HB3486 103RD GENERAL ASSEMBLY

LRB103 29618 HLH 56014 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3486

Introduced 2/17/2023, by Rep. Mark L. Walker

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.990 new
105 ILCS 5/1A-12 new

Amends the School Code. Provides that the State Board of Education shall establish and administer an annual program to award property tax relief grants to school districts in the State. Provides that, in exchange for receiving a grant, the school district's maximum aggregate property tax extension for the taxable year that begins on January 1 of the fiscal year for which the grant is awarded may not exceed a specified maximum aggregate property tax extension. Creates the Education Property Tax Relief Fund for the purpose of making appropriations for the grant program. Amends the State Finance Act to make conforming changes. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Section 5.990 as follows:

(30 ILCS 105/5.990 new)

Sec. 5.990. The Education Property Tax Relief Fund.

Section 15. The School Code is amended by adding Section 1A-12 as follows:

(105 ILCS 5/1A-12 new)

Sec. 1A-12. School District Property Tax Relief Grant Program; Education Property Tax Relief Fund.

(a) From State fiscal year 2024 through State fiscal year 2029, the State Board of Education shall establish and administer an annual program to award property tax relief grants to school districts in the State. In exchange for receiving a grant under this Section, the school district's maximum aggregate property tax extension for the taxable year that begins on January 1 of the fiscal year for which the grant is awarded may not exceed its adjusted maximum aggregate property tax extension for that taxable year. Grants shall be awarded from moneys appropriated for that purpose from the Education Property Tax Relief Fund created in subsection (b). Moneys awarded to school districts under this Section shall be distributed pro rata on a per pupil average daily attendance basis, as reported in the school district report card for the immediately preceding school year under Section 10-17a of the School Code.

(b) The Education Property Tax Relief Fund is hereby created as a special fund in the State treasury. By September 1, 2023, and by September 1 of each calendar year thereafter, the Governor's Office of Management and Budget shall certify to the State Comptroller and the State Treasurer an amount equal to 75% of the difference, if any, between (i) 23% of the total amount appropriated from all State general funds as part of the State budget for the fiscal year that begins on the immediately preceding July 1, including any amounts appropriated for the purpose of making grants under this Section, and (ii) the total amount appropriated by the State, including any continuing appropriations, for that fiscal year as State contributions to the retirement system established under Article 16 of the Illinois Pension Code and the retirement fund established under Article 17 of the Illinois Pension Code. Upon receiving the certified amount from the Governor's Office of Management and Budget, the Comptroller shall order transferred, and the Treasurer shall transfer, the certified amount from the General Revenue Fund to the Education Property Tax Relief Fund. Any unexpended amounts remaining in the Fund on the last day of the State fiscal year shall be transferred from the Education Property Tax Relief Fund to the General Revenue Fund.

(c) As used in this Section:

"Adjusted maximum aggregate property tax extension" means the highest aggregate property tax extension that the district is authorized by law to levy, without regard to this Section, for the taxable year for which the adjusted maximum aggregate property tax extension is calculated, minus the grant amount received by the school district for the fiscal year that ends during the taxable year for which the adjusted maximum aggregate property tax extension is calculated.

"Aggregate property tax extension" means the annual corporate extension for the school district and those special purpose extensions that are made annually for the school district.

"Taxable year" means the calendar year during which property taxes payable in the next succeeding year are levied.

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