,362 multiplied by
4		the low income eligible pupil count.
5		(e) For any school district with a Low Income
6		Concentration Level of at least 50% and less than 60%, the
7		grant for each school year shall be $1,680 multiplied by
8		the low income eligible pupil count.
9		(f) For any school district with a Low Income
10		Concentration Level of 60% or more, the grant for each
11		school year shall be $2,080 multiplied by the low income
12		eligible pupil count.
13		(2.10) Except as otherwise provided, supplemental general
14		State aid pursuant to this subsection (H) shall be provided as
15		follows for the 2003-2004 school year and each school year
16		thereafter:
17		(a) For any school district with a Low Income
18		Concentration Level of 15% or less, the grant for each
19		school year shall be $355 multiplied by the low income
20		eligible pupil count.
21		(b) For any school district with a Low Income
22		Concentration Level greater than 15%, the grant for each
23		school year shall be $294.25 added to the product of $2,700
24		and the square of the Low Income Concentration Level, all
25		multiplied by the low income eligible pupil count.
26		For the 2003-2004 school year only, the grant shall be no
27		less than the grant for the 2002-2003 school year. For the
28		2004-2005 school year only, the grant shall be no less than the
29		grant for the 2002-2003 school year multiplied by 0.66. For the
30		2005-2006 school year only, the grant shall be no less than the
31		grant for the 2002-2003 school year multiplied by 0.33.
32		For the 2003-2004 school year only, the grant shall be no
33		greater than the grant received during the 2002-2003 school
34		year added to the product of 0.25 multiplied by the difference

1		between the grant amount calculated under subsection (a) or (b)
2		of this paragraph (2.10), whichever is applicable, and the
3		grant received during the 2002-2003 school year. For the
4		2004-2005 school year only, the grant shall be no greater than
5		the grant received during the 2002-2003 school year added to
6		the product of 0.50 multiplied by the difference between the
7		grant amount calculated under subsection (a) or (b) of this
8		paragraph (2.10), whichever is applicable, and the grant
9		received during the 2002-2003 school year. For the 2005-2006
10		school year only, the grant shall be no greater than the grant
11		received during the 2002-2003 school year added to the product
12		of 0.75 multiplied by the difference between the grant amount
13		calculated under subsection (a) or (b) of this paragraph
14		(2.10), whichever is applicable, and the grant received during
15		the 2002-2003 school year.
16		(3) School districts with an Average Daily Attendance of
17		more than 1,000 and less than 50,000 that qualify for
18		supplemental general State aid pursuant to this subsection
19		shall submit a plan to the State Board of Education prior to
20		October 30 of each year for the use of the funds resulting from
21		this grant of supplemental general State aid for the
22		improvement of instruction in which priority is given to
23		meeting the education needs of disadvantaged children. Such
24		plan shall be submitted in accordance with rules and
25		regulations promulgated by the State Board of Education.
26		(4) School districts with an Average Daily Attendance of
27		50,000 or more that qualify for supplemental general State aid
28		pursuant to this subsection shall be required to distribute
29		from funds available pursuant to this Section, no less than
30		$261,000,000 in accordance with the following requirements:
31		(a) The required amounts shall be distributed to the
32		attendance centers within the district in proportion to the
33		number of pupils enrolled at each attendance center who are
34		eligible to receive free or reduced-price lunches or

1		breakfasts under the federal Child Nutrition Act of 1966
2		and under the National School Lunch Act during the
3		immediately preceding school year.
4		(b) The distribution of these portions of supplemental
5		and general State aid among attendance centers according to
6		these requirements shall not be compensated for or
7		contravened by adjustments of the total of other funds
8		appropriated to any attendance centers, and the Board of
9		Education shall utilize funding from one or several sources
10		in order to fully implement this provision annually prior
11		to the opening of school.
12		(c) Each attendance center shall be provided by the
13		school district a distribution of noncategorical funds and
14		other categorical funds to which an attendance center is
15		entitled under law in order that the general State aid and
16		supplemental general State aid provided by application of
17		this subsection supplements rather than supplants the
18		noncategorical funds and other categorical funds provided
19		by the school district to the attendance centers.
20		(d) Any funds made available under this subsection that
21		by reason of the provisions of this subsection are not
22		required to be allocated and provided to attendance centers
23		may be used and appropriated by the board of the district
24		for any lawful school purpose.
25		(e) Funds received by an attendance center pursuant to
26		this subsection shall be used by the attendance center at
27		the discretion of the principal and local school council
28		for programs to improve educational opportunities at
29		qualifying schools through the following programs and
30		services: early childhood education, reduced class size or
31		improved adult to student classroom ratio, enrichment
32		programs, remedial assistance, attendance improvement, and
33		other educationally beneficial expenditures which
34		supplement the regular and basic programs as determined by

1		the State Board of Education. Funds provided shall not be
2		expended for any political or lobbying purposes as defined
3		by board rule.
4		(f) Each district subject to the provisions of this
5		subdivision (H)(4) shall submit an acceptable plan to meet
6		the educational needs of disadvantaged children, in
7		compliance with the requirements of this paragraph, to the
8		State Board of Education prior to July 15 of each year.
9		This plan shall be consistent with the decisions of local
10		school councils concerning the school expenditure plans
11		developed in accordance with part 4 of Section 34-2.3. The
12		State Board shall approve or reject the plan within 60 days
13		after its submission. If the plan is rejected, the district
14		shall give written notice of intent to modify the plan
15		within 15 days of the notification of rejection and then
16		submit a modified plan within 30 days after the date of the
17		written notice of intent to modify. Districts may amend
18		approved plans pursuant to rules promulgated by the State
19		Board of Education.
20		Upon notification by the State Board of Education that
21		the district has not submitted a plan prior to July 15 or a
22		modified plan within the time period specified herein, the
23		State aid funds affected by that plan or modified plan
24		shall be withheld by the State Board of Education until a
25		plan or modified plan is submitted.
26		If the district fails to distribute State aid to
27		attendance centers in accordance with an approved plan, the
28		plan for the following year shall allocate funds, in
29		addition to the funds otherwise required by this
30		subsection, to those attendance centers which were
31		underfunded during the previous year in amounts equal to
32		such underfunding.
33		For purposes of determining compliance with this
34		subsection in relation to the requirements of attendance

1		center funding, each district subject to the provisions of
2		this subsection shall submit as a separate document by
3		December 1 of each year a report of expenditure data for
4		the prior year in addition to any modification of its
5		current plan. If it is determined that there has been a
6		failure to comply with the expenditure provisions of this
7		subsection regarding contravention or supplanting, the
8		State Superintendent of Education shall, within 60 days of
9		receipt of the report, notify the district and any affected
10		local school council. The district shall within 45 days of
11		receipt of that notification inform the State
12		Superintendent of Education of the remedial or corrective
13		action to be taken, whether by amendment of the current
14		plan, if feasible, or by adjustment in the plan for the
15		following year. Failure to provide the expenditure report
16		or the notification of remedial or corrective action in a
17		timely manner shall result in a withholding of the affected
18		funds.
19		The State Board of Education shall promulgate rules and
20		regulations to implement the provisions of this
21		subsection. No funds shall be released under this
22		subdivision (H)(4) to any district that has not submitted a
23		plan that has been approved by the State Board of
24		Education.
25		(I) General State Aid for Newly Configured School Districts.
26		(1) For a new school district formed by combining property
27		included totally within 2 or more previously existing school
28		districts, for its first year of existence the general State
29		aid and supplemental general State aid calculated under this
30		Section shall be computed for the new district and for the
31		previously existing districts for which property is totally
32		included within the new district. If the computation on the
33		basis of the previously existing districts is greater, a

1		supplementary payment equal to the difference shall be made for
2		the first 4 years of existence of the new district.
3		(2) For a school district which annexes all of the
4		territory of one or more entire other school districts, for the
5		first year during which the change of boundaries attributable
6		to such annexation becomes effective for all purposes as
7		determined under Section 7-9 or 7A-8, the general State aid and
8		supplemental general State aid calculated under this Section
9		shall be computed for the annexing district as constituted
10		after the annexation and for the annexing and each annexed
11		district as constituted prior to the annexation; and if the
12		computation on the basis of the annexing and annexed districts
13		as constituted prior to the annexation is greater, a
14		supplementary payment equal to the difference shall be made for
15		the first 4 years of existence of the annexing school district
16		as constituted upon such annexation.
17		(3) For 2 or more school districts which annex all of the
18		territory of one or more entire other school districts, and for
19		2 or more community unit districts which result upon the
20		division (pursuant to petition under Section 11A-2) of one or
21		more other unit school districts into 2 or more parts and which
22		together include all of the parts into which such other unit
23		school district or districts are so divided, for the first year
24		during which the change of boundaries attributable to such
25		annexation or division becomes effective for all purposes as
26		determined under Section 7-9 or 11A-10, as the case may be, the
27		general State aid and supplemental general State aid calculated
28		under this Section shall be computed for each annexing or
29		resulting district as constituted after the annexation or
30		division and for each annexing and annexed district, or for
31		each resulting and divided district, as constituted prior to
32		the annexation or division; and if the aggregate of the general
33		State aid and supplemental general State aid as so computed for
34		the annexing or resulting districts as constituted after the

1		annexation or division is less than the aggregate of the
2		general State aid and supplemental general State aid as so
3		computed for the annexing and annexed districts, or for the
4		resulting and divided districts, as constituted prior to the
5		annexation or division, then a supplementary payment equal to
6		the difference shall be made and allocated between or among the
7		annexing or resulting districts, as constituted upon such
8		annexation or division, for the first 4 years of their
9		existence. The total difference payment shall be allocated
10		between or among the annexing or resulting districts in the
11		same ratio as the pupil enrollment from that portion of the
12		annexed or divided district or districts which is annexed to or
13		included in each such annexing or resulting district bears to
14		the total pupil enrollment from the entire annexed or divided
15		district or districts, as such pupil enrollment is determined
16		for the school year last ending prior to the date when the
17		change of boundaries attributable to the annexation or division
18		becomes effective for all purposes. The amount of the total
19		difference payment and the amount thereof to be allocated to
20		the annexing or resulting districts shall be computed by the
21		State Board of Education on the basis of pupil enrollment and
22		other data which shall be certified to the State Board of
23		Education, on forms which it shall provide for that purpose, by
24		the regional superintendent of schools for each educational
25		service region in which the annexing and annexed districts, or
26		resulting and divided districts are located.
27		(3.5) Claims for financial assistance under this
28		subsection (I) shall not be recomputed except as expressly
29		provided under this Section.
30		(4) Any supplementary payment made under this subsection
31		(I) shall be treated as separate from all other payments made
32		pursuant to this Section.
33		(J) Supplementary Grants in Aid.

1		(1) Notwithstanding any other provisions of this Section,
2		the amount of the aggregate general State aid in combination
3		with supplemental general State aid under this Section for
4		which each school district is eligible shall be no less than
5		the amount of the aggregate general State aid entitlement that
6		was received by the district under Section 18-8 (exclusive of
7		amounts received under subsections 5(p) and 5(p-5) of that
8		Section) for the 1997-98 school year, pursuant to the
9		provisions of that Section as it was then in effect. If a
10		school district qualifies to receive a supplementary payment
11		made under this subsection (J), the amount of the aggregate
12		general State aid in combination with supplemental general
13		State aid under this Section which that district is eligible to
14		receive for each school year shall be no less than the amount
15		of the aggregate general State aid entitlement that was
16		received by the district under Section 18-8 (exclusive of
17		amounts received under subsections 5(p) and 5(p-5) of that
18		Section) for the 1997-1998 school year, pursuant to the
19		provisions of that Section as it was then in effect.
20		(2) If, as provided in paragraph (1) of this subsection
21		(J), a school district is to receive aggregate general State
22		aid in combination with supplemental general State aid under
23		this Section for the 1998-99 school year and any subsequent
24		school year that in any such school year is less than the
25		amount of the aggregate general State aid entitlement that the
26		district received for the 1997-98 school year, the school
27		district shall also receive, from a separate appropriation made
28		for purposes of this subsection (J), a supplementary payment
29		that is equal to the amount of the difference in the aggregate
30		State aid figures as described in paragraph (1).
31		(3) (Blank).
32		(K) Grants to Laboratory and Alternative Schools.
33		In calculating the amount to be paid to the governing board

1		of a public university that operates a laboratory school under
2		this Section or to any alternative school that is operated by a
3		regional superintendent of schools, the State Board of
4		Education shall require by rule such reporting requirements as
5		it deems necessary.
6		As used in this Section, "laboratory school" means a public
7		school which is created and operated by a public university and
8		approved by the State Board of Education. The governing board
9		of a public university which receives funds from the State
10		Board under this subsection (K) may not increase the number of
11		students enrolled in its laboratory school from a single
12		district, if that district is already sending 50 or more
13		students, except under a mutual agreement between the school
14		board of a student's district of residence and the university
15		which operates the laboratory school. A laboratory school may
16		not have more than 1,000 students, excluding students with
17		disabilities in a special education program.
18		As used in this Section, "alternative school" means a
19		public school which is created and operated by a Regional
20		Superintendent of Schools and approved by the State Board of
21		Education. Such alternative schools may offer courses of
22		instruction for which credit is given in regular school
23		programs, courses to prepare students for the high school
24		equivalency testing program or vocational and occupational
25		training. A regional superintendent of schools may contract
26		with a school district or a public community college district
27		to operate an alternative school. An alternative school serving
28		more than one educational service region may be established by
29		the regional superintendents of schools of the affected
30		educational service regions. An alternative school serving
31		more than one educational service region may be operated under
32		such terms as the regional superintendents of schools of those
33		educational service regions may agree.
34		Each laboratory and alternative school shall file, on forms

1		provided by the State Superintendent of Education, an annual
2		State aid claim which states the Average Daily Attendance of
3		the school's students by month. The best 3 months' Average
4		Daily Attendance shall be computed for each school. The general
5		State aid entitlement shall be computed by multiplying the
6		applicable Average Daily Attendance by the Foundation Level as
7		determined under this Section.
8		(L) Payments, Additional Grants in Aid and Other Requirements.
9		(1) For a school district operating under the financial
10		supervision of an Authority created under Article 34A, the
11		general State aid otherwise payable to that district under this
12		Section, but not the supplemental general State aid, shall be
13		reduced by an amount equal to the budget for the operations of
14		the Authority as certified by the Authority to the State Board
15		of Education, and an amount equal to such reduction shall be
16		paid to the Authority created for such district for its
17		operating expenses in the manner provided in Section 18-11. The
18		remainder of general State school aid for any such district
19		shall be paid in accordance with Article 34A when that Article
20		provides for a disposition other than that provided by this
21		Article.
22		(2) (Blank).
23		(3) Summer school. Summer school payments shall be made as
24		provided in Section 18-4.3.
25		(M) Education Funding Advisory Board.
26		The Education Funding Advisory Board, hereinafter in this
27		subsection (M) referred to as the "Board", is hereby created.
28		The Board shall consist of 5 members who are appointed by the
29		Governor, by and with the advice and consent of the Senate. The
30		members appointed shall include representatives of education,
31		business, and the general public. One of the members so
32		appointed shall be designated by the Governor at the time the

1		appointment is made as the chairperson of the Board. The
2		initial members of the Board may be appointed any time after
3		the effective date of this amendatory Act of 1997. The regular
4		term of each member of the Board shall be for 4 years from the
5		third Monday of January of the year in which the term of the
6		member's appointment is to commence, except that of the 5
7		initial members appointed to serve on the Board, the member who
8		is appointed as the chairperson shall serve for a term that
9		commences on the date of his or her appointment and expires on
10		the third Monday of January, 2002, and the remaining 4 members,
11		by lots drawn at the first meeting of the Board that is held
12		after all 5 members are appointed, shall determine 2 of their
13		number to serve for terms that commence on the date of their
14		respective appointments and expire on the third Monday of
15		January, 2001, and 2 of their number to serve for terms that
16		commence on the date of their respective appointments and
17		expire on the third Monday of January, 2000. All members
18		appointed to serve on the Board shall serve until their
19		respective successors are appointed and confirmed. Vacancies
20		shall be filled in the same manner as original appointments. If
21		a vacancy in membership occurs at a time when the Senate is not
22		in session, the Governor shall make a temporary appointment
23		until the next meeting of the Senate, when he or she shall
24		appoint, by and with the advice and consent of the Senate, a
25		person to fill that membership for the unexpired term. If the
26		Senate is not in session when the initial appointments are
27		made, those appointments shall be made as in the case of
28		vacancies.
29		The Education Funding Advisory Board shall be deemed
30		established, and the initial members appointed by the Governor
31		to serve as members of the Board shall take office, on the date
32		that the Governor makes his or her appointment of the fifth
33		initial member of the Board, whether those initial members are
34		then serving pursuant to appointment and confirmation or

1		pursuant to temporary appointments that are made by the
2		Governor as in the case of vacancies.
3		The State Board of Education shall provide such staff
4		assistance to the Education Funding Advisory Board as is
5		reasonably required for the proper performance by the Board of
6		its responsibilities.
7		For school years after the 2000-2001 school year, the
8		Education Funding Advisory Board, in consultation with the
9		State Board of Education, shall make recommendations as
10		provided in this subsection (M) to the General Assembly for the
11		foundation level under subdivision (B)(3) of this Section and
12		for the supplemental general State aid grant level under
13		subsection (H) of this Section for districts with high
14		concentrations of children from poverty. The recommended
15		foundation level shall be determined based on a methodology
16		which incorporates the basic education expenditures of
17		low-spending schools exhibiting high academic performance. The
18		Education Funding Advisory Board shall make such
19		recommendations to the General Assembly on January 1 of odd
20		numbered years, beginning January 1, 2001.
21		(N) (Blank).
22		(O) References.
23		(1) References in other laws to the various subdivisions of
24		Section 18-8 as that Section existed before its repeal and
25		replacement by this Section 18-8.05 shall be deemed to refer to
26		the corresponding provisions of this Section 18-8.05, to the
27		extent that those references remain applicable.
28		(2) References in other laws to State Chapter 1 funds shall
29		be deemed to refer to the supplemental general State aid
30		provided under subsection (H) of this Section.
31		(Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,
32		eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 92-636,

1		eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 7-1-03.)

2		Section 40. The Criminal Code of 1961 is amended by
3		changing Section 17A-1 as follows:
4		(720 ILCS 5/17A-1) (from Ch. 38, par. 17A-1)
5		Sec. 17A-1. Persons under deportation order; ineligible
6		for benefits. An individual against whom a United States
7		Immigration Judge has issued an order of deportation which has
8		been affirmed by the Board of Immigration Review, as well as an
9		individual who appeals such an order pending appeal, under
10		paragraph 19 of Section 241(a) of the Immigration and
11		Nationality Act relating to persecution of others on account of
12		race, religion, national origin or political opinion under the
13		direction of or in association with the Nazi government of
14		Germany or its allies, shall be ineligible for the following
15		benefits authorized by State law:
16		(a) The homestead exemptions exemption and homestead
17		improvement exemption under Sections 15-170, 15-175, 15-176,
18		and 15-180 of the Property Tax Code.
19		(b) Grants under the Senior Citizens and Disabled Persons
20		Property Tax Relief and Pharmaceutical Assistance Act.
21		(c) The double income tax exemption conferred upon persons
22		65 years of age or older by Section 204 of the Illinois Income
23		Tax Act.
24		(d) Grants provided by the Department on Aging.
25		(e) Reductions in vehicle registration fees under Section
26		3-806.3 of the Illinois Vehicle Code.
27		(f) Free fishing and reduced fishing license fees under
28		Sections 20-5 and 20-40 of the Fish and Aquatic Life Code.
29		(g) Tuition free courses for senior citizens under the
30		Senior Citizen Courses Act.
31		(h) Any benefits under the Illinois Public Aid Code.
32		(Source: P.A. 87-895; 88-670, eff. 12-2-94.)

1		Section 90. The State Mandates Act is amended by adding
2		Section 8.28 as follows:
3		(30 ILCS 805/8.28 new)
4		Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
5		of this Act, no reimbursement by the State is required for the
6		implementation of any mandate created by the General Homestead
7		Exemption under Section 15-176 of the Property Tax Code.

Section 99. Effective date. This Act takes effect upon becoming law.".