SB1498ham004 93RD GENERAL ASSEMBLY

09300SB1498ham004 LRB093 06568 SJM 42255 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, 15-172, 15-175, and 20-178 and
4		by adding 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.
30		Before taxable year 2003, the maximum reduction shall be
31		$2,500 in counties with 3,000,000 or more inhabitants and
32		$2,000 in all other counties. For taxable years 2003 and
33		thereafter, the maximum reduction shall be $2,500 in all

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

1		remains unoccupied but is still owned by the person qualified
2		for the homestead exemption.
3		A person who will be 65 years of age during the current
4		assessment year shall be eligible to apply for the homestead
5		exemption during that assessment year. Application shall be
6		made during the application period in effect for the county of
7		his residence.
8		Beginning with assessment year 2003, for taxes payable in
9		2004, property that is first occupied as a residence after
10		January 1 of any assessment year by a person who is eligible
11		for the senior citizens homestead exemption under this Section
12		must be granted a pro-rata exemption for the assessment year.
13		The amount of the pro-rata exemption is the exemption allowed
14		in the county under this Section divided by 365 and multiplied
15		by the number of days during the assessment year the property
16		is occupied as a residence by a person eligible for the
17		exemption under this Section. The chief county assessment
18		officer must adopt reasonable procedures to establish
19		eligibility for this pro-rata exemption.
20		The assessor or chief county assessment officer may
21		determine the eligibility of a life care facility to receive
22		the benefits provided by this Section, by affidavit,
23		application, visual inspection, questionnaire or other
24		reasonable methods in order to insure that the tax savings
25		resulting from the exemption are credited by the management
26		firm to the apportioned tax liability of each qualifying
27		resident. The assessor may request reasonable proof that the
28		management firm has so credited the exemption.
29		The chief county assessment officer of each county with
30		less than 3,000,000 inhabitants shall provide to each person
31		allowed a homestead exemption under this Section a form to
32		designate any other person to receive a duplicate of any notice
33		of delinquency in the payment of taxes assessed and levied
34		under this Code on the property of the person receiving the

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

1		estate taxes under the Senior Citizens Real Estate Tax Deferral
2		Act. The notice shall set forth the qualifications needed for
3		deferral of real estate taxes, the address and telephone number
4		of county collector, and a statement that applications for
5		deferral of real estate taxes may be obtained from the county
6		collector.
7		Notwithstanding Sections 6 and 8 of the State Mandates Act,
8		no reimbursement by the State is required for the
9		implementation of any mandate created by this Section.
10		(Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03.)
11		(35 ILCS 200/15-172)
12		Sec. 15-172. Senior Citizens Assessment Freeze Homestead
13		Exemption.
14		(a) This Section may be cited as the Senior Citizens
15		Assessment Freeze Homestead Exemption.
16		(b) As used in this Section:
17		"Applicant" means an individual who has filed an
18		application under this Section.
19		"Base amount" means the base year equalized assessed value
20		of the residence plus the first year's equalized assessed value
21		of any added improvements which increased the assessed value of
22		the residence after the base year.
23		"Base year" means the taxable year prior to the taxable
24		year for which the applicant first qualifies and applies for
25		the exemption provided that in the prior taxable year the
26		property was improved with a permanent structure that was
27		occupied as a residence by the applicant who was liable for
28		paying real property taxes on the property and who was either
29		(i) an owner of record of the property or had legal or
30		equitable interest in the property as evidenced by a written
31		instrument or (ii) had a legal or equitable interest as a
32		lessee in the parcel of property that was single family
33		residence. If in any subsequent taxable year for which the

1		applicant applies and qualifies for the exemption the equalized
2		assessed value of the residence is less than the equalized
3		assessed value in the existing base year (provided that such
4		equalized assessed value is not based on an assessed value that
5		results from a temporary irregularity in the property that
6		reduces the assessed value for one or more taxable years), then
7		that subsequent taxable year shall become the base year until a
8		new base year is established under the terms of this paragraph.
9		For taxable year 1999 only, the Chief County Assessment Officer
10		shall review (i) all taxable years for which the applicant
11		applied and qualified for the exemption and (ii) the existing
12		base year. The assessment officer shall select as the new base
13		year the year with the lowest equalized assessed value. An
14		equalized assessed value that is based on an assessed value
15		that results from a temporary irregularity in the property that
16		reduces the assessed value for one or more taxable years shall
17		not be considered the lowest equalized assessed value. The
18		selected year shall be the base year for taxable year 1999 and
19		thereafter until a new base year is established under the terms
20		of this paragraph.
21		"Chief County Assessment Officer" means the County
22		Assessor or Supervisor of Assessments of the county in which
23		the property is located.
24		"Equalized assessed value" means the assessed value as
25		equalized by the Illinois Department of Revenue.
26		"Household" means the applicant, the spouse of the
27		applicant, and all persons using the residence of the applicant
28		as their principal place of residence.
29		"Household income" means the combined income of the members
30		of a household for the calendar year preceding the taxable
31		year.
32		"Income" has the same meaning as provided in Section 3.07
33		of the Senior Citizens and Disabled Persons Property Tax Relief
34		and Pharmaceutical Assistance Act, except that, beginning in

1		assessment year 2001, "income" does not include veteran's
2		benefits.
3		"Internal Revenue Code of 1986" means the United States
4		Internal Revenue Code of 1986 or any successor law or laws
5		relating to federal income taxes in effect for the year
6		preceding the taxable year.
7		"Life care facility that qualifies as a cooperative" means
8		a facility as defined in Section 2 of the Life Care Facilities
9		Act.
10		"Residence" means the principal dwelling place and
11		appurtenant structures used for residential purposes in this
12		State occupied on January 1 of the taxable year by a household
13		and so much of the surrounding land, constituting the parcel
14		upon which the dwelling place is situated, as is used for
15		residential purposes. If the Chief County Assessment Officer
16		has established a specific legal description for a portion of
17		property constituting the residence, then that portion of
18		property shall be deemed the residence for the purposes of this
19		Section.
20		"Taxable year" means the calendar year during which ad
21		valorem property taxes payable in the next succeeding year are
22		levied.
23		(c) Beginning in taxable year 1994, a senior citizens
24		assessment freeze homestead exemption is granted for real
25		property that is improved with a permanent structure that is
26		occupied as a residence by an applicant who (i) is 65 years of
27		age or older during the taxable year, (ii) has a household
28		income of $35,000 or less prior to taxable year 1999, or
29		$40,000 or less in taxable years year 1999 through 2002, or
30		$45,000 or less in taxable year 2003 and thereafter, (iii) is
31		liable for paying real property taxes on the property, and (iv)
32		is an owner of record of the property or has a legal or
33		equitable interest in the property as evidenced by a written
34		instrument. This homestead exemption shall also apply to a

1		leasehold interest in a parcel of property improved with a
2		permanent structure that is a single family residence that is
3		occupied as a residence by a person who (i) is 65 years of age
4		or older during the taxable year, (ii) has a household income
5		of $35,000 or less prior to taxable year 1999, or $40,000 or
6		less in taxable years year 1999 through 2002, or $45,000 or
7		less in taxable year 2003 and thereafter, (iii) has a legal or
8		equitable ownership interest in the property as lessee, and
9		(iv) is liable for the payment of real property taxes on that
10		property.
11		The amount of this exemption shall be the equalized
12		assessed value of the residence in the taxable year for which
13		application is made minus the base amount.
14		When the applicant is a surviving spouse of an applicant
15		for a prior year for the same residence for which an exemption
16		under this Section has been granted, the base year and base
17		amount for that residence are the same as for the applicant for
18		the prior year.
19		Each year at the time the assessment books are certified to
20		the County Clerk, the Board of Review or Board of Appeals shall
21		give to the County Clerk a list of the assessed values of
22		improvements on each parcel qualifying for this exemption that
23		were added after the base year for this parcel and that
24		increased the assessed value of the property.
25		In the case of land improved with an apartment building
26		owned and operated as a cooperative or a building that is a
27		life care facility that qualifies as a cooperative, the maximum
28		reduction from the equalized assessed value of the property is
29		limited to the sum of the reductions calculated for each unit
30		occupied as a residence by a person or persons (i) 65 years of
31		age or older, (ii) with a household income of $35,000 or less
32		prior to taxable year 1999, or $40,000 or less in taxable years
33		year 1999 through 2002, or $45,000 or less in taxable year 2003
34		and thereafter, (iii) who is liable, by contract with the owner

1		or owners of record, for paying real property taxes on the
2		property, and (iv) who is an owner of record of a legal or
3		equitable interest in the cooperative apartment building,
4		other than a leasehold interest. In the instance of a
5		cooperative where a homestead exemption has been granted under
6		this Section, the cooperative association or its management
7		firm shall credit the savings resulting from that exemption
8		only to the apportioned tax liability of the owner who
9		qualified for the exemption. Any person who willfully refuses
10		to credit that savings to an owner who qualifies for the
11		exemption is guilty of a Class B misdemeanor.
12		When a homestead exemption has been granted under this
13		Section and an applicant then becomes a resident of a facility
14		licensed under the Nursing Home Care Act, the exemption shall
15		be granted in subsequent years so long as the residence (i)
16		continues to be occupied by the qualified applicant's spouse or
17		(ii) if remaining unoccupied, is still owned by the qualified
18		applicant for the homestead exemption.
19		Beginning January 1, 1997, when an individual dies who
20		would have qualified for an exemption under this Section, and
21		the surviving spouse does not independently qualify for this
22		exemption because of age, the exemption under this Section
23		shall be granted to the surviving spouse for the taxable year
24		preceding and the taxable year of the death, provided that,
25		except for age, the surviving spouse meets all other
26		qualifications for the granting of this exemption for those
27		years.
28		When married persons maintain separate residences, the
29		exemption provided for in this Section may be claimed by only
30		one of such persons and for only one residence.
31		For taxable year 1994 only, in counties having less than
32		3,000,000 inhabitants, to receive the exemption, a person shall
33		submit an application by February 15, 1995 to the Chief County
34		Assessment Officer of the county in which the property is

1		located. In counties having 3,000,000 or more inhabitants, for
2		taxable year 1994 and all subsequent taxable years, to receive
3		the exemption, a person may submit an application to the Chief
4		County Assessment Officer of the county in which the property
5		is located during such period as may be specified by the Chief
6		County Assessment Officer. The Chief County Assessment Officer
7		in counties of 3,000,000 or more inhabitants shall annually
8		give notice of the application period by mail or by
9		publication. In counties having less than 3,000,000
10		inhabitants, beginning with taxable year 1995 and thereafter,
11		to receive the exemption, a person shall submit an application
12		by July 1 of each taxable year to the Chief County Assessment
13		Officer of the county in which the property is located. A
14		county may, by ordinance, establish a date for submission of
15		applications that is different than July 1. The applicant shall
16		submit with the application an affidavit of the applicant's
17		total household income, age, marital status (and if married the
18		name and address of the applicant's spouse, if known), and
19		principal dwelling place of members of the household on January
20		1 of the taxable year. The Department shall establish, by rule,
21		a method for verifying the accuracy of affidavits filed by
22		applicants under this Section. The applications shall be
23		clearly marked as applications for the Senior Citizens
24		Assessment Freeze Homestead Exemption.
25		Notwithstanding any other provision to the contrary, in
26		counties having fewer than 3,000,000 inhabitants, if an
27		applicant fails to file the application required by this
28		Section in a timely manner and this failure to file is due to a
29		mental or physical condition sufficiently severe so as to
30		render the applicant incapable of filing the application in a
31		timely manner, the Chief County Assessment Officer may extend
32		the filing deadline for a period of 30 days after the applicant
33		regains the capability to file the application, but in no case
34		may the filing deadline be extended beyond 3 months of the

1		original filing deadline. In order to receive the extension
2		provided in this paragraph, the applicant shall provide the
3		Chief County Assessment Officer with a signed statement from
4		the applicant's physician stating the nature and extent of the
5		condition, that, in the physician's opinion, the condition was
6		so severe that it rendered the applicant incapable of filing
7		the application in a timely manner, and the date on which the
8		applicant regained the capability to file the application.
9		Beginning January 1, 1998, notwithstanding any other
10		provision to the contrary, in counties having fewer than
11		3,000,000 inhabitants, if an applicant fails to file the
12		application required by this Section in a timely manner and
13		this failure to file is due to a mental or physical condition
14		sufficiently severe so as to render the applicant incapable of
15		filing the application in a timely manner, the Chief County
16		Assessment Officer may extend the filing deadline for a period
17		of 3 months. In order to receive the extension provided in this
18		paragraph, the applicant shall provide the Chief County
19		Assessment Officer with a signed statement from the applicant's
20		physician stating the nature and extent of the condition, and
21		that, in the physician's opinion, the condition was so severe
22		that it rendered the applicant incapable of filing the
23		application in a timely manner.
24		In counties having less than 3,000,000 inhabitants, if an
25		applicant was denied an exemption in taxable year 1994 and the
26		denial occurred due to an error on the part of an assessment
27		official, or his or her agent or employee, then beginning in
28		taxable year 1997 the applicant's base year, for purposes of
29		determining the amount of the exemption, shall be 1993 rather
30		than 1994. In addition, in taxable year 1997, the applicant's
31		exemption shall also include an amount equal to (i) the amount
32		of any exemption denied to the applicant in taxable year 1995
33		as a result of using 1994, rather than 1993, as the base year,
34		(ii) the amount of any exemption denied to the applicant in

1		taxable year 1996 as a result of using 1994, rather than 1993,
2		as the base year, and (iii) the amount of the exemption
3		erroneously denied for taxable year 1994.
4		For purposes of this Section, a person who will be 65 years
5		of age during the current taxable year shall be eligible to
6		apply for the homestead exemption during that taxable year.
7		Application shall be made during the application period in
8		effect for the county of his or her residence.
9		The Chief County Assessment Officer may determine the
10		eligibility of a life care facility that qualifies as a
11		cooperative to receive the benefits provided by this Section by
12		use of an affidavit, application, visual inspection,
13		questionnaire, or other reasonable method in order to insure
14		that the tax savings resulting from the exemption are credited
15		by the management firm to the apportioned tax liability of each
16		qualifying resident. The Chief County Assessment Officer may
17		request reasonable proof that the management firm has so
18		credited that exemption.
19		Except as provided in this Section, all information
20		received by the chief county assessment officer or the
21		Department from applications filed under this Section, or from
22		any investigation conducted under the provisions of this
23		Section, shall be confidential, except for official purposes or
24		pursuant to official procedures for collection of any State or
25		local tax or enforcement of any civil or criminal penalty or
26		sanction imposed by this Act or by any statute or ordinance
27		imposing a State or local tax. Any person who divulges any such
28		information in any manner, except in accordance with a proper
29		judicial order, is guilty of a Class A misdemeanor.
30		Nothing contained in this Section shall prevent the
31		Director or chief county assessment officer from publishing or
32		making available reasonable statistics concerning the
33		operation of the exemption contained in this Section in which
34		the contents of claims are grouped into aggregates in such a

1		way that information contained in any individual claim shall
2		not be disclosed.
3		(d) Each Chief County Assessment Officer shall annually
4		publish a notice of availability of the exemption provided
5		under this Section. The notice shall be published at least 60
6		days but no more than 75 days prior to the date on which the
7		application must be submitted to the Chief County Assessment
8		Officer of the county in which the property is located. The
9		notice shall appear in a newspaper of general circulation in
10		the county.
11		(e) Notwithstanding Sections 6 and 8 of the State Mandates
12		Act, no reimbursement by the State is required for the
13		implementation of any mandate created by this Section.
14		(Source: P.A. 90-14, eff. 7-1-97; 90-204, eff. 7-25-97; 90-523,
15		eff. 11-13-97; 90-524, eff. 1-1-98; 90-531, eff. 1-1-98;
16		90-655, eff. 7-30-98; 91-45, eff. 6-30-99; 91-56, eff. 6-30-99;
17		91-819, eff. 6-13-00.)
18		(35 ILCS 200/15-175)
19		Sec. 15-175. General homestead exemption. Except as
20		provided in Section 15-176, homestead property is entitled to
21		an annual homestead exemption limited, except as described here
22		with relation to cooperatives, to a reduction in the equalized
23		assessed value of homestead property equal to the increase in
24		equalized assessed value for the current assessment year above
25		the equalized assessed value of the property for 1977, up to
26		the maximum reduction set forth below. If however, the 1977
27		equalized assessed value upon which taxes were paid is
28		subsequently determined by local assessing officials, the
29		Property Tax Appeal Board, or a court to have been excessive,
30		the equalized assessed value which should have been placed on
31		the property for 1977 shall be used to determine the amount of
32		the exemption.
33		Before taxable year 2003, the maximum reduction shall be

1		$4,500 in counties with 3,000,000 or more inhabitants and shall
2		be $3,500 in all other counties. Except as provided in Section
3		15-176, for taxable years 2003 an thereafter, the maximum
4		reduction shall be $4,500 in all counties.
5		In counties with fewer than 3,000,000 inhabitants, if,
6		based on the most recent assessment, the equalized assessed
7		value of the homestead property for the current assessment year
8		is greater than the equalized assessed value of the property
9		for 1977, the owner of the property shall automatically receive
10		the exemption granted under this Section in an amount equal to
11		the increase over the 1977 assessment up to the maximum
12		reduction set forth in this Section.
13		If in any assessment year beginning with the 2000
14		assessment year, homestead property has a pro-rata valuation
15		under Section 9-180 resulting in an increase in the assessed
16		valuation, a reduction in equalized assessed valuation equal to
17		the increase in equalized assessed value of the property for
18		the year of the pro-rata valuation above the equalized assessed
19		value of the property for 1977 shall be applied to the property
20		on a proportionate basis for the period the property qualified
21		as homestead property during the assessment year. The maximum
22		proportionate homestead exemption shall not exceed the maximum
23		homestead exemption allowed in the county under this Section
24		divided by 365 and multiplied by the number of days the
25		property qualified as homestead property.
26		"Homestead property" under this Section includes
27		residential property that is occupied by its owner or owners as
28		his or their principal dwelling place, or that is a leasehold
29		interest on which a single family residence is situated, which
30		is occupied as a residence by a person who has an ownership
31		interest therein, legal or equitable or as a lessee, and on
32		which the person is liable for the payment of property taxes.
33		For land improved with an apartment building owned and operated
34		as a cooperative or a building which is a life care facility as

1		defined in Section 15-170 and considered to be a cooperative
2		under Section 15-170, the maximum reduction from the equalized
3		assessed value shall be limited to the increase in the value
4		above the equalized assessed value of the property for 1977, up
5		to the maximum reduction set forth above, multiplied by the
6		number of apartments or units occupied by a person or persons
7		who is liable, by contract with the owner or owners of record,
8		for paying property taxes on the property and is an owner of
9		record of a legal or equitable interest in the cooperative
10		apartment building, other than a leasehold interest. For
11		purposes of this Section, the term "life care facility" has the
12		meaning stated in Section 15-170.
13		In a cooperative where a homestead exemption has been
14		granted, the cooperative association or its management firm
15		shall credit the savings resulting from that exemption only to
16		the apportioned tax liability of the owner who qualified for
17		the exemption. Any person who willfully refuses to so credit
18		the savings shall be guilty of a Class B misdemeanor.
19		Where married persons maintain and reside in separate
20		residences qualifying as homestead property, each residence
21		shall receive 50% of the total reduction in equalized assessed
22		valuation provided by this Section.
23		In counties with more than 3,000,000 inhabitants, the
24		assessor or chief county assessment officer may determine the
25		eligibility of residential property to receive the homestead
26		exemption by application, visual inspection, questionnaire or
27		other reasonable methods. The determination shall be made in
28		accordance with guidelines established by the Department.
29		In the event of a sale of homestead property the homestead
30		exemption shall remain in effect for the remainder of the
31		assessment year of the sale. The assessor or chief county
32		assessment officer may require the new owner of the property to
33		apply for the homestead exemption for the following assessment
34		year.

1		(Source: P.A. 90-368, eff. 1-1-98; 90-552, eff. 12-12-97;
2		90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)
3		(35 ILCS 200/15-176)
4		Sec. 15-176. General homestead exemption; counties subject
5		to the Property Tax Extension Limitation Law.
6		(a) In counties subject to the Property Tax Extension
7		Limitation Law, beginning with assessments made for the tax
8		year 2003 and for subsequent tax years, homestead property is
9		entitled to an annual homestead exemption equal to a reduction
10		in the property's equalized assessed value calculated as
11		provided in this Section.
12		(b) As used in this Section:
13		(1) "Assessor" means the supervisor of assessments or
14		the county assessor in each county.
15		(2) "Adjusted homestead value" means the lesser of the
16		following values:
17		(A) The property's base homestead value increased
18		by 7% for each tax year after 2002 through and
19		including the current tax year.
20		(B) The property's equalized assessed value for
21		the current tax year minus $4,500.
22		(3) "Base homestead value" means:
23		(A) The equalized assessed value of the property
24		for tax year 2002, prior to exemptions, minus $4,500,
25		provided that it was assessed for that year as
26		residential property qualified for any of the
27		homestead exemptions under Sections 15-170 through
28		15-175 of this Code, then in force, and further
29		provided that the property's assessment was not based
30		on a reduced assessed value resulting from a temporary
31		irregularity in the property for that year.
32		(B) If the property was not improved or otherwise
33		did not have a residential equalized assessed value for

1		tax year 2002 as provided in subdivision (b)(3)(A) of
2		this Section, then the "base homestead value" means the
3		base homestead value established by the assessor under
4		subsection (c).
5		(4) "Current tax year" means the tax year for which the
6		exemption under this Section is being applied.
7		(5) "Equalized assessed value" means the property's
8		assessed value as equalized by the Department.
9		(6) "Homestead" or "homestead property" means:
10		(A) Residential property that as of January 1 of
11		the tax year is occupied by its owner or owners as his,
12		her, or their principal dwelling place, or that is a
13		leasehold interest on which a single family residence
14		is situated, that is occupied as a residence by a
15		person who has a legal or equitable interest therein
16		evidenced by a written instrument, as an owner or as a
17		lessee, and on which the person is liable for the
18		payment of property taxes. Residential units in an
19		apartment building owned and operated as a
20		cooperative, or as a life care facility, which are
21		occupied by persons who hold a legal or equitable
22		interest in the cooperative apartment building or life
23		care facility as owners or lessees, and who are liable
24		by contract for the payment of property taxes, shall be
25		included within this definition of homestead property.
26		Residential property containing 6 or fewer dwelling
27		units shall also be included in this definition of
28		homestead property provided that at least one such unit
29		is occupied by the property's owner or owners as his,
30		her, or their principal dwelling place.
31		(B) A homestead includes the dwelling place,
32		appurtenant structures, and so much of the surrounding
33		land constituting the parcel on which the dwelling
34		place is situated as is used for residential purposes.

1		If the assessor has established a specific legal
2		description for a portion of property constituting the
3		homestead, then the homestead shall be limited to the
4		property within that description.
5		(7) "Life care facility" means a facility as defined in
6		Section 2 of the Life Care Facilities Act.
7		(c) If the property did not have a residential assessed
8		value for tax year 2002 as provided in subdivision (b)(3)(A) of
9		this Section, then the assessor shall first determine an
10		initial value for the property by comparison with assessed
11		values for tax year 2002 of other properties having physical
12		and economic characteristics similar to those of the subject
13		property, so that the initial value is uniform in relation to
14		assessed values of those other properties for tax year 2002.
15		The product of the initial value multiplied by the 2002
16		equalization factor for homestead properties in that county,
17		less $4,500, is the base homestead value.
18		For any tax year for which the assessor determines or
19		adjusts an initial value and hence a base homestead value under
20		this subsection (c), the initial value shall be subject to
21		review by the same procedures applicable to assessed values
22		established under this Code for that tax year.
23		(d) The base homestead value shall remain constant, except
24		that the assessor may revise it under the following
25		circumstances:
26		(1) If the equalized assessed value of a homestead
27		property for the current tax year is less than the previous
28		base homestead value for that property, then the current
29		equalized assessed value (provided it is not based on a
30		reduced assessed value resulting from a temporary
31		irregularity in the property) shall become the base
32		homestead value in subsequent tax years.
33		(2) For any year in which new buildings, structures, or
34		other improvements are constructed on the homestead

1		property that would increase its assessed value, the
2		assessor shall adjust the base homestead value as provided
3		in subsection (c) of this Section with due regard to the
4		value added by the new improvements.
5		(e) The amount of the exemption under this Section is the
6		equalized assessed value of the homestead property for the
7		current tax year, minus the adjusted homestead value. Provided,
8		however, that in the case of homestead property that also
9		qualifies for the exemption under Section 15-172, the property
10		is also entitled to the exemption under this Section, limited
11		to the amount of $4,500.
12		(f) In the case of an apartment building owned and operated
13		as a cooperative, or as a life care facility, that contains
14		residential units that qualify as homestead property under this
15		Section, the maximum cumulative exemption amount attributed to
16		the entire building or facility shall not exceed the sum of the
17		exemptions calculated for each qualified residential unit. The
18		cooperative association, management firm, or other person or
19		entity that manages or controls the cooperative apartment
20		building or life care facility shall credit the exemption
21		attributable to each residential unit only to the apportioned
22		tax liability of the owner or other person responsible for
23		payment of taxes as to that unit. Any person who willfully
24		refuses to so credit the exemption is guilty of a Class B
25		misdemeanor.
26		(g) When married persons maintain separate residences, the
27		exemption provided under this Section shall be claimed by only
28		one such person and for only one residence.
29		(h) In the event of a sale of the homestead property, the
30		exemption under this Section shall remain in effect for the
31		remainder of the tax year in which the sale occurs. The
32		assessor may require the new owner of the property to apply for
33		the exemption in the following year.
34		(i) The assessor may determine whether property qualifies

1		as a homestead under this Section by application, visual
2		inspection, questionnaire, or other reasonable methods. Each
3		year, at the time the assessment books are certified to the
4		county clerk by the board of review, the assessor shall furnish
5		to the county clerk a list of the properties qualified for the
6		homestead exemption under this Section. The list shall note the
7		base homestead value of each property to be used in the
8		calculation of the exemption for the current tax year.
9		(j) The provisions of this Section apply as follows:
10		(1) If the general assessment year for the property is
11		2003, this Section applies for assessment years 2003, 2004,
12		2005, 2006, 2007, 2008, 2009, and 2010. Thereafter, the
13		provisions of Section 15-175 apply.
14		(2) If the general assessment year for the property is
15		2004, this Section applies for assessment years 2004, 2005,
16		2006, 2007, 2008, 2009, and 2010. Thereafter, the
17		provisions of Section 15-175 apply.
18		(3) If the general assessment year for the property is
19		2005, this Section applies for assessment years 2005, 2006,
20		2007, 2008, 2009, and 2010. Thereafter, the provisions of
21		Section 15-175 apply.
22		(4) If the general assessment year for the property is
23		2006, this Section applies for assessment years 2006, 2007,
24		2008, 2009, and 2010. Thereafter, the provisions of Section
25		15-175 apply.
26		(k) Notwithstanding Sections 6 and 8 of the State Mandates
27		Act, no reimbursement by the State is required for the
28		implementation of any mandate created by this Section.
29		(35 ILCS 200/20-178)
30		Sec. 20-178. Certificate of error; refund; interest. When
31		the county collector makes any refunds due on certificates of
32		error issued under Sections 14-15 through 14-25 that have been
33		either certified or adjudicated, the county collector shall pay

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

22		Section 15. The County Economic Development Project Area
23		Property Tax Allocation Act is amended by changing Section 6 as
24		follows:
25		(55 ILCS 85/6) (from Ch. 34, par. 7006)
26		Sec. 6. Filing with county clerk; certification of initial
27		equalized assessed value.
28		(a) The county shall file a certified copy of any ordinance
29		authorizing property tax allocation financing for an economic
30		development project area with the county clerk, and the county
31		clerk shall immediately thereafter determine (1) the most
32		recently ascertained equalized assessed value of each lot,

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

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

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

1		assessed value of each taxable lot, block, tract, or parcel of
2		real property within the economic development project area,
3		from which shall be deducted the homestead exemptions provided
4		by Sections 15-170 , and 15-175, and 15-176 of the Property Tax
5		Code, and shall certify that amount as the "total initial
6		equalized assessed value" of the taxable real property within
7		the economic development project area.
8		(b) After the county clerk has certified the "total initial
9		equalized assessed value" of the taxable real property in the
10		economic development project area, then in respect to every
11		taxing district containing an economic development project
12		area, the county clerk or any other official required by law to
13		ascertain the amount of the equalized assessed value of all
14		taxable property within the taxing district for the purpose of
15		computing the rate per cent of tax to be extended upon taxable
16		property within the taxing district shall, in every year that
17		tax increment allocation financing is in effect, ascertain the
18		amount of value of taxable property in an economic development
19		project area by including in that amount the lower of the
20		current equalized assessed value or the certified "total
21		initial equalized assessed value" of all taxable real property
22		in the area. The rate per cent of tax determined shall be
23		extended to the current equalized assessed value of all
24		property in the economic development project area in the same
25		manner as the rate per cent of tax is extended to all other
26		taxable property in the taxing district. The method of
27		extending taxes established under this Section shall terminate
28		when the county adopts an ordinance dissolving the special tax
29		allocation fund for the economic development project area. This
30		Act shall not be construed as relieving property owners within
31		an economic development project area from paying a uniform rate
32		of taxes upon the current equalized assessed value of their
33		taxable property as provided in the Property Tax Code.
34		(Source: P.A. 87-1; 88-670, eff. 12-2-94.)

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

1		adoption of tax increment allocation financing.
2		(b) Except from a tax levied by a township to retire bonds
3		issued to satisfy court-ordered damages, that portion, if any,
4		of such taxes which is attributable to the increase in the
5		current equalized assessed valuation of each taxable lot,
6		block, tract or parcel of real property in the redevelopment
7		project area over and above the initial equalized assessed
8		value of each property in the project area shall be allocated
9		to and when collected shall be paid to the municipal treasurer
10		who shall deposit said taxes into a special fund called the
11		special tax allocation fund of the municipality for the purpose
12		of paying redevelopment project costs and obligations incurred
13		in the payment thereof. In any county with a population of
14		3,000,000 or more that has adopted a procedure for collecting
15		taxes that provides for one or more of the installments of the
16		taxes to be billed and collected on an estimated basis, the
17		municipal treasurer shall be paid for deposit in the special
18		tax allocation fund of the municipality, from the taxes
19		collected from estimated bills issued for property in the
20		redevelopment project area, the difference between the amount
21		actually collected from each taxable lot, block, tract, or
22		parcel of real property within the redevelopment project area
23		and an amount determined by multiplying the rate at which taxes
24		were last extended against the taxable lot, block, track, or
25		parcel of real property in the manner provided in subsection
26		(c) of Section 11-74.4-9 by the initial equalized assessed
27		value of the property divided by the number of installments in
28		which real estate taxes are billed and collected within the
29		county; provided that the payments on or before December 31,
30		1999 to a municipal treasurer shall be made only if each of the
31		following conditions are met:
32		(1) The total equalized assessed value of the
33		redevelopment project area as last determined was not less
34		than 175% of the total initial equalized assessed value.

1		(2) Not more than 50% of the total equalized assessed
2		value of the redevelopment project area as last determined
3		is attributable to a piece of property assigned a single
4		real estate index number.
5		(3) The municipal clerk has certified to the county
6		clerk that the municipality has issued its obligations to
7		which there has been pledged the incremental property taxes
8		of the redevelopment project area or taxes levied and
9		collected on any or all property in the municipality or the
10		full faith and credit of the municipality to pay or secure
11		payment for all or a portion of the redevelopment project
12		costs. The certification shall be filed annually no later
13		than September 1 for the estimated taxes to be distributed
14		in the following year; however, for the year 1992 the
15		certification shall be made at any time on or before March
16		31, 1992.
17		(4) The municipality has not requested that the total
18		initial equalized assessed value of real property be
19		adjusted as provided in subsection (b) of Section
20		11-74.4-9.
21		The conditions of paragraphs (1) through (4) do not apply
22		after December 31, 1999 to payments to a municipal treasurer
23		made by a county with 3,000,000 or more inhabitants that has
24		adopted an estimated billing procedure for collecting taxes. If
25		a county that has adopted the estimated billing procedure makes
26		an erroneous overpayment of tax revenue to the municipal
27		treasurer, then the county may seek a refund of that
28		overpayment. The county shall send the municipal treasurer a
29		notice of liability for the overpayment on or before the
30		mailing date of the next real estate tax bill within the
31		county. The refund shall be limited to the amount of the
32		overpayment.
33		It is the intent of this Division that after the effective
34		date of this amendatory Act of 1988 a municipality's own ad

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

1		as follows:
2		(1) That portion of the taxes levied upon each taxable
3		lot, block, tract or parcel of real property which is
4		attributable to the lower of the current equalized assessed
5		value or "current equalized assessed value as adjusted" or
6		the initial equalized assessed value of each such taxable
7		lot, block, tract, or parcel of real property existing at
8		the time tax increment financing was adopted, minus the
9		total current homestead exemptions provided by Sections
10		15-170, and 15-175, and 15-176 of the Property Tax Code in
11		the redevelopment project area shall be allocated to and
12		when collected shall be paid by the county collector to the
13		respective affected taxing districts in the manner
14		required by law in the absence of the adoption of tax
15		increment allocation financing.
16		(2) That portion, if any, of such taxes which is
17		attributable to the increase in the current equalized
18		assessed valuation of each taxable lot, block, tract, or
19		parcel of real property in the redevelopment project area,
20		over and above the initial equalized assessed value of each
21		property existing at the time tax increment financing was
22		adopted, minus the total current homestead exemptions
23		pertaining to each piece of property provided by Sections
24		15-170, and 15-175, and 15-176 of the Property Tax Code in
25		the redevelopment project area, shall be allocated to and
26		when collected shall be paid to the municipal Treasurer,
27		who shall deposit said taxes into a special fund called the
28		special tax allocation fund of the municipality for the
29		purpose of paying redevelopment project costs and
30		obligations incurred in the payment thereof.
31		The municipality may pledge in the ordinance the funds in
32		and to be deposited in the special tax allocation fund for the
33		payment of such costs and obligations. No part of the current
34		equalized assessed valuation of each property in the

1		redevelopment project area attributable to any increase above
2		the total initial equalized assessed value, or the total
3		initial equalized assessed value as adjusted, of such
4		properties shall be used in calculating the general State
5		school aid formula, provided for in Section 18-8 of the School
6		Code, until such time as all redevelopment project costs have
7		been paid as provided for in this Section.
8		Whenever a municipality issues bonds for the purpose of
9		financing redevelopment project costs, such municipality may
10		provide by ordinance for the appointment of a trustee, which
11		may be any trust company within the State, and for the
12		establishment of such funds or accounts to be maintained by
13		such trustee as the municipality shall deem necessary to
14		provide for the security and payment of the bonds. If such
15		municipality provides for the appointment of a trustee, such
16		trustee shall be considered the assignee of any payments
17		assigned by the municipality pursuant to such ordinance and
18		this Section. Any amounts paid to such trustee as assignee
19		shall be deposited in the funds or accounts established
20		pursuant to such trust agreement, and shall be held by such
21		trustee in trust for the benefit of the holders of the bonds,
22		and such holders shall have a lien on and a security interest
23		in such funds or accounts so long as the bonds remain
24		outstanding and unpaid. Upon retirement of the bonds, the
25		trustee shall pay over any excess amounts held to the
26		municipality for deposit in the special tax allocation fund.
27		When such redevelopment projects costs, including without
28		limitation all municipal obligations financing redevelopment
29		project costs incurred under this Division, have been paid, all
30		surplus funds then remaining in the special tax allocation fund
31		shall be distributed by being paid by the municipal treasurer
32		to the Department of Revenue, the municipality and the county
33		collector; first to the Department of Revenue and the
34		municipality in direct proportion to the tax incremental

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

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

1		real property within the redevelopment project area by
2		deducting therefrom the exemptions provided for by Sections
3		15-170, and 15-175, and 15-176 of the Property Tax Code
4		applicable to each lot, block, tract or parcel of real property
5		within such redevelopment project area. The county clerk shall
6		immediately after the written request to adjust the total
7		initial equalized value is received determine the total
8		homestead exemptions in the redevelopment project area
9		provided by Sections 15-170, and 15-175, and 15-176 of the
10		Property Tax Code by adding together the homestead exemptions
11		provided by said Sections on each lot, block, tract or parcel
12		of real property within such redevelopment project area and
13		then shall deduct the total of said exemptions from the total
14		initial equalized assessed value. The county clerk shall then
15		promptly certify such amount as the "total initial equalized
16		assessed value as adjusted" of the taxable real property within
17		such redevelopment project area.
18		(c) After the county clerk has certified the "total initial
19		equalized assessed value" of the taxable real property in such
20		area, then in respect to every taxing district containing a
21		redevelopment project area, the county clerk or any other
22		official required by law to ascertain the amount of the
23		equalized assessed value of all taxable property within such
24		district for the purpose of computing the rate per cent of tax
25		to be extended upon taxable property within such district,
26		shall in every year that tax increment allocation financing is
27		in effect ascertain the amount of value of taxable property in
28		a redevelopment project area by including in such amount the
29		lower of the current equalized assessed value or the certified
30		"total initial equalized assessed value" of all taxable real
31		property in such area, except that after he has certified the
32		"total initial equalized assessed value as adjusted" he shall
33		in the year of said certification if tax rates have not been
34		extended and in every year thereafter that tax increment

1		allocation financing is in effect ascertain the amount of value
2		of taxable property in a redevelopment project area by
3		including in such amount the lower of the current equalized
4		assessed value or the certified "total initial equalized
5		assessed value as adjusted" of all taxable real property in
6		such area. The rate per cent of tax determined shall be
7		extended to the current equalized assessed value of all
8		property in the redevelopment project area in the same manner
9		as the rate per cent of tax is extended to all other taxable
10		property in the taxing district. The method of extending taxes
11		established under this Section shall terminate when the
12		municipality adopts an ordinance dissolving the special tax
13		allocation fund for the redevelopment project area. This
14		Division shall not be construed as relieving property owners
15		within a redevelopment project area from paying a uniform rate
16		of taxes upon the current equalized assessed value of their
17		taxable property as provided in the Property Tax Code.
18		(Source: P.A. 88-670, eff. 12-2-94.)
19		(65 ILCS 5/11-74.6-40)
20		Sec. 11-74.6-40. Equalized assessed value determination;
21		property tax extension.
22		(a) If a municipality by ordinance provides for tax
23		increment allocation financing under Section 11-74.6-35, the
24		county clerk immediately thereafter:
25		(1) shall determine the initial equalized assessed
26		value of each parcel of real property in the redevelopment
27		project area, which is the most recently established
28		equalized assessed value of each lot, block, tract or
29		parcel of taxable real property within the redevelopment
30		project area, minus the homestead exemptions provided by
31		Sections 15-170, and 15-175, and 15-176 of the Property Tax
32		Code; and
33		(2) shall certify to the municipality the total initial

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

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

29		Section 30. The Economic Development Project Area Tax
30		Increment Allocation Act of 1995 is amended by changing Section
31		45 as follows:
32		(65 ILCS 110/45)

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

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

19		Section 35. The School Code is amended by changing Section
20		18-8.05 as follows:
21		(105 ILCS 5/18-8.05)
22		Sec. 18-8.05. Basis for apportionment of general State
23		financial aid and supplemental general State aid to the common
24		schools for the 1998-1999 and subsequent school years.
25		(A) General Provisions.
26		(1) The provisions of this Section apply to the 1998-1999
27		and subsequent school years. The system of general State
28		financial aid provided for in this Section is designed to
29		assure that, through a combination of State financial aid and
30		required local resources, the financial support provided each
31		pupil in Average Daily Attendance equals or exceeds a

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

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

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

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

1		determined as provided in subsection (G).
2		(3) For school districts maintaining grades kindergarten
3		through 12, local property tax revenues per pupil shall be
4		calculated as the product of the applicable equalized assessed
5		valuation for the district multiplied by 3.00%, and divided by
6		the district's Average Daily Attendance figure. For school
7		districts maintaining grades kindergarten through 8, local
8		property tax revenues per pupil shall be calculated as the
9		product of the applicable equalized assessed valuation for the
10		district multiplied by 2.30%, and divided by the district's
11		Average Daily Attendance figure. For school districts
12		maintaining grades 9 through 12, local property tax revenues
13		per pupil shall be the applicable equalized assessed valuation
14		of the district multiplied by 1.05%, and divided by the
15		district's Average Daily Attendance figure.
16		(4) The Corporate Personal Property Replacement Taxes paid
17		to each school district during the calendar year 2 years before
18		the calendar year in which a school year begins, divided by the
19		Average Daily Attendance figure for that district, shall be
20		added to the local property tax revenues per pupil as derived
21		by the application of the immediately preceding paragraph (3).
22		The sum of these per pupil figures for each school district
23		shall constitute Available Local Resources as that term is
24		utilized in subsection (E) in the calculation of general State
25		aid.
26		(E) Computation of General State Aid.
27		(1) For each school year, the amount of general State aid
28		allotted to a school district shall be computed by the State
29		Board of Education as provided in this subsection.
30		(2) For any school district for which Available Local
31		Resources per pupil is less than the product of 0.93 times the
32		Foundation Level, general State aid for that district shall be
33		calculated as an amount equal to the Foundation Level minus

1		Available Local Resources, multiplied by the Average Daily
2		Attendance of the school district.
3		(3) For any school district for which Available Local
4		Resources per pupil is equal to or greater than the product of
5		0.93 times the Foundation Level and less than the product of
6		1.75 times the Foundation Level, the general State aid per
7		pupil shall be a decimal proportion of the Foundation Level
8		derived using a linear algorithm. Under this linear algorithm,
9		the calculated general State aid per pupil shall decline in
10		direct linear fashion from 0.07 times the Foundation Level for
11		a school district with Available Local Resources equal to the
12		product of 0.93 times the Foundation Level, to 0.05 times the
13		Foundation Level for a school district with Available Local
14		Resources equal to the product of 1.75 times the Foundation
15		Level. The allocation of general State aid for school districts
16		subject to this paragraph 3 shall be the calculated general
17		State aid per pupil figure multiplied by the Average Daily
18		Attendance of the school district.
19		(4) For any school district for which Available Local
20		Resources per pupil equals or exceeds the product of 1.75 times
21		the Foundation Level, the general State aid for the school
22		district shall be calculated as the product of $218 multiplied
23		by the Average Daily Attendance of the school district.
24		(5) The amount of general State aid allocated to a school
25		district for the 1999-2000 school year meeting the requirements
26		set forth in paragraph (4) of subsection (G) shall be increased
27		by an amount equal to the general State aid that would have
28		been received by the district for the 1998-1999 school year by
29		utilizing the Extension Limitation Equalized Assessed
30		Valuation as calculated in paragraph (4) of subsection (G) less
31		the general State aid allotted for the 1998-1999 school year.
32		This amount shall be deemed a one time increase, and shall not
33		affect any future general State aid allocations.

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

1		supervision of: (i) teachers, or (ii) non-teaching personnel or
2		volunteer personnel when engaging in non-teaching duties and
3		supervising in those instances specified in subsection (a) of
4		Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
5		of legal school age and in kindergarten and grades 1 through
6		12.
7		Days of attendance by tuition pupils shall be accredited
8		only to the districts that pay the tuition to a recognized
9		school.
10		(2) Days of attendance by pupils of less than 5 clock hours
11		of school shall be subject to the following provisions in the
12		compilation of Average Daily Attendance.
13		(a) Pupils regularly enrolled in a public school for
14		only a part of the school day may be counted on the basis
15		of 1/6 day for every class hour of instruction of 40
16		minutes or more attended pursuant to such enrollment,
17		unless a pupil is enrolled in a block-schedule format of 80
18		minutes or more of instruction, in which case the pupil may
19		be counted on the basis of the proportion of minutes of
20		school work completed each day to the minimum number of
21		minutes that school work is required to be held that day.
22		(b) Days of attendance may be less than 5 clock hours
23		on the opening and closing of the school term, and upon the
24		first day of pupil attendance, if preceded by a day or days
25		utilized as an institute or teachers' workshop.
26		(c) A session of 4 or more clock hours may be counted
27		as a day of attendance upon certification by the regional
28		superintendent, and approved by the State Superintendent
29		of Education to the extent that the district has been
30		forced to use daily multiple sessions.
31		(d) A session of 3 or more clock hours may be counted
32		as a day of attendance (1) when the remainder of the school
33		day or at least 2 hours in the evening of that day is
34		utilized for an in-service training program for teachers,

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

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

1		all taxable property of every school district, together with
2		(i) the applicable tax rate used in extending taxes for the
3		funds of the district as of September 30 of the previous year
4		and (ii) the limiting rate for all school districts subject to
5		property tax extension limitations as imposed under the
6		Property Tax Extension Limitation Law. The Department of
7		Revenue shall add to the equalized assessed value of all
8		taxable property of each school district situated entirely or
9		partially within a county that is subject to the Property Tax
10		Extension Limitation Law an amount equal to the total amount by
11		which the homestead exemption allowed under Section 15-176 of
12		the Property Tax Code for real property situated in that school
13		district exceeds the total amount that would have been allowed
14		in that school district if the maximum reduction under Section
15		15-176 was $4,500. The county clerk of any county that is
16		subject to the Property Tax Extension Limitation Law shall
17		annually calculate and certify to the Department of Revenue for
18		each school district all homestead exemption amounts under
19		Section 15-176 of the Property Tax Code.
20		This equalized assessed valuation, as adjusted further by
21		the requirements of this subsection, shall be utilized in the
22		calculation of Available Local Resources.
23		(2) The equalized assessed valuation in paragraph (1) shall
24		be adjusted, as applicable, in the following manner:
25		(a) For the purposes of calculating State aid under
26		this Section, with respect to any part of a school district
27		within a redevelopment project area in respect to which a
28		municipality has adopted tax increment allocation
29		financing pursuant to the Tax Increment Allocation
30		Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
31		of the Illinois Municipal Code or the Industrial Jobs
32		Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
33		Illinois Municipal Code, no part of the current equalized
34		assessed valuation of real property located in any such

1		project area which is attributable to an increase above the
2		total initial equalized assessed valuation of such
3		property shall be used as part of the equalized assessed
4		valuation of the district, until such time as all
5		redevelopment project costs have been paid, as provided in
6		Section 11-74.4-8 of the Tax Increment Allocation
7		Redevelopment Act or in Section 11-74.6-35 of the
8		Industrial Jobs Recovery Law. For the purpose of the
9		equalized assessed valuation of the district, the total
10		initial equalized assessed valuation or the current
11		equalized assessed valuation, whichever is lower, shall be
12		used until such time as all redevelopment project costs
13		have been paid.
14		(b) The real property equalized assessed valuation for
15		a school district shall be adjusted by subtracting from the
16		real property value as equalized or assessed by the
17		Department of Revenue for the district an amount computed
18		by dividing the amount of any abatement of taxes under
19		Section 18-170 of the Property Tax Code by 3.00% for a
20		district maintaining grades kindergarten through 12, by
21		2.30% for a district maintaining grades kindergarten
22		through 8, or by 1.05% for a district maintaining grades 9
23		through 12 and adjusted by an amount computed by dividing
24		the amount of any abatement of taxes under subsection (a)
25		of Section 18-165 of the Property Tax Code by the same
26		percentage rates for district type as specified in this
27		subparagraph (b).
28		(3) For the 1999-2000 school year and each school year
29		thereafter, if a school district meets all of the criteria of
30		this subsection (G)(3), the school district's Available Local
31		Resources shall be calculated under subsection (D) using the
32		district's Extension Limitation Equalized Assessed Valuation
33		as calculated under this subsection (G)(3).
34		For purposes of this subsection (G)(3) the following terms

1		shall have the following meanings:
2		"Budget Year": The school year for which general State
3		aid is calculated and awarded under subsection (E).
4		"Base Tax Year": The property tax levy year used to
5		calculate the Budget Year allocation of general State aid.
6		"Preceding Tax Year": The property tax levy year
7		immediately preceding the Base Tax Year.
8		"Base Tax Year's Tax Extension": The product of the
9		equalized assessed valuation utilized by the County Clerk
10		in the Base Tax Year multiplied by the limiting rate as
11		calculated by the County Clerk and defined in the Property
12		Tax Extension Limitation Law.
13		"Preceding Tax Year's Tax Extension": The product of
14		the equalized assessed valuation utilized by the County
15		Clerk in the Preceding Tax Year multiplied by the Operating
16		Tax Rate as defined in subsection (A).
17		"Extension Limitation Ratio": A numerical ratio,
18		certified by the County Clerk, in which the numerator is
19		the Base Tax Year's Tax Extension and the denominator is
20		the Preceding Tax Year's Tax Extension.
21		"Operating Tax Rate": The operating tax rate as defined
22		in subsection (A).
23		If a school district is subject to property tax extension
24		limitations as imposed under the Property Tax Extension
25		Limitation Law, the State Board of Education shall calculate
26		the Extension Limitation Equalized Assessed Valuation of that
27		district. For the 1999-2000 school year, the Extension
28		Limitation Equalized Assessed Valuation of a school district as
29		calculated by the State Board of Education shall be equal to
30		the product of the district's 1996 Equalized Assessed Valuation
31		and the district's Extension Limitation Ratio. For the
32		2000-2001 school year and each school year thereafter, the
33		Extension Limitation Equalized Assessed Valuation of a school
34		district as calculated by the State Board of Education shall be

1		equal to the product of the Equalized Assessed Valuation last
2		used in the calculation of general State aid and the district's
3		Extension Limitation Ratio. If the Extension Limitation
4		Equalized Assessed Valuation of a school district as calculated
5		under this subsection (G)(3) is less than the district's
6		equalized assessed valuation as calculated pursuant to
7		subsections (G)(1) and (G)(2), then for purposes of calculating
8		the district's general State aid for the Budget Year pursuant
9		to subsection (E), that Extension Limitation Equalized
10		Assessed Valuation shall be utilized to calculate the
11		district's Available Local Resources under subsection (D).
12		(4) For the purposes of calculating general State aid for
13		the 1999-2000 school year only, if a school district
14		experienced a triennial reassessment on the equalized assessed
15		valuation used in calculating its general State financial aid
16		apportionment for the 1998-1999 school year, the State Board of
17		Education shall calculate the Extension Limitation Equalized
18		Assessed Valuation that would have been used to calculate the
19		district's 1998-1999 general State aid. This amount shall equal
20		the product of the equalized assessed valuation used to
21		calculate general State aid for the 1997-1998 school year and
22		the district's Extension Limitation Ratio. If the Extension
23		Limitation Equalized Assessed Valuation of the school district
24		as calculated under this paragraph (4) is less than the
25		district's equalized assessed valuation utilized in
26		calculating the district's 1998-1999 general State aid
27		allocation, then for purposes of calculating the district's
28		general State aid pursuant to paragraph (5) of subsection (E),
29		that Extension Limitation Equalized Assessed Valuation shall
30		be utilized to calculate the district's Available Local
31		Resources.
32		(5) For school districts having a majority of their
33		equalized assessed valuation in any county except Cook, DuPage,
34		Kane, Lake, McHenry, or Will, if the amount of general State

1		aid allocated to the school district for the 1999-2000 school
2		year under the provisions of subsection (E), (H), and (J) of
3		this Section is less than the amount of general State aid
4		allocated to the district for the 1998-1999 school year under
5		these subsections, then the general State aid of the district
6		for the 1999-2000 school year only shall be increased by the
7		difference between these amounts. The total payments made under
8		this paragraph (5) shall not exceed $14,000,000. Claims shall
9		be prorated if they exceed $14,000,000.
10		(H) Supplemental General State Aid.
11		(1) In addition to the general State aid a school district
12		is allotted pursuant to subsection (E), qualifying school
13		districts shall receive a grant, paid in conjunction with a
14		district's payments of general State aid, for supplemental
15		general State aid based upon the concentration level of
16		children from low-income households within the school
17		district. Supplemental State aid grants provided for school
18		districts under this subsection shall be appropriated for
19		distribution to school districts as part of the same line item
20		in which the general State financial aid of school districts is
21		appropriated under this Section. If the appropriation in any
22		fiscal year for general State aid and supplemental general
23		State aid is insufficient to pay the amounts required under the
24		general State aid and supplemental general State aid
25		calculations, then the State Board of Education shall ensure
26		that each school district receives the full amount due for
27		general State aid and the remainder of the appropriation shall
28		be used for supplemental general State aid, which the State
29		Board of Education shall calculate and pay to eligible
30		districts on a prorated basis.
31		(1.5) This paragraph (1.5) applies only to those school
32		years preceding the 2003-2004 school year. For purposes of this
33		subsection (H), the term "Low-Income Concentration Level"

1		shall be the low-income eligible pupil count from the most
2		recently available federal census divided by the Average Daily
3		Attendance of the school district. If, however, (i) the
4		percentage decrease from the 2 most recent federal censuses in
5		the low-income eligible pupil count of a high school district
6		with fewer than 400 students exceeds by 75% or more the
7		percentage change in the total low-income eligible pupil count
8		of contiguous elementary school districts, whose boundaries
9		are coterminous with the high school district, or (ii) a high
10		school district within 2 counties and serving 5 elementary
11		school districts, whose boundaries are coterminous with the
12		high school district, has a percentage decrease from the 2 most
13		recent federal censuses in the low-income eligible pupil count
14		and there is a percentage increase in the total low-income
15		eligible pupil count of a majority of the elementary school
16		districts in excess of 50% from the 2 most recent federal
17		censuses, then the high school district's low-income eligible
18		pupil count from the earlier federal census shall be the number
19		used as the low-income eligible pupil count for the high school
20		district, for purposes of this subsection (H). The changes made
21		to this paragraph (1) by Public Act 92-28 shall apply to
22		supplemental general State aid grants for school years
23		preceding the 2003-2004 school year that are paid in fiscal
24		year 1999 or thereafter and to any State aid payments made in
25		fiscal year 1994 through fiscal year 1998 pursuant to
26		subsection 1(n) of Section 18-8 of this Code (which was
27		repealed on July 1, 1998), and any high school district that is
28		affected by Public Act 92-28 is entitled to a recomputation of
29		its supplemental general State aid grant or State aid paid in
30		any of those fiscal years. This recomputation shall not be
31		affected by any other funding.
32		(1.10) This paragraph (1.10) applies to the 2003-2004
33		school year and each school year thereafter. For purposes of
34		this subsection (H), the term "Low-Income Concentration Level"

1		shall, for each fiscal year, be the low-income eligible pupil
2		count as of July 1 of the immediately preceding fiscal year (as
3		determined by the Department of Human Services based on the
4		number of pupils who are eligible for at least one of the
5		following low income programs: Medicaid, KidCare, TANF, or Food
6		Stamps, excluding pupils who are eligible for services provided
7		by the Department of Children and Family Services, averaged
8		over the 2 immediately preceding fiscal years for fiscal year
9		2004 and over the 3 immediately preceding fiscal years for each
10		fiscal year thereafter) divided by the Average Daily Attendance
11		of the school district.
12		(2) Supplemental general State aid pursuant to this
13		subsection (H) shall be provided as follows for the 1998-1999,
14		1999-2000, and 2000-2001 school years only:
15		(a) For any school district with a Low Income
16		Concentration Level of at least 20% and less than 35%, the
17		grant for any school year shall be $800 multiplied by the
18		low income eligible pupil count.
19		(b) For any school district with a Low Income
20		Concentration Level of at least 35% and less than 50%, the
21		grant for the 1998-1999 school year shall be $1,100
22		multiplied by the low income eligible pupil count.
23		(c) For any school district with a Low Income
24		Concentration Level of at least 50% and less than 60%, the
25		grant for the 1998-99 school year shall be $1,500
26		multiplied by the low income eligible pupil count.
27		(d) For any school district with a Low Income
28		Concentration Level of 60% or more, the grant for the
29		1998-99 school year shall be $1,900 multiplied by the low
30		income eligible pupil count.
31		(e) For the 1999-2000 school year, the per pupil amount
32		specified in subparagraphs (b), (c), and (d) immediately
33		above shall be increased to $1,243, $1,600, and $2,000,
34		respectively.

1		(f) For the 2000-2001 school year, the per pupil
2		amounts specified in subparagraphs (b), (c), and (d)
3		immediately above shall be $1,273, $1,640, and $2,050,
4		respectively.
5		(2.5) Supplemental general State aid pursuant to this
6		subsection (H) shall be provided as follows for the 2002-2003
7		school year:
8		(a) For any school district with a Low Income
9		Concentration Level of less than 10%, the grant for each
10		school year shall be $355 multiplied by the low income
11		eligible pupil count.
12		(b) For any school district with a Low Income
13		Concentration Level of at least 10% and less than 20%, the
14		grant for each school year shall be $675 multiplied by the
15		low income eligible pupil count.
16		(c) For any school district with a Low Income
17		Concentration Level of at least 20% and less than 35%, the
18		grant for each school year shall be $1,330 multiplied by
19		the low income eligible pupil count.
20		(d) For any school district with a Low Income
21		Concentration Level of at least 35% and less than 50%, the
22		grant for each school year shall be $1,362 multiplied by
23		the low income eligible pupil count.
24		(e) For any school district with a Low Income
25		Concentration Level of at least 50% and less than 60%, the
26		grant for each school year shall be $1,680 multiplied by
27		the low income eligible pupil count.
28		(f) For any school district with a Low Income
29		Concentration Level of 60% or more, the grant for each
30		school year shall be $2,080 multiplied by the low income
31		eligible pupil count.
32		(2.10) Except as otherwise provided, supplemental general
33		State aid pursuant to this subsection (H) shall be provided as
34		follows for the 2003-2004 school year and each school year

1		thereafter:
2		(a) For any school district with a Low Income
3		Concentration Level of 15% or less, the grant for each
4		school year shall be $355 multiplied by the low income
5		eligible pupil count.
6		(b) For any school district with a Low Income
7		Concentration Level greater than 15%, the grant for each
8		school year shall be $294.25 added to the product of $2,700
9		and the square of the Low Income Concentration Level, all
10		multiplied by the low income eligible pupil count.
11		For the 2003-2004 school year only, the grant shall be no
12		less than the grant for the 2002-2003 school year. For the
13		2004-2005 school year only, the grant shall be no less than the
14		grant for the 2002-2003 school year multiplied by 0.66. For the
15		2005-2006 school year only, the grant shall be no less than the
16		grant for the 2002-2003 school year multiplied by 0.33.
17		For the 2003-2004 school year only, the grant shall be no
18		greater than the grant received during the 2002-2003 school
19		year added to the product of 0.25 multiplied by the difference
20		between the grant amount calculated under subsection (a) or (b)
21		of this paragraph (2.10), whichever is applicable, and the
22		grant received during the 2002-2003 school year. For the
23		2004-2005 school year only, the grant shall be no greater than
24		the grant received during the 2002-2003 school year added to
25		the product of 0.50 multiplied by the difference between the
26		grant amount calculated under subsection (a) or (b) of this
27		paragraph (2.10), whichever is applicable, and the grant
28		received during the 2002-2003 school year. For the 2005-2006
29		school year only, the grant shall be no greater than the grant
30		received during the 2002-2003 school year added to the product
31		of 0.75 multiplied by the difference between the grant amount
32		calculated under subsection (a) or (b) of this paragraph
33		(2.10), whichever is applicable, and the grant received during
34		the 2002-2003 school year.

1		(3) School districts with an Average Daily Attendance of
2		more than 1,000 and less than 50,000 that qualify for
3		supplemental general State aid pursuant to this subsection
4		shall submit a plan to the State Board of Education prior to
5		October 30 of each year for the use of the funds resulting from
6		this grant of supplemental general State aid for the
7		improvement of instruction in which priority is given to
8		meeting the education needs of disadvantaged children. Such
9		plan shall be submitted in accordance with rules and
10		regulations promulgated by the State Board of Education.
11		(4) School districts with an Average Daily Attendance of
12		50,000 or more that qualify for supplemental general State aid
13		pursuant to this subsection shall be required to distribute
14		from funds available pursuant to this Section, no less than
15		$261,000,000 in accordance with the following requirements:
16		(a) The required amounts shall be distributed to the
17		attendance centers within the district in proportion to the
18		number of pupils enrolled at each attendance center who are
19		eligible to receive free or reduced-price lunches or
20		breakfasts under the federal Child Nutrition Act of 1966
21		and under the National School Lunch Act during the
22		immediately preceding school year.
23		(b) The distribution of these portions of supplemental
24		and general State aid among attendance centers according to
25		these requirements shall not be compensated for or
26		contravened by adjustments of the total of other funds
27		appropriated to any attendance centers, and the Board of
28		Education shall utilize funding from one or several sources
29		in order to fully implement this provision annually prior
30		to the opening of school.
31		(c) Each attendance center shall be provided by the
32		school district a distribution of noncategorical funds and
33		other categorical funds to which an attendance center is
34		entitled under law in order that the general State aid and

1		supplemental general State aid provided by application of
2		this subsection supplements rather than supplants the
3		noncategorical funds and other categorical funds provided
4		by the school district to the attendance centers.
5		(d) Any funds made available under this subsection that
6		by reason of the provisions of this subsection are not
7		required to be allocated and provided to attendance centers
8		may be used and appropriated by the board of the district
9		for any lawful school purpose.
10		(e) Funds received by an attendance center pursuant to
11		this subsection shall be used by the attendance center at
12		the discretion of the principal and local school council
13		for programs to improve educational opportunities at
14		qualifying schools through the following programs and
15		services: early childhood education, reduced class size or
16		improved adult to student classroom ratio, enrichment
17		programs, remedial assistance, attendance improvement, and
18		other educationally beneficial expenditures which
19		supplement the regular and basic programs as determined by
20		the State Board of Education. Funds provided shall not be
21		expended for any political or lobbying purposes as defined
22		by board rule.
23		(f) Each district subject to the provisions of this
24		subdivision (H)(4) shall submit an acceptable plan to meet
25		the educational needs of disadvantaged children, in
26		compliance with the requirements of this paragraph, to the
27		State Board of Education prior to July 15 of each year.
28		This plan shall be consistent with the decisions of local
29		school councils concerning the school expenditure plans
30		developed in accordance with part 4 of Section 34-2.3. The
31		State Board shall approve or reject the plan within 60 days
32		after its submission. If the plan is rejected, the district
33		shall give written notice of intent to modify the plan
34		within 15 days of the notification of rejection and then

1		submit a modified plan within 30 days after the date of the
2		written notice of intent to modify. Districts may amend
3		approved plans pursuant to rules promulgated by the State
4		Board of Education.
5		Upon notification by the State Board of Education that
6		the district has not submitted a plan prior to July 15 or a
7		modified plan within the time period specified herein, the
8		State aid funds affected by that plan or modified plan
9		shall be withheld by the State Board of Education until a
10		plan or modified plan is submitted.
11		If the district fails to distribute State aid to
12		attendance centers in accordance with an approved plan, the
13		plan for the following year shall allocate funds, in
14		addition to the funds otherwise required by this
15		subsection, to those attendance centers which were
16		underfunded during the previous year in amounts equal to
17		such underfunding.
18		For purposes of determining compliance with this
19		subsection in relation to the requirements of attendance
20		center funding, each district subject to the provisions of
21		this subsection shall submit as a separate document by
22		December 1 of each year a report of expenditure data for
23		the prior year in addition to any modification of its
24		current plan. If it is determined that there has been a
25		failure to comply with the expenditure provisions of this
26		subsection regarding contravention or supplanting, the
27		State Superintendent of Education shall, within 60 days of
28		receipt of the report, notify the district and any affected
29		local school council. The district shall within 45 days of
30		receipt of that notification inform the State
31		Superintendent of Education of the remedial or corrective
32		action to be taken, whether by amendment of the current
33		plan, if feasible, or by adjustment in the plan for the
34		following year. Failure to provide the expenditure report

1		or the notification of remedial or corrective action in a
2		timely manner shall result in a withholding of the affected
3		funds.
4		The State Board of Education shall promulgate rules and
5		regulations to implement the provisions of this
6		subsection. No funds shall be released under this
7		subdivision (H)(4) to any district that has not submitted a
8		plan that has been approved by the State Board of
9		Education.
10		(I) General State Aid for Newly Configured School Districts.
11		(1) For a new school district formed by combining property
12		included totally within 2 or more previously existing school
13		districts, for its first year of existence the general State
14		aid and supplemental general State aid calculated under this
15		Section shall be computed for the new district and for the
16		previously existing districts for which property is totally
17		included within the new district. If the computation on the
18		basis of the previously existing districts is greater, a
19		supplementary payment equal to the difference shall be made for
20		the first 4 years of existence of the new district.
21		(2) For a school district which annexes all of the
22		territory of one or more entire other school districts, for the
23		first year during which the change of boundaries attributable
24		to such annexation becomes effective for all purposes as
25		determined under Section 7-9 or 7A-8, the general State aid and
26		supplemental general State aid calculated under this Section
27		shall be computed for the annexing district as constituted
28		after the annexation and for the annexing and each annexed
29		district as constituted prior to the annexation; and if the
30		computation on the basis of the annexing and annexed districts
31		as constituted prior to the annexation is greater, a
32		supplementary payment equal to the difference shall be made for
33		the first 4 years of existence of the annexing school district

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

1		for the school year last ending prior to the date when the
2		change of boundaries attributable to the annexation or division
3		becomes effective for all purposes. The amount of the total
4		difference payment and the amount thereof to be allocated to
5		the annexing or resulting districts shall be computed by the
6		State Board of Education on the basis of pupil enrollment and
7		other data which shall be certified to the State Board of
8		Education, on forms which it shall provide for that purpose, by
9		the regional superintendent of schools for each educational
10		service region in which the annexing and annexed districts, or
11		resulting and divided districts are located.
12		(3.5) Claims for financial assistance under this
13		subsection (I) shall not be recomputed except as expressly
14		provided under this Section.
15		(4) Any supplementary payment made under this subsection
16		(I) shall be treated as separate from all other payments made
17		pursuant to this Section.
18		(J) Supplementary Grants in Aid.
19		(1) Notwithstanding any other provisions of this Section,
20		the amount of the aggregate general State aid in combination
21		with supplemental general State aid under this Section for
22		which each school district is eligible shall be no less than
23		the amount of the aggregate general State aid entitlement that
24		was received by the district under Section 18-8 (exclusive of
25		amounts received under subsections 5(p) and 5(p-5) of that
26		Section) for the 1997-98 school year, pursuant to the
27		provisions of that Section as it was then in effect. If a
28		school district qualifies to receive a supplementary payment
29		made under this subsection (J), the amount of the aggregate
30		general State aid in combination with supplemental general
31		State aid under this Section which that district is eligible to
32		receive for each school year shall be no less than the amount
33		of the aggregate general State aid entitlement that was

1		received by the district under Section 18-8 (exclusive of
2		amounts received under subsections 5(p) and 5(p-5) of that
3		Section) for the 1997-1998 school year, pursuant to the
4		provisions of that Section as it was then in effect.
5		(2) If, as provided in paragraph (1) of this subsection
6		(J), a school district is to receive aggregate general State
7		aid in combination with supplemental general State aid under
8		this Section for the 1998-99 school year and any subsequent
9		school year that in any such school year is less than the
10		amount of the aggregate general State aid entitlement that the
11		district received for the 1997-98 school year, the school
12		district shall also receive, from a separate appropriation made
13		for purposes of this subsection (J), a supplementary payment
14		that is equal to the amount of the difference in the aggregate
15		State aid figures as described in paragraph (1).
16		(3) (Blank).
17		(K) Grants to Laboratory and Alternative Schools.
18		In calculating the amount to be paid to the governing board
19		of a public university that operates a laboratory school under
20		this Section or to any alternative school that is operated by a
21		regional superintendent of schools, the State Board of
22		Education shall require by rule such reporting requirements as
23		it deems necessary.
24		As used in this Section, "laboratory school" means a public
25		school which is created and operated by a public university and
26		approved by the State Board of Education. The governing board
27		of a public university which receives funds from the State
28		Board under this subsection (K) may not increase the number of
29		students enrolled in its laboratory school from a single
30		district, if that district is already sending 50 or more
31		students, except under a mutual agreement between the school
32		board of a student's district of residence and the university
33		which operates the laboratory school. A laboratory school may

1		not have more than 1,000 students, excluding students with
2		disabilities in a special education program.
3		As used in this Section, "alternative school" means a
4		public school which is created and operated by a Regional
5		Superintendent of Schools and approved by the State Board of
6		Education. Such alternative schools may offer courses of
7		instruction for which credit is given in regular school
8		programs, courses to prepare students for the high school
9		equivalency testing program or vocational and occupational
10		training. A regional superintendent of schools may contract
11		with a school district or a public community college district
12		to operate an alternative school. An alternative school serving
13		more than one educational service region may be established by
14		the regional superintendents of schools of the affected
15		educational service regions. An alternative school serving
16		more than one educational service region may be operated under
17		such terms as the regional superintendents of schools of those
18		educational service regions may agree.
19		Each laboratory and alternative school shall file, on forms
20		provided by the State Superintendent of Education, an annual
21		State aid claim which states the Average Daily Attendance of
22		the school's students by month. The best 3 months' Average
23		Daily Attendance shall be computed for each school. The general
24		State aid entitlement shall be computed by multiplying the
25		applicable Average Daily Attendance by the Foundation Level as
26		determined under this Section.
27		(L) Payments, Additional Grants in Aid and Other Requirements.
28		(1) For a school district operating under the financial
29		supervision of an Authority created under Article 34A, the
30		general State aid otherwise payable to that district under this
31		Section, but not the supplemental general State aid, shall be
32		reduced by an amount equal to the budget for the operations of
33		the Authority as certified by the Authority to the State Board

1		of Education, and an amount equal to such reduction shall be
2		paid to the Authority created for such district for its
3		operating expenses in the manner provided in Section 18-11. The
4		remainder of general State school aid for any such district
5		shall be paid in accordance with Article 34A when that Article
6		provides for a disposition other than that provided by this
7		Article.
8		(2) (Blank).
9		(3) Summer school. Summer school payments shall be made as
10		provided in Section 18-4.3.
11		(M) Education Funding Advisory Board.
12		The Education Funding Advisory Board, hereinafter in this
13		subsection (M) referred to as the "Board", is hereby created.
14		The Board shall consist of 5 members who are appointed by the
15		Governor, by and with the advice and consent of the Senate. The
16		members appointed shall include representatives of education,
17		business, and the general public. One of the members so
18		appointed shall be designated by the Governor at the time the
19		appointment is made as the chairperson of the Board. The
20		initial members of the Board may be appointed any time after
21		the effective date of this amendatory Act of 1997. The regular
22		term of each member of the Board shall be for 4 years from the
23		third Monday of January of the year in which the term of the
24		member's appointment is to commence, except that of the 5
25		initial members appointed to serve on the Board, the member who
26		is appointed as the chairperson shall serve for a term that
27		commences on the date of his or her appointment and expires on
28		the third Monday of January, 2002, and the remaining 4 members,
29		by lots drawn at the first meeting of the Board that is held
30		after all 5 members are appointed, shall determine 2 of their
31		number to serve for terms that commence on the date of their
32		respective appointments and expire on the third Monday of
33		January, 2001, and 2 of their number to serve for terms that

1		commence on the date of their respective appointments and
2		expire on the third Monday of January, 2000. All members
3		appointed to serve on the Board shall serve until their
4		respective successors are appointed and confirmed. Vacancies
5		shall be filled in the same manner as original appointments. If
6		a vacancy in membership occurs at a time when the Senate is not
7		in session, the Governor shall make a temporary appointment
8		until the next meeting of the Senate, when he or she shall
9		appoint, by and with the advice and consent of the Senate, a
10		person to fill that membership for the unexpired term. If the
11		Senate is not in session when the initial appointments are
12		made, those appointments shall be made as in the case of
13		vacancies.
14		The Education Funding Advisory Board shall be deemed
15		established, and the initial members appointed by the Governor
16		to serve as members of the Board shall take office, on the date
17		that the Governor makes his or her appointment of the fifth
18		initial member of the Board, whether those initial members are
19		then serving pursuant to appointment and confirmation or
20		pursuant to temporary appointments that are made by the
21		Governor as in the case of vacancies.
22		The State Board of Education shall provide such staff
23		assistance to the Education Funding Advisory Board as is
24		reasonably required for the proper performance by the Board of
25		its responsibilities.
26		For school years after the 2000-2001 school year, the
27		Education Funding Advisory Board, in consultation with the
28		State Board of Education, shall make recommendations as
29		provided in this subsection (M) to the General Assembly for the
30		foundation level under subdivision (B)(3) of this Section and
31		for the supplemental general State aid grant level under
32		subsection (H) of this Section for districts with high
33		concentrations of children from poverty. The recommended
34		foundation level shall be determined based on a methodology

1		which incorporates the basic education expenditures of
2		low-spending schools exhibiting high academic performance. The
3		Education Funding Advisory Board shall make such
4		recommendations to the General Assembly on January 1 of odd
5		numbered years, beginning January 1, 2001.
6		(N) (Blank).
7		(O) References.
8		(1) References in other laws to the various subdivisions of
9		Section 18-8 as that Section existed before its repeal and
10		replacement by this Section 18-8.05 shall be deemed to refer to
11		the corresponding provisions of this Section 18-8.05, to the
12		extent that those references remain applicable.
13		(2) References in other laws to State Chapter 1 funds shall
14		be deemed to refer to the supplemental general State aid
15		provided under subsection (H) of this Section.
16		(Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,
17		eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 92-636,
18		eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 7-1-03.)

19		Section 40. The Criminal Code of 1961 is amended by
20		changing Section 17A-1 as follows:
21		(720 ILCS 5/17A-1) (from Ch. 38, par. 17A-1)
22		Sec. 17A-1. Persons under deportation order; ineligible
23		for benefits. An individual against whom a United States
24		Immigration Judge has issued an order of deportation which has
25		been affirmed by the Board of Immigration Review, as well as an
26		individual who appeals such an order pending appeal, under
27		paragraph 19 of Section 241(a) of the Immigration and
28		Nationality Act relating to persecution of others on account of
29		race, religion, national origin or political opinion under the
30		direction of or in association with the Nazi government of

1		Germany or its allies, shall be ineligible for the following
2		benefits authorized by State law:
3		(a) The homestead exemptions exemption and homestead
4		improvement exemption under Sections 15-170, 15-175, 15-176,
5		and 15-180 of the Property Tax Code.
6		(b) Grants under the Senior Citizens and Disabled Persons
7		Property Tax Relief and Pharmaceutical Assistance Act.
8		(c) The double income tax exemption conferred upon persons
9		65 years of age or older by Section 204 of the Illinois Income
10		Tax Act.
11		(d) Grants provided by the Department on Aging.
12		(e) Reductions in vehicle registration fees under Section
13		3-806.3 of the Illinois Vehicle Code.
14		(f) Free fishing and reduced fishing license fees under
15		Sections 20-5 and 20-40 of the Fish and Aquatic Life Code.
16		(g) Tuition free courses for senior citizens under the
17		Senior Citizen Courses Act.
18		(h) Any benefits under the Illinois Public Aid Code.
19		(Source: P.A. 87-895; 88-670, eff. 12-2-94.)

20		Section 90. The State Mandates Act is amended by adding
21		Section 8.28 as follows:
22		(30 ILCS 805/8.28 new)
23		Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
24		of this Act, no reimbursement by the State is required for the
25		implementation of any mandate created by (i) the Senior
26		Citizens Assessment Freeze Homestead Exemption under Section
27		15-172 of the Property Tax Code or (ii) the General Homestead
28		Exemption in counties subject to the Property Tax Extension
29		Limitation Law under Section 15-176 of the Property Tax Code.".

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