102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB4003

 

Introduced 1/21/2022, by Sen. Melinda Bush

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/2-3.170

    Amends the School Code. With respect to property tax relief pool grants, provides that the State Board of Education shall process applications for relief, providing a grant to those districts with the highest operating tax rate, as determined by those districts with the highest percentage of the simple average operating tax rate of districts of the same type, either elementary, high school, unit, or tier status as calculated under the evidence-based funding provisions (rather than either elementary, high school, or unit), first in an amount equal to the intended relief multiplied by the property tax multiplier. Effective immediately.


LRB102 24658 RJT 33897 b

 

 

A BILL FOR

 

SB4003LRB102 24658 RJT 33897 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
52-3.170 as follows:
 
6    (105 ILCS 5/2-3.170)
7    Sec. 2-3.170. Property tax relief pool grants.
8    (a) As used in this Section,
9    "EAV" means equalized assessed valuation as defined under
10Section 18-8.15 of this Code.
11    "Property tax multiplier" equals one minus the square of
12the school district's Local Capacity Percentage, as defined in
13Section 18-8.15 of this Code.
14    "Local capacity percentage multiplier" means one minus the
15school district's Local Capacity Percentage, as defined in
16Section 18-8.15.
17    "State Board" means the State Board of Education.
18    (b) Subject to appropriation, the State Board shall
19provide grants to eligible school districts that provide tax
20relief to the school district's residents, which may be no
21greater than 1% of EAV for a unit district, 0.69% of EAV for an
22elementary school district, or 0.31% of EAV for a high school
23district, as provided in this Section.

 

 

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1    (b-5) School districts may apply for property tax relief
2under this Section concurrently to setting their levy for the
3fiscal year. The intended relief may not be greater than 1% of
4the EAV for a unit district, 0.69% of the EAV for an elementary
5school district, or 0.31% of the EAV for a high school
6district, multiplied by the school district's local capacity
7percentage multiplier. The State Board shall process
8applications for relief, providing a grant to those districts
9with the highest operating tax rate, as determined by those
10districts with the highest percentage of the simple average
11operating tax rate of districts of the same type, either
12elementary, high school, or unit, or tier status as calculated
13under Section 18-8.15 of this Code, first, in an amount equal
14to the intended relief multiplied by the property tax
15multiplier. The State Board shall provide grants to school
16districts in order of priority until the property tax relief
17pool is exhausted. If more school districts apply for relief
18under this subsection than there are funds available, the
19State Board must distribute the grants and prorate any
20remaining funds to the final school district that qualifies
21for grant relief. The abatement amount for that district must
22be equal to the grant amount divided by the property tax
23multiplier.
24    If a school district receives the State Board's approval
25of a grant under this Section by March 1 of the fiscal year,
26the school district shall present a duly authorized and

 

 

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1approved abatement resolution by March 30 of the fiscal year
2to the county clerk of each county in which the school files
3its levy, authorizing the county clerk to lower the school
4district's levy by the amount designated in its application to
5the State Board. When the preceding requisites are satisfied,
6the county clerk shall reduce the amount collected for the
7school district by the amount indicated in the school
8district's abatement resolution for that fiscal year.
9    (c) (Blank).
10    (d) School districts seeking grants under this Section
11shall apply to the State Board each year. All applications to
12the State Board for grants shall include the amount of the tax
13relief intended by the school district.
14    (e) Each year, based on the most recent available data
15provided by school districts pursuant to Section 18-8.15 of
16this Code, the State Board shall calculate the order of
17priority for grant eligibility under subsection (b-5) and
18publish a list of the school districts eligible for relief.
19The State Board shall provide grants in the manner provided
20under subsection (b-5).
21    (f) The State Board shall publish a final list of eligible
22grant recipients and provide payment of the grants by March 1
23of each year.
24    (g) If notice of eligibility from the State Board is
25received by a school district by March 1, then by March 30, the
26school district shall file an abatement of its property tax

 

 

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1levy in an amount equal to the grant received under this
2Section divided by the property tax multiplier. Payment of all
3grant amounts shall be made by June 1 each fiscal year. The
4State Superintendent of Education shall establish the timeline
5in such cases in which notice cannot be made by March 1.
6    (h) The total property tax relief allowable to a school
7district under this Section shall be calculated based on the
8total amount of reduction in the school district's aggregate
9extension. The total grant shall be equal to the reduction,
10multiplied by the property tax multiplier. The reduction shall
11be equal to 1% of a district's EAV for a unit school district,
120.69% for an elementary school district, or 0.31% for a high
13school district, multiplied by the school district's local
14capacity percentage multiplier.
15    (i) If the State Board does not expend all appropriations
16allocated pursuant to this Section, then any remaining funds
17shall be allocated pursuant to Section 18-8.15 of this Code.
18    (j) The State Board shall prioritize payments under
19Section 18-8.15 of this Code over payments under this Section,
20if necessary.
21    (k) Any grants received by a school district shall be
22included in future calculations of that school district's Base
23Funding Minimum under Section 18-8.15 of this Code. Beginning
24with Fiscal Year 2020, if a school district receives a grant
25under this Section, the school district must present to the
26county clerk a duly authorized and approved abatement

 

 

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1resolution by March 30 for the year in which the school
2district receives the grant and the successive fiscal year
3following the receipt of the grant, authorizing the county
4clerk to lower the school district's levy by the amount
5designated in its original application to the State Board.
6After receiving a resolution, the county clerk must reduce the
7amount collected for the school district by the amount
8indicated in the school district's abatement resolution for
9that fiscal year. If a school district does not abate in this
10amount for the successive fiscal year, the grant amount may
11not be included in the school district's Base Funding Minimum
12under Section 18-8.15 in the fiscal year following the tax
13year in which the abatement is not authorized and in any future
14fiscal year thereafter, and the county clerk must notify the
15State Board of the increase no later 30 days after it occurs.
16    (l) In the immediate 2 consecutive tax years following
17receipt of a Property Tax Pool Relief Grant, the aggregate
18extension base of any school district receiving a grant under
19this Section, for purposes of the Property Tax Extension
20Limitation Law, shall include the tax relief the school
21district provided in the previous taxable year under this
22Section.
23(Source: P.A. 100-465, eff. 8-31-17; 100-582, eff. 3-23-18;
24100-863, eff. 8-14-18; 101-17, eff. 6-14-19; 101-643, eff.
256-18-20.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.