Sen. Richard J. Winkel Jr.

Filed: 5/10/2005

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2

2     AMENDMENT NO. ______. Amend Senate Bill 2 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The State Finance Act is amended by changing
5 Section 8h and by adding Sections 5.640, 5.645, 6z-68, and
6 6z-69 as follows:
 
7     (30 ILCS 105/5.640 new)
8     Sec. 5.640. The Higher Education Operating Assistance
9 Fund.
 
10     (30 ILCS 105/5.645 new)
11     Sec. 5.645. The School District Property Tax Relief Fund.
 
12     (30 ILCS 105/6z-68 new)
13     Sec. 6z-68. School District Property Tax Relief Fund.
14     (a) The School District Property Tax Relief Fund is created
15 as a special Fund in the State treasury. All interest earned on
16 moneys in the Fund shall be deposited into the Fund.
17     (b) As used in this Section:
18     "Department" means the Department of Revenue.
19     "School district" means elementary, high school, and unit
20 districts that levy property taxes.
21     "Property tax relief grant" means the amount of property
22 tax relief that will be distributed to counties from the School

 

 

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1 District Property Tax Relief Fund in each fiscal year for
2 grants to each school district.
3     (c) Beginning in fiscal year 2006, the General Assembly
4 shall appropriate $3.5 billion, or an amount sufficient to fund
5 the required monthly transfers under Section 18-19(4) of the
6 School Code, from the Education Assistance Fund to the School
7 District Property Tax Relief Fund. In each fiscal year
8 thereafter, the General Assembly shall appropriate an amount
9 from the Education Assistance Fund to the School District
10 Property Tax Relief Fund equal to the amount appropriated to
11 the School District Property Tax Relief Fund in the immediately
12 preceding fiscal year, increased by the lesser of 3.5% or the
13 percentage increase in the Consumer Price Index for All Urban
14 Consumers published by the U.S. Bureau of Labor Statistics for
15 the immediately preceding fiscal year.
16     (d) Beginning in 2005 and for every year thereafter, the
17 Department must certify, no earlier than November 15 and no
18 later than November 17, the total amount of property tax relief
19 each school district will receive from the School District
20 Property Tax Relief Fund. The relief shall be determined as
21 follows:
22         In each fiscal year commencing with fiscal year 2006,
23     the General Assembly shall appropriate the total amount
24     appropriated to the School District Property Tax Relief
25     Fund for that fiscal year to fund the aggregate amount of
26     property tax relief grants that will be distributed through
27     the counties to all school districts. The Department then
28     shall calculate the amount of property tax relief grant to
29     be distributed to each school district in each fiscal year
30     as follows:
31             (A) for fiscal year 2006, each school district
32         shall receive a property tax relief grant in an amount
33         equal to one-third of the total property taxes levied
34         for that school district in tax year 2001 (payable in

 

 

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1         2002); and
2             (B) for each fiscal year thereafter, the property
3         tax relief grant for each school district must be
4         increased by the lesser of 3.5% or the percentage
5         increase, if any, in the Consumer Price Index For All
6         Urban Consumers published for the prior fiscal year.
7     Property tax relief grants in each fiscal year shall be
8 distributed to the county collectors in the appropriate
9 counties. The county collectors must then distribute the moneys
10 to the school districts as if the grant were property tax
11 receipts.
12     (e) This amendatory Act of the 94th General Assembly
13 constitutes an irrevocable and continuing appropriation (i)
14 from the Education Assistance Fund to the School District
15 Property Tax Relief Fund and (ii) from the School District
16 Property Tax Relief Fund to the school districts for property
17 tax relief grants in accordance with the provisions of this
18 Section.
 
19     (30 ILCS 105/6z-69 new)
20     Sec. 6z-69. Higher Education Operating Assistance Fund.
21     (a) The Higher Education Operating Assistance Fund is
22 created as a special fund in the State treasury. Moneys in the
23 Fund may be used only for the purposes set forth in this
24 Section. All interest earned on moneys in the Fund must be
25 deposited into the Fund.
26     (b) Beginning in fiscal year 2007, the General Assembly
27 must appropriate $370,000,000, or an amount sufficient to fund
28 the required monthly transfers under Section 18-19(1) of the
29 School Code, from the Education Assistance Fund to the Higher
30 Education Operating Assistance Fund.
31     (c) In each fiscal year thereafter, the amount appropriated
32 from the Education Assistance Fund to the Higher Education
33 Operating Assistance Fund must be increased by the percentage

 

 

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1 of increase, in the previous calendar year, of the Consumer
2 Price Index for all Urban Consumers published by the federal
3 Bureau of Labor Statistics.
4     (c-1) Distributions from the Higher Education Operating
5 Assistance Fund are to be made only if the level of the
6 appropriations from general funds is equal to or greater than
7 the "base appropriation level for higher education purposes",
8 as adjusted for each intervening year by the percentage
9 increase, if any, in the Consumer Price Index For All Urban
10 Consumers ("CPI") published by the federal Bureau of Labor
11 Statistics for the prior fiscal year. For purposes of this
12 amendatory Act of the 94th General Assembly, the "base
13 appropriation level for higher education purposes" is the FY05
14 General Revenue Fund level specified in Public Act 93-0842,
15 effective July 7, 2004, as amended by Public Act 93-1070,
16 Article 11, effective January 15, 2005 and referenced in Item
17 #12 of the Illinois Board of Higher Education August 10, 2004
18 Board Report.
19     If the amount appropriated in any year for higher education
20 purposes is less than the "base appropriation level for higher
21 education purposes" from the prior fiscal year as adjusted by
22 the percentage increase in CPI, then no moneys may be
23 appropriated from the Higher Education Operating Assistance
24 Fund for that fiscal year for any purpose and all moneys shall
25 remain in the Higher Education Operating Assistance Fund until
26 the following fiscal year.
27     For purposes of this subsection (c-1), the term "amount
28 appropriated for higher education purposes" does not include
29 any amount appropriated from the Higher Education Operating
30 Assistance Fund.
31     (c-2) Distributions from the Higher Education Operating
32 Assistance Fund shall be as follows, subject to the conditions
33 in subsection (c-1):
34         (1) The General Assembly must appropriate 75% of all

 

 

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1     moneys in the Higher Education Operating Assistance Fund,
2     including any balance from the prior year, to the Board of
3     Higher Education for grants to State universities for their
4     ordinary and contingent expenses. The grants under this
5     item (1) must be distributed to each State university based
6     upon each university's full time equivalent head count; and
7         (2) The General Assembly must appropriate 25% of all
8     moneys in the Higher Education Operating Assistance Fund,
9     including any balance from the prior year, to the Illinois
10     Community College Board for grants to community colleges
11     for their ordinary and contingent expenses. The grants
12     under this item (2) must be distributed to each community
13     college based upon each community college's full time
14     equivalent head count.
15     For the purposes of this subsection (c-2), "full time
16 equivalent head count" means the total number of undergraduate
17 students enrolled in 12 or more semester hours or quarter hours
18 of credit courses in any given semester or quarter.
19     (d) Distributions from the Higher Education Operating
20 Assistance Fund shall not be used for the following:
21         Executive management: executive level activities
22     concerned with the overall management of, and long-range
23     planning for, the entire university. This includes
24     activities such as policy formation and executive
25     direction, including the activities of the governing
26     board, the chief executive officer, and the senior
27     executive officers. Legal activities conducted on behalf
28     of the university are included.
29         Financial management and operations: activities
30     related to the day-to-day financial management and fiscal
31     operations of the university and long-range financial
32     planning and policy formulations.
33         General administrative and logistical services:
34     general administrative operations and services of the

 

 

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1     university (with exception of financial operations and
2     student records activities). This includes administration
3     of personnel programs, purchasing and maintenance of
4     supplies and materials, management of facilities, and
5     administrative computing support.
6         Faculty and staff auxiliary services: support services
7     established primarily to service the faculty and staff,
8     such as faculty lounges, cafeterias, or centers providing a
9     variety of services.
10         Public relations and development: activities
11     established to maintain relations with the local
12     community, the university's alumni, governmental entities,
13     and the public in general, as well as activities carried
14     out to support institution-side fund raising and
15     development efforts.
16         Academic administration: administrative support and
17     management activities carried out specifically for the
18     support of a university's primary programs of instruction,
19     organized research, and public service.
20         Superintendence: activities necessary to carry out the
21     duties of management and administration for all areas under
22     the jurisdiction of the physical plant division of the
23     university.
24         Custodial: activities related to custodial service in
25     building interiors.
26         Grounds maintenance: operation and maintenance of
27     campus landscape and grounds. This includes maintenance of
28     roads and walkways; snow removal; maintenance of fences,
29     retaining walls, and drainage ditches; and care of shrubs,
30     trees, and grass.
31         Transportation: all charges related to the purchase,
32     maintenance, and operation of motor vehicles specifically
33     for the use of the physical plant department. Operational
34     costs for a central motor pool are not included in this

 

 

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1     category and should be charged to the departments and
2     programs that use the vehicles.
3     (e) This amendatory Act of the 94th General Assembly
4 constitutes an irrevocable and continuing appropriation (i)
5 from the Education Assistance Fund to the Higher Education
6 Operating Assistance Fund and (ii) from the Higher Education
7 Operating Assistance Fund to the Board of Higher Education and
8 to the Illinois Community College Board in accordance with the
9 provisions of this Section.
 
10     (30 ILCS 105/8h)
11     Sec. 8h. Transfers to General Revenue Fund.
12     (a) Except as provided in subsection (b), notwithstanding
13 any other State law to the contrary, the Governor may, through
14 June 30, 2007, from time to time direct the State Treasurer and
15 Comptroller to transfer a specified sum from any fund held by
16 the State Treasurer to the General Revenue Fund in order to
17 help defray the State's operating costs for the fiscal year.
18 The total transfer under this Section from any fund in any
19 fiscal year shall not exceed the lesser of (i) 8% of the
20 revenues to be deposited into the fund during that fiscal year
21 or (ii) an amount that leaves a remaining fund balance of 25%
22 of the July 1 fund balance of that fiscal year. In fiscal year
23 2005 only, prior to calculating the July 1, 2004 final
24 balances, the Governor may calculate and direct the State
25 Treasurer with the Comptroller to transfer additional amounts
26 determined by applying the formula authorized in Public Act
27 93-839 to the funds balances on July 1, 2003. No transfer may
28 be made from a fund under this Section that would have the
29 effect of reducing the available balance in the fund to an
30 amount less than the amount remaining unexpended and unreserved
31 from the total appropriation from that fund estimated to be
32 expended for that fiscal year. This Section does not apply to
33 any funds that are restricted by federal law to a specific use,

 

 

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1 to any funds in the Motor Fuel Tax Fund, the Hospital Provider
2 Fund, the Medicaid Provider Relief Fund, the Education
3 Assistance Fund, the School District Property Tax Relief Fund,
4 the Higher Education Operating Assistance Fund, the Income Tax
5 Refund Fund, or the Reviewing Court Alternative Dispute
6 Resolution Fund, or to any funds to which subsection (f) of
7 Section 20-40 of the Nursing and Advanced Practice Nursing Act
8 applies. Notwithstanding any other provision of this Section,
9 for fiscal year 2004, the total transfer under this Section
10 from the Road Fund or the State Construction Account Fund shall
11 not exceed the lesser of (i) 5% of the revenues to be deposited
12 into the fund during that fiscal year or (ii) 25% of the
13 beginning balance in the fund. For fiscal year 2005 through
14 fiscal year 2007, no amounts may be transferred under this
15 Section from the Road Fund, the State Construction Account
16 Fund, the Criminal Justice Information Systems Trust Fund, the
17 Wireless Service Emergency Fund, or the Mandatory Arbitration
18 Fund.
19     In determining the available balance in a fund, the
20 Governor may include receipts, transfers into the fund, and
21 other resources anticipated to be available in the fund in that
22 fiscal year.
23     The State Treasurer and Comptroller shall transfer the
24 amounts designated under this Section as soon as may be
25 practicable after receiving the direction to transfer from the
26 Governor.
27     (b) This Section does not apply to any fund established
28 under the Community Senior Services and Resources Act.
29 (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674,
30 eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04;
31 93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff.
32 1-15-05.)
 
33     Section 10. The Illinois Income Tax Act is amended by

 

 

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1 changing Sections 201, 208, 212, and 901 and by adding Section
2 202.5 as follows:
 
3     (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
4     Sec. 201. Tax Imposed.
5     (a) In general. A tax measured by net income is hereby
6 imposed on every individual, corporation, trust and estate for
7 each taxable year ending after July 31, 1969 on the privilege
8 of earning or receiving income in or as a resident of this
9 State. Such tax shall be in addition to all other occupation or
10 privilege taxes imposed by this State or by any municipal
11 corporation or political subdivision thereof.
12     (b) Rates. The tax imposed by subsection (a) of this
13 Section shall be determined as follows, except as adjusted by
14 subsection (d-1):
15         (1) In the case of an individual, trust or estate, for
16     taxable years ending prior to July 1, 1989, an amount equal
17     to 2 1/2% of the taxpayer's net income for the taxable
18     year.
19         (2) In the case of an individual, trust or estate, for
20     taxable years beginning prior to July 1, 1989 and ending
21     after June 30, 1989, an amount equal to the sum of (i) 2
22     1/2% of the taxpayer's net income for the period prior to
23     July 1, 1989, as calculated under Section 202.3, and (ii)
24     3% of the taxpayer's net income for the period after June
25     30, 1989, as calculated under Section 202.3.
26         (3) In the case of an individual, trust or estate, for
27     taxable years beginning after June 30, 1989 and ending on
28     or before December 31, 2005 , an amount equal to 3% of the
29     taxpayer's net income for the taxable year.
30         (4) In the case of an individual, trust, or estate, for
31     taxable years beginning prior to January 1, 2006 and ending
32     after December 31, 2005, an amount equal to the sum of (i)
33     3% of the taxpayer's net income for the period prior to

 

 

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1     January 1, 2006, as calculated under Section 202.5, and
2     (ii) 5% of the taxpayer's net income for the period after
3     December 31, 2005, as calculated under Section 202.5.
4     (Blank).
5         (5) In the case of an individual, trust or estate, for
6     taxable years beginning after December 31, 2005, an amount
7     equal to 5% of the taxpayer's net income for the taxable
8     year. (Blank).
9         (6) In the case of a corporation, for taxable years
10     ending prior to July 1, 1989, an amount equal to 4% of the
11     taxpayer's net income for the taxable year.
12         (7) In the case of a corporation, for taxable years
13     beginning prior to July 1, 1989 and ending after June 30,
14     1989, an amount equal to the sum of (i) 4% of the
15     taxpayer's net income for the period prior to July 1, 1989,
16     as calculated under Section 202.3, and (ii) 4.8% of the
17     taxpayer's net income for the period after June 30, 1989,
18     as calculated under Section 202.3.
19         (8) In the case of a corporation, for taxable years
20     beginning after June 30, 1989 and ending on or before
21     December 31, 2005, an amount equal to 4.8% of the
22     taxpayer's net income for the taxable year.
23         (9) In the case of a corporation, for taxable years
24     beginning prior to January 1, 2006 and ending after
25     December 31, 2005, an amount equal to the sum of (i) 4.8%
26     of the taxpayer's net income for the period prior to
27     January 1, 2006, as calculated under Section 202.5, and
28     (ii) 8% of the taxpayer's net income for the period after
29     December 31, 2005, as calculated under Section 202.5.
30         (10) In the case of a corporation, for taxable years
31     beginning after December 31, 2005, an amount equal to 8% of
32     the taxpayer's net income for the taxable year.
33     (c) Personal Property Tax Replacement Income Tax.
34 Beginning on July 1, 1979 and thereafter, in addition to such

 

 

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1 income tax, there is also hereby imposed the Personal Property
2 Tax Replacement Income Tax measured by net income on every
3 corporation (including Subchapter S corporations), partnership
4 and trust, for each taxable year ending after June 30, 1979.
5 Such taxes are imposed on the privilege of earning or receiving
6 income in or as a resident of this State. The Personal Property
7 Tax Replacement Income Tax shall be in addition to the income
8 tax imposed by subsections (a) and (b) of this Section and in
9 addition to all other occupation or privilege taxes imposed by
10 this State or by any municipal corporation or political
11 subdivision thereof.
12     (d) Additional Personal Property Tax Replacement Income
13 Tax Rates. The personal property tax replacement income tax
14 imposed by this subsection and subsection (c) of this Section
15 in the case of a corporation, other than a Subchapter S
16 corporation and except as adjusted by subsection (d-1), shall
17 be an additional amount equal to 2.85% of such taxpayer's net
18 income for the taxable year, except that beginning on January
19 1, 1981, and thereafter, the rate of 2.85% specified in this
20 subsection shall be reduced to 2.5%, and in the case of a
21 partnership, trust or a Subchapter S corporation shall be an
22 additional amount equal to 1.5% of such taxpayer's net income
23 for the taxable year.
24     (d-1) Rate reduction for certain foreign insurers. In the
25 case of a foreign insurer, as defined by Section 35A-5 of the
26 Illinois Insurance Code, whose state or country of domicile
27 imposes on insurers domiciled in Illinois a retaliatory tax
28 (excluding any insurer whose premiums from reinsurance assumed
29 are 50% or more of its total insurance premiums as determined
30 under paragraph (2) of subsection (b) of Section 304, except
31 that for purposes of this determination premiums from
32 reinsurance do not include premiums from inter-affiliate
33 reinsurance arrangements), beginning with taxable years ending
34 on or after December 31, 1999, the sum of the rates of tax

 

 

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1 imposed by subsections (b) and (d) shall be reduced (but not
2 increased) to the rate at which the total amount of tax imposed
3 under this Act, net of all credits allowed under this Act,
4 shall equal (i) the total amount of tax that would be imposed
5 on the foreign insurer's net income allocable to Illinois for
6 the taxable year by such foreign insurer's state or country of
7 domicile if that net income were subject to all income taxes
8 and taxes measured by net income imposed by such foreign
9 insurer's state or country of domicile, net of all credits
10 allowed or (ii) a rate of zero if no such tax is imposed on such
11 income by the foreign insurer's state of domicile. For the
12 purposes of this subsection (d-1), an inter-affiliate includes
13 a mutual insurer under common management.
14         (1) For the purposes of subsection (d-1), in no event
15     shall the sum of the rates of tax imposed by subsections
16     (b) and (d) be reduced below the rate at which the sum of:
17             (A) the total amount of tax imposed on such foreign
18         insurer under this Act for a taxable year, net of all
19         credits allowed under this Act, plus
20             (B) the privilege tax imposed by Section 409 of the
21         Illinois Insurance Code, the fire insurance company
22         tax imposed by Section 12 of the Fire Investigation
23         Act, and the fire department taxes imposed under
24         Section 11-10-1 of the Illinois Municipal Code,
25     equals 1.25% for taxable years ending prior to December 31,
26     2003, or 1.75% for taxable years ending on or after
27     December 31, 2003, of the net taxable premiums written for
28     the taxable year, as described by subsection (1) of Section
29     409 of the Illinois Insurance Code. This paragraph will in
30     no event increase the rates imposed under subsections (b)
31     and (d).
32         (2) Any reduction in the rates of tax imposed by this
33     subsection shall be applied first against the rates imposed
34     by subsection (b) and only after the tax imposed by

 

 

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1     subsection (a) net of all credits allowed under this
2     Section other than the credit allowed under subsection (i)
3     has been reduced to zero, against the rates imposed by
4     subsection (d).
5     This subsection (d-1) is exempt from the provisions of
6 Section 250.
7     (e) Investment credit. A taxpayer shall be allowed a credit
8 against the Personal Property Tax Replacement Income Tax for
9 investment in qualified property.
10         (1) A taxpayer shall be allowed a credit equal to .5%
11     of the basis of qualified property placed in service during
12     the taxable year, provided such property is placed in
13     service on or after July 1, 1984. There shall be allowed an
14     additional credit equal to .5% of the basis of qualified
15     property placed in service during the taxable year,
16     provided such property is placed in service on or after
17     July 1, 1986, and the taxpayer's base employment within
18     Illinois has increased by 1% or more over the preceding
19     year as determined by the taxpayer's employment records
20     filed with the Illinois Department of Employment Security.
21     Taxpayers who are new to Illinois shall be deemed to have
22     met the 1% growth in base employment for the first year in
23     which they file employment records with the Illinois
24     Department of Employment Security. The provisions added to
25     this Section by Public Act 85-1200 (and restored by Public
26     Act 87-895) shall be construed as declaratory of existing
27     law and not as a new enactment. If, in any year, the
28     increase in base employment within Illinois over the
29     preceding year is less than 1%, the additional credit shall
30     be limited to that percentage times a fraction, the
31     numerator of which is .5% and the denominator of which is
32     1%, but shall not exceed .5%. The investment credit shall
33     not be allowed to the extent that it would reduce a
34     taxpayer's liability in any tax year below zero, nor may

 

 

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1     any credit for qualified property be allowed for any year
2     other than the year in which the property was placed in
3     service in Illinois. For tax years ending on or after
4     December 31, 1987, and on or before December 31, 1988, the
5     credit shall be allowed for the tax year in which the
6     property is placed in service, or, if the amount of the
7     credit exceeds the tax liability for that year, whether it
8     exceeds the original liability or the liability as later
9     amended, such excess may be carried forward and applied to
10     the tax liability of the 5 taxable years following the
11     excess credit years if the taxpayer (i) makes investments
12     which cause the creation of a minimum of 2,000 full-time
13     equivalent jobs in Illinois, (ii) is located in an
14     enterprise zone established pursuant to the Illinois
15     Enterprise Zone Act and (iii) is certified by the
16     Department of Commerce and Community Affairs (now
17     Department of Commerce and Economic Opportunity) as
18     complying with the requirements specified in clause (i) and
19     (ii) by July 1, 1986. The Department of Commerce and
20     Community Affairs (now Department of Commerce and Economic
21     Opportunity) shall notify the Department of Revenue of all
22     such certifications immediately. For tax years ending
23     after December 31, 1988, the credit shall be allowed for
24     the tax year in which the property is placed in service,
25     or, if the amount of the credit exceeds the tax liability
26     for that year, whether it exceeds the original liability or
27     the liability as later amended, such excess may be carried
28     forward and applied to the tax liability of the 5 taxable
29     years following the excess credit years. The credit shall
30     be applied to the earliest year for which there is a
31     liability. If there is credit from more than one tax year
32     that is available to offset a liability, earlier credit
33     shall be applied first.
34         (2) The term "qualified property" means property

 

 

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1     which:
2             (A) is tangible, whether new or used, including
3         buildings and structural components of buildings and
4         signs that are real property, but not including land or
5         improvements to real property that are not a structural
6         component of a building such as landscaping, sewer
7         lines, local access roads, fencing, parking lots, and
8         other appurtenances;
9             (B) is depreciable pursuant to Section 167 of the
10         Internal Revenue Code, except that "3-year property"
11         as defined in Section 168(c)(2)(A) of that Code is not
12         eligible for the credit provided by this subsection
13         (e);
14             (C) is acquired by purchase as defined in Section
15         179(d) of the Internal Revenue Code;
16             (D) is used in Illinois by a taxpayer who is
17         primarily engaged in manufacturing, or in mining coal
18         or fluorite, or in retailing; and
19             (E) has not previously been used in Illinois in
20         such a manner and by such a person as would qualify for
21         the credit provided by this subsection (e) or
22         subsection (f).
23         (3) For purposes of this subsection (e),
24     "manufacturing" means the material staging and production
25     of tangible personal property by procedures commonly
26     regarded as manufacturing, processing, fabrication, or
27     assembling which changes some existing material into new
28     shapes, new qualities, or new combinations. For purposes of
29     this subsection (e) the term "mining" shall have the same
30     meaning as the term "mining" in Section 613(c) of the
31     Internal Revenue Code. For purposes of this subsection (e),
32     the term "retailing" means the sale of tangible personal
33     property or services rendered in conjunction with the sale
34     of tangible consumer goods or commodities.

 

 

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1         (4) The basis of qualified property shall be the basis
2     used to compute the depreciation deduction for federal
3     income tax purposes.
4         (5) If the basis of the property for federal income tax
5     depreciation purposes is increased after it has been placed
6     in service in Illinois by the taxpayer, the amount of such
7     increase shall be deemed property placed in service on the
8     date of such increase in basis.
9         (6) The term "placed in service" shall have the same
10     meaning as under Section 46 of the Internal Revenue Code.
11         (7) If during any taxable year, any property ceases to
12     be qualified property in the hands of the taxpayer within
13     48 months after being placed in service, or the situs of
14     any qualified property is moved outside Illinois within 48
15     months after being placed in service, the Personal Property
16     Tax Replacement Income Tax for such taxable year shall be
17     increased. Such increase shall be determined by (i)
18     recomputing the investment credit which would have been
19     allowed for the year in which credit for such property was
20     originally allowed by eliminating such property from such
21     computation and, (ii) subtracting such recomputed credit
22     from the amount of credit previously allowed. For the
23     purposes of this paragraph (7), a reduction of the basis of
24     qualified property resulting from a redetermination of the
25     purchase price shall be deemed a disposition of qualified
26     property to the extent of such reduction.
27         (8) Unless the investment credit is extended by law,
28     the basis of qualified property shall not include costs
29     incurred after December 31, 2008, except for costs incurred
30     pursuant to a binding contract entered into on or before
31     December 31, 2008.
32         (9) Each taxable year ending before December 31, 2000,
33     a partnership may elect to pass through to its partners the
34     credits to which the partnership is entitled under this

 

 

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1     subsection (e) for the taxable year. A partner may use the
2     credit allocated to him or her under this paragraph only
3     against the tax imposed in subsections (c) and (d) of this
4     Section. If the partnership makes that election, those
5     credits shall be allocated among the partners in the
6     partnership in accordance with the rules set forth in
7     Section 704(b) of the Internal Revenue Code, and the rules
8     promulgated under that Section, and the allocated amount of
9     the credits shall be allowed to the partners for that
10     taxable year. The partnership shall make this election on
11     its Personal Property Tax Replacement Income Tax return for
12     that taxable year. The election to pass through the credits
13     shall be irrevocable.
14         For taxable years ending on or after December 31, 2000,
15     a partner that qualifies its partnership for a subtraction
16     under subparagraph (I) of paragraph (2) of subsection (d)
17     of Section 203 or a shareholder that qualifies a Subchapter
18     S corporation for a subtraction under subparagraph (S) of
19     paragraph (2) of subsection (b) of Section 203 shall be
20     allowed a credit under this subsection (e) equal to its
21     share of the credit earned under this subsection (e) during
22     the taxable year by the partnership or Subchapter S
23     corporation, determined in accordance with the
24     determination of income and distributive share of income
25     under Sections 702 and 704 and Subchapter S of the Internal
26     Revenue Code. This paragraph is exempt from the provisions
27     of Section 250.
28       (f) Investment credit; Enterprise Zone.
29         (1) A taxpayer shall be allowed a credit against the
30     tax imposed by subsections (a) and (b) of this Section for
31     investment in qualified property which is placed in service
32     in an Enterprise Zone created pursuant to the Illinois
33     Enterprise Zone Act. For partners, shareholders of
34     Subchapter S corporations, and owners of limited liability

 

 

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1     companies, if the liability company is treated as a
2     partnership for purposes of federal and State income
3     taxation, there shall be allowed a credit under this
4     subsection (f) to be determined in accordance with the
5     determination of income and distributive share of income
6     under Sections 702 and 704 and Subchapter S of the Internal
7     Revenue Code. The credit shall be .5% of the basis for such
8     property. The credit shall be available only in the taxable
9     year in which the property is placed in service in the
10     Enterprise Zone and shall not be allowed to the extent that
11     it would reduce a taxpayer's liability for the tax imposed
12     by subsections (a) and (b) of this Section to below zero.
13     For tax years ending on or after December 31, 1985, the
14     credit shall be allowed for the tax year in which the
15     property is placed in service, or, if the amount of the
16     credit exceeds the tax liability for that year, whether it
17     exceeds the original liability or the liability as later
18     amended, such excess may be carried forward and applied to
19     the tax liability of the 5 taxable years following the
20     excess credit year. The credit shall be applied to the
21     earliest year for which there is a liability. If there is
22     credit from more than one tax year that is available to
23     offset a liability, the credit accruing first in time shall
24     be applied first.
25         (2) The term qualified property means property which:
26             (A) is tangible, whether new or used, including
27         buildings and structural components of buildings;
28             (B) is depreciable pursuant to Section 167 of the
29         Internal Revenue Code, except that "3-year property"
30         as defined in Section 168(c)(2)(A) of that Code is not
31         eligible for the credit provided by this subsection
32         (f);
33             (C) is acquired by purchase as defined in Section
34         179(d) of the Internal Revenue Code;

 

 

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1             (D) is used in the Enterprise Zone by the taxpayer;
2         and
3             (E) has not been previously used in Illinois in
4         such a manner and by such a person as would qualify for
5         the credit provided by this subsection (f) or
6         subsection (e).
7         (3) The basis of qualified property shall be the basis
8     used to compute the depreciation deduction for federal
9     income tax purposes.
10         (4) If the basis of the property for federal income tax
11     depreciation purposes is increased after it has been placed
12     in service in the Enterprise Zone by the taxpayer, the
13     amount of such increase shall be deemed property placed in
14     service on the date of such increase in basis.
15         (5) The term "placed in service" shall have the same
16     meaning as under Section 46 of the Internal Revenue Code.
17         (6) If during any taxable year, any property ceases to
18     be qualified property in the hands of the taxpayer within
19     48 months after being placed in service, or the situs of
20     any qualified property is moved outside the Enterprise Zone
21     within 48 months after being placed in service, the tax
22     imposed under subsections (a) and (b) of this Section for
23     such taxable year shall be increased. Such increase shall
24     be determined by (i) recomputing the investment credit
25     which would have been allowed for the year in which credit
26     for such property was originally allowed by eliminating
27     such property from such computation, and (ii) subtracting
28     such recomputed credit from the amount of credit previously
29     allowed. For the purposes of this paragraph (6), a
30     reduction of the basis of qualified property resulting from
31     a redetermination of the purchase price shall be deemed a
32     disposition of qualified property to the extent of such
33     reduction.
34       (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade

 

 

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1 Zone or Sub-Zone.
2         (1) A taxpayer conducting a trade or business in an
3     enterprise zone or a High Impact Business designated by the
4     Department of Commerce and Economic Opportunity conducting
5     a trade or business in a federally designated Foreign Trade
6     Zone or Sub-Zone shall be allowed a credit against the tax
7     imposed by subsections (a) and (b) of this Section in the
8     amount of $500 per eligible employee hired to work in the
9     zone during the taxable year.
10         (2) To qualify for the credit:
11             (A) the taxpayer must hire 5 or more eligible
12         employees to work in an enterprise zone or federally
13         designated Foreign Trade Zone or Sub-Zone during the
14         taxable year;
15             (B) the taxpayer's total employment within the
16         enterprise zone or federally designated Foreign Trade
17         Zone or Sub-Zone must increase by 5 or more full-time
18         employees beyond the total employed in that zone at the
19         end of the previous tax year for which a jobs tax
20         credit under this Section was taken, or beyond the
21         total employed by the taxpayer as of December 31, 1985,
22         whichever is later; and
23             (C) the eligible employees must be employed 180
24         consecutive days in order to be deemed hired for
25         purposes of this subsection.
26         (3) An "eligible employee" means an employee who is:
27             (A) Certified by the Department of Commerce and
28         Economic Opportunity as "eligible for services"
29         pursuant to regulations promulgated in accordance with
30         Title II of the Job Training Partnership Act, Training
31         Services for the Disadvantaged or Title III of the Job
32         Training Partnership Act, Employment and Training
33         Assistance for Dislocated Workers Program.
34             (B) Hired after the enterprise zone or federally

 

 

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1         designated Foreign Trade Zone or Sub-Zone was
2         designated or the trade or business was located in that
3         zone, whichever is later.
4             (C) Employed in the enterprise zone or Foreign
5         Trade Zone or Sub-Zone. An employee is employed in an
6         enterprise zone or federally designated Foreign Trade
7         Zone or Sub-Zone if his services are rendered there or
8         it is the base of operations for the services
9         performed.
10             (D) A full-time employee working 30 or more hours
11         per week.
12         (4) For tax years ending on or after December 31, 1985
13     and prior to December 31, 1988, the credit shall be allowed
14     for the tax year in which the eligible employees are hired.
15     For tax years ending on or after December 31, 1988, the
16     credit shall be allowed for the tax year immediately
17     following the tax year in which the eligible employees are
18     hired. If the amount of the credit exceeds the tax
19     liability for that year, whether it exceeds the original
20     liability or the liability as later amended, such excess
21     may be carried forward and applied to the tax liability of
22     the 5 taxable years following the excess credit year. The
23     credit shall be applied to the earliest year for which
24     there is a liability. If there is credit from more than one
25     tax year that is available to offset a liability, earlier
26     credit shall be applied first.
27         (5) The Department of Revenue shall promulgate such
28     rules and regulations as may be deemed necessary to carry
29     out the purposes of this subsection (g).
30         (6) The credit shall be available for eligible
31     employees hired on or after January 1, 1986.
32     (h) Investment credit; High Impact Business.
33         (1) Subject to subsections (b) and (b-5) of Section 5.5
34     of the Illinois Enterprise Zone Act, a taxpayer shall be

 

 

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1     allowed a credit against the tax imposed by subsections (a)
2     and (b) of this Section for investment in qualified
3     property which is placed in service by a Department of
4     Commerce and Economic Opportunity designated High Impact
5     Business. The credit shall be .5% of the basis for such
6     property. The credit shall not be available (i) until the
7     minimum investments in qualified property set forth in
8     subdivision (a)(3)(A) of Section 5.5 of the Illinois
9     Enterprise Zone Act have been satisfied or (ii) until the
10     time authorized in subsection (b-5) of the Illinois
11     Enterprise Zone Act for entities designated as High Impact
12     Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
13     (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
14     Act, and shall not be allowed to the extent that it would
15     reduce a taxpayer's liability for the tax imposed by
16     subsections (a) and (b) of this Section to below zero. The
17     credit applicable to such investments shall be taken in the
18     taxable year in which such investments have been completed.
19     The credit for additional investments beyond the minimum
20     investment by a designated high impact business authorized
21     under subdivision (a)(3)(A) of Section 5.5 of the Illinois
22     Enterprise Zone Act shall be available only in the taxable
23     year in which the property is placed in service and shall
24     not be allowed to the extent that it would reduce a
25     taxpayer's liability for the tax imposed by subsections (a)
26     and (b) of this Section to below zero. For tax years ending
27     on or after December 31, 1987, the credit shall be allowed
28     for the tax year in which the property is placed in
29     service, or, if the amount of the credit exceeds the tax
30     liability for that year, whether it exceeds the original
31     liability or the liability as later amended, such excess
32     may be carried forward and applied to the tax liability of
33     the 5 taxable years following the excess credit year. The
34     credit shall be applied to the earliest year for which

 

 

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1     there is a liability. If there is credit from more than one
2     tax year that is available to offset a liability, the
3     credit accruing first in time shall be applied first.
4         Changes made in this subdivision (h)(1) by Public Act
5     88-670 restore changes made by Public Act 85-1182 and
6     reflect existing law.
7         (2) The term qualified property means property which:
8             (A) is tangible, whether new or used, including
9         buildings and structural components of buildings;
10             (B) is depreciable pursuant to Section 167 of the
11         Internal Revenue Code, except that "3-year property"
12         as defined in Section 168(c)(2)(A) of that Code is not
13         eligible for the credit provided by this subsection
14         (h);
15             (C) is acquired by purchase as defined in Section
16         179(d) of the Internal Revenue Code; and
17             (D) is not eligible for the Enterprise Zone
18         Investment Credit provided by subsection (f) of this
19         Section.
20         (3) The basis of qualified property shall be the basis
21     used to compute the depreciation deduction for federal
22     income tax purposes.
23         (4) If the basis of the property for federal income tax
24     depreciation purposes is increased after it has been placed
25     in service in a federally designated Foreign Trade Zone or
26     Sub-Zone located in Illinois by the taxpayer, the amount of
27     such increase shall be deemed property placed in service on
28     the date of such increase in basis.
29         (5) The term "placed in service" shall have the same
30     meaning as under Section 46 of the Internal Revenue Code.
31         (6) If during any taxable year ending on or before
32     December 31, 1996, any property ceases to be qualified
33     property in the hands of the taxpayer within 48 months
34     after being placed in service, or the situs of any

 

 

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1     qualified property is moved outside Illinois within 48
2     months after being placed in service, the tax imposed under
3     subsections (a) and (b) of this Section for such taxable
4     year shall be increased. Such increase shall be determined
5     by (i) recomputing the investment credit which would have
6     been allowed for the year in which credit for such property
7     was originally allowed by eliminating such property from
8     such computation, and (ii) subtracting such recomputed
9     credit from the amount of credit previously allowed. For
10     the purposes of this paragraph (6), a reduction of the
11     basis of qualified property resulting from a
12     redetermination of the purchase price shall be deemed a
13     disposition of qualified property to the extent of such
14     reduction.
15         (7) Beginning with tax years ending after December 31,
16     1996, if a taxpayer qualifies for the credit under this
17     subsection (h) and thereby is granted a tax abatement and
18     the taxpayer relocates its entire facility in violation of
19     the explicit terms and length of the contract under Section
20     18-183 of the Property Tax Code, the tax imposed under
21     subsections (a) and (b) of this Section shall be increased
22     for the taxable year in which the taxpayer relocated its
23     facility by an amount equal to the amount of credit
24     received by the taxpayer under this subsection (h).
25     (i) Credit for Personal Property Tax Replacement Income
26 Tax. For tax years ending prior to December 31, 2003, a credit
27 shall be allowed against the tax imposed by subsections (a) and
28 (b) of this Section for the tax imposed by subsections (c) and
29 (d) of this Section. This credit shall be computed by
30 multiplying the tax imposed by subsections (c) and (d) of this
31 Section by a fraction, the numerator of which is base income
32 allocable to Illinois and the denominator of which is Illinois
33 base income, and further multiplying the product by the tax
34 rate imposed by subsections (a) and (b) of this Section.

 

 

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1     Any credit earned on or after December 31, 1986 under this
2 subsection which is unused in the year the credit is computed
3 because it exceeds the tax liability imposed by subsections (a)
4 and (b) for that year (whether it exceeds the original
5 liability or the liability as later amended) may be carried
6 forward and applied to the tax liability imposed by subsections
7 (a) and (b) of the 5 taxable years following the excess credit
8 year, provided that no credit may be carried forward to any
9 year ending on or after December 31, 2003. This credit shall be
10 applied first to the earliest year for which there is a
11 liability. If there is a credit under this subsection from more
12 than one tax year that is available to offset a liability the
13 earliest credit arising under this subsection shall be applied
14 first.
15     If, during any taxable year ending on or after December 31,
16 1986, the tax imposed by subsections (c) and (d) of this
17 Section for which a taxpayer has claimed a credit under this
18 subsection (i) is reduced, the amount of credit for such tax
19 shall also be reduced. Such reduction shall be determined by
20 recomputing the credit to take into account the reduced tax
21 imposed by subsections (c) and (d). If any portion of the
22 reduced amount of credit has been carried to a different
23 taxable year, an amended return shall be filed for such taxable
24 year to reduce the amount of credit claimed.
25     (j) Training expense credit. Beginning with tax years
26 ending on or after December 31, 1986 and prior to December 31,
27 2003, a taxpayer shall be allowed a credit against the tax
28 imposed by subsections (a) and (b) under this Section for all
29 amounts paid or accrued, on behalf of all persons employed by
30 the taxpayer in Illinois or Illinois residents employed outside
31 of Illinois by a taxpayer, for educational or vocational
32 training in semi-technical or technical fields or semi-skilled
33 or skilled fields, which were deducted from gross income in the
34 computation of taxable income. The credit against the tax

 

 

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1 imposed by subsections (a) and (b) shall be 1.6% of such
2 training expenses. For partners, shareholders of subchapter S
3 corporations, and owners of limited liability companies, if the
4 liability company is treated as a partnership for purposes of
5 federal and State income taxation, there shall be allowed a
6 credit under this subsection (j) to be determined in accordance
7 with the determination of income and distributive share of
8 income under Sections 702 and 704 and subchapter S of the
9 Internal Revenue Code.
10     Any credit allowed under this subsection which is unused in
11 the year the credit is earned may be carried forward to each of
12 the 5 taxable years following the year for which the credit is
13 first computed until it is used. This credit shall be applied
14 first to the earliest year for which there is a liability. If
15 there is a credit under this subsection from more than one tax
16 year that is available to offset a liability the earliest
17 credit arising under this subsection shall be applied first. No
18 carryforward credit may be claimed in any tax year ending on or
19 after December 31, 2003.
20     (k) Research and development credit.
21     For tax years ending after July 1, 1990 and prior to
22 December 31, 2003, and beginning again for tax years ending on
23 or after December 31, 2004, a taxpayer shall be allowed a
24 credit against the tax imposed by subsections (a) and (b) of
25 this Section for increasing research activities in this State.
26 The credit allowed against the tax imposed by subsections (a)
27 and (b) shall be equal to 6 1/2% of the qualifying expenditures
28 for increasing research activities in this State. For partners,
29 shareholders of subchapter S corporations, and owners of
30 limited liability companies, if the liability company is
31 treated as a partnership for purposes of federal and State
32 income taxation, there shall be allowed a credit under this
33 subsection to be determined in accordance with the
34 determination of income and distributive share of income under

 

 

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1 Sections 702 and 704 and subchapter S of the Internal Revenue
2 Code.
3     For purposes of this subsection, "qualifying expenditures"
4 means the qualifying expenditures as defined for the federal
5 credit for increasing research activities which would be
6 allowable under Section 41 of the Internal Revenue Code and
7 which are conducted in this State, "qualifying expenditures for
8 increasing research activities in this State" means the excess
9 of qualifying expenditures for the taxable year in which
10 incurred over qualifying expenditures for the base period,
11 "qualifying expenditures for the base period" means the average
12 of the qualifying expenditures for each year in the base
13 period, and "base period" means the 3 taxable years immediately
14 preceding the taxable year for which the determination is being
15 made.
16     Any credit in excess of the tax liability for the taxable
17 year may be carried forward. A taxpayer may elect to have the
18 unused credit shown on its final completed return carried over
19 as a credit against the tax liability for the following 5
20 taxable years or until it has been fully used, whichever occurs
21 first; provided that no credit earned in a tax year ending
22 prior to December 31, 2003 may be carried forward to any year
23 ending on or after December 31, 2003.
24     If an unused credit is carried forward to a given year from
25 2 or more earlier years, that credit arising in the earliest
26 year will be applied first against the tax liability for the
27 given year. If a tax liability for the given year still
28 remains, the credit from the next earliest year will then be
29 applied, and so on, until all credits have been used or no tax
30 liability for the given year remains. Any remaining unused
31 credit or credits then will be carried forward to the next
32 following year in which a tax liability is incurred, except
33 that no credit can be carried forward to a year which is more
34 than 5 years after the year in which the expense for which the

 

 

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1 credit is given was incurred.
2     No inference shall be drawn from this amendatory Act of the
3 91st General Assembly in construing this Section for taxable
4 years beginning before January 1, 1999.
5     (l) Environmental Remediation Tax Credit.
6         (i) For tax years ending after December 31, 1997 and on
7     or before December 31, 2001, a taxpayer shall be allowed a
8     credit against the tax imposed by subsections (a) and (b)
9     of this Section for certain amounts paid for unreimbursed
10     eligible remediation costs, as specified in this
11     subsection. For purposes of this Section, "unreimbursed
12     eligible remediation costs" means costs approved by the
13     Illinois Environmental Protection Agency ("Agency") under
14     Section 58.14 of the Environmental Protection Act that were
15     paid in performing environmental remediation at a site for
16     which a No Further Remediation Letter was issued by the
17     Agency and recorded under Section 58.10 of the
18     Environmental Protection Act. The credit must be claimed
19     for the taxable year in which Agency approval of the
20     eligible remediation costs is granted. The credit is not
21     available to any taxpayer if the taxpayer or any related
22     party caused or contributed to, in any material respect, a
23     release of regulated substances on, in, or under the site
24     that was identified and addressed by the remedial action
25     pursuant to the Site Remediation Program of the
26     Environmental Protection Act. After the Pollution Control
27     Board rules are adopted pursuant to the Illinois
28     Administrative Procedure Act for the administration and
29     enforcement of Section 58.9 of the Environmental
30     Protection Act, determinations as to credit availability
31     for purposes of this Section shall be made consistent with
32     those rules. For purposes of this Section, "taxpayer"
33     includes a person whose tax attributes the taxpayer has
34     succeeded to under Section 381 of the Internal Revenue Code

 

 

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1     and "related party" includes the persons disallowed a
2     deduction for losses by paragraphs (b), (c), and (f)(1) of
3     Section 267 of the Internal Revenue Code by virtue of being
4     a related taxpayer, as well as any of its partners. The
5     credit allowed against the tax imposed by subsections (a)
6     and (b) shall be equal to 25% of the unreimbursed eligible
7     remediation costs in excess of $100,000 per site, except
8     that the $100,000 threshold shall not apply to any site
9     contained in an enterprise zone as determined by the
10     Department of Commerce and Community Affairs (now
11     Department of Commerce and Economic Opportunity). The
12     total credit allowed shall not exceed $40,000 per year with
13     a maximum total of $150,000 per site. For partners and
14     shareholders of subchapter S corporations, there shall be
15     allowed a credit under this subsection to be determined in
16     accordance with the determination of income and
17     distributive share of income under Sections 702 and 704 and
18     subchapter S of the Internal Revenue Code.
19         (ii) A credit allowed under this subsection that is
20     unused in the year the credit is earned may be carried
21     forward to each of the 5 taxable years following the year
22     for which the credit is first earned until it is used. The
23     term "unused credit" does not include any amounts of
24     unreimbursed eligible remediation costs in excess of the
25     maximum credit per site authorized under paragraph (i).
26     This credit shall be applied first to the earliest year for
27     which there is a liability. If there is a credit under this
28     subsection from more than one tax year that is available to
29     offset a liability, the earliest credit arising under this
30     subsection shall be applied first. A credit allowed under
31     this subsection may be sold to a buyer as part of a sale of
32     all or part of the remediation site for which the credit
33     was granted. The purchaser of a remediation site and the
34     tax credit shall succeed to the unused credit and remaining

 

 

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1     carry-forward period of the seller. To perfect the
2     transfer, the assignor shall record the transfer in the
3     chain of title for the site and provide written notice to
4     the Director of the Illinois Department of Revenue of the
5     assignor's intent to sell the remediation site and the
6     amount of the tax credit to be transferred as a portion of
7     the sale. In no event may a credit be transferred to any
8     taxpayer if the taxpayer or a related party would not be
9     eligible under the provisions of subsection (i).
10         (iii) For purposes of this Section, the term "site"
11     shall have the same meaning as under Section 58.2 of the
12     Environmental Protection Act.
13     (m) Education expense credit. Beginning with tax years
14 ending after December 31, 1999, a taxpayer who is the custodian
15 of one or more qualifying pupils shall be allowed a credit
16 against the tax imposed by subsections (a) and (b) of this
17 Section for qualified education expenses incurred on behalf of
18 the qualifying pupils. For taxable years ending on or before
19 December 30, 2006, the The credit shall be equal to 25% of
20 qualified education expenses, but in no event may the total
21 credit under this subsection claimed by a family that is the
22 custodian of qualifying pupils exceed $500. For taxable years
23 ending on or after December 31, 2006, the credit is equal to
24 50% of the qualified education expense, but in no event may the
25 total credit under this subsection claimed by a family that is
26 the custodian of qualifying pupils exceed $1,000. In no event
27 shall a credit under this subsection reduce the taxpayer's
28 liability under this Act to less than zero. This subsection is
29 exempt from the provisions of Section 250 of this Act.
30     For purposes of this subsection:
31     "Qualifying pupils" means individuals who (i) are
32 residents of the State of Illinois, (ii) are under the age of
33 21 at the close of the school year for which a credit is
34 sought, and (iii) during the school year for which a credit is

 

 

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1 sought were full-time pupils enrolled in a kindergarten through
2 twelfth grade education program at any school, as defined in
3 this subsection.
4     "Qualified education expense" means the amount incurred on
5 behalf of a qualifying pupil in excess of $250 for tuition,
6 book fees, and lab fees at the school in which the pupil is
7 enrolled during the regular school year.
8     "School" means any public or nonpublic elementary or
9 secondary school in Illinois that is in compliance with Title
10 VI of the Civil Rights Act of 1964 and attendance at which
11 satisfies the requirements of Section 26-1 of the School Code,
12 except that nothing shall be construed to require a child to
13 attend any particular public or nonpublic school to qualify for
14 the credit under this Section.
15     "Custodian" means, with respect to qualifying pupils, an
16 Illinois resident who is a parent, the parents, a legal
17 guardian, or the legal guardians of the qualifying pupils.
18 (Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-651,
19 eff. 7-11-02; 93-840, eff. 7-30-04; 92-846, eff. 8-23-02;
20 93-29, eff. 6-20-03; 93-840, eff. 7-30-04; 93-871, eff. 8-6-04;
21 revised 10-25-04.)
 
22     (35 ILCS 5/202.5 new)
23     Sec. 202.5. Net income attributable to the period prior to
24 January 1, 2006 and net income attributable to the period after
25 December 31, 2005.
26     (a) In general. With respect to the taxable year of a
27 taxpayer beginning prior to January 1, 2006 and ending after
28 December 31, 2005, net income for the period after December 31,
29 2005 shall be that amount that bears the same ratio to the
30 taxpayer's net income for the entire taxable year as the number
31 of days in that year after December 31, 2005 bears to the total
32 number of days in that year, and the net income for the period
33 prior to January 1, 2006 shall be that amount that bears the

 

 

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1 same ratio to the taxpayer's net income for the entire taxable
2 year as the number of days in that year prior to January 1,
3 2006 bears to the total number of days in that year.
4     (b) Election to attribute income and deduction items
5 specifically to the respective portions of a taxable year prior
6 to January 1, 2006 and after December 31, 2005. In the case of
7 a taxpayer with a taxable year beginning prior to January 1,
8 2006 and ending after December 31, 2005, the taxpayer may
9 elect, instead of the procedure established in subsection (a)
10 of this Section, to determine net income on a specific
11 accounting basis for the 2 portions of his or her taxable year:
12         (i) from the beginning of the taxable year through
13     December 31, 2005; and
14         (ii) from January 1, 2006 through the end of the
15     taxable year.
16     If the taxpayer elects specific accounting under this
17 subsection, there shall be taken into account in computing base
18 income for each of the 2 portions of the taxable year only
19 those items earned, received, paid, incurred or accrued in each
20 such period. The standard exemption provided by Section 204
21 shall be divided between the respective periods in amounts that
22 bear the same ratio to the total exemption allowable under
23 Section 204 (determined without regard to this Section) as the
24 total number of days in each such period bears to the total
25 number of days in the taxable year. The election provided by
26 this subsection must be made in such manner and at such time
27 that the Department by forms or regulations prescribes, but
28 must be made no later than the due date (including any
29 extensions thereof) for the filing of the return for the
30 taxable year, and shall be irrevocable.
 
31     (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
32     Sec. 208. Tax credit for residential real property taxes.
33     (a) Beginning with tax years ending on or after December

 

 

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1 31, 1991 and through tax years ending on or before December 30,
2 2006, every individual taxpayer shall be entitled to a tax
3 credit equal to 5% of real property taxes paid by such taxpayer
4 during the taxable year on the principal residence of the
5 taxpayer.
6     (b) Beginning with taxable years ending on or after
7 December 31, 2006, every individual taxpayer who is not claimed
8 as a dependent on the tax return of any other taxpayer is
9 entitled to a tax credit equal to the lesser of:
10         (1) $30; or
11         (2) 5% of real property taxes paid by the taxpayer
12     during the taxable year on the principal residence of the
13     taxpayer.
14     (c) In the case of multi-unit or multi-use structures and
15 farm dwellings, the taxes on the taxpayer's principal residence
16 shall be that portion of the total taxes which is attributable
17 to such principal residence.
18 (Source: P.A. 87-17.)
 
19     (35 ILCS 5/212)
20     Sec. 212. Earned income tax credit.
21     (a) With respect to the federal earned income tax credit
22 allowed for the taxable year under Section 32 of the federal
23 Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
24 is entitled to a credit against the tax imposed by subsections
25 (a) and (b) of Section 201 in an amount equal to 5% of the
26 federal tax credit for each taxable year beginning on or after
27 January 1, 2000 and ending on or before December 30, 2006 and
28 in an amount equal to 20% of the federal tax credit for each
29 taxable year ending on or after December 31, 2006.
30     For a non-resident or part-year resident, the amount of the
31 credit under this Section shall be in proportion to the amount
32 of income attributable to this State.
33     (b) For taxable years beginning before January 1, 2003, in

 

 

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1 no event shall a credit under this Section reduce the
2 taxpayer's liability to less than zero. For each taxable year
3 beginning on or after January 1, 2003, if the amount of the
4 credit exceeds the income tax liability for the applicable tax
5 year, then the excess credit shall be refunded to the taxpayer.
6 The amount of a refund shall not be included in the taxpayer's
7 income or resources for the purposes of determining eligibility
8 or benefit level in any means-tested benefit program
9 administered by a governmental entity unless required by
10 federal law.
11     (b-5) Refunds authorized by subsection (b) are subject to
12 the availability of funds from the federal Temporary Assistance
13 for Needy Families Block Grant and the State's ability to meet
14 its required Maintenance of Effort.
15     (c) This Section is exempt from the provisions of Section
16 250.
17 (Source: P.A. 93-534, eff. 8-18-03; 93-653, eff. 1-8-04.)
 
18     (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
19     Sec. 901. Collection Authority.
20     (a) In general.
21     The Department shall collect the taxes imposed by this Act.
22 The Department shall collect certified past due child support
23 amounts under Section 2505-650 of the Department of Revenue Law
24 (20 ILCS 2505/2505-650). Except as provided in subsections (c)
25 and (e) of this Section, money collected pursuant to
26 subsections (a) and (b) of Section 201 of this Act shall be
27 paid into the General Revenue Fund in the State treasury; money
28 collected pursuant to subsections (c) and (d) of Section 201 of
29 this Act shall be paid into the Personal Property Tax
30 Replacement Fund, a special fund in the State Treasury; and
31 money collected under Section 2505-650 of the Department of
32 Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
33 Child Support Enforcement Trust Fund, a special fund outside

 

 

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1 the State Treasury, or to the State Disbursement Unit
2 established under Section 10-26 of the Illinois Public Aid
3 Code, as directed by the Department of Public Aid.
4     (b) Local Governmental Distributive Fund.
5     Beginning August 1, 1969, and continuing through June 30,
6 1994, the Treasurer shall transfer each month from the General
7 Revenue Fund to a special fund in the State treasury, to be
8 known as the "Local Government Distributive Fund", an amount
9 equal to 1/12 of the net revenue realized from the tax imposed
10 by subsections (a) and (b) of Section 201 of this Act during
11 the preceding month. Beginning July 1, 1994, and continuing
12 through June 30, 1995, the Treasurer shall transfer each month
13 from the General Revenue Fund to the Local Government
14 Distributive Fund an amount equal to 1/11 of the net revenue
15 realized from the tax imposed by subsections (a) and (b) of
16 Section 201 of this Act during the preceding month. Beginning
17 July 1, 1995, the Treasurer shall transfer each month from the
18 General Revenue Fund to the Local Government Distributive Fund
19 an amount equal to the net of (i) 1/10 of the net revenue
20 realized from the tax imposed by subsections (a) and (b) of
21 Section 201 of the Illinois Income Tax Act during the preceding
22 month, except that the net revenue attributable to the increase
23 in the income tax imposed by subsections (a) and (b) of Section
24 201 of this Act in accordance with this amendatory Act of the
25 94th General Assembly shall not be used to calculate the amount
26 transferred to the Local Governmental Distributive Fund (ii)
27 minus, beginning July 1, 2003 and ending June 30, 2004,
28 $6,666,666, and beginning July 1, 2004, zero. Net revenue
29 realized for a month shall be defined as the revenue from the
30 tax imposed by subsections (a) and (b) of Section 201 of this
31 Act which is deposited in the General Revenue Fund, the
32 Educational Assistance Fund and the Income Tax Surcharge Local
33 Government Distributive Fund during the month minus the amount
34 paid out of the General Revenue Fund in State warrants during

 

 

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1 that same month as refunds to taxpayers for overpayment of
2 liability under the tax imposed by subsections (a) and (b) of
3 Section 201 of this Act.
4     (c) Deposits Into Income Tax Refund Fund.
5         (1) Beginning on January 1, 1989 and thereafter, the
6     Department shall deposit a percentage of the amounts
7     collected pursuant to subsections (a) and (b)(1), (2), and
8     (3), of Section 201 of this Act into a fund in the State
9     treasury known as the Income Tax Refund Fund. The
10     Department shall deposit 6% of such amounts during the
11     period beginning January 1, 1989 and ending on June 30,
12     1989. Beginning with State fiscal year 1990 and for each
13     fiscal year thereafter, the percentage deposited into the
14     Income Tax Refund Fund during a fiscal year shall be the
15     Annual Percentage. For fiscal years 1999 through 2001, the
16     Annual Percentage shall be 7.1%. For fiscal year 2003, the
17     Annual Percentage shall be 8%. For fiscal year 2004, the
18     Annual Percentage shall be 11.7%. Upon the effective date
19     of this amendatory Act of the 93rd General Assembly, the
20     Annual Percentage shall be 10% for fiscal year 2005. For
21     all other fiscal years, the Annual Percentage shall be
22     calculated as a fraction, the numerator of which shall be
23     the amount of refunds approved for payment by the
24     Department during the preceding fiscal year as a result of
25     overpayment of tax liability under subsections (a) and
26     (b)(1), (2), and (3) of Section 201 of this Act plus the
27     amount of such refunds remaining approved but unpaid at the
28     end of the preceding fiscal year, minus the amounts
29     transferred into the Income Tax Refund Fund from the
30     Tobacco Settlement Recovery Fund, and the denominator of
31     which shall be the amounts which will be collected pursuant
32     to subsections (a) and (b)(1), (2), and (3) of Section 201
33     of this Act during the preceding fiscal year; except that
34     in State fiscal year 2002, the Annual Percentage shall in

 

 

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1     no event exceed 7.6%. The Director of Revenue shall certify
2     the Annual Percentage to the Comptroller on the last
3     business day of the fiscal year immediately preceding the
4     fiscal year for which it is to be effective.
5         (2) Beginning on January 1, 1989 and thereafter, the
6     Department shall deposit a percentage of the amounts
7     collected pursuant to subsections (a) and (b)(6), (7), and
8     (8), (c) and (d) of Section 201 of this Act into a fund in
9     the State treasury known as the Income Tax Refund Fund. The
10     Department shall deposit 18% of such amounts during the
11     period beginning January 1, 1989 and ending on June 30,
12     1989. Beginning with State fiscal year 1990 and for each
13     fiscal year thereafter, the percentage deposited into the
14     Income Tax Refund Fund during a fiscal year shall be the
15     Annual Percentage. For fiscal years 1999, 2000, and 2001,
16     the Annual Percentage shall be 19%. For fiscal year 2003,
17     the Annual Percentage shall be 27%. For fiscal year 2004,
18     the Annual Percentage shall be 32%. Upon the effective date
19     of this amendatory Act of the 93rd General Assembly, the
20     Annual Percentage shall be 24% for fiscal year 2005. For
21     all other fiscal years, the Annual Percentage shall be
22     calculated as a fraction, the numerator of which shall be
23     the amount of refunds approved for payment by the
24     Department during the preceding fiscal year as a result of
25     overpayment of tax liability under subsections (a) and
26     (b)(6), (7), and (8), (c) and (d) of Section 201 of this
27     Act plus the amount of such refunds remaining approved but
28     unpaid at the end of the preceding fiscal year, and the
29     denominator of which shall be the amounts which will be
30     collected pursuant to subsections (a) and (b)(6), (7), and
31     (8), (c) and (d) of Section 201 of this Act during the
32     preceding fiscal year; except that in State fiscal year
33     2002, the Annual Percentage shall in no event exceed 23%.
34     The Director of Revenue shall certify the Annual Percentage

 

 

09400SB0002sam001 - 38 - LRB094 06973 BDD 46242 a

1     to the Comptroller on the last business day of the fiscal
2     year immediately preceding the fiscal year for which it is
3     to be effective.
4         (3) The Comptroller shall order transferred and the
5     Treasurer shall transfer from the Tobacco Settlement
6     Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
7     in January, 2001, (ii) $35,000,000 in January, 2002, and
8     (iii) $35,000,000 in January, 2003.
9     (d) Expenditures from Income Tax Refund Fund.
10         (1) Beginning January 1, 1989, money in the Income Tax
11     Refund Fund shall be expended exclusively for the purpose
12     of paying refunds resulting from overpayment of tax
13     liability under Section 201 of this Act, for paying rebates
14     under Section 208.1 in the event that the amounts in the
15     Homeowners' Tax Relief Fund are insufficient for that
16     purpose, and for making transfers pursuant to this
17     subsection (d).
18         (2) The Director shall order payment of refunds
19     resulting from overpayment of tax liability under Section
20     201 of this Act from the Income Tax Refund Fund only to the
21     extent that amounts collected pursuant to Section 201 of
22     this Act and transfers pursuant to this subsection (d) and
23     item (3) of subsection (c) have been deposited and retained
24     in the Fund.
25         (3) As soon as possible after the end of each fiscal
26     year, the Director shall order transferred and the State
27     Treasurer and State Comptroller shall transfer from the
28     Income Tax Refund Fund to the Personal Property Tax
29     Replacement Fund an amount, certified by the Director to
30     the Comptroller, equal to the excess of the amount
31     collected pursuant to subsections (c) and (d) of Section
32     201 of this Act deposited into the Income Tax Refund Fund
33     during the fiscal year over the amount of refunds resulting
34     from overpayment of tax liability under subsections (c) and

 

 

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1     (d) of Section 201 of this Act paid from the Income Tax
2     Refund Fund during the fiscal year.
3         (4) As soon as possible after the end of each fiscal
4     year, the Director shall order transferred and the State
5     Treasurer and State Comptroller shall transfer from the
6     Personal Property Tax Replacement Fund to the Income Tax
7     Refund Fund an amount, certified by the Director to the
8     Comptroller, equal to the excess of the amount of refunds
9     resulting from overpayment of tax liability under
10     subsections (c) and (d) of Section 201 of this Act paid
11     from the Income Tax Refund Fund during the fiscal year over
12     the amount collected pursuant to subsections (c) and (d) of
13     Section 201 of this Act deposited into the Income Tax
14     Refund Fund during the fiscal year.
15         (4.5) As soon as possible after the end of fiscal year
16     1999 and of each fiscal year thereafter, the Director shall
17     order transferred and the State Treasurer and State
18     Comptroller shall transfer from the Income Tax Refund Fund
19     to the General Revenue Fund any surplus remaining in the
20     Income Tax Refund Fund as of the end of such fiscal year;
21     excluding for fiscal years 2000, 2001, and 2002 amounts
22     attributable to transfers under item (3) of subsection (c)
23     less refunds resulting from the earned income tax credit.
24         (5) This Act shall constitute an irrevocable and
25     continuing appropriation from the Income Tax Refund Fund
26     for the purpose of paying refunds upon the order of the
27     Director in accordance with the provisions of this Section.
28     (e) Deposits into the Education Assistance Fund and the
29 Income Tax Surcharge Local Government Distributive Fund.
30     On January 1, 2006 and thereafter, of the amounts collected
31 pursuant to subsections (a) and (b) of Section 201 of this Act,
32 minus deposits into the Income Tax Refund Fund, the Department
33 shall deposit into the Education Assistance Fund in the State
34 treasury: (i) an amount equal to 7.3% of the amount

 

 

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1 attributable to the rates in effect prior to the effective date
2 of this amendatory Act of the 94th General Assembly, plus (ii)
3 100% of the amount attributable to the increase in the amounts
4 collected pursuant to subsections (a) and (b) of Section 201 of
5 this Act under this amendatory Act of the 94th General
6 Assembly. On July 1, 1991, and through June 30, 2005
7 thereafter, of the amounts collected pursuant to subsections
8 (a) and (b) of Section 201 of this Act, minus deposits into the
9 Income Tax Refund Fund, the Department shall deposit 7.3% into
10 the Education Assistance Fund in the State Treasury. Beginning
11 July 1, 1991, and continuing through January 31, 1993, of the
12 amounts collected pursuant to subsections (a) and (b) of
13 Section 201 of the Illinois Income Tax Act, minus deposits into
14 the Income Tax Refund Fund, the Department shall deposit 3.0%
15 into the Income Tax Surcharge Local Government Distributive
16 Fund in the State Treasury. Beginning February 1, 1993 and
17 continuing through June 30, 1993, of the amounts collected
18 pursuant to subsections (a) and (b) of Section 201 of the
19 Illinois Income Tax Act, minus deposits into the Income Tax
20 Refund Fund, the Department shall deposit 4.4% into the Income
21 Tax Surcharge Local Government Distributive Fund in the State
22 Treasury. Beginning July 1, 1993, and continuing through June
23 30, 1994, of the amounts collected under subsections (a) and
24 (b) of Section 201 of this Act, minus deposits into the Income
25 Tax Refund Fund, the Department shall deposit 1.475% into the
26 Income Tax Surcharge Local Government Distributive Fund in the
27 State Treasury.
28 (Source: P.A. 92-11, eff. 6-11-01; 92-16, eff. 6-28-01; 92-600,
29 eff. 6-28-02; 93-32, eff. 6-20-03; 93-839, eff. 7-30-04.)
 
30     Section 15. The Property Tax Code is amended by changing
31 Sections 18-255, 20-15, and 21-30 and by adding Section 18-178
32 as follows:
 

 

 

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1     (35 ILCS 200/18-178 new)
2     Sec. 18-178. Education tax abatement. Beginning with taxes
3 levied for 2005 (payable in 2006), the county clerk must
4 determine the final extension for educational purposes for all
5 taxable property in a school district located in the county or
6 for the taxable property of that part of a school district
7 located in the county, taking into account the maximum rate,
8 levy, and extension authorized under the Property Tax Extension
9 Limitation Law, the Truth in Taxation Law, and any other
10 statute. The county clerk must then abate the extension for
11 educational purposes for each school district or part of a
12 school district in the county by the amount of the property tax
13 relief grant certified to the county clerk for that school
14 district or part of a school district by the Department of
15 Revenue under Section 6z-68 of the State Finance Act. When the
16 final extension for educational purposes has been determined
17 and abated, the county clerk must notify the Department of
18 Revenue. The county clerk must determine the prorated portion
19 of the certified property tax relief grants allocable to each
20 taxpayer in a given school district based on the tax rate for
21 educational purposes for that school district and the aggregate
22 relief granted to that school district. The extension amount
23 for educational purposes, as originally calculated before
24 abatement, is the official, final extension for educational
25 purposes and must be used for all other purposes, including
26 determining the maximum rate, levy, and extension authorized
27 under the Property Tax Extension Limitation Law, the Truth in
28 Taxation Law, any calculations for tax increment allocation
29 financing under Section 11-74.4-8 of the Tax Increment
30 Allocation Redevelopment Act in the Illinois Municipal Code,
31 and any other statute and the maximum amount of tax
32 anticipation warrants under Sections 17-16 and 34-23 of the
33 School Code. Nothing in this Section shall reduce any tax
34 increment arising from levies upon taxable real property in

 

 

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1 redevelopment project areas created under the Tax Increment
2 Allocation Redevelopment Act in the Illinois Municipal Code.
 
3     (35 ILCS 200/18-255)
4     Sec. 18-255. Abstract of assessments and extensions. When
5 the collector's books are completed, the county clerk shall
6 make a complete statement of the assessment and extensions, in
7 conformity to the instructions of the Department. The clerk
8 shall certify the statement to the Department. Beginning with
9 the 2005 levy year, the Department shall require the statement
10 to include a separate listing of the amount of any extension
11 that is abated under Section 18-178 of this Act.
12 (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)
 
13     (35 ILCS 200/20-15)
14     Sec. 20-15. Information on bill or separate statement. The
15 amount of tax due and rates shown on the tax bill pursuant to
16 this Section shall be net of any abatement under Section
17 18-178. There shall be printed on each bill, or on a separate
18 slip which shall be mailed with the bill:
19         (a) a statement itemizing the rate at which taxes have
20     been extended for each of the taxing districts in the
21     county in whose district the property is located, and in
22     those counties utilizing electronic data processing
23     equipment the dollar amount of tax due from the person
24     assessed allocable to each of those taxing districts,
25     including a separate statement of the dollar amount of tax
26     due which is allocable to a tax levied under the Illinois
27     Local Library Act or to any other tax levied by a
28     municipality or township for public library purposes,
29         (b) a separate statement for each of the taxing
30     districts of the dollar amount of tax due which is
31     allocable to a tax levied under the Illinois Pension Code
32     or to any other tax levied by a municipality or township

 

 

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1     for public pension or retirement purposes,
2         (c) the total tax rate,
3         (d) the total amount of tax due, and
4         (e) the amount by which the total tax and the tax
5     allocable to each taxing district differs from the
6     taxpayer's last prior tax bill, and
7         (f) the amount of tax abated under Section 18-178
8     labeled "Portion of your Education Related Property Taxes
9     paid by the State of Illinois".
10     The county treasurer shall ensure that only those taxing
11 districts in which a parcel of property is located shall be
12 listed on the bill for that property.
13     In all counties the statement shall also provide:
14         (1) the property index number or other suitable
15     description,
16         (2) the assessment of the property,
17         (3) the equalization factors imposed by the county and
18     by the Department, and
19         (4) the equalized assessment resulting from the
20     application of the equalization factors to the basic
21     assessment.
22     In all counties which do not classify property for purposes
23 of taxation, for property on which a single family residence is
24 situated the statement shall also include a statement to
25 reflect the fair cash value determined for the property. In all
26 counties which classify property for purposes of taxation in
27 accordance with Section 4 of Article IX of the Illinois
28 Constitution, for parcels of residential property in the lowest
29 assessment classification the statement shall also include a
30 statement to reflect the fair cash value determined for the
31 property.
32     In all counties, the statement shall include information
33 that certain taxpayers may be eligible for the Senior Citizens
34 and Disabled Persons Property Tax Relief and Pharmaceutical

 

 

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1 Assistance Act and that applications are available from the
2 Illinois Department of Revenue.
3     In counties which use the estimated or accelerated billing
4 methods, these statements shall only be provided with the final
5 installment of taxes due, except that the statement under item
6 (f) shall be included with both installments in those counties
7 under estimated or accelerated billing methods, the first
8 billing showing the amount deducted from the first installment,
9 and the final billing showing the total tax abated for the levy
10 year under Section 18-178. The provisions of this Section
11 create a mandatory statutory duty. They are not merely
12 directory or discretionary. The failure or neglect of the
13 collector to mail the bill, or the failure of the taxpayer to
14 receive the bill, shall not affect the validity of any tax, or
15 the liability for the payment of any tax.
16 (Source: P.A. 91-699, eff. 1-1-01.)
 
17     (35 ILCS 200/21-30)
18     Sec. 21-30. Accelerated billing. Except as provided in this
19 Section, Section 9-260, and Section 21-40, in counties with
20 3,000,000 or more inhabitants, by January 31 annually,
21 estimated tax bills setting out the first installment of
22 property taxes for the preceding year, payable in that year,
23 shall be prepared and mailed. The first installment of taxes on
24 the estimated tax bills shall be computed at 50% of the total
25 of each tax bill before the abatement of taxes under Section
26 18-178 for the preceding year, less an estimate of one-half of
27 the school district property tax relief grant for the current
28 year determined based on information available. If, prior to
29 the preparation of the estimated tax bills, a certificate of
30 error has been either approved by a court on or before November
31 30 of the preceding year or certified pursuant to Section 14-15
32 on or before November 30 of the preceding year, then the first
33 installment of taxes on the estimated tax bills shall be

 

 

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1 computed at 50% of the total taxes before the abatement of
2 taxes under Section 18-178 for the preceding year as corrected
3 by the certificate of error, less an estimate of one-half of
4 the school district property tax relief grant for the current
5 year determined based on information available. By June 30
6 annually, actual tax bills shall be prepared and mailed. These
7 bills shall set out total taxes due and the amount of estimated
8 taxes billed in the first installment, and shall state the
9 balance of taxes due for that year as represented by the sum
10 derived from subtracting the amount of the first installment
11 from the total taxes due for that year.
12     The county board may provide by ordinance, in counties with
13 3,000,000 or more inhabitants, for taxes to be paid in 4
14 installments. For the levy year for which the ordinance is
15 first effective and each subsequent year, estimated tax bills
16 setting out the first, second, and third installment of taxes
17 for the preceding year, payable in that year, shall be prepared
18 and mailed not later than the date specified by ordinance. Each
19 installment on estimated tax bills shall be computed at 25% of
20 the total of each tax bill for the preceding year. By the date
21 specified in the ordinance, actual tax bills shall be prepared
22 and mailed. These bills shall set out total taxes due and the
23 amount of estimated taxes billed in the first, second, and
24 third installments and shall state the balance of taxes due for
25 that year as represented by the sum derived from subtracting
26 the amount of the estimated installments from the total taxes
27 due for that year.
28     The county board of any county with less than 3,000,000
29 inhabitants may, by ordinance or resolution, adopt an
30 accelerated method of tax billing. The county board may
31 subsequently rescind the ordinance or resolution and revert to
32 the method otherwise provided for in this Code.
33     Taxes levied on homestead property in which a member of the
34 National Guard or reserves of the armed forces of the United

 

 

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1 States who was called to active duty on or after August 1,
2 1990, and who has an ownership interest shall not be deemed
3 delinquent and no interest shall accrue or be charged as a
4 penalty on such taxes due and payable in 1991 or 1992 until one
5 year after that member returns to civilian status.
6 (Source: P.A. 92-475, eff. 8-23-01; 93-560, eff. 8-20-03.)
 
7     Section 20. The School Code is amended by changing Sections
8 17-2.2a, 17-3, 17-4, 17-5, 18-8.05, 18-19, 20-3, 20-7, 34-31,
9 and 34-53 and by adding Section 18-25 as follows:
 
10     (105 ILCS 5/17-2.2a)  (from Ch. 122, par. 17-2.2a)
11     Sec. 17-2.2a. (a) Tax for special education programs. The
12 school board of any district having a population of less than
13 500,000 inhabitants may, by proper resolution, levy an annual
14 tax upon the value as equalized or assessed by the Department
15 of Revenue, for special education purposes, including the
16 purposes authorized by Section 10-22.3lb as follows:
17         (1) districts maintaining only grades kindergarten
18     through 8, and prior to July 1, 1970, districts maintaining
19     only grades 1 through 8, .02%;
20         (2) districts maintaining only grades 9 through 12,
21     .02%;
22         (3) districts maintaining only grades kindergarten
23     through 12, and prior to July 1, 1970, districts
24     maintaining only grades 1 through 12, .04%.
25     The revenue raised by such tax shall be used only for
26 special education purposes, including the construction and
27 maintenance of special education facilities.
28     Upon proper resolution of the school board, the school
29 district may accumulate such funds for special education
30 building purposes for a period of 8 years.
31     Buildings constructed under the provisions of this Section
32 shall comply with the building code authorized under Section

 

 

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1 2-3.12.
2     If it is no longer feasible or economical to utilize
3 classroom facilities constructed with revenues raised and
4 accumulated by the tax for special education building purposes,
5 the district, or cooperative district by unanimous consent, may
6 with the approval of the regional superintendent of schools and
7 the State Superintendent of Education use such facilities for
8 regular school purposes. The district or cooperative of
9 districts shall make comparable facilities available for
10 special education purposes at another attendance center which
11 is in a more practical location due to the proximity of the
12 students served.
13     (b) If the school board of any district that has levied the
14 tax authorized by this Section determines that the accumulated
15 funds from such tax and from the $1,000 State reimbursement per
16 professional worker received under Section 14-13.02 are no
17 longer required for special education building purposes, the
18 board may by proper resolution transfer such funds to any other
19 fund to be used for any special education purposes authorized
20 by Article 14. Such transfer shall not be made until after the
21 regional superintendent has certified to the State
22 Superintendent of Education that adequate housing provisions
23 have been made for all children with disabilities residing in
24 the school district.
25     (c) The tax rate limits specified in this Section may be
26 increased to .40% by districts maintaining only grades
27 kindergarten through 8 or only grades 9 through 12, and to .80%
28 by districts maintaining grades kindergarten through 12, upon
29 the approval of a proposition to effect such increase by at
30 least 60% a majority of the electors voting on such proposition
31 at a regular scheduled election. The proposition may be
32 initiated by resolution of the school board and shall be
33 certified by the secretary to the proper election authorities
34 for submission in accordance with the general election law. If

 

 

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1 at such election at least 60% a majority of the votes cast on
2 the proposition are is in favor thereof, the school board may
3 thereafter until such authority is revoked in like manner levy
4 annually the tax so authorized.
5 (Source: P.A. 89-397, eff. 8-20-95; 90-757, eff. 8-14-98.)
 
6     (105 ILCS 5/17-3)  (from Ch. 122, par. 17-3)
7     Sec. 17-3. Additional levies-Submission to voters. The
8 school board in any district having a population of less than
9 500,000 inhabitants may, by proper resolution, cause a
10 proposition to increase, for a limited period of not less than
11 3 nor more than 10 years or for an unlimited period, the annual
12 tax rate for educational purposes to be submitted to the voters
13 of such district at a regular scheduled election as follows:
14         (1) in districts maintaining grades 1 through 8, or
15     grades 9 through 12, the maximum rate for educational
16     purposes shall not exceed 3.5% of the value as equalized or
17     assessed by the Department of Revenue;
18         (2) in districts maintaining grades 1 through 12 the
19     maximum rate for educational purposes shall not exceed
20     4.00%, except that if a single elementary district and a
21     secondary district having boundaries that are coterminous
22     on the effective date of this amendatory Act form a
23     community unit district under Section 11-6, then the
24     maximum rate for education purposes for such district shall
25     not exceed 6.00% of the value as equalized or assessed by
26     the Department of Revenue.
27     If the resolution of the school board seeks to increase the
28 annual tax rate for educational purposes for a limited period
29 of not less than 3 nor more than 10 years, the proposition
30 shall so state and shall identify the years for which the tax
31 increase is sought.
32     If at least 60% a majority of the votes cast on the
33 proposition are is in favor thereof at an election for which

 

 

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1 the election authorities have given notice either (i) in
2 accordance with Section 12-5 of the Election Code or (ii) by
3 publication of a true and legible copy of the specimen ballot
4 label containing the proposition in the form in which it
5 appeared or will appear on the official ballot label on the day
6 of the election at least 5 days before the day of the election
7 in at least one newspaper published in and having a general
8 circulation in the district, the school board may thereafter,
9 until such authority is revoked in like manner, levy annually
10 the tax so authorized; provided that if the proposition as
11 approved limits the increase in the annual tax rate of the
12 district for educational purposes to a period of not less than
13 3 nor more than 10 years, the district may, unless such
14 authority is sooner revoked in like manner, levy annually the
15 tax so authorized for the limited number of years approved by a
16 majority of the votes cast on the proposition. Upon expiration
17 of that limited period, the rate at which the district may
18 annually levy its tax for educational purposes shall be the
19 rate provided under Section 17-2, or the rate at which the
20 district last levied its tax for educational purposes prior to
21 approval of the proposition authorizing the levy of that tax at
22 an increased rate, whichever is greater.
23     The school board shall certify the proposition to the
24 proper election authorities in accordance with the general
25 election law.
26     The provisions of this Section concerning notice of the tax
27 rate increase referendum apply only to consolidated primary
28 elections held prior to January 1, 2002 at which not less than
29 55% of the voters voting on the tax rate increase proposition
30 voted in favor of the tax rate increase proposition.
31 (Source: P.A. 92-6, eff. 6-7-01.)
 
32     (105 ILCS 5/17-4)  (from Ch. 122, par. 17-4)
33     Sec. 17-4. Increase tax rate for transportation. The school

 

 

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1 board of any district having a population of less than 500,000
2 inhabitants may, by proper resolution, cause a proposition to
3 increase the annual tax rate for transportation purposes to be
4 submitted to the voters of such district at a regular scheduled
5 election. The board shall certify the proposition to the proper
6 election authority for submission in accordance with the
7 general election law. If at such election at least 60% a
8 majority of the votes cast on the proposition are is in favor
9 thereof the school board may thereafter until such authority is
10 revoked in like manner levy annually the tax so authorized.
11 (Source: P.A. 82-461.)
 
12     (105 ILCS 5/17-5)  (from Ch. 122, par. 17-5)
13     Sec. 17-5. Increase tax rates for operations and
14 maintenance purposes- Maximum. The school board in any district
15 having a population of less than 500,000 inhabitants may, by
16 proper resolution, cause a proposition to increase the annual
17 tax rate for operations and maintenance purposes to be
18 submitted to the voters of the district at a regular scheduled
19 election. The board shall certify the proposition to the proper
20 election authority for submission to the elector in accordance
21 with the general election law. In districts maintaining grades
22 1 through 8, or grades 9 through 12, the maximum rate for
23 operations and maintenance purposes shall not exceed .55%; and
24 in districts maintaining grades 1 through 12, the maximum rates
25 for operations and maintenance purposes shall not exceed .75%,
26 except that if a single elementary district and a secondary
27 district having boundaries that are coterminous on the
28 effective date of this amendatory Act form a community unit
29 district as authorized under Section 11-6, the maximum rate for
30 operation and maintenance purposes for such district shall not
31 exceed 1.10% of the value as equalized or assessed by the
32 Department of Revenue; and in such district maintaining grades
33 1 through 12, funds may, subject to the provisions of Section

 

 

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1 17-5.1 accumulate to not more than 5% of the equalized assessed
2 valuation of the district. No such accumulation shall ever be
3 transferred or used for any other purpose. If at least 60% a
4 majority of the votes cast on the proposition are is in favor
5 thereof, the school board may thereafter, until such authority
6 is revoked in like manner, levy annually a tax as authorized.
7 (Source: P.A. 86-1334.)
 
8     (105 ILCS 5/18-8.05)
9     Sec. 18-8.05. Basis for apportionment of general State
10 financial aid and supplemental general State aid to the common
11 schools for the 1998-1999 and subsequent school years.
 
12 (A) General Provisions.
13     (1) The provisions of this Section apply to the 1998-1999
14 and subsequent school years. The system of general State
15 financial aid provided for in this Section is designed to
16 assure that, through a combination of State financial aid and
17 required local resources, the financial support provided each
18 pupil in Average Daily Attendance equals or exceeds a
19 prescribed per pupil Foundation Level. This formula approach
20 imputes a level of per pupil Available Local Resources and
21 provides for the basis to calculate a per pupil level of
22 general State financial aid that, when added to Available Local
23 Resources, equals or exceeds the Foundation Level. The amount
24 of per pupil general State financial aid for school districts,
25 in general, varies in inverse relation to Available Local
26 Resources. Per pupil amounts are based upon each school
27 district's Average Daily Attendance as that term is defined in
28 this Section.
29     (2) In addition to general State financial aid, school
30 districts with specified levels or concentrations of pupils
31 from low income households are eligible to receive supplemental
32 general State financial aid grants as provided pursuant to

 

 

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1 subsection (H). The supplemental State aid grants provided for
2 school districts under subsection (H) shall be appropriated for
3 distribution to school districts as part of the same line item
4 in which the general State financial aid of school districts is
5 appropriated under this Section.
6     (3) To receive financial assistance under this Section,
7 school districts are required to file claims with the State
8 Board of Education, subject to the following requirements:
9         (a) Any school district which fails for any given
10     school year to maintain school as required by law, or to
11     maintain a recognized school is not eligible to file for
12     such school year any claim upon the Common School Fund. In
13     case of nonrecognition of one or more attendance centers in
14     a school district otherwise operating recognized schools,
15     the claim of the district shall be reduced in the
16     proportion which the Average Daily Attendance in the
17     attendance center or centers bear to the Average Daily
18     Attendance in the school district. A "recognized school"
19     means any public school which meets the standards as
20     established for recognition by the State Board of
21     Education. A school district or attendance center not
22     having recognition status at the end of a school term is
23     entitled to receive State aid payments due upon a legal
24     claim which was filed while it was recognized.
25         (b) School district claims filed under this Section are
26     subject to Sections 18-9, 18-10, and 18-12, except as
27     otherwise provided in this Section.
28         (c) If a school district operates a full year school
29     under Section 10-19.1, the general State aid to the school
30     district shall be determined by the State Board of
31     Education in accordance with this Section as near as may be
32     applicable.
33         (d) (Blank).
34     (4) Except as provided in subsections (H) and (L), the

 

 

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1 board of any district receiving any of the grants provided for
2 in this Section may apply those funds to any fund so received
3 for which that board is authorized to make expenditures by law.
4     School districts are not required to exert a minimum
5 Operating Tax Rate in order to qualify for assistance under
6 this Section.
7     (5) As used in this Section the following terms, when
8 capitalized, shall have the meaning ascribed herein:
9         (a) "Average Daily Attendance": A count of pupil
10     attendance in school, averaged as provided for in
11     subsection (C) and utilized in deriving per pupil financial
12     support levels.
13         (b) "Available Local Resources": A computation of
14     local financial support, calculated on the basis of Average
15     Daily Attendance and derived as provided pursuant to
16     subsection (D).
17         (c) "Corporate Personal Property Replacement Taxes":
18     Funds paid to local school districts pursuant to "An Act in
19     relation to the abolition of ad valorem personal property
20     tax and the replacement of revenues lost thereby, and
21     amending and repealing certain Acts and parts of Acts in
22     connection therewith", certified August 14, 1979, as
23     amended (Public Act 81-1st S.S.-1).
24         (d) "Foundation Level": A prescribed level of per pupil
25     financial support as provided for in subsection (B).
26         (e) "Operating Tax Rate": All school district property
27     taxes extended for all purposes, except Bond and Interest,
28     Summer School, Rent, Capital Improvement, and Vocational
29     Education Building purposes.
 
30 (B) Foundation Level.
31     (1) The Foundation Level is a figure established by the
32 State representing the minimum level of per pupil financial
33 support that should be available to provide for the basic

 

 

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1 education of each pupil in Average Daily Attendance. As set
2 forth in this Section, each school district is assumed to exert
3 a sufficient local taxing effort such that, in combination with
4 the aggregate of general State financial aid provided the
5 district, an aggregate of State and local resources are
6 available to meet the basic education needs of pupils in the
7 district.
8     (2) For the 1998-1999 school year, the Foundation Level of
9 support is $4,225. For the 1999-2000 school year, the
10 Foundation Level of support is $4,325. For the 2000-2001 school
11 year, the Foundation Level of support is $4,425. For the
12 2001-2002 school year and 2002-2003 school year, the Foundation
13 Level of support is $4,560. For the 2003-2004 school year, the
14 Foundation Level of support is $4,810. For the 2004-2005 school
15 year, the Foundation Level of support is $4,964.
16     (3) For the 2005-2006 2004-2005 school year and each school
17 year thereafter, the Foundation Level of support is $6,100
18 $4,964 $5,060 or such greater amount as may be established by
19 law by the General Assembly. For each school year thereafter,
20 the foundation level shall be increased by the lesser of 3.5%
21 or the percentage increase in the Consumer Price Index for All
22 Urban Consumers published by the U.S. Bureau of Labor
23 Statistics for the immediately preceding fiscal year.
 
24 (C) Average Daily Attendance.
25     (1) For purposes of calculating general State aid pursuant
26 to subsection (E), an Average Daily Attendance figure shall be
27 utilized. The Average Daily Attendance figure for formula
28 calculation purposes shall be the monthly average of the actual
29 number of pupils in attendance of each school district, as
30 further averaged for the best 3 months of pupil attendance for
31 each school district. In compiling the figures for the number
32 of pupils in attendance, school districts and the State Board
33 of Education shall, for purposes of general State aid funding,

 

 

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1 conform attendance figures to the requirements of subsection
2 (F).
3     (2) The Average Daily Attendance figures utilized in
4 subsection (E) shall be the requisite attendance data for the
5 school year immediately preceding the school year for which
6 general State aid is being calculated or the average of the
7 attendance data for the 3 preceding school years, whichever is
8 greater. The Average Daily Attendance figures utilized in
9 subsection (H) shall be the requisite attendance data for the
10 school year immediately preceding the school year for which
11 general State aid is being calculated.
 
12 (D) Available Local Resources.
13     (1) For purposes of calculating general State aid pursuant
14 to subsection (E), a representation of Available Local
15 Resources per pupil, as that term is defined and determined in
16 this subsection, shall be utilized. Available Local Resources
17 per pupil shall include a calculated dollar amount representing
18 local school district revenues from local property taxes and
19 from Corporate Personal Property Replacement Taxes, expressed
20 on the basis of pupils in Average Daily Attendance. Calculation
21 of Available Local Resources shall exclude any tax amnesty
22 funds received as a result of Public Act 93-26.
23     (2) In determining a school district's revenue from local
24 property taxes, the State Board of Education shall utilize the
25 equalized assessed valuation of all taxable property of each
26 school district as of September 30 of the previous year. The
27 equalized assessed valuation utilized shall be obtained and
28 determined as provided in subsection (G).
29     (3) For school districts maintaining grades kindergarten
30 through 12, local property tax revenues per pupil shall be
31 calculated as the product of the applicable equalized assessed
32 valuation for the district multiplied by 3.00%, and divided by
33 the district's Average Daily Attendance figure. For school

 

 

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1 districts maintaining grades kindergarten through 8, local
2 property tax revenues per pupil shall be calculated as the
3 product of the applicable equalized assessed valuation for the
4 district multiplied by 2.30%, and divided by the district's
5 Average Daily Attendance figure. For school districts
6 maintaining grades 9 through 12, local property tax revenues
7 per pupil shall be the applicable equalized assessed valuation
8 of the district multiplied by 1.05%, and divided by the
9 district's Average Daily Attendance figure.
10     (4) The Corporate Personal Property Replacement Taxes paid
11 to each school district during the calendar year 2 years before
12 the calendar year in which a school year begins, divided by the
13 Average Daily Attendance figure for that district, shall be
14 added to the local property tax revenues per pupil as derived
15 by the application of the immediately preceding paragraph (3).
16 The sum of these per pupil figures for each school district
17 shall constitute Available Local Resources as that term is
18 utilized in subsection (E) in the calculation of general State
19 aid.
 
20 (E) Computation of General State Aid.
21     (1) For each school year, the amount of general State aid
22 allotted to a school district shall be computed by the State
23 Board of Education as provided in this subsection.
24     (2) For any school district for which Available Local
25 Resources per pupil is less than the product of 0.93 times the
26 Foundation Level, general State aid for that district shall be
27 calculated as an amount equal to the Foundation Level minus
28 Available Local Resources, multiplied by the Average Daily
29 Attendance of the school district.
30     (3) For any school district for which Available Local
31 Resources per pupil is equal to or greater than the product of
32 0.93 times the Foundation Level and less than the product of
33 1.75 times the Foundation Level, the general State aid per

 

 

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

 

 

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1 attendance figures for each month of the school year. Beginning
2 with the general State aid claim form for the 2002-2003 school
3 year, districts shall calculate Average Daily Attendance as
4 provided in subdivisions (a), (b), and (c) of this paragraph
5 (1).
6         (a) In districts that do not hold year-round classes,
7     days of attendance in August shall be added to the month of
8     September and any days of attendance in June shall be added
9     to the month of May.
10         (b) In districts in which all buildings hold year-round
11     classes, days of attendance in July and August shall be
12     added to the month of September and any days of attendance
13     in June shall be added to the month of May.
14         (c) In districts in which some buildings, but not all,
15     hold year-round classes, for the non-year-round buildings,
16     days of attendance in August shall be added to the month of
17     September and any days of attendance in June shall be added
18     to the month of May. The average daily attendance for the
19     year-round buildings shall be computed as provided in
20     subdivision (b) of this paragraph (1). To calculate the
21     Average Daily Attendance for the district, the average
22     daily attendance for the year-round buildings shall be
23     multiplied by the days in session for the non-year-round
24     buildings for each month and added to the monthly
25     attendance of the non-year-round buildings.
26     Except as otherwise provided in this Section, days of
27 attendance by pupils shall be counted only for sessions of not
28 less than 5 clock hours of school work per day under direct
29 supervision of: (i) teachers, or (ii) non-teaching personnel or
30 volunteer personnel when engaging in non-teaching duties and
31 supervising in those instances specified in subsection (a) of
32 Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
33 of legal school age and in kindergarten and grades 1 through
34 12.

 

 

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

 

 

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

 

 

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

 

 

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1     The Department of Revenue shall add to the equalized
2 assessed value of all taxable property of each school district
3 situated entirely or partially within a county that is or was
4 subject to the alternative general homestead exemption
5 provisions of Section 15-176 of the Property Tax Code (a) (i)
6 an amount equal to the total amount by which the homestead
7 exemption allowed under Section 15-176 of the Property Tax Code
8 for real property situated in that school district exceeds the
9 total amount that would have been allowed in that school
10 district if the maximum reduction under Section 15-176 was (i)
11 $4,500 in Cook County or $3,500 in all other counties in tax
12 year 2003 or (ii) $5,000 in all counties in tax year 2004 and
13 thereafter and (b) (ii) an amount equal to the aggregate amount
14 for the taxable year of all additional exemptions under Section
15 15-175 of the Property Tax Code for owners with a household
16 income of $30,000 or less. The county clerk of any county that
17 is or was subject to the alternative general homestead
18 exemption provisions of Section 15-176 of the Property Tax Code
19 shall annually calculate and certify to the Department of
20 Revenue for each school district all homestead exemption
21 amounts under Section 15-176 of the Property Tax Code and all
22 amounts of additional exemptions under Section 15-175 of the
23 Property Tax Code for owners with a household income of $30,000
24 or less. It is the intent of this paragraph that if the general
25 homestead exemption for a parcel of property is determined
26 under Section 15-176 of the Property Tax Code rather than
27 Section 15-175, then the calculation of Available Local
28 Resources shall not be affected by the difference, if any,
29 between the amount of the general homestead exemption allowed
30 for that parcel of property under Section 15-176 of the
31 Property Tax Code and the amount that would have been allowed
32 had the general homestead exemption for that parcel of property
33 been determined under Section 15-175 of the Property Tax Code.
34 It is further the intent of this paragraph that if additional

 

 

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1 exemptions are allowed under Section 15-175 of the Property Tax
2 Code for owners with a household income of less than $30,000,
3 then the calculation of Available Local Resources shall not be
4 affected by the difference, if any, because of those additional
5 exemptions.
6     This equalized assessed valuation, as adjusted further by
7 the requirements of this subsection, shall be utilized in the
8 calculation of Available Local Resources.
9     (2) The equalized assessed valuation in paragraph (1) shall
10 be adjusted, as applicable, in the following manner:
11         (a) For the purposes of calculating State aid under
12     this Section, with respect to any part of a school district
13     within a redevelopment project area in respect to which a
14     municipality has adopted tax increment allocation
15     financing pursuant to the Tax Increment Allocation
16     Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
17     of the Illinois Municipal Code or the Industrial Jobs
18     Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
19     Illinois Municipal Code, no part of the current equalized
20     assessed valuation of real property located in any such
21     project area which is attributable to an increase above the
22     total initial equalized assessed valuation of such
23     property shall be used as part of the equalized assessed
24     valuation of the district, until such time as all
25     redevelopment project costs have been paid, as provided in
26     Section 11-74.4-8 of the Tax Increment Allocation
27     Redevelopment Act or in Section 11-74.6-35 of the
28     Industrial Jobs Recovery Law. For the purpose of the
29     equalized assessed valuation of the district, the total
30     initial equalized assessed valuation or the current
31     equalized assessed valuation, whichever is lower, shall be
32     used until such time as all redevelopment project costs
33     have been paid.
34         (b) The real property equalized assessed valuation for

 

 

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1     a school district shall be adjusted by subtracting from the
2     real property value as equalized or assessed by the
3     Department of Revenue for the district an amount computed
4     by dividing the amount of any abatement of taxes under
5     Section 18-170 of the Property Tax Code by 3.00% for a
6     district maintaining grades kindergarten through 12, by
7     2.30% for a district maintaining grades kindergarten
8     through 8, or by 1.05% for a district maintaining grades 9
9     through 12 and adjusted by an amount computed by dividing
10     the amount of any abatement of taxes under subsection (a)
11     of Section 18-165 of the Property Tax Code by the same
12     percentage rates for district type as specified in this
13     subparagraph (b).
14     (3) For the 1999-2000 school year and each school year
15 thereafter, if a school district meets all of the criteria of
16 this subsection (G)(3), the school district's Available Local
17 Resources shall be calculated under subsection (D) using the
18 district's Extension Limitation Equalized Assessed Valuation
19 as calculated under this subsection (G)(3).
20     For purposes of this subsection (G)(3) the following terms
21 shall have the following meanings:
22         "Budget Year": The school year for which general State
23     aid is calculated and awarded under subsection (E).
24         "Base Tax Year": The property tax levy year used to
25     calculate the Budget Year allocation of general State aid.
26         "Preceding Tax Year": The property tax levy year
27     immediately preceding the Base Tax Year.
28         "Base Tax Year's Tax Extension": The product of the
29     equalized assessed valuation utilized by the County Clerk
30     in the Base Tax Year multiplied by the limiting rate as
31     calculated by the County Clerk and defined in the Property
32     Tax Extension Limitation Law.
33         "Preceding Tax Year's Tax Extension": The product of
34     the equalized assessed valuation utilized by the County

 

 

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

 

 

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

 

 

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

 

 

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1 eligible pupil count of a majority of the elementary school
2 districts in excess of 50% from the 2 most recent federal
3 censuses, then the high school district's low-income eligible
4 pupil count from the earlier federal census shall be the number
5 used as the low-income eligible pupil count for the high school
6 district, for purposes of this subsection (H). The changes made
7 to this paragraph (1) by Public Act 92-28 shall apply to
8 supplemental general State aid grants for school years
9 preceding the 2003-2004 school year that are paid in fiscal
10 year 1999 or thereafter and to any State aid payments made in
11 fiscal year 1994 through fiscal year 1998 pursuant to
12 subsection 1(n) of Section 18-8 of this Code (which was
13 repealed on July 1, 1998), and any high school district that is
14 affected by Public Act 92-28 is entitled to a recomputation of
15 its supplemental general State aid grant or State aid paid in
16 any of those fiscal years. This recomputation shall not be
17 affected by any other funding.
18     (1.10) This paragraph (1.10) applies to the 2003-2004
19 school year and each school year thereafter. For purposes of
20 this subsection (H), the term "Low-Income Concentration Level"
21 shall, for each fiscal year, be the low-income eligible pupil
22 count as of July 1 of the immediately preceding fiscal year (as
23 determined by the Department of Human Services based on the
24 number of pupils who are eligible for at least one of the
25 following low income programs: Medicaid, KidCare, TANF, or Food
26 Stamps, excluding pupils who are eligible for services provided
27 by the Department of Children and Family Services, averaged
28 over the 2 immediately preceding fiscal years for fiscal year
29 2004 and over the 3 immediately preceding fiscal years for each
30 fiscal year thereafter) divided by the Average Daily Attendance
31 of the school district.
32     (2) Supplemental general State aid pursuant to this
33 subsection (H) shall be provided as follows for the 1998-1999,
34 1999-2000, and 2000-2001 school years only:

 

 

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1         (a) For any school district with a Low Income
2     Concentration Level of at least 20% and less than 35%, the
3     grant for any school year shall be $800 multiplied by the
4     low income eligible pupil count.
5         (b) For any school district with a Low Income
6     Concentration Level of at least 35% and less than 50%, the
7     grant for the 1998-1999 school year shall be $1,100
8     multiplied by the low income eligible pupil count.
9         (c) For any school district with a Low Income
10     Concentration Level of at least 50% and less than 60%, the
11     grant for the 1998-99 school year shall be $1,500
12     multiplied by the low income eligible pupil count.
13         (d) For any school district with a Low Income
14     Concentration Level of 60% or more, the grant for the
15     1998-99 school year shall be $1,900 multiplied by the low
16     income eligible pupil count.
17         (e) For the 1999-2000 school year, the per pupil amount
18     specified in subparagraphs (b), (c), and (d) immediately
19     above shall be increased to $1,243, $1,600, and $2,000,
20     respectively.
21         (f) For the 2000-2001 school year, the per pupil
22     amounts specified in subparagraphs (b), (c), and (d)
23     immediately above shall be $1,273, $1,640, and $2,050,
24     respectively.
25     (2.5) Supplemental general State aid pursuant to this
26 subsection (H) shall be provided as follows for the 2002-2003
27 school year:
28         (a) For any school district with a Low Income
29     Concentration Level of less than 10%, the grant for each
30     school year shall be $355 multiplied by the low income
31     eligible pupil count.
32         (b) For any school district with a Low Income
33     Concentration Level of at least 10% and less than 20%, the
34     grant for each school year shall be $675 multiplied by the

 

 

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1     low income eligible pupil count.
2         (c) For any school district with a Low Income
3     Concentration Level of at least 20% and less than 35%, the
4     grant for each school year shall be $1,330 multiplied by
5     the low income eligible pupil count.
6         (d) For any school district with a Low Income
7     Concentration Level of at least 35% and less than 50%, the
8     grant for each school year shall be $1,362 multiplied by
9     the low income eligible pupil count.
10         (e) For any school district with a Low Income
11     Concentration Level of at least 50% and less than 60%, the
12     grant for each school year shall be $1,680 multiplied by
13     the low income eligible pupil count.
14         (f) For any school district with a Low Income
15     Concentration Level of 60% or more, the grant for each
16     school year shall be $2,080 multiplied by the low income
17     eligible pupil count.
18     (2.10) Except as otherwise provided, supplemental general
19 State aid pursuant to this subsection (H) shall be provided as
20 follows for the 2003-2004 school year and each school year
21 thereafter:
22         (a) For any school district with a Low Income
23     Concentration Level of 15% or less, the grant for each
24     school year shall be $355 multiplied by the low income
25     eligible pupil count.
26         (b) For any school district with a Low Income
27     Concentration Level greater than 15%, the grant for each
28     school year shall be $294.25 added to the product of $2,700
29     and the square of the Low Income Concentration Level, all
30     multiplied by the low income eligible pupil count.
31     For the 2003-2004 and 2004-2005 school year only, the grant
32 shall be no less than the grant for the 2002-2003 school year.
33 For the 2005-2006 school year only, the grant shall be no less
34 than the grant for the 2002-2003 school year multiplied by

 

 

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1 0.66. For the 2006-2007 school year only, the grant shall be no
2 less than the grant for the 2002-2003 school year multiplied by
3 0.33.
4     For the 2003-2004 school year only, the grant shall be no
5 greater than the grant received during the 2002-2003 school
6 year added to the product of 0.25 multiplied by the difference
7 between the grant amount calculated under subsection (a) or (b)
8 of this paragraph (2.10), whichever is applicable, and the
9 grant received during the 2002-2003 school year. For the
10 2004-2005 school year only, the grant shall be no greater than
11 the grant received during the 2002-2003 school year added to
12 the product of 0.50 multiplied by the difference between the
13 grant amount calculated under subsection (a) or (b) of this
14 paragraph (2.10), whichever is applicable, and the grant
15 received during the 2002-2003 school year. For the 2005-2006
16 school year only, the grant shall be no greater than the grant
17 received during the 2002-2003 school year added to the product
18 of 0.75 multiplied by the difference between the grant amount
19 calculated under subsection (a) or (b) of this paragraph
20 (2.10), whichever is applicable, and the grant received during
21 the 2002-2003 school year.
22     (3) School districts with an Average Daily Attendance of
23 more than 1,000 and less than 50,000 that qualify for
24 supplemental general State aid pursuant to this subsection
25 shall submit a plan to the State Board of Education prior to
26 October 30 of each year for the use of the funds resulting from
27 this grant of supplemental general State aid for the
28 improvement of instruction in which priority is given to
29 meeting the education needs of disadvantaged children. Such
30 plan shall be submitted in accordance with rules and
31 regulations promulgated by the State Board of Education.
32     (4) School districts with an Average Daily Attendance of
33 50,000 or more that qualify for supplemental general State aid
34 pursuant to this subsection shall be required to distribute

 

 

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1 from funds available pursuant to this Section, no less than
2 $261,000,000 in accordance with the following requirements:
3         (a) The required amounts shall be distributed to the
4     attendance centers within the district in proportion to the
5     number of pupils enrolled at each attendance center who are
6     eligible to receive free or reduced-price lunches or
7     breakfasts under the federal Child Nutrition Act of 1966
8     and under the National School Lunch Act during the
9     immediately preceding school year.
10         (b) The distribution of these portions of supplemental
11     and general State aid among attendance centers according to
12     these requirements shall not be compensated for or
13     contravened by adjustments of the total of other funds
14     appropriated to any attendance centers, and the Board of
15     Education shall utilize funding from one or several sources
16     in order to fully implement this provision annually prior
17     to the opening of school.
18         (c) Each attendance center shall be provided by the
19     school district a distribution of noncategorical funds and
20     other categorical funds to which an attendance center is
21     entitled under law in order that the general State aid and
22     supplemental general State aid provided by application of
23     this subsection supplements rather than supplants the
24     noncategorical funds and other categorical funds provided
25     by the school district to the attendance centers.
26         (d) Any funds made available under this subsection that
27     by reason of the provisions of this subsection are not
28     required to be allocated and provided to attendance centers
29     may be used and appropriated by the board of the district
30     for any lawful school purpose.
31         (e) Funds received by an attendance center pursuant to
32     this subsection shall be used by the attendance center at
33     the discretion of the principal and local school council
34     for programs to improve educational opportunities at

 

 

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1     qualifying schools through the following programs and
2     services: early childhood education, reduced class size or
3     improved adult to student classroom ratio, enrichment
4     programs, remedial assistance, attendance improvement, and
5     other educationally beneficial expenditures which
6     supplement the regular and basic programs as determined by
7     the State Board of Education. Funds provided shall not be
8     expended for any political or lobbying purposes as defined
9     by board rule.
10         (f) Each district subject to the provisions of this
11     subdivision (H)(4) shall submit an acceptable plan to meet
12     the educational needs of disadvantaged children, in
13     compliance with the requirements of this paragraph, to the
14     State Board of Education prior to July 15 of each year.
15     This plan shall be consistent with the decisions of local
16     school councils concerning the school expenditure plans
17     developed in accordance with part 4 of Section 34-2.3. The
18     State Board shall approve or reject the plan within 60 days
19     after its submission. If the plan is rejected, the district
20     shall give written notice of intent to modify the plan
21     within 15 days of the notification of rejection and then
22     submit a modified plan within 30 days after the date of the
23     written notice of intent to modify. Districts may amend
24     approved plans pursuant to rules promulgated by the State
25     Board of Education.
26         Upon notification by the State Board of Education that
27     the district has not submitted a plan prior to July 15 or a
28     modified plan within the time period specified herein, the
29     State aid funds affected by that plan or modified plan
30     shall be withheld by the State Board of Education until a
31     plan or modified plan is submitted.
32         If the district fails to distribute State aid to
33     attendance centers in accordance with an approved plan, the
34     plan for the following year shall allocate funds, in

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1 the regional superintendents of schools of the affected
2 educational service regions. An alternative school serving
3 more than one educational service region may be operated under
4 such terms as the regional superintendents of schools of those
5 educational service regions may agree.
6     Each laboratory and alternative school shall file, on forms
7 provided by the State Superintendent of Education, an annual
8 State aid claim which states the Average Daily Attendance of
9 the school's students by month. The best 3 months' Average
10 Daily Attendance shall be computed for each school. The general
11 State aid entitlement shall be computed by multiplying the
12 applicable Average Daily Attendance by the Foundation Level as
13 determined under this Section.
 
14 (L) Payments, Additional Grants in Aid and Other Requirements.
15     (1) For a school district operating under the financial
16 supervision of an Authority created under Article 34A, the
17 general State aid otherwise payable to that district under this
18 Section, but not the supplemental general State aid, shall be
19 reduced by an amount equal to the budget for the operations of
20 the Authority as certified by the Authority to the State Board
21 of Education, and an amount equal to such reduction shall be
22 paid to the Authority created for such district for its
23 operating expenses in the manner provided in Section 18-11. The
24 remainder of general State school aid for any such district
25 shall be paid in accordance with Article 34A when that Article
26 provides for a disposition other than that provided by this
27 Article.
28     (2) (Blank).
29     (3) Summer school. Summer school payments shall be made as
30 provided in Section 18-4.3.
 
31 (M) Education Funding Advisory Board.
32     The Education Funding Advisory Board, hereinafter in this

 

 

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

 

 

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1     The Education Funding Advisory Board shall be deemed
2 established, and the initial members appointed by the Governor
3 to serve as members of the Board shall take office, on the date
4 that the Governor makes his or her appointment of the fifth
5 initial member of the Board, whether those initial members are
6 then serving pursuant to appointment and confirmation or
7 pursuant to temporary appointments that are made by the
8 Governor as in the case of vacancies.
9     The State Board of Education shall provide such staff
10 assistance to the Education Funding Advisory Board as is
11 reasonably required for the proper performance by the Board of
12 its responsibilities.
13     For school years after the 2000-2001 school year, the
14 Education Funding Advisory Board, in consultation with the
15 State Board of Education, shall make recommendations as
16 provided in this subsection (M) to the General Assembly for the
17 foundation level under subsection (B) subdivision (B)(3) of
18 this Section and for the supplemental general State aid grant
19 level under subsection (H) of this Section for districts with
20 high concentrations of children from poverty. The recommended
21 foundation level shall be determined based on a methodology
22 which incorporates the basic education expenditures of
23 low-spending schools exhibiting high academic performance. The
24 Education Funding Advisory Board shall make such
25 recommendations to the General Assembly on January 1 of odd
26 numbered years, beginning January 1, 2001.
 
27 (N) (Blank).
 
28 (O) References.
29     (1) References in other laws to the various subdivisions of
30 Section 18-8 as that Section existed before its repeal and
31 replacement by this Section 18-8.05 shall be deemed to refer to
32 the corresponding provisions of this Section 18-8.05, to the

 

 

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1 extent that those references remain applicable.
2     (2) References in other laws to State Chapter 1 funds shall
3 be deemed to refer to the supplemental general State aid
4 provided under subsection (H) of this Section.
 
5 (P) Public Act 93-838 This amendatory Act of the 93rd General
6 Assembly and Public Act 93-808 House Bill 4266 of the 93rd
7 General Assembly make inconsistent changes to this Section. If
8 House Bill 4266 becomes law, then Under Section 6 of the
9 Statute on Statutes there is an irreconcilable conflict between
10 Public Act 93-808 and Public Act 93-838 House Bill 4266 and
11 this amendatory Act. Public Act 93-838 This amendatory Act,
12 being the last acted upon, is controlling. The text of Public
13 Act 93-838 this amendatory Act is the law regardless of the
14 text of Public Act 93-808 House Bill 4266.
15 (Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,
16 eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 92-636,
17 eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 7-1-03; 93-715,
18 eff. 7-12-04; 93-808, eff. 7-26-04; 93-838, eff. 7-30-04;
19 93-875, eff. 8-6-04; revised 10-21-04.)
 
20     (105 ILCS 5/18-19)  (from Ch. 122, par. 18-19)
21     Sec. 18-19. Moneys shall be transferred or distributed The
22 State Board of Education may make distributions of monies from
23 the Education Assistance Fund as follows:
24         (1) On the first day of each month, or as soon
25     thereafter as practical, beginning on August 1, 2006
26     through June 1, 2007, the Treasurer shall transfer
27     $30,833,333 to the Higher Education Operating Assistance
28     Fund. On the first day of each month, or as soon thereafter
29     as practical, beginning on July 1, 2007, the Treasurer
30     shall transfer to the Higher Education Operating
31     Assistance Fund an amount equal to one-twelfth of the
32     amount that must be transferred annually to that fund under

 

 

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1     subsections (b) and (c) of Section 6z-69 of the State
2     Finance Act.
3         (2) On the first day of each month, or as soon
4     thereafter as practical, beginning on August 1, 2006, the
5     Treasurer shall transfer $34,583,333 to the Income Tax
6     Refund Fund to fund increases to the earned income tax
7     credit under Section 212 of the Illinois Income Tax Act and
8     the education expense credit under Section 201 of the
9     Illinois Income Tax Act provided in this amendatory Act of
10     the 94th General Assembly.
11         (3) On the first day of each month, or as soon
12     thereafter as practical, beginning on August 1, 2006, the
13     Treasurer shall transfer $15,833,333 to the Local
14     Government Distributive Fund.
15         (4) On the first day of each month, or as soon
16     thereafter as practical, beginning on March 1, 2006 through
17     June 1, 2006, the Treasurer shall transfer $250,000,000 to
18     the School District Property Tax Relief Fund. On the first
19     day of each month, or as soon thereafter as practical,
20     beginning on July 1, 2006, the Treasurer shall transfer to
21     the School District Property Tax Relief Fund an amount
22     equal to one-twelfth of the amount that must be transferred
23     annually to that fund under subsection (c) of Section 6z-68
24     of the State Finance Act.
25         (5) On the first day of each month, or as soon
26     thereafter as practical, beginning on August 1, 2006, the
27     Treasurer shall transfer $10,000,000, in addition to
28     appropriations from other sources, to fund reimbursements
29     due under Sections 14-7.02, 14-7.02a, 14-17.03, 14-13.01,
30     18-3, 18-4.3, and 29-5 of the School Code and the School
31     Breakfast and Lunch Program Act at the 100% level.
32         (6) Such , pursuant to appropriation, in addition to
33     such sums as may have been otherwise appropriated for the
34     same purpose, for any of the purposes set forth in this

 

 

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1     Article, subject to the same terms and conditions that
2     apply to distributions under the several sections of this
3     Article, respectively.
4     This amendatory Act of the 94th General Assembly
5 constitutes an irrevocable and continuing appropriation from
6 the Education Assistance Fund for the purposes set forth in
7 this Section.
8 (Source: P.A. 86-18.)
 
9     (105 ILCS 5/18-25 new)
10     Sec. 18-25. Education Assistance Fund Board. The Education
11 Assistance Fund Board is established. The Board shall consist
12 of 4 members of the General Assembly. The Senate President, the
13 Senate Minority Leader, the Speaker of the House of
14 Representatives, and the House Minority Leader shall each
15 appoint one member to the Board. The members of the Board shall
16 designate one of the members to serve as chairperson. All
17 members shall serve until their respective successors are
18 appointed or until they cease to be members of the General
19 Assembly, whichever occurs first. Vacancies shall be filled in
20 the same manner as the original appointments.
21     For school years after the 2005-2006 school year and every
22 2 fiscal years thereafter, the Board must make a recommendation
23 to the General Assembly concerning appropriations from the
24 Education Assistance Fund. The Board must make its
25 recommendation to the General Assembly on April 1 of each even
26 numbered year, beginning on April 1, 2008.
 
27     (105 ILCS 5/20-3)  (from Ch. 122, par. 20-3)
28     Sec. 20-3. Tax levy. For the purpose of providing moneys
29 for a working cash fund, the school board of any such school
30 district may, by proper resolution, cause a proposition to also
31 levy annually upon all the taxable property of their district a
32 tax, known as the "working cash fund tax," not to exceed 0.05%

 

 

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1 of value, as equalized or assessed by the Department of
2 Revenue, to be submitted to the electors of the school district
3 at a regularly scheduled election, provided . Provided, that:
4 (1) no such tax shall be levied if bonds are issued in amount
5 or amounts equal in the aggregate to the limitation set forth
6 in Section 20-2 for the creation of a working cash fund; (2) no
7 such tax shall be levied and extended by a school district that
8 is not certified as a financially distressed district under
9 Section 19-1.5 if the amount of the tax so to be extended will
10 increase the working cash fund to a total amount exceeding 85%
11 of the taxes last extended for educational purposes of the
12 district plus 85% of the last known entitlement of such
13 district to taxes as by law now or hereafter enacted or
14 amended, imposed by the General Assembly of the State of
15 Illinois to replace revenue lost by units of local government
16 and school districts as a result of the abolition of ad valorem
17 personal property taxes, pursuant to Article IX, Section 5(c)
18 of the Constitution of the State of Illinois; and (3) no such
19 tax shall be levied or extended by a school district that is
20 certified as a financially distressed district under Section
21 19-1.5 if the amount of the tax so to be extended will increase
22 the working cash fund to a total amount exceeding 125% of the
23 taxes last extended for educational purposes of the district
24 plus 125% of the last known entitlement of that district to
25 taxes that by law now or hereafter enacted or amended are
26 imposed by the General Assembly to replace revenue lost by
27 units of local government and school districts as a result of
28 the abolition of ad valorem personal property taxes, pursuant
29 to Article IX, Section 5(c) of the Constitution of the State of
30 Illinois.
31     The tax may not be levied until the question of levying the
32 tax has been submitted to the electors of the school district
33 at a regular election and approved by at least 60% of the
34 electors voting on the question. The school board must certify

 

 

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1 the question to the proper election authority, which must
2 submit the question at an election in accordance with the
3 Election Code.
4     The election authority must submit the question in
5 substantially the following form:
6         Shall the board of .... of school district number ....
7     be authorized to levy a tax at the rate of .... % for the
8     purpose of providing moneys for a working cash fund?
9 The election authority must record the votes as "Yes" or "No".
10     If at least 60% of the electors voting on the question vote
11 in the affirmative, the school district may thereafter levy the
12 tax.
13      The collection of the tax shall not be anticipated by the
14 issuance of any warrants drawn against it. The tax shall be
15 levied and collected, except as otherwise provided in this
16 Section, in like manner as the general taxes of the district,
17 and shall be in addition to the maximum of all other taxes,
18 either educational; transportation; operations and
19 maintenance; or fire prevention and safety fund taxes, now or
20 hereafter to be levied for school purposes. It may be levied by
21 separate resolution by the last Tuesday in September in each
22 year or it may be included in the certificate of tax levy filed
23 under Section 17-11.
24 (Source: P.A. 87-984; 88-641, eff. 9-9-94.)
 
25     (105 ILCS 5/20-7)  (from Ch. 122, par. 20-7)
26     Sec. 20-7. Resolution for issuance of bonds - Submission to
27 voters - Ballot. No school district may issue bonds under this
28 Article until the question of the issuance of bonds has been
29 submitted to the electors of the school district at a regularly
30 scheduled election and approved by at least 60% of the electors
31 voting on the question. The school board must certify the
32 question to the proper election authority, which must submit
33 the question at an election in accordance with the Election

 

 

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1 Code. unless it adopts a resolution declaring its intention to
2 issue bonds for the purpose therein provided and directs that
3 notice of such intention be published at least once in a
4 newspaper published and having a general circulation in the
5 district, if there be one, but if there is no newspaper
6 published in such district then by publishing such notice in a
7 newspaper having a general circulation in the district. The
8 notice shall set forth (1) the intention of the district to
9 issue bonds in accordance with this Article; (2) the time
10 within which a petition may be filed requesting the submission
11 of the proposition to issue the bonds; (3) the specific number
12 of voters required to sign the petition; and (4) the date of
13 the prospective referendum. At the time of publication of the
14 notice and for 30 days thereafter, the recording officer of the
15 district shall provide a petition form to any individual
16 requesting one. If within 30 days after the publication a
17 petition is filed with the recording officer of the district,
18 signed by the voters of the district equal to 10% or more of
19 the registered voters of the district requesting that the
20 proposition to issue bonds as authorized by this Article be
21 submitted to the voters thereof, then the district shall not be
22 authorized to issue such bonds until the proposition has been
23 certified to the proper election authorities and has been
24 submitted to and approved by a majority of the voters voting on
25 the proposition at a regular scheduled election in accordance
26 with the general election law. If no such petition is so filed,
27 or if any and all petitions filed are invalid, the district may
28 issue the bonds. In addition to the requirements of the general
29 election law the notice of the election shall set forth the
30 intention of the district to issue bonds under this Article.
31 The election authority must submit the question proposition
32 shall be in substantially the following form:
33
OFFICIAL BALLOT
34 -------------------------------------------------------------

 

 

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1     Shall the board of....
2 of School district number....           YES
3 County, Illinois, be authorized
4 to issue bonds for a working       --------------------------
5 cash fund as provided for
6 by Article 20 of the                    NO
7 School Code?
8 -------------------------------------------------------------
9 If at least 60% of the electors voting on the question vote in
10 the affirmative, the school district may thereafter issue bonds
11 under this Article.
12 (Source: P.A. 87-767.)
 
13     (105 ILCS 5/34-31)  (from Ch. 122, par. 34-31)
14     Sec. 34-31. Bond issue to increase fund. (a). Where the
15 board has created and is maintaining such a working cash fund
16 for the purposes above mentioned, it may, with the consent of
17 the city council expressed by ordinance, incur an indebtedness
18 for the purpose of increasing such fund and, by proper
19 resolution, cause a proposition to issue bonds therefor from
20 time to time, in an amount or amounts not exceeding in the
21 aggregate $75,000,000, exclusive of all bonded indebtedness
22 authorized for that purpose prior to May 16, 1967, to be
23 submitted to the electors of the school district at a regularly
24 scheduled election without the submission thereof to the
25 electors of the school district or city for approval.
26     (b). The board may incur an additional indebtedness for the
27 purpose of further increasing such fund and, by proper
28 resolution, cause a proposition to issue additional bonds
29 therefor, from time to time, in an amount or amounts not
30 exceeding in the aggregate $20,000,000, exclusive of all bonded
31 indebtedness authorized for that purpose prior to the effective
32 date of this amendatory Act of 1971, to be submitted to the
33 electors of the school district at a regularly scheduled

 

 

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1 election without the submission thereof to the electors of the
2 school district or city for approval.
3     (c). The board may incur an additional indebtedness for the
4 purpose of further increasing such fund and, by proper
5 resolution, cause a proposition to issue additional bonds
6 therefor, from time to time, in an amount or amounts not
7 exceeding in the aggregate $25,000,000, exclusive of all bonded
8 indebtedness authorized for that purpose prior to the effective
9 date of this amendatory Act of 1973, to be submitted to the
10 electors of the school district at a regularly scheduled
11 election without the submission thereof to the electors of the
12 school district or city for approval.
13     (d). The board may incur an additional indebtedness for the
14 purpose of further increasing such fund and, by proper
15 resolution, cause a proposition to issue additional bonds
16 therefor, from time to time, in an amount or amounts not
17 exceeding in the aggregate $31,000,000, exclusive of all bonded
18 indebtedness authorized for that purpose prior to the effective
19 date of this amendatory Act of 1977, to be submitted to the
20 electors of the school district at a regularly scheduled
21 election without the submission thereof to the electors of the
22 school district or city for approval.
23     (e). Any bonds issued under paragraphs (a), (b), (c) or (d)
24 of this Section shall bear interest at a rate of not more than
25 the maximum rate authorized by the Bond Authorization Act, as
26 amended at the time of the making of the contract, and shall
27 mature within 20 years from date of issue. The authority herein
28 granted in paragraphs (a), (b), (c) and (d) shall be considered
29 exclusive of each other and as cumulative authority for the
30 issuance of such bonds.
31     With respect to instruments for the payment of money issued
32 under this Section either before, on, or after the effective
33 date of this amendatory Act of 1989, it is and always has been
34 the intention of the General Assembly (i) that the Omnibus Bond

 

 

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1 Acts are and always have been supplementary grants of power to
2 issue instruments in accordance with the Omnibus Bond Acts,
3 regardless of any provision of this Act that may appear to be
4 or to have been more restrictive than those Acts, (ii) that the
5 provisions of this Section are not a limitation on the
6 supplementary authority granted by the Omnibus Bond Acts, and
7 (iii) that instruments issued under this Section within the
8 supplementary authority granted by the Omnibus Bond Acts are
9 not invalid because of any provision of this Act that may
10 appear to be or to have been more restrictive than those Acts.
11     (f) The board may not issue bonds under paragraph (a), (b),
12 (c), or (d) of this Section until the question of the issuance
13 of bonds has been submitted to the electors of the school
14 district at a regular election and approved by at least 60% of
15 the electors voting on the question. The board must certify the
16 question to the proper election authority, which must submit
17 the question at an election in accordance with the Election
18 Code.
19     The election authority must submit the question in
20 substantially the following form:
21         Shall the board of education be authorized to issue
22     bonds for the purpose of increasing the working cash fund
23     as provided in Section 34-31 of the School Code?
24 The election authority must record the votes as "Yes" or "No".
25     If at least 60% of the electors voting on the question vote
26 in the affirmative, the board may thereafter issue bonds under
27 paragraph (a), (b), (c), or (d) of this Section.
28 (Source: P.A. 86-4.)
 
29     (105 ILCS 5/34-53)  (from Ch. 122, par. 34-53)
30     Sec. 34-53. Tax levies; Purpose; Rates. For the purpose of
31 establishing and supporting free schools for not fewer than 9
32 months in each year and defraying their expenses the board may
33 levy annually, upon all taxable property of such district for

 

 

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1 educational purposes a tax for the fiscal years 1996 and each
2 succeeding fiscal year at a rate of not to exceed the sum of
3 (i) 3.07% (or such other rate as may be set by law independent
4 of the rate difference described in (ii) below) and (ii) the
5 difference between .50% and the rate per cent of taxes extended
6 for a School Finance Authority organized under Article 34A of
7 the School Code, for the calendar year in which the applicable
8 fiscal year of the board begins as determined by the county
9 clerk and certified to the board pursuant to Section 18-110 of
10 the Property Tax Code, of the value as equalized or assessed by
11 the Department of Revenue for the year in which such levy is
12 made.
13      Nothing in this amendatory Act of 1995 shall in any way
14 impair or restrict the levy or extension of taxes pursuant to
15 any tax levies for any purposes of the board lawfully made
16 prior to the adoption of this amendatory Act of 1995.
17     Notwithstanding any other provision of this Code and in
18 addition to any other methods provided for increasing the tax
19 rate the board may, by proper resolution, cause a proposition
20 to increase the annual tax rate for educational purposes to be
21 submitted to the voters of such district at any general or
22 special election. The maximum rate for educational purposes
23 shall not exceed 4.00%. The election called for such purpose
24 shall be governed by Article 9 of this Act. If at such election
25 at least 60% a majority of the votes cast on the proposition
26 are is in favor thereof, the Board of Education may thereafter
27 until such authority is revoked in a like manner, levy annually
28 the tax so authorized.
29     For purposes of this Article, educational purposes for
30 fiscal years beginning in 1995 and each subsequent year shall
31 also include, but not be limited to, in addition to those
32 purposes authorized before this amendatory Act of 1995,
33 constructing, acquiring, leasing (other than from the Public
34 Building Commission of Chicago), operating, maintaining,

 

 

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1 improving, repairing, and renovating land, buildings,
2 furnishings, and equipment for school houses and buildings, and
3 related incidental expenses, and provision of special
4 education, furnishing free textbooks and instructional aids
5 and school supplies, establishing, equipping, maintaining, and
6 operating supervised playgrounds under the control of the
7 board, school extracurricular activities, and stadia, social
8 center, and summer swimming pool programs open to the public in
9 connection with any public school; making an employer
10 contribution to the Public School Teachers' Pension and
11 Retirement Fund as required by Section 17-129 of the Illinois
12 Pension Code; and providing an agricultural science school,
13 including site development and improvements, maintenance
14 repairs, and supplies. Educational purposes also includes
15 student transportation expenses.
16     All collections of all taxes levied for fiscal years ending
17 before 1996 under this Section or under Sections 34-53.2,
18 34-53.3, 34-58, 34-60, or 34-62 of this Article as in effect
19 prior to this amendatory Act of 1995 may be used for any
20 educational purposes as defined by this amendatory Act of 1995
21 and need not be used for the particular purposes for which they
22 were levied. The levy and extension of taxes pursuant to this
23 Section as amended by this amendatory Act of 1995 shall not
24 constitute a new or increased tax rate within the meaning of
25 the Property Tax Extension Limitation Law or the One-year
26 Property Tax Extension Limitation Law.
27     The rate at which taxes may be levied for the fiscal year
28 beginning September 1, 1996, for educational purposes shall be
29 the full rate authorized by this Section for such taxes for
30 fiscal years ending after 1995.
31 (Source: P.A. 88-511; 88-670, eff. 12-2-94; 89-15, eff.
32 5-30-95.)".
 
33     Section 99. Effective date. This Act takes effect upon

 

 

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1 becoming law.".