Illinois General Assembly - Full Text of SB1498
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Full Text of SB1498  93rd General Assembly

SB1498ham002 93rd General Assembly


093_SB1498ham002











                                     LRB093 06568 SJM 20199 a

 1                    AMENDMENT TO SENATE BILL 1498

 2        AMENDMENT NO.     .  Amend Senate Bill 1498 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The Economic Development Area Tax Increment
 5    Allocation Act is amended by changing Section 6 as follows:

 6        (20 ILCS 620/6) (from Ch. 67 1/2, par. 1006)
 7        Sec.  6.  Filing  with  county  clerk;  certification  of
 8    initial equalized assessed value.
 9        (a)  The municipality shall file a certified copy of  any
10    ordinance  authorizing tax increment allocation financing for
11    an economic development project area with the  county  clerk,
12    and  the  county clerk shall immediately thereafter determine
13    (1) the most recently ascertained equalized assessed value of
14    each lot, block, tract or parcel of real property within  the
15    economic   development  project  area  from  which  shall  be
16    deducted  the  homestead  exemptions  provided  by   Sections
17    15-170,  and  15-175,  and  15-176  of the Property Tax Code,
18    which value shall be the "initial equalized  assessed  value"
19    of  each  such piece of property, and (2) the total equalized
20    assessed value  of  all  taxable  real  property  within  the
21    economic development project area by adding together the most
22    recently ascertained equalized assessed value of each taxable
 
                            -2-      LRB093 06568 SJM 20199 a
 1    lot,  block,  tract,  or  parcel of real property within such
 2    economic  development  project  area,  from  which  shall  be
 3    deducted  the  homestead  exemptions  provided  by   Sections
 4    15-170,  and 15-175, and 15-176 of the Property Tax Code, and
 5    shall certify such amount as  the  "total  initial  equalized
 6    assessed  value"  of  the  taxable  real  property within the
 7    economic development project area.
 8        (b)  After the county  clerk  has  certified  the  "total
 9    initial   equalized  assessed  value"  of  the  taxable  real
10    property in the economic development project  area,  then  in
11    respect  to  every  taxing  district  containing  an economic
12    development project area,  the  county  clerk  or  any  other
13    official  required  by  law  to  ascertain  the amount of the
14    equalized assessed value of all taxable property within  that
15    taxing  district  for  the  purpose of computing the rate per
16    cent of tax to be extended upon taxable property within  that
17    taxing  district,  shall  in  every  year  that tax increment
18    allocation financing is in effect  ascertain  the  amount  of
19    value  of taxable property in an economic development project
20    area by including in that amount the  lower  of  the  current
21    equalized  assessed  value  or  the  certified "total initial
22    equalized assessed value" of all  taxable  real  property  in
23    such  area.  The  rate  per  cent  of tax determined shall be
24    extended to the  current  equalized  assessed  value  of  all
25    property in the economic development project area in the same
26    manner  as  the rate per cent of tax is extended to all other
27    taxable property in  the  taxing  district.   The  method  of
28    allocating   taxes   established  under  this  Section  shall
29    terminate  when  the   municipality   adopts   an   ordinance
30    dissolving  the  special tax allocation fund for the economic
31    development   project   area,   terminating   the    economic
32    development  project  area,  and  terminating  the use of tax
33    increment allocation financing for the  economic  development
34    project  area.   This Act shall not be construed as relieving
 
                            -3-      LRB093 06568 SJM 20199 a
 1    property owners within an economic development  project  area
 2    from  paying  a  uniform  rate  of  taxes  upon  the  current
 3    equalized   assessed  value  of  their  taxable  property  as
 4    provided in the Property Tax Code.
 5    (Source: P.A. 88-670, eff. 12-2-94.)

 6        Section 10.  The Property Tax Code is amended by changing
 7    Sections 14-15, 15-10, 15-170, 15-172,  15-175,  15-180,  and
 8    20-178 and by adding Section 15-176 as follows:

 9        (35 ILCS 200/14-15)
10        Sec.  14-15.  Certificate of error; counties of 3,000,000
11    or more.
12        (a)  In counties with 3,000,000 or more inhabitants,  if,
13    after the assessment is certified pursuant to Section 16-150,
14    but  subject  to  the  limitations  of subsection (c) of this
15    Section, the county assessor discovers an error or mistake in
16    the assessment, the  assessor  shall  execute  a  certificate
17    setting  forth  the  nature  and  cause  of  the  error.  The
18    certificate when endorsed by the  county  assessor,  or  when
19    endorsed  by  the county assessor and board of appeals (until
20    the first Monday in December 1998 and  the  board  of  review
21    beginning  the  first Monday in December 1998 and thereafter)
22    where the certificate is executed for  any  assessment  which
23    was  the subject of a complaint filed in the board of appeals
24    (until the first Monday in December 1998  and  the  board  of
25    review  beginning  the  first  Monday  in  December  1998 and
26    thereafter) for the tax year for  which  the  certificate  is
27    issued,  may,  either be certified according to the procedure
28    authorized by this Section or be presented  and  received  in
29    evidence    in   any   court   of   competent   jurisdiction.
30    Certification is authorized, at the discretion of the  county
31    assessor,  for:  (1) certificates of error allowing homestead
32    exemptions pursuant to Sections 15-170, 15-172,  and  15-175,
 
                            -4-      LRB093 06568 SJM 20199 a
 1    and 15-176; (2) certificates of error on residential property
 2    of  6  units  or  less;  (3)  certificates  of error allowing
 3    exemption of the property pursuant to Section 14-25; and  (4)
 4    other  certificates  of error reducing assessed value by less
 5    than $100,000.  Any certificate of error not certified  shall
 6    be  presented to the court. The county assessor shall develop
 7    reasonable  procedures  for  the  filing  and  processing  of
 8    certificates  of  error.   Prior  to  the  certification   or
 9    presentation  to the court, the county assessor or his or her
10    designee shall execute and  include  in  the  certificate  of
11    error  a statement attesting that all procedural requirements
12    pertaining to the issuance of the certificate of  error  have
13    been met and that in fact an error exists. When so introduced
14    in evidence such certificate shall become a part of the court
15    records,  and shall not be removed from the files except upon
16    the order of the court.
17        Certificates of error that will be presented to the court
18    shall be  filed  as  an  objection  in  the  application  for
19    judgment  and order of sale for the year in relation to which
20    the certificate is made or as an amendment to  the  objection
21    under  subsection  (b).  Certificates of error that are to be
22    certified according  to  the  procedure  authorized  by  this
23    Section need not be presented to the court as an objection or
24    an  amendment  under  subsection (b). The State's Attorney of
25    the county in which the property is  situated  shall  mail  a
26    copy of any final judgment entered by the court regarding any
27    certificate  of  error to the taxpayer of record for the year
28    in question.
29        Any unpaid taxes after the entry of the final judgment by
30    the court or certification on certificates issued under  this
31    Section  may be included in a special tax sale, provided that
32    an advertisement is published and a notice is mailed  to  the
33    person  in whose name the taxes were last assessed, in a form
34    and manner substantially similar  to  the  advertisement  and
 
                            -5-      LRB093 06568 SJM 20199 a
 1    notice  required  under  Sections  21-110  and  21-135.   The
 2    advertisement  and sale shall be subject to all provisions of
 3    law  regulating  the  annual  advertisement   and   sale   of
 4    delinquent  property, to the extent that those provisions may
 5    be made applicable.
 6        A certificate of error certified under this Section shall
 7    be given effect by the county treasurer, who shall  mark  the
 8    tax   books  and,  upon  receipt  of  one  of  the  following
 9    certificates from the county assessor or the county  assessor
10    and the board of review where the board of review is required
11    to  endorse  the certificate of error, shall issue refunds to
12    the taxpayer accordingly:

13                           "CERTIFICATION
14        I, .................., county  assessor,  hereby  certify
15        that  the  Certificates  of Error set out on the attached
16        list have been duly issued to correct an error or mistake
17        in the assessment."

18                           "CERTIFICATION
19        I,   ..................,   county   assessor,   and   we,
20        ........................................................,
21        members of the board of review, hereby certify  that  the
22        Certificates  of  Error set out on the attached list have
23        been duly issued to correct an error or  mistake  in  the
24        assessment and that any certificates of error required to
25        be   endorsed  by  the  board  of  review  have  been  so
26        endorsed."

27        The county treasurer has the power to mark the tax  books
28    to  reflect  the  issuance of certificates of error certified
29    according to the procedure authorized  in  this  Section  for
30    certificates   of   error   issued  under  Section  14-25  or
31    certificates of error issued to and including 3  years  after
32    the  date  on which the annual judgment and order of sale for
33    that tax year was first entered.  The  county  treasurer  has
 
                            -6-      LRB093 06568 SJM 20199 a
 1    the power to issue refunds to the taxpayer as set forth above
 2    until  all  refunds  authorized  by  this  Section  have been
 3    completed.
 4        To the extent that the certificate of error obviates  the
 5    liability   for  nonpayment  of  taxes,  certification  of  a
 6    certificate of error according to the procedure authorized in
 7    this  Section  shall  operate  to  vacate  any  judgment   or
 8    forfeiture as to that year's taxes, and the warrant books and
 9    judgment  books  shall be marked to reflect that the judgment
10    or forfeiture has been vacated.
11        (b)  Nothing in subsection (a) of this Section  shall  be
12    construed  to  prohibit the execution, endorsement, issuance,
13    and adjudication of a certificate of error if (i) the  annual
14    judgment  and  order  of sale for the tax year in question is
15    reopened for further proceedings upon consent of  the  county
16    collector  and  county  assessor,  represented by the State's
17    Attorney, and (ii)  a  new  final  judgment  is  subsequently
18    entered  pursuant  to  the  certificate.  This subsection (b)
19    shall be construed as declarative of existing law and not  as
20    a new enactment.
21        (c)  No certificate of error, other than a certificate to
22    establish an exemption under Section 14-25, shall be executed
23    for  any  tax  year more than 3 years after the date on which
24    the annual judgment and order of sale for that tax  year  was
25    first  entered,  except  that  during calendar years 1999 and
26    2000 a certificate of error may be executed for any tax year,
27    provided that the error or  mistake  in  the  assessment  was
28    discovered  no  more than 3 years after the date on which the
29    annual judgment and order of sale for that tax year was first
30    entered.
31        (d)  The time limitation  of  subsection  (c)  shall  not
32    apply  to  a certificate of error correcting an assessment to
33    $1, under Section 10-35, on a parcel that  a  subdivision  or
34    planned  development  has  acquired by adverse possession, if
 
                            -7-      LRB093 06568 SJM 20199 a
 1    during the tax year for which the certificate is executed the
 2    subdivision or planned development used the parcel as  common
 3    area, as defined in Section 10-35, and if application for the
 4    certificate of error is made prior to December 1, 1997.
 5        (e)  The  changes made by this amendatory Act of the 91st
 6    General  Assembly  apply  to  certificates  of  error  issued
 7    before, on, and after the effective date of  this  amendatory
 8    Act of the 91st General Assembly.
 9    (Source: P.A. 90-4, eff. 3-7-97; 90-288, eff. 8-1-97; 90-655,
10    eff. 7-30-98; 91-393, eff. 7-30-99; 91-686, eff. 1-26-00.)

11        (35 ILCS 200/15-10)
12        Sec.     15-10.  Exempt    property;    procedures    for
13    certification.  All property  granted  an  exemption  by  the
14    Department  pursuant  to the requirements of Section 15-5 and
15    described  in  the  Sections  following  Section  15-30   and
16    preceding  Section  16-5,  to  the extent therein limited, is
17    exempt from  taxation.  In  order  to  maintain  that  exempt
18    status,  the  titleholder  or  the  owner  of  the beneficial
19    interest of any property that is exempt must  file  with  the
20    chief  county  assessment officer, on or before January 31 of
21    each year (May 31 in the case of property exempted by Section
22    15-170), an affidavit stating  whether  there  has  been  any
23    change  in the ownership or use of the property or the status
24    of  the  owner-resident,  or  that  a  disabled  veteran  who
25    qualifies under Section 15-165 owned and used the property as
26    of January 1 of that year.  The nature of any change shall be
27    stated in the  affidavit.    Failure  to  file  an  affidavit
28    shall,   in   the   discretion  of  the  assessment  officer,
29    constitute cause to terminate the exemption of that property,
30    notwithstanding any other provision of this Code. Owners of 5
31    or more such exempt parcels within a county may file a single
32    annual affidavit in lieu of an  affidavit  for  each  parcel.
33    The  assessment  officer,  upon  request,  shall  furnish  an
 
                            -8-      LRB093 06568 SJM 20199 a
 1    affidavit  form  to  the owners, in which the owner may state
 2    whether there has been any change in the ownership or use  of
 3    the property or status of the owner or resident as of January
 4    1  of  that year. The owner of 5 or more exempt parcels shall
 5    list all the properties giving the same information for  each
 6    parcel as required of owners who file individual affidavits.
 7        However,   titleholders   or  owners  of  the  beneficial
 8    interest in any property exempted under any of the  following
 9    provisions  are not required to submit an annual filing under
10    this Section:
11             (1)  Section 15-45 (burial grounds) in  counties  of
12        less   than   3,000,000   inhabitants   and  owned  by  a
13        not-for-profit organization.
14             (2)  Section 15-40.
15             (3)  Section 15-50 (United States property).
16        If there is a change in use or ownership, however, notice
17    must be filed pursuant to Section 15-20.
18        An application for homestead exemptions shall be filed as
19    provided  in  Section  15-170  (senior   citizens   homestead
20    exemption), Section 15-172 (senior citizens assessment freeze
21    homestead  exemption), and Sections Section 15-175 and 15-176
22    (general homestead exemption), respectively.
23    (Source: P.A. 92-333, eff. 8-10-01; 92-729, eff. 7-25-02.)

24        (35 ILCS 200/15-170)
25        Sec. 15-170.  Senior Citizens  Homestead  Exemption.   An
26    annual  homestead exemption limited, except as described here
27    with relation to cooperatives or life care facilities,  to  a
28    maximum  reduction set forth below from the property's value,
29    as  equalized or assessed by the Department, is  granted  for
30    property  that  is   occupied  as  a residence by a person 65
31    years of age or older who is liable for  paying  real  estate
32    taxes  on  the  property  and  is  an  owner of record of the
33    property or has a legal  or  equitable  interest  therein  as
 
                            -9-      LRB093 06568 SJM 20199 a
 1    evidenced  by  a  written  instrument, except for a leasehold
 2    interest, other than a leasehold interest of land on which  a
 3    single  family  residence  is located, which is occupied as a
 4    residence by a person 65 years or older who has an  ownership
 5    interest  therein,  legal,  equitable  or as a lessee, and on
 6    which he or she is liable for the payment of property  taxes.
 7    The  maximum  reduction  shall  be  $2,500  in  counties with
 8    3,000,000  or  more  inhabitants  and  $2,000  in  all  other
 9    counties.  For land improved with an apartment building owned
10    and operated as a cooperative, the maximum reduction from the
11    value of the property, as equalized by the Department,  shall
12    be  multiplied  by the number of apartments or units occupied
13    by a person 65 years of  age  or  older  who  is  liable,  by
14    contract  with  the  owner  or  owners of  record, for paying
15    property taxes on the property and is an owner of record of a
16    legal or equitable  interest  in  the  cooperative  apartment
17    building, other than a leasehold interest.  For land improved
18    with  a  life  care  facility, the maximum reduction from the
19    value of the property, as equalized by the Department,  shall
20    be  multiplied  by the number of apartments or units occupied
21    by persons 65 years of age  or  older,  irrespective  of  any
22    legal,  equitable, or leasehold interest in the facility, who
23    are liable, under a contract with  the  owner  or  owners  of
24    record  of  the  facility,  for  paying property taxes on the
25    property.  In a cooperative or a life care facility  where  a
26    homestead    exemption  has  been  granted,  the  cooperative
27    association or the management  firm  of  the  cooperative  or
28    facility   shall  credit  the  savings  resulting  from  that
29    exemption only to the apportioned tax liability of the  owner
30    or  resident  who qualified for the exemption. Any person who
31    willfully refuses to so credit the savings shall be guilty of
32    a Class B misdemeanor. Under this Section and Section 15-175,
33    "life care facility" means a facility as defined in Section 2
34    of the Life Care Facilities Act, with which the applicant for
 
                            -10-     LRB093 06568 SJM 20199 a
 1    the homestead exemption has a life care contract  as  defined
 2    in that Act.
 3        When  a  homestead  exemption has been granted under this
 4    Section and the  person  qualifying  subsequently  becomes  a
 5    resident  of  a facility licensed under the Nursing Home Care
 6    Act, the exemption shall continue so long  as  the  residence
 7    continues to be occupied by the qualifying person's spouse if
 8    the  spouse  is 65 years of age or older, or if the residence
 9    remains unoccupied but is still owned by the person qualified
10    for the homestead exemption.
11        A person who will be 65 years of age during  the  current
12    assessment  year shall be eligible to apply for the homestead
13    exemption during that assessment year. Application  shall  be
14    made  during  the application period in effect for the county
15    of his residence.
16        Beginning with assessment year 2003, for taxes payable in
17    2004, property that is first occupied as  a  residence  after
18    January  1 of any assessment year by a person who is eligible
19    for  the  senior  citizens  homestead  exemption  under  this
20    Section  must  be  granted  a  pro-rata  exemption  for   the
21    assessment  year. The amount of the pro-rata exemption is the
22    exemption allowed in the county under this Section divided by
23    365  and  multiplied  by  the  number  of  days  during   the
24    assessment  year the property is occupied as a residence by a
25    person eligible for the exemption under  this  Section.   The
26    chief   county   assessment  officer  must  adopt  reasonable
27    procedures  to  establish  eligibility  for   this   pro-rata
28    exemption.
29        The  assessor  or  chief  county  assessment  officer may
30    determine the eligibility of a life care facility to  receive
31    the   benefits   provided  by  this  Section,  by  affidavit,
32    application,  visual  inspection,  questionnaire   or   other
33    reasonable  methods  in  order to insure that the tax savings
34    resulting from the exemption are credited by  the  management
 
                            -11-     LRB093 06568 SJM 20199 a
 1    firm  to  the  apportioned  tax  liability of each qualifying
 2    resident.  The assessor may request reasonable proof that the
 3    management firm has so credited the exemption.
 4        The chief county assessment officer of each  county  with
 5    less  than 3,000,000 inhabitants shall provide to each person
 6    allowed a homestead exemption under this Section  a  form  to
 7    designate  any  other  person  to  receive a duplicate of any
 8    notice of delinquency in the payment of  taxes  assessed  and
 9    levied  under  this  Code  on  the  property  of  the  person
10    receiving  the  exemption.  The duplicate notice  shall be in
11    addition to the notice required to be provided to the  person
12    receiving  the  exemption,  and  shall be given in the manner
13    required by this Code.  The person filing the request for the
14    duplicate  notice  shall  pay  a   fee   of   $5   to   cover
15    administrative  costs  to  the supervisor of assessments, who
16    shall then file the  executed  designation  with  the  county
17    collector.   Notwithstanding any other provision of this Code
18    to the contrary, the filing of such an  executed  designation
19    requires the county collector to provide duplicate notices as
20    indicated by the designation.  A designation may be rescinded
21    by  the  person who executed such designation at any time, in
22    the manner and form required by the chief  county  assessment
23    officer.
24        The  assessor  or  chief  county  assessment  officer may
25    determine the eligibility of residential property to  receive
26    the   homestead   exemption   provided  by  this  Section  by
27    application,  visual  inspection,  questionnaire   or   other
28    reasonable  methods.   The  determination  shall  be  made in
29    accordance with guidelines established by the Department.
30        In counties with less  than  3,000,000  inhabitants,  the
31    county  board  may by resolution provide that if a person has
32    been granted a homestead exemption under  this  Section,  the
33    person qualifying need not reapply for the exemption.
34        In  counties  with  3,000,000  or  more inhabitants, if a
 
                            -12-     LRB093 06568 SJM 20199 a
 1    property has been granted a homestead  exemption  under  this
 2    Section,  the  person  qualifying  need  not  reapply for the
 3    exemption.
 4        In counties with less than 3,000,000 inhabitants, if  the
 5    assessor  or  chief county assessment officer requires annual
 6    application for verification of eligibility for an  exemption
 7    once  granted  under  this  Section, the application shall be
 8    mailed to the taxpayer.
 9        The assessor or chief  county  assessment  officer  shall
10    notify  each person who qualifies for an exemption under this
11    Section that the person may also qualify for deferral of real
12    estate taxes  under  the  Senior  Citizens  Real  Estate  Tax
13    Deferral  Act.  The notice shall set forth the qualifications
14    needed for deferral of real estate  taxes,  the  address  and
15    telephone  number  of  county collector, and a statement that
16    applications  for  deferral  of  real  estate  taxes  may  be
17    obtained from the county collector.
18        Notwithstanding Sections 6 and 8 of  the  State  Mandates
19    Act,  no  reimbursement  by  the  State  is  required for the
20    implementation of any mandate created by this Section.
21    (Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03.)

22        (35 ILCS 200/15-172)
23        Sec. 15-172. Senior Citizens Assessment Freeze  Homestead
24    Exemption.
25        (a)  This  Section  may  be  cited as the Senior Citizens
26    Assessment Freeze Homestead Exemption.
27        (b)  As used in this Section:
28        "Applicant"  means  an  individual  who  has   filed   an
29    application under this Section.
30        "Base  amount"  means  the  base  year equalized assessed
31    value of  the  residence  plus  the  first  year's  equalized
32    assessed  value of any added improvements which increased the
33    assessed value of the residence after the base year.
 
                            -13-     LRB093 06568 SJM 20199 a
 1        "Base year" means the taxable year prior to  the  taxable
 2    year  for which the applicant first qualifies and applies for
 3    the exemption provided that in the  prior  taxable  year  the
 4    property  was  improved  with  a permanent structure that was
 5    occupied as a residence by the applicant who was  liable  for
 6    paying real property taxes on the property and who was either
 7    (i)  an  owner  of  record  of  the  property or had legal or
 8    equitable interest in the property as evidenced by a  written
 9    instrument  or  (ii)  had  a legal or equitable interest as a
10    lessee in the parcel  of  property  that  was  single  family
11    residence.  If  in  any subsequent taxable year for which the
12    applicant  applies  and  qualifies  for  the  exemption   the
13    equalized  assessed  value  of the residence is less than the
14    equalized assessed value in the existing base year  (provided
15    that  such  equalized  assessed  value  is  not  based  on an
16    assessed value that results from a temporary irregularity  in
17    the  property that reduces the assessed value for one or more
18    taxable years),  then  that  subsequent  taxable  year  shall
19    become  the  base  year  until a new base year is established
20    under the terms of this paragraph.   For  taxable  year  1999
21    only,  the  Chief  County Assessment Officer shall review (i)
22    all  taxable  years  for  which  the  applicant  applied  and
23    qualified for the exemption and (ii) the existing base year.
24    The assessment officer shall select as the new base year  the
25    year  with  the lowest equalized assessed value. An equalized
26    assessed value that  is  based  on  an  assessed  value  that
27    results  from  a  temporary irregularity in the property that
28    reduces the assessed value for  one  or  more  taxable  years
29    shall  not be considered the lowest equalized assessed value.
30    The selected year shall be the base  year  for  taxable  year
31    1999  and  thereafter  until  a  new base year is established
32    under the terms of this paragraph.
33        "Chief  County  Assessment  Officer"  means  the   County
34    Assessor  or Supervisor of Assessments of the county in which
 
                            -14-     LRB093 06568 SJM 20199 a
 1    the property is located.
 2        "Equalized assessed value" means the  assessed  value  as
 3    equalized by the Illinois Department of Revenue.
 4        "Household"  means  the  applicant,  the  spouse  of  the
 5    applicant,  and  all  persons  using  the  residence  of  the
 6    applicant as their principal place of residence.
 7        "Household  income"  means  the  combined  income  of the
 8    members of a household for the calendar  year  preceding  the
 9    taxable year.
10        "Income" has the same meaning as provided in Section 3.07
11    of  the  Senior  Citizens  and  Disabled Persons Property Tax
12    Relief  and  Pharmaceutical  Assistance  Act,  except   that,
13    beginning  in assessment year 2001, "income" does not include
14    veteran's benefits.
15        "Internal Revenue Code of 1986" means the  United  States
16    Internal  Revenue  Code  of 1986 or any successor law or laws
17    relating to federal income  taxes  in  effect  for  the  year
18    preceding the taxable year.
19        "Life  care  facility  that  qualifies  as a cooperative"
20    means a facility as defined in Section 2  of  the  Life  Care
21    Facilities Act.
22        "Residence"   means  the  principal  dwelling  place  and
23    appurtenant structures used for residential purposes in  this
24    State  occupied  on  January  1  of  the  taxable  year  by a
25    household and so much of the surrounding  land,  constituting
26    the  parcel  upon which the dwelling place is situated, as is
27    used for residential purposes. If the Chief County Assessment
28    Officer has established a specific legal  description  for  a
29    portion  of  property  constituting  the residence, then that
30    portion of property shall be deemed  the  residence  for  the
31    purposes of this Section.
32        "Taxable  year"  means  the calendar year during which ad
33    valorem property taxes payable in the  next  succeeding  year
34    are levied.
 
                            -15-     LRB093 06568 SJM 20199 a
 1        (c)  Beginning  in  taxable  year 1994, a senior citizens
 2    assessment freeze homestead exemption  is  granted  for  real
 3    property  that is improved with a permanent structure that is
 4    occupied as a residence by an applicant who (i) is  65  years
 5    of age or older during the taxable year, (ii) has a household
 6    income  of  $35,000  or  less  prior to taxable year 1999, or
 7    $40,000 or less in taxable years year 1999 through  2002,  or
 8    $45,000 or less in taxable year 2003 and thereafter, (iii) is
 9    liable  for  paying  real property taxes on the property, and
10    (iv) is an owner of record of the property or has a legal  or
11    equitable  interest in the property as evidenced by a written
12    instrument. This homestead exemption shall also  apply  to  a
13    leasehold  interest  in  a parcel of property improved with a
14    permanent structure that is a single family residence that is
15    occupied as a residence by a person who (i) is  65  years  of
16    age  or  older  during the taxable year, (ii) has a household
17    income of $35,000 or less prior  to  taxable  year  1999,  or
18    $40,000  or  less in taxable years year 1999 through 2002, or
19    $45,000 or less in taxable year 2003  and  thereafter,  (iii)
20    has  a  legal or equitable ownership interest in the property
21    as lessee, and  (iv)  is  liable  for  the  payment  of  real
22    property taxes on that property.
23        The  amount  of  this  exemption  shall  be the equalized
24    assessed value of the residence in the taxable year for which
25    application is made minus the base amount.
26        When the applicant is a surviving spouse of an  applicant
27    for  a  prior  year  for  the  same  residence  for  which an
28    exemption under this Section has been granted, the base  year
29    and  base  amount  for that residence are the same as for the
30    applicant for the prior year.
31        Each year at the time the assessment books are  certified
32    to  the County Clerk, the Board of Review or Board of Appeals
33    shall give to the County Clerk a list of the assessed  values
34    of  improvements on each parcel qualifying for this exemption
 
                            -16-     LRB093 06568 SJM 20199 a
 1    that were added after the base year for this parcel and  that
 2    increased the assessed value of the property.
 3        In  the  case of land improved with an apartment building
 4    owned and operated as a cooperative or a building that  is  a
 5    life  care  facility  that  qualifies  as  a cooperative, the
 6    maximum reduction from the equalized assessed  value  of  the
 7    property  is  limited to the sum of the reductions calculated
 8    for each unit occupied as a residence by a person or  persons
 9    (i) 65 years of age or older, (ii) with a household income of
10    $35,000  or  less  prior  to taxable year 1999, or $40,000 or
11    less in taxable years year 1999 through 2002, or  $45,000  or
12    less  in  taxable  year  2003  and  thereafter,  (iii) who is
13    liable, by contract with the owner or owners of  record,  for
14    paying  real  property taxes on the property, and (iv) who is
15    an owner of record of a legal or equitable  interest  in  the
16    cooperative   apartment  building,  other  than  a  leasehold
17    interest. In the instance of a cooperative where a  homestead
18    exemption   has   been   granted   under  this  Section,  the
19    cooperative association or its management firm  shall  credit
20    the  savings  resulting  from  that  exemption  only  to  the
21    apportioned  tax liability of the owner who qualified for the
22    exemption.  Any person who willfully refuses to  credit  that
23    savings to an owner who qualifies for the exemption is guilty
24    of a Class B misdemeanor.
25        When  a  homestead  exemption has been granted under this
26    Section and  an  applicant  then  becomes  a  resident  of  a
27    facility  licensed  under  the  Nursing  Home  Care  Act, the
28    exemption shall be granted in subsequent years so long as the
29    residence (i) continues  to  be  occupied  by  the  qualified
30    applicant's  spouse or (ii) if remaining unoccupied, is still
31    owned by the qualified applicant for the homestead exemption.
32        Beginning January 1, 1997, when an  individual  dies  who
33    would have qualified for an exemption under this Section, and
34    the  surviving spouse does not independently qualify for this
 
                            -17-     LRB093 06568 SJM 20199 a
 1    exemption because of age, the exemption  under  this  Section
 2    shall be granted to the surviving spouse for the taxable year
 3    preceding  and  the taxable year of the death, provided that,
 4    except  for  age,  the  surviving  spouse  meets  all   other
 5    qualifications  for  the granting of this exemption for those
 6    years.
 7        When married persons maintain  separate  residences,  the
 8    exemption provided for in this Section may be claimed by only
 9    one of such persons and for only one residence.
10        For  taxable year 1994 only, in counties having less than
11    3,000,000 inhabitants, to receive  the  exemption,  a  person
12    shall submit an application by February 15, 1995 to the Chief
13    County Assessment Officer of the county in which the property
14    is   located.    In   counties   having   3,000,000  or  more
15    inhabitants, for taxable year 1994 and all subsequent taxable
16    years, to receive the  exemption,  a  person  may  submit  an
17    application  to  the  Chief  County Assessment Officer of the
18    county in which the property is located during such period as
19    may be specified by the Chief County Assessment Officer.  The
20    Chief County Assessment Officer in counties of  3,000,000  or
21    more   inhabitants   shall   annually   give  notice  of  the
22    application period by mail or by  publication.   In  counties
23    having   less  than  3,000,000  inhabitants,  beginning  with
24    taxable year 1995 and thereafter, to receive the exemption, a
25    person shall submit an application by July 1 of each  taxable
26    year  to the Chief County Assessment Officer of the county in
27    which the property is located.  A county may,  by  ordinance,
28    establish  a  date  for  submission  of  applications that is
29    different than July 1. The applicant shall  submit  with  the
30    application  an  affidavit of the applicant's total household
31    income, age, marital status (and  if  married  the  name  and
32    address  of  the applicant's spouse, if known), and principal
33    dwelling place of members of the household on  January  1  of
34    the  taxable year. The Department shall establish, by rule, a
 
                            -18-     LRB093 06568 SJM 20199 a
 1    method for verifying the  accuracy  of  affidavits  filed  by
 2    applicants  under  this  Section.  The  applications shall be
 3    clearly  marked  as  applications  for  the  Senior  Citizens
 4    Assessment Freeze Homestead Exemption.
 5        Notwithstanding any other provision to the  contrary,  in
 6    counties  having  fewer  than  3,000,000  inhabitants,  if an
 7    applicant fails to file  the  application  required  by  this
 8    Section in a timely manner and this failure to file is due to
 9    a  mental  or physical condition sufficiently severe so as to
10    render the applicant incapable of filing the application in a
11    timely manner, the Chief County Assessment Officer may extend
12    the filing deadline  for  a  period  of  30  days  after  the
13    applicant regains the capability to file the application, but
14    in  no  case  may  the  filing  deadline be extended beyond 3
15    months of the original filing deadline.  In order to  receive
16    the extension provided in this paragraph, the applicant shall
17    provide  the  Chief  County  Assessment Officer with a signed
18    statement from the applicant's physician stating  the  nature
19    and  extent  of  the  condition,  that,  in  the  physician's
20    opinion,  the  condition  was  so severe that it rendered the
21    applicant incapable of filing the  application  in  a  timely
22    manner,  and  the  date  on  which the applicant regained the
23    capability to file the application.
24        Beginning January  1,  1998,  notwithstanding  any  other
25    provision  to  the  contrary,  in  counties having fewer than
26    3,000,000 inhabitants, if an  applicant  fails  to  file  the
27    application  required  by this Section in a timely manner and
28    this failure to file is due to a mental or physical condition
29    sufficiently severe so as to render the  applicant  incapable
30    of  filing  the  application  in  a  timely manner, the Chief
31    County Assessment Officer may extend the filing deadline  for
32    a  period  of  3  months.   In order to receive the extension
33    provided in this paragraph, the applicant shall  provide  the
34    Chief  County Assessment Officer with a signed statement from
 
                            -19-     LRB093 06568 SJM 20199 a
 1    the applicant's physician stating the nature  and  extent  of
 2    the  condition,  and  that,  in  the physician's opinion, the
 3    condition was  so  severe  that  it  rendered  the  applicant
 4    incapable of filing the application in a timely manner.
 5        In counties having less than 3,000,000 inhabitants, if an
 6    applicant  was  denied  an exemption in taxable year 1994 and
 7    the denial occurred due  to  an  error  on  the  part  of  an
 8    assessment  official,  or  his or her agent or employee, then
 9    beginning in taxable year 1997 the applicant's base year, for
10    purposes of determining the amount of the exemption, shall be
11    1993 rather than 1994. In addition, in taxable year 1997, the
12    applicant's exemption shall also include an amount  equal  to
13    (i)  the  amount  of any exemption denied to the applicant in
14    taxable year 1995 as a result  of  using  1994,  rather  than
15    1993,  as  the  base  year,  (ii) the amount of any exemption
16    denied to the applicant in taxable year 1996 as a  result  of
17    using 1994, rather than 1993, as the base year, and (iii) the
18    amount  of  the exemption erroneously denied for taxable year
19    1994.
20        For purposes of this Section, a person  who  will  be  65
21    years  of  age  during  the  current  taxable  year  shall be
22    eligible to apply for the  homestead  exemption  during  that
23    taxable   year.    Application   shall  be  made  during  the
24    application period in effect for the county  of  his  or  her
25    residence.
26        The  Chief  County  Assessment  Officer may determine the
27    eligibility of a life  care  facility  that  qualifies  as  a
28    cooperative  to receive the benefits provided by this Section
29    by use  of  an  affidavit,  application,  visual  inspection,
30    questionnaire,  or other reasonable method in order to insure
31    that  the  tax  savings  resulting  from  the  exemption  are
32    credited by  the  management  firm  to  the  apportioned  tax
33    liability  of  each  qualifying  resident.   The Chief County
34    Assessment Officer may  request  reasonable  proof  that  the
 
                            -20-     LRB093 06568 SJM 20199 a
 1    management firm has so credited that exemption.
 2        Except  as  provided  in  this  Section,  all information
 3    received by  the  chief  county  assessment  officer  or  the
 4    Department  from  applications  filed  under this Section, or
 5    from any investigation conducted under the provisions of this
 6    Section, shall be confidential, except for official  purposes
 7    or  pursuant  to  official  procedures  for collection of any
 8    State or local tax or enforcement of any  civil  or  criminal
 9    penalty  or sanction imposed by this Act or by any statute or
10    ordinance imposing a State  or  local  tax.  Any  person  who
11    divulges  any  such  information  in  any  manner,  except in
12    accordance with a proper judicial order, is guilty of a Class
13    A misdemeanor.
14        Nothing contained  in  this  Section  shall  prevent  the
15    Director  or  chief county assessment officer from publishing
16    or making  available  reasonable  statistics  concerning  the
17    operation of the exemption contained in this Section in which
18    the  contents of claims are grouped into aggregates in such a
19    way that information contained in any individual claim  shall
20    not be disclosed.
21        (d)  Each  Chief County Assessment Officer shall annually
22    publish a notice of availability of  the  exemption  provided
23    under  this  Section.  The notice shall be published at least
24    60 days but no more than 75 days prior to the date  on  which
25    the  application  must  be  submitted  to  the  Chief  County
26    Assessment  Officer  of  the  county in which the property is
27    located.  The notice shall appear in a newspaper  of  general
28    circulation in the county.
29        (e)  Notwithstanding  Sections  6  and  8  of  the  State
30    Mandates  Act,  no reimbursement by the State is required for
31    the implementation of any mandate created by this Section.
32    (Source: P.A.  90-14,  eff.  7-1-97;  90-204,  eff.  7-25-97;
33    90-523,  eff.  11-13-97;  90-524,  eff.  1-1-98; 90-531, eff.
34    1-1-98; 90-655, eff. 7-30-98;  91-45,  eff.  6-30-99;  91-56,
 
                            -21-     LRB093 06568 SJM 20199 a
 1    eff. 6-30-99; 91-819, eff. 6-13-00.)

 2        (35 ILCS 200/15-175)
 3        Sec.  15-175.  General  homestead  exemption.   Except as
 4    provided in Section 15-176, homestead property is entitled to
 5    an annual homestead exemption limited,  except  as  described
 6    here  with  relation  to  cooperatives, to a reduction in the
 7    equalized assessed value of homestead property equal  to  the
 8    increase   in   equalized  assessed  value  for  the  current
 9    assessment year above the equalized  assessed  value  of  the
10    property  for  1977,  up  to  the maximum reduction set forth
11    below. If however, the 1977  equalized  assessed  value  upon
12    which  taxes  were  paid  is subsequently determined by local
13    assessing officials, the Property  Tax  Appeal  Board,  or  a
14    court  to  have  been excessive, the equalized assessed value
15    which should have been placed on the property for 1977  shall
16    be used to determine the amount of the exemption.
17        Except   as  provided  in  Section  15-176,  the  maximum
18    reduction shall be $4,500 in counties with 3,000,000 or  more
19    inhabitants and $3,500 in all other counties.
20        In  counties  with  fewer than 3,000,000 inhabitants, if,
21    based on the most recent assessment, the  equalized  assessed
22    value  of  the  homestead property for the current assessment
23    year is greater than the  equalized  assessed  value  of  the
24    property   for   1977,   the  owner  of  the  property  shall
25    automatically  receive  the  exemption  granted  under   this
26    Section  in  an  amount  equal  to the increase over the 1977
27    assessment up to the maximum  reduction  set  forth  in  this
28    Section.
29        If  in  any  assessment  year  beginning  with  the  2000
30    assessment  year, homestead property has a pro-rata valuation
31    under Section 9-180 resulting in an increase in the  assessed
32    valuation,  a reduction in equalized assessed valuation equal
33    to the increase in equalized assessed value of  the  property
 
                            -22-     LRB093 06568 SJM 20199 a
 1    for  the  year  of the pro-rata valuation above the equalized
 2    assessed value of the property for 1977 shall be  applied  to
 3    the  property  on  a  proportionate  basis for the period the
 4    property  qualified  as   homestead   property   during   the
 5    assessment   year.    The   maximum  proportionate  homestead
 6    exemption shall not exceed the  maximum  homestead  exemption
 7    allowed  in  the county under this Section divided by 365 and
 8    multiplied by the number of days the  property  qualified  as
 9    homestead property.
10        "Homestead   property"   under   this   Section  includes
11    residential property that is occupied by its owner or  owners
12    as  his  or  their  principal  dwelling  place,  or that is a
13    leasehold interest on which  a  single  family  residence  is
14    situated,  which  is  occupied as a residence by a person who
15    has an ownership interest therein, legal or equitable or as a
16    lessee, and on which the person is liable for the payment  of
17    property  taxes. For land improved with an apartment building
18    owned and operated as a cooperative or a building which is  a
19    life   care   facility  as  defined  in  Section  15-170  and
20    considered to be a  cooperative  under  Section  15-170,  the
21    maximum  reduction from the equalized assessed value shall be
22    limited to the increase in  the  value  above  the  equalized
23    assessed  value  of  the property for 1977, up to the maximum
24    reduction set  forth  above,  multiplied  by  the  number  of
25    apartments  or  units  occupied by a person or persons who is
26    liable, by contract with the owner or owners of  record,  for
27    paying  property  taxes  on  the  property and is an owner of
28    record of a legal or equitable interest  in  the  cooperative
29    apartment  building,  other  than  a  leasehold interest. For
30    purposes of this Section, the term "life care  facility"  has
31    the meaning stated in Section 15-170.
32        In  a  cooperative  where  a homestead exemption has been
33    granted, the cooperative association or its  management  firm
34    shall  credit  the savings resulting from that exemption only
 
                            -23-     LRB093 06568 SJM 20199 a
 1    to the apportioned tax liability of the owner  who  qualified
 2    for  the  exemption.   Any person who willfully refuses to so
 3    credit the savings shall be guilty of a Class B misdemeanor.
 4        Where married persons maintain  and  reside  in  separate
 5    residences  qualifying  as homestead property, each residence
 6    shall  receive  50%  of  the  total  reduction  in  equalized
 7    assessed valuation provided by this Section.
 8        In counties with more  than  3,000,000  inhabitants,  the
 9    assessor or chief county assessment officer may determine the
10    eligibility  of residential property to receive the homestead
11    exemption by application, visual inspection, questionnaire or
12    other reasonable methods.  The determination shall be made in
13    accordance with guidelines established by the Department.
14        In counties with fewer than 3,000,000 inhabitants, in the
15    event of a sale of homestead property the homestead exemption
16    shall remain in effect for the remainder  of  the  assessment
17    year  of  the  sale.  The assessor or chief county assessment
18    officer may require the new owner of the  property  to  apply
19    for  the  homestead  exemption  for  the following assessment
20    year.
21    (Source: P.A. 90-368, eff.  1-1-98;  90-552,  eff.  12-12-97;
22    90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)

23        (35 ILCS 200/15-176 new)
24        Sec.  15-176.  General  homestead  exemption  in counties
25    with 3,000,000 or more inhabitants.
26        (a)  In counties  with  3,000,000  or  more  inhabitants,
27    beginning with assessments made for the tax year 2003 and for
28    subsequent  tax  years,  homestead property is entitled to an
29    annual homestead  exemption  equal  to  a  reduction  in  the
30    property's equalized assessed value calculated as provided in
31    this Section.
32        (b)  As used in this Section:
33             (1)  "Assessor" means the elected county assessor.
 
                            -24-     LRB093 06568 SJM 20199 a
 1             (2)  "Adjusted  homestead value" means the lesser of
 2        the following values:
 3                  (A)  The  property's   base   homestead   value
 4             increased by 7% for each tax year after 2002 through
 5             and including the current tax year.
 6                  (B)  The  property's  equalized  assessed value
 7             for the current tax year minus $4,500.
 8             (3)  "Base homestead value" means:
 9                  (A)  The  equalized  assessed  value   of   the
10             property  for  tax  year  2002  prior to exemptions,
11             minus $4,500, provided that it was assessed for that
12             year as residential property qualified  for  any  of
13             the   homestead  exemptions  under  Sections  15-170
14             through 15-175 of this  Code,  then  in  force,  and
15             further  provided that the property's assessment was
16             not based on a reduced assessed value resulting from
17             a temporary irregularity in the  property  for  that
18             year.
19                  (B)  If the property did not have a residential
20             equalized  assessed  value  for  tax  year  2002  as
21             provided  in  subdivision (b)(3)(A) of this Section,
22             then the  "base  homestead  value"  means  the  base
23             homestead  value  established  by the assessor under
24             subsection (c).
25             (4)  "Current tax year" means the tax year for which
26        the exemption under this Section is being applied.
27             (5)  "Equalized assessed value" means the property's
28        assessed value as equalized by the Department.
29             (6)  "Homestead" or "homestead property" means:
30                  (A)  Residential property that as of January  1
31             of  the  tax year is occupied by its owner or owners
32             as his, her, or their principal dwelling  place,  or
33             that  is  a  leasehold  interest  on  which a single
34             family residence is situated, that is occupied as  a
 
                            -25-     LRB093 06568 SJM 20199 a
 1             residence  by  a person who has a legal or equitable
 2             interest therein evidenced by a written  instrument,
 3             as  an owner or as a lessee, and on which the person
 4             is  liable  for  the  payment  of  property   taxes.
 5             Residential units in an apartment building owned and
 6             operated  as  a  cooperative,  or  as  a  life  care
 7             facility,  which  are occupied by persons who hold a
 8             legal  or  equitable  interest  in  the  cooperative
 9             apartment building or life care facility  as  owners
10             or  lessees,  and who are liable by contract for the
11             payment of property taxes, shall be included  within
12             this  definition  of homestead property. Residential
13             property containing 6 or fewer dwelling units  shall
14             also  be  included  in  this definition of homestead
15             property provided that at least  one  such  unit  is
16             occupied  by  the property's owner or owners as his,
17             her, or their principal dwelling place.
18                  (B)  A homestead includes the  dwelling  place,
19             appurtenant   structures,   and   so   much  of  the
20             surrounding land constituting the  parcel  on  which
21             the  dwelling  place  is  situated  as  is  used for
22             residential   purposes.   If   the   assessor    has
23             established  a  specific  legal  description  for  a
24             portion of property constituting the homestead, then
25             the  homestead  shall  be  limited  to  the property
26             within that description.
27             (7)  "Life  care  facility"  means  a  facility   as
28        defined in Section 2 of the Life Care Facilities Act.
29        (c)  If the property did not have a residential equalized
30    assessed  value  for tax year 2002 as provided in subdivision
31    (b)(3)(A) of this Section,  then  the  assessor  shall  first
32    determine  an  initial  value  for the property by comparison
33    with assessed values for tax year 2002  of  other  properties
34    having physical and economic characteristics similar to those
 
                            -26-     LRB093 06568 SJM 20199 a
 1    of the subject property, so that the initial value is uniform
 2    in  relation to assessed values of those other properties for
 3    tax year 2002. The product of the initial value multiplied by
 4    2.4689, less $4,500, is the base homestead value.
 5        For any tax year for which  the  assessor  determines  or
 6    adjusts  an  initial  value  and hence a base homestead value
 7    under this subsection (c), the initial value shall be subject
 8    to review by  the  same  procedures  applicable  to  assessed
 9    values established under this Code for that tax year.
10        (d)  The  base  homestead  value  shall  remain constant,
11    except that the assessor may revise it  under  the  following
12    circumstances:
13             (1)  If  the equalized assessed value of a homestead
14        property for the  current  tax  year  is  less  than  the
15        previous base homestead value for that property, then the
16        current  equalized  assessed  value  (provided  it is not
17        based on  a  reduced  assessed  value  resulting  from  a
18        temporary  irregularity in the property) shall become the
19        base homestead value in subsequent tax years.
20             (2)  For  any   year   in   which   new   buildings,
21        structures,  or other improvements are constructed on the
22        homestead  property  that  would  increase  its  assessed
23        value, the assessor shall adjust the base homestead value
24        as provided in subsection (c) of this  Section  with  due
25        regard to the value added by the new improvements.
26        (e)  The  amount  of  the exemption under this Section is
27    the equalized assessed value of the  homestead  property  for
28    the  current  tax  year,  minus the adjusted homestead value.
29    Provided, however, that in the  case  of  homestead  property
30    that  also  qualifies for the exemption under Section 15-172,
31    the property is also entitled to  the  exemption  under  this
32    Section, limited to the amount of $4,500.
33        (f)  In  the  case  of  an  apartment  building owned and
34    operated as a cooperative, or as a life care  facility,  that
 
                            -27-     LRB093 06568 SJM 20199 a
 1    contains residential units that qualify as homestead property
 2    under  this  Section, the maximum cumulative exemption amount
 3    attributed to the  entire  building  or  facility  shall  not
 4    exceed   the  sum  of  the  exemptions  calculated  for  each
 5    qualified  residential  unit.  The  cooperative  association,
 6    management firm, or other person or entity  that  manages  or
 7    controls  the  cooperative  apartment  building  or life care
 8    facility shall credit  the  exemption  attributable  to  each
 9    residential unit only to the apportioned tax liability of the
10    owner  or other person responsible for payment of taxes as to
11    that unit. Any person who willfully refuses to so credit  the
12    exemption is guilty of a Class B misdemeanor.
13        (g)  When  married  persons maintain separate residences,
14    the exemption provided under this Section shall be claimed by
15    only one such person and for only one residence.
16        (h)  In the event of a sale of  the  homestead  property,
17    the  exemption  under this Section shall remain in effect for
18    the remainder of the tax year in which the sale  occurs.  The
19    assessor  may  require the new owner of the property to apply
20    for the exemption in the following year.
21        (i)  The  assessor   may   determine   whether   property
22    qualifies  as  a homestead under this Section by application,
23    visual  inspection,  questionnaire,   or   other   reasonable
24    methods.  Each  year,  at  the  time the assessment books are
25    certified to the county clerk by the  board  of  review,  the
26    assessor  shall  furnish  to  the  county clerk a list of the
27    properties qualified for the homestead exemption  under  this
28    Section. The list shall note the base homestead value of each
29    property  to  be used in the calculation of the exemption for
30    the current tax year.
31        (j)  The provisions of this Section apply as follows:
32             (1)  If the general assessment year for the property
33        is 2003, this Section applies for assessment years  2003,
34        2004, 2005, 2006, 2007, 2008, 2009, and 2010. Thereafter,
 
                            -28-     LRB093 06568 SJM 20199 a
 1        the provisions of Section 15-175 apply.
 2             (2)  If the general assessment year for the property
 3        is  2004, this Section applies for assessment years 2004,
 4        2005, 2006, 2007, 2008, 2009, and 2010.  Thereafter,  the
 5        provisions of Section 15-175 apply.
 6             (3)  If the general assessment year for the property
 7        is  2005, this Section applies for assessment years 2005,
 8        2006,  2007,  2008,  2009,  and  2010.  Thereafter,   the
 9        provisions of Section 15-175 apply.
10        (k)  Notwithstanding  Sections  6  and  8  of  the  State
11    Mandates  Act,  no reimbursement by the State is required for
12    the implementation of any mandate created by this Section.

13        (35 ILCS 200/15-180)
14        Sec.   15-180.    Homestead   improvements.     Homestead
15    properties that have been improved and residential structures
16    on  homestead  property  that  have  been rebuilt following a
17    catastrophic event are entitled to  a  homestead  improvement
18    exemption,  limited  to $30,000 per year through December 31,
19    1997, and $45,000  beginning  January  1,  1998  and  through
20    December  31,  2003,  and $75,000 per year for that homestead
21    property beginning January 1, 2004 and  thereafter,  in  fair
22    cash  value, when that property is owned and used exclusively
23    for a residential  purpose  and  upon  demonstration  that  a
24    proposed increase in assessed value is attributable solely to
25    a  new improvement of an existing structure or the rebuilding
26    of a residential structure following  a  catastrophic  event.
27    To  be  eligible  for an exemption under this Section after a
28    catastrophic event, the residential structure must be rebuilt
29    within 2 years after the catastrophic  event.  The  exemption
30    for  rebuilt  structures  under  this  Section applies to the
31    increase in value of the rebuilt structure over the value  of
32    the  structure  before the catastrophic event.  The amount of
33    the exemption shall be limited to the fair cash  value  added
 
                            -29-     LRB093 06568 SJM 20199 a
 1    by the new improvement or rebuilding and shall continue for 4
 2    years   from  the  date  the  improvement  or  rebuilding  is
 3    completed and occupied, or until the next  following  general
 4    assessment of that property, whichever is later.
 5        A proclamation of disaster by the President of the United
 6    States  or  Governor  of  the  State  of  Illinois  is  not a
 7    prerequisite to the classification  of  an  occurrence  as  a
 8    catastrophic  event  under  this  Section.   A  "catastrophic
 9    event"  may  include  an  occurrence  of widespread or severe
10    damage or loss of property resulting  from  any  catastrophic
11    cause  including  but  not  limited  to fire, including arson
12    (provided the fire was not caused by the willful action of an
13    owner or resident of the property), flood, earthquake,  wind,
14    storm,  explosion,  or  extended  periods of severe inclement
15    weather.  In the case of a residential structure affected  by
16    flooding,  the  structure  shall  not  be  eligible  for this
17    homestead improvement exemption unless it is located within a
18    local jurisdiction which is  participating  in  the  National
19    Flood Insurance Program.
20        In  counties  of  less  than  3,000,000  inhabitants,  in
21    addition  to  the  notice  requirement under Section 12-30, a
22    supervisor of assessments, county assessor,  or  township  or
23    multi-township  assessor responsible for adding an assessable
24    improvement to  a  residential  property's  assessment  shall
25    either  notify  a  taxpayer whose assessment has been changed
26    since the last preceding assessment that he  or  she  may  be
27    eligible  for  the  exemption  provided under this Section or
28    shall grant the exemption automatically.
29        Beginning January 1, 1999, in counties  of  3,000,000  or
30    more  inhabitants, an application for a homestead improvement
31    exemption for a residential structure that has  been  rebuilt
32    following a catastrophic event must be submitted to the Chief
33    County  Assessment  Officer  with a valuation complaint and a
34    copy of the building permit to rebuild  the  structure.   The
 
                            -30-     LRB093 06568 SJM 20199 a
 1    Chief   County  Assessment  Officer  may  require  additional
 2    documentation which must be provided by the applicant.
 3    (Source: P.A.  89-595,  eff.  1-1-97;  89-690,  eff.  6-1-97;
 4    90-14,  eff.  7-1-97;  90-186,  eff.  7-24-97;  90-655,  eff.
 5    7-30-98; 90-704, eff. 8-7-98.)

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

32        Section 15.  The County Economic Development Project Area
 
                            -31-     LRB093 06568 SJM 20199 a
 1    Property  Tax Allocation Act is amended by changing Section 6
 2    as follows:

 3        (55 ILCS 85/6) (from Ch. 34, par. 7006)
 4        Sec. 6.   Filing  with  county  clerk;  certification  of
 5    initial equalized assessed value.
 6        (a)  The  county  shall  file  a  certified  copy  of any
 7    ordinance authorizing property tax allocation  financing  for
 8    an  economic  development project area with the county clerk,
 9    and the county clerk shall immediately  thereafter  determine
10    (1) the most recently ascertained equalized assessed value of
11    each  lot, block, tract or parcel of real property within the
12    economic  development  project  area  from  which  shall   be
13    deducted   the  homestead  exemptions  provided  by  Sections
14    15-170, and 15-175, and 15-176  of  the  Property  Tax  Code,
15    which  value  shall be the "initial equalized assessed value"
16    of each such piece of property, and (2) the  total  equalized
17    assessed  value  of  all  taxable  real  property  within the
18    economic development project area by adding together the most
19    recently ascertained equalized assessed value of each taxable
20    lot, block, tract, or parcel of  real  property  within  such
21    economic  development  project  area,  from  which  shall  be
22    deducted   the  homestead  exemptions  provided  by  Sections
23    15-170, and 15-175, and 15-176 of the Property Tax Code. Upon
24    receiving written notice from the Department of its  approval
25    and  certification of such economic development project area,
26    the county clerk shall immediately certify such amount as the
27    "total initial  equalized  assessed  value"  of  the  taxable
28    property within the economic development project area.
29        (b)  After  the  county  clerk  has  certified the "total
30    initial  equalized  assessed  value"  of  the  taxable   real
31    property  in  the  economic development project area, then in
32    respect to  every  taxing  district  containing  an  economic
33    development  project  area,  the  county  clerk  or any other
 
                            -32-     LRB093 06568 SJM 20199 a
 1    official required by law  to  ascertain  the  amount  of  the
 2    equalized  assessed value of all taxable property within that
 3    taxing district for the purpose of computing the rate percent
 4    of tax to be extended upon taxable property within the taxing
 5    district, shall in every year that  property  tax  allocation
 6    financing  is  in  effect  ascertain  the  amount of value of
 7    taxable property in an economic development project  area  by
 8    including  in  that amount the lower of the current equalized
 9    assessed value or  the  certified  "total  initial  equalized
10    assessed  value"  of  all taxable real property in such area.
11    The rate percent of tax determined shall be extended  to  the
12    current  equalized  assessed  value  of  all  property in the
13    economic development project area in the same manner  as  the
14    rate percent of tax is extended to all other taxable property
15    in  the  taxing  district.   The  method  of allocating taxes
16    established under  this  Section  shall  terminate  when  the
17    county   adopts  an  ordinance  dissolving  the  special  tax
18    allocation fund for the economic  development  project  area.
19    This  Act shall not be construed as relieving property owners
20    within an economic development project  area  from  paying  a
21    uniform  rate  of  taxes  upon the current equalized assessed
22    value of their taxable property as provided in  the  Property
23    Tax Code.
24    (Source: P.A. 88-670, eff. 12-2-94.)

25        Section 20.  The County Economic Development Project Area
26    Tax  Increment  Allocation Act of 1991 is amended by changing
27    Section 45 as follows:

28        (55 ILCS 90/45) (from Ch. 34, par. 8045)
29        Sec. 45.  Filing  with  county  clerk;  certification  of
30    initial equalized assessed value.
31        (a)  A  county that has by ordinance approved an economic
32    development plan, established an economic development project
 
                            -33-     LRB093 06568 SJM 20199 a
 1    area, and adopted tax increment allocation financing for that
 2    area  shall  file  certified  copies  of  the  ordinance   or
 3    ordinances   with  the  county  clerk.   Upon  receiving  the
 4    ordinance or ordinances, the county clerk  shall  immediately
 5    determine   (i)   the  most  recently  ascertained  equalized
 6    assessed value of each lot, block, tract, or parcel  of  real
 7    property  within  the  economic development project area from
 8    which shall be deducted the homestead exemptions provided  by
 9    Sections  15-170,  and 15-175, and 15-176 of the Property Tax
10    Code (that value being the "initial equalized assessed value"
11    of each such piece of property) and (ii) the total  equalized
12    assessed  value  of  all  taxable  real  property  within the
13    economic development project area by adding together the most
14    recently ascertained equalized assessed value of each taxable
15    lot, block, tract, or parcel  of  real  property  within  the
16    economic  development  project  area,  from  which  shall  be
17    deducted the homestead exemptions provided by Sections 15-170
18    and  15-175  of the Property Tax Code, and shall certify that
19    amount as the "total initial equalized assessed value" of the
20    taxable real property within the economic development project
21    area.
22        (b)  After the county  clerk  has  certified  the  "total
23    initial   equalized  assessed  value"  of  the  taxable  real
24    property in the economic development project  area,  then  in
25    respect  to  every  taxing  district  containing  an economic
26    development project area,  the  county  clerk  or  any  other
27    official  required  by  law  to  ascertain  the amount of the
28    equalized assessed value of all taxable property  within  the
29    taxing  district  for  the  purpose of computing the rate per
30    cent of tax to be extended upon taxable property  within  the
31    taxing  district  shall,  in  every  year  that tax increment
32    allocation financing is in effect, ascertain  the  amount  of
33    value  of taxable property in an economic development project
34    area by including in that amount the  lower  of  the  current
 
                            -34-     LRB093 06568 SJM 20199 a
 1    equalized  assessed  value  or  the  certified "total initial
 2    equalized assessed value" of all taxable real property in the
 3    area.  The rate per cent of tax determined shall be  extended
 4    to  the  current  equalized assessed value of all property in
 5    the economic development project area in the same  manner  as
 6    the  rate  per  cent  of tax is extended to all other taxable
 7    property in the taxing district.   The  method  of  extending
 8    taxes established under this Section shall terminate when the
 9    county   adopts  an  ordinance  dissolving  the  special  tax
10    allocation fund for the economic  development  project  area.
11    This  Act shall not be construed as relieving property owners
12    within an economic development project  area  from  paying  a
13    uniform  rate  of  taxes  upon the current equalized assessed
14    value of their taxable property as provided in  the  Property
15    Tax Code.
16    (Source: P.A. 87-1; 88-670, eff. 12-2-94.)

17        Section  25.   The  Illinois Municipal Code is amended by
18    changing Sections 11-74.4-8,  11-74.4-9,  and  11-74.6-40  as
19    follows:

20        (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
21        Sec.  11-74.4-8.  Tax  increment  allocation financing. A
22    municipality may not  adopt  tax  increment  financing  in  a
23    redevelopment  project  area after the effective date of this
24    amendatory Act of 1997 that will encompass an  area  that  is
25    currently  included  in  an enterprise zone created under the
26    Illinois  Enterprise  Zone  Act  unless  that   municipality,
27    pursuant  to Section 5.4 of the Illinois Enterprise Zone Act,
28    amends the enterprise zone designating ordinance to limit the
29    eligibility for tax abatements as provided in  Section  5.4.1
30    of  the  Illinois Enterprise Zone Act. A municipality, at the
31    time a redevelopment project area is  designated,  may  adopt
32    tax  increment  allocation  financing by passing an ordinance
 
                            -35-     LRB093 06568 SJM 20199 a
 1    providing that the ad valorem taxes, if any, arising from the
 2    levies upon  taxable  real  property  in  such  redevelopment
 3    project  area by taxing districts and tax rates determined in
 4    the manner provided in paragraph  (c)  of  Section  11-74.4-9
 5    each  year  after  the  effective date of the ordinance until
 6    redevelopment project costs  and  all  municipal  obligations
 7    financing  redevelopment  project  costs  incurred under this
 8    Division have been paid shall be divided as follows:
 9        (a)  That portion of taxes levied upon each taxable  lot,
10    block, tract or parcel of real property which is attributable
11    to  the  lower of the current equalized assessed value or the
12    initial equalized assessed value of each  such  taxable  lot,
13    block,  tract or parcel of real property in the redevelopment
14    project area shall be allocated to and when  collected  shall
15    be  paid  by  the county collector to the respective affected
16    taxing districts in the manner required by law in the absence
17    of the adoption of tax increment allocation financing.
18        (b)  Except from a tax levied by  a  township  to  retire
19    bonds  issued to satisfy court-ordered damages, that portion,
20    if any, of such taxes which is attributable to  the  increase
21    in  the  current equalized assessed valuation of each taxable
22    lot,  block,  tract  or  parcel  of  real  property  in   the
23    redevelopment   project  area  over  and  above  the  initial
24    equalized assessed value of each property in the project area
25    shall be allocated to and when collected shall be paid to the
26    municipal treasurer who  shall  deposit  said  taxes  into  a
27    special  fund  called  the special tax allocation fund of the
28    municipality for the purpose of paying redevelopment  project
29    costs and obligations incurred in the payment thereof. In any
30    county  with  a  population  of  3,000,000  or  more that has
31    adopted a procedure for collecting taxes  that  provides  for
32    one or more of the installments of the taxes to be billed and
33    collected  on  an  estimated  basis,  the municipal treasurer
34    shall be paid for deposit in the special tax allocation  fund
 
                            -36-     LRB093 06568 SJM 20199 a
 1    of  the municipality, from the taxes collected from estimated
 2    bills issued for property in the redevelopment project  area,
 3    the  difference  between  the  amount actually collected from
 4    each taxable lot, block, tract, or parcel  of  real  property
 5    within   the   redevelopment   project  area  and  an  amount
 6    determined by multiplying the rate at which taxes  were  last
 7    extended  against the taxable lot, block, track, or parcel of
 8    real property in the manner provided  in  subsection  (c)  of
 9    Section  11-74.4-9 by the initial equalized assessed value of
10    the property divided by the number of installments  in  which
11    real estate taxes are billed and collected within the county;
12    provided  that the payments on or before December 31, 1999 to
13    a municipal treasurer shall be  made  only  if  each  of  the
14    following conditions are met:
15             (1)  The  total  equalized  assessed  value  of  the
16        redevelopment  project  area  as  last determined was not
17        less than 175% of the total  initial  equalized  assessed
18        value.
19             (2)  Not  more  than  50%  of  the  total  equalized
20        assessed  value of the redevelopment project area as last
21        determined  is  attributable  to  a  piece  of   property
22        assigned a single real estate index number.
23             (3)  The municipal clerk has certified to the county
24        clerk that the municipality has issued its obligations to
25        which  there  has  been  pledged the incremental property
26        taxes of the redevelopment project area or  taxes  levied
27        and  collected on any or all property in the municipality
28        or the full faith and credit of the municipality  to  pay
29        or   secure   payment   for  all  or  a  portion  of  the
30        redevelopment project costs. The certification  shall  be
31        filed   annually  no  later  than  September  1  for  the
32        estimated taxes to be distributed in the following  year;
33        however,  for  the  year  1992 the certification shall be
34        made at any time on or before March 31, 1992.
 
                            -37-     LRB093 06568 SJM 20199 a
 1             (4)  The municipality has  not  requested  that  the
 2        total  initial  equalized assessed value of real property
 3        be adjusted as provided  in  subsection  (b)  of  Section
 4        11-74.4-9.
 5        The conditions of paragraphs (1) through (4) do not apply
 6    after  December 31, 1999 to payments to a municipal treasurer
 7    made by a county with 3,000,000 or more inhabitants that  has
 8    adopted  an estimated billing procedure for collecting taxes.
 9    If a county that has adopted the estimated billing  procedure
10    makes   an  erroneous  overpayment  of  tax  revenue  to  the
11    municipal treasurer, then the county may  seek  a  refund  of
12    that   overpayment.  The  county  shall  send  the  municipal
13    treasurer a notice of liability for  the  overpayment  on  or
14    before  the  mailing  date  of  the next real estate tax bill
15    within the county.  The refund shall be limited to the amount
16    of the overpayment.
17        It  is  the  intent  of  this  Division  that  after  the
18    effective  date  of   this   amendatory   Act   of   1988   a
19    municipality's  own  ad  valorem  tax  arising from levies on
20    taxable real property be included  in  the  determination  of
21    incremental  revenue  in the manner provided in paragraph (c)
22    of Section 11-74.4-9. If the  municipality  does  not  extend
23    such  a  tax, it shall annually deposit in the municipality's
24    Special Tax Increment Fund an amount  equal  to  10%  of  the
25    total  contributions  to  the  fund  from  all  other  taxing
26    districts  in  that year.  The annual 10% deposit required by
27    this paragraph shall be  limited  to  the  actual  amount  of
28    municipally  produced  incremental  tax revenues available to
29    the municipality from taxpayers located in the  redevelopment
30    project  area  in  that  year  if:  (a) the plan for the area
31    restricts the use of the  property  primarily  to  industrial
32    purposes, (b) the municipality establishing the redevelopment
33    project  area is a home-rule community with a 1990 population
34    of between 25,000 and 50,000, (c) the municipality is  wholly
 
                            -38-     LRB093 06568 SJM 20199 a
 1    located  within  a  county  with  a  1990  population of over
 2    750,000  and  (d)  the   redevelopment   project   area   was
 3    established  by the municipality prior to June 1, 1990.  This
 4    payment shall be in lieu of  a  contribution  of  ad  valorem
 5    taxes  on  real  property.  If  no  such payment is made, any
 6    redevelopment project  area  of  the  municipality  shall  be
 7    dissolved.
 8        If  a  municipality  has adopted tax increment allocation
 9    financing  by  ordinance  and  the  County  Clerk  thereafter
10    certifies the "total  initial  equalized  assessed  value  as
11    adjusted"   of   the   taxable   real  property  within  such
12    redevelopment  project  area  in  the  manner   provided   in
13    paragraph  (b) of Section 11-74.4-9, each year after the date
14    of the certification of the total initial equalized  assessed
15    value  as  adjusted until redevelopment project costs and all
16    municipal obligations financing redevelopment  project  costs
17    have been paid the ad valorem taxes, if any, arising from the
18    levies  upon  the taxable real property in such redevelopment
19    project area by taxing districts and tax rates determined  in
20    the  manner  provided  in  paragraph (c) of Section 11-74.4-9
21    shall be divided as follows:
22             (1)  That portion of  the  taxes  levied  upon  each
23        taxable  lot,  block,  tract  or  parcel of real property
24        which  is  attributable  to  the  lower  of  the  current
25        equalized assessed value or "current  equalized  assessed
26        value  as  adjusted"  or  the  initial equalized assessed
27        value of each such taxable lot, block, tract,  or  parcel
28        of  real  property  existing  at  the  time tax increment
29        financing was adopted, minus the total current  homestead
30        exemptions  provided  by Sections 15-170, and 15-175, and
31        15-176 of the Property  Tax  Code  in  the  redevelopment
32        project  area  shall  be  allocated to and when collected
33        shall be paid by the county collector to  the  respective
34        affected  taxing  districts in the manner required by law
 
                            -39-     LRB093 06568 SJM 20199 a
 1        in  the  absence  of  the  adoption  of   tax   increment
 2        allocation financing.
 3             (2)  That  portion,  if  any, of such taxes which is
 4        attributable to the increase  in  the  current  equalized
 5        assessed  valuation of each taxable lot, block, tract, or
 6        parcel of real  property  in  the  redevelopment  project
 7        area, over and above the initial equalized assessed value
 8        of  each  property  existing  at  the  time tax increment
 9        financing was adopted, minus the total current  homestead
10        exemptions  pertaining to each piece of property provided
11        by  Sections  15-170,  and  15-175,  and  15-176  of  the
12        Property Tax Code  in  the  redevelopment  project  area,
13        shall be allocated to and when collected shall be paid to
14        the  municipal  Treasurer,  who  shall deposit said taxes
15        into a special fund called  the  special  tax  allocation
16        fund  of  the  municipality  for  the  purpose  of paying
17        redevelopment project costs and obligations  incurred  in
18        the payment thereof.
19        The municipality may pledge in the ordinance the funds in
20    and  to  be  deposited in the special tax allocation fund for
21    the payment of such costs and obligations.  No  part  of  the
22    current  equalized assessed valuation of each property in the
23    redevelopment project area attributable to any increase above
24    the total initial equalized  assessed  value,  or  the  total
25    initial   equalized  assessed  value  as  adjusted,  of  such
26    properties shall be used in  calculating  the  general  State
27    school  aid  formula,  provided  for  in  Section 18-8 of the
28    School Code, until such time  as  all  redevelopment  project
29    costs have been paid as provided for in this Section.
30        Whenever  a  municipality issues bonds for the purpose of
31    financing redevelopment project costs, such municipality  may
32    provide  by ordinance for the appointment of a trustee, which
33    may be any trust  company  within  the  State,  and  for  the
34    establishment  of  such funds or accounts to be maintained by
 
                            -40-     LRB093 06568 SJM 20199 a
 1    such trustee as the  municipality  shall  deem  necessary  to
 2    provide  for  the security and payment of the bonds.  If such
 3    municipality provides for the appointment of a trustee,  such
 4    trustee  shall  be  considered  the  assignee of any payments
 5    assigned by the municipality pursuant to such  ordinance  and
 6    this  Section.   Any amounts paid to such trustee as assignee
 7    shall be deposited  in  the  funds  or  accounts  established
 8    pursuant  to  such trust agreement, and shall be held by such
 9    trustee in trust for the benefit of the holders of the bonds,
10    and such holders shall have a lien on and a security interest
11    in such funds  or  accounts  so  long  as  the  bonds  remain
12    outstanding  and  unpaid.  Upon  retirement of the bonds, the
13    trustee shall  pay  over  any  excess  amounts  held  to  the
14    municipality for deposit in the special tax allocation fund.
15        When such redevelopment projects costs, including without
16    limitation  all municipal obligations financing redevelopment
17    project costs incurred under this Division, have  been  paid,
18    all   surplus   funds  then  remaining  in  the  special  tax
19    allocation fund shall be distributed by  being  paid  by  the
20    municipal   treasurer  to  the  Department  of  Revenue,  the
21    municipality  and  the  county  collector;   first   to   the
22    Department   of   Revenue  and  the  municipality  in  direct
23    proportion to the tax incremental revenue received  from  the
24    State  and  the  municipality,  but  not  to exceed the total
25    incremental  revenue  received  from   the   State   or   the
26    municipality   less   any   annual  surplus  distribution  of
27    incremental revenue previously made; with any remaining funds
28    to be paid to the  County  Collector  who  shall  immediately
29    thereafter  pay  said  funds  to  the taxing districts in the
30    redevelopment project area in the same manner and  proportion
31    as  the  most  recent distribution by the county collector to
32    the affected districts  of  real  property  taxes  from  real
33    property in the redevelopment project area.
34        Upon  the payment of all redevelopment project costs, the
 
                            -41-     LRB093 06568 SJM 20199 a
 1    retirement of obligations, the  distribution  of  any  excess
 2    monies  pursuant  to  this  Section, and final closing of the
 3    books and records of  the  redevelopment  project  area,  the
 4    municipality  shall adopt an ordinance dissolving the special
 5    tax allocation fund for the redevelopment  project  area  and
 6    terminating the designation of the redevelopment project area
 7    as  a  redevelopment  project area. Title to real or personal
 8    property and public  improvements  acquired  by  or  for  the
 9    municipality  as  a  result  of the redevelopment project and
10    plan shall vest in the municipality when acquired  and  shall
11    continue   to   be   held   by  the  municipality  after  the
12    redevelopment   project    area    has    been    terminated.
13    Municipalities  shall  notify affected taxing districts prior
14    to November 1 if the redevelopment  project  area  is  to  be
15    terminated   by   December  31  of  that  same  year.   If  a
16    municipality extends  estimated  dates  of  completion  of  a
17    redevelopment   project  and  retirement  of  obligations  to
18    finance  a  redevelopment  project,  as   allowed   by   this
19    amendatory  Act  of 1993, that extension shall not extend the
20    property tax increment  allocation  financing  authorized  by
21    this  Section.   Thereafter the rates of the taxing districts
22    shall be extended and taxes levied, collected and distributed
23    in the manner applicable in the absence of  the  adoption  of
24    tax increment allocation financing.
25        Nothing  in  this Section shall be construed as relieving
26    property in  such  redevelopment  project  areas  from  being
27    assessed as provided in the Property Tax Code or as relieving
28    owners  of such property from paying a uniform rate of taxes,
29    as required by  Section  4  of  Article  9  of  the  Illinois
30    Constitution.
31    (Source: P.A. 92-16, eff. 6-28-01; 93-298, eff. 7-23-03.)

32        (65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
33        Sec. 11-74.4-9.  Equalized assessed value of property.
 
                            -42-     LRB093 06568 SJM 20199 a
 1        (a)  If  a  municipality  by  ordinance  provides for tax
 2    increment allocation financing pursuant to Section 11-74.4-8,
 3    the county clerk immediately thereafter shall  determine  (1)
 4    the  most  recently  ascertained  equalized assessed value of
 5    each lot, block, tract or parcel of real property within such
 6    redevelopment project area from which shall be  deducted  the
 7    homestead exemptions provided by Sections 15-170, and 15-175,
 8    and 15-176 of the Property Tax Code, which value shall be the
 9    "initial  equalized  assessed  value"  of  each such piece of
10    property, and (2) the total equalized assessed value  of  all
11    taxable  real property within such redevelopment project area
12    by adding together the most  recently  ascertained  equalized
13    assessed  value  of each taxable lot, block, tract, or parcel
14    of real property within such project area, from  which  shall
15    be  deducted  the  homestead  exemptions provided by Sections
16    15-170, and 15-175, and 15-176 of the Property Tax Code,  and
17    shall  certify  such  amount  as the "total initial equalized
18    assessed value" of the  taxable  real  property  within  such
19    project area.
20        (b)  In  reference  to any municipality which has adopted
21    tax increment financing after January 1, 1978, and in respect
22    to which the county clerk has certified  the  "total  initial
23    equalized   assessed   value"   of   the   property   in  the
24    redevelopment area, the municipality may  thereafter  request
25    the clerk in writing to adjust the initial equalized value of
26    all  taxable  real  property within the redevelopment project
27    area by deducting therefrom the exemptions  provided  for  by
28    Sections  15-170,  and 15-175, and 15-176 of the Property Tax
29    Code applicable to each lot, block, tract or parcel  of  real
30    property  within such redevelopment project area.  The county
31    clerk shall immediately after the written request  to  adjust
32    the  total  initial equalized value is received determine the
33    total homestead exemptions in the redevelopment project  area
34    provided  by  Sections  15-170, and 15-175, and 15-176 of the
 
                            -43-     LRB093 06568 SJM 20199 a
 1    Property Tax Code by adding together the homestead exemptions
 2    provided by said Sections on each lot, block, tract or parcel
 3    of real property within such redevelopment project  area  and
 4    then shall deduct the total of said exemptions from the total
 5    initial  equalized  assessed  value.   The county clerk shall
 6    then promptly certify  such  amount  as  the  "total  initial
 7    equalized  assessed  value  as  adjusted" of the taxable real
 8    property within such redevelopment project area.
 9        (c)  After the county  clerk  has  certified  the  "total
10    initial   equalized  assessed  value"  of  the  taxable  real
11    property in such  area,  then  in  respect  to  every  taxing
12    district  containing a redevelopment project area, the county
13    clerk or any other official required by law to ascertain  the
14    amount  of  the  equalized  assessed  value  of  all  taxable
15    property  within  such  district for the purpose of computing
16    the rate per cent of tax to be extended upon taxable property
17    within such district, shall in every year that tax  increment
18    allocation  financing  is  in  effect ascertain the amount of
19    value of taxable property in a redevelopment project area  by
20    including  in  such amount the lower of the current equalized
21    assessed value or  the  certified  "total  initial  equalized
22    assessed  value"  of  all taxable real property in such area,
23    except  that  after  he  has  certified  the  "total  initial
24    equalized assessed value as adjusted" he shall in the year of
25    said certification if tax rates have not been extended and in
26    every year thereafter that tax increment allocation financing
27    is in  effect  ascertain  the  amount  of  value  of  taxable
28    property in a redevelopment project area by including in such
29    amount  the  lower of the current equalized assessed value or
30    the certified "total  initial  equalized  assessed  value  as
31    adjusted" of all taxable real property in such area. The rate
32    per  cent  of tax determined shall be extended to the current
33    equalized assessed value of all property in the redevelopment
34    project area in the same manner as the rate per cent  of  tax
 
                            -44-     LRB093 06568 SJM 20199 a
 1    is  extended  to  all  other  taxable  property in the taxing
 2    district.  The method of extending  taxes  established  under
 3    this  Section shall terminate when the municipality adopts an
 4    ordinance dissolving the special tax allocation fund for  the
 5    redevelopment  project  area.  This  Division  shall  not  be
 6    construed as relieving property owners within a redevelopment
 7    project  area  from  paying  a uniform rate of taxes upon the
 8    current equalized assessed value of their taxable property as
 9    provided in the Property Tax Code.
10    (Source: P.A. 88-670, eff. 12-2-94.)

11        (65 ILCS 5/11-74.6-40)
12        Sec. 11-74.6-40.  Equalized assessed value determination;
13    property tax extension.
14        (a)  If a municipality  by  ordinance  provides  for  tax
15    increment  allocation financing under Section 11-74.6-35, the
16    county clerk immediately thereafter:
17             (1)  shall determine the initial equalized  assessed
18        value   of   each   parcel   of   real  property  in  the
19        redevelopment project area, which is  the  most  recently
20        established  equalized assessed value of each lot, block,
21        tract or parcel  of  taxable  real  property  within  the
22        redevelopment   project   area,   minus   the   homestead
23        exemptions  provided  by Sections 15-170, and 15-175, and
24        15-176 of the Property Tax Code; and
25             (2)  shall certify to  the  municipality  the  total
26        initial  equalized  assessed  value  of  all taxable real
27        property within the redevelopment project area.
28        (b)  Any  municipality  that  has  established  a  vacant
29    industrial buildings  conservation  area  may,  by  ordinance
30    passed   after  the  adoption  of  tax  increment  allocation
31    financing,  provide  that  the   county   clerk   immediately
32    thereafter shall again determine:
33             (1)  the updated initial equalized assessed value of
 
                            -45-     LRB093 06568 SJM 20199 a
 1        each  lot, block, tract or parcel of real property, which
 2        is the most recently ascertained equalized assessed value
 3        of each lot, block, tract  or  parcel  of  real  property
 4        within the vacant industrial buildings conservation area;
 5        and
 6             (2)  the  total  updated  initial equalized assessed
 7        value  of  all   taxable   real   property   within   the
 8        redevelopment  project  area,  which  is the total of the
 9        updated initial equalized assessed value of  all  taxable
10        real  property  within  the  vacant  industrial buildings
11        conservation area.
12        The county clerk shall certify to  the  municipality  the
13    total updated initial equalized assessed value of all taxable
14    real  property  within  the industrial buildings conservation
15    area.
16        (c)  After the  county  clerk  has  certified  the  total
17    initial equalized assessed value or the total updated initial
18    equalized  assessed value of the taxable real property in the
19    area, for each  taxing  district  in  which  a  redevelopment
20    project  area  is  situated,  the  county  clerk or any other
21    official required by law  to  determine  the  amount  of  the
22    equalized  assessed  value of all taxable property within the
23    district for the purpose of computing the percentage rate  of
24    tax to be extended upon taxable property within the district,
25    shall  in  every year that tax increment allocation financing
26    is in effect determine the total equalized assessed value  of
27    taxable property in a redevelopment project area by including
28    in  that  amount  the lower of the current equalized assessed
29    value or the certified total initial equalized assessed value
30    or, if the total of updated equalized assessed value has been
31    certified, the total updated initial equalized assessed value
32    of all taxable real property  in  the  redevelopment  project
33    area.   After  he  has  certified the total initial equalized
34    assessed value he shall in the year of that certification, if
 
                            -46-     LRB093 06568 SJM 20199 a
 1    tax rates have not been extended,  and  in  every  subsequent
 2    year  that  tax  increment allocation financing is in effect,
 3    determine the amount of equalized assessed value  of  taxable
 4    property in a redevelopment project area by including in that
 5    amount  the  lower  of  the  current total equalized assessed
 6    value or the certified total initial equalized assessed value
 7    or, if the total of updated initial equalized assessed values
 8    have been certified,  the  total  updated  initial  equalized
 9    assessed   value   of   all  taxable  real  property  in  the
10    redevelopment project area.
11        (d)  The percentage  rate  of  tax  determined  shall  be
12    extended  on  the  current  equalized  assessed  value of all
13    property in the redevelopment project area in the same manner
14    as the rate per cent of tax is extended to all other  taxable
15    property  in  the  taxing  district.  The method of extending
16    taxes established under this Section shall terminate when the
17    municipality adopts an ordinance dissolving the  special  tax
18    allocation  fund for the redevelopment project area. This Law
19    shall not be construed as relieving property owners within  a
20    redevelopment  project  area  from  paying  a uniform rate of
21    taxes upon the current  equalized  assessed  value  of  their
22    taxable property as provided in the Property Tax Code.
23    (Source: P.A. 88-537; 88-670, eff. 12-2-94.)

24        Section  30.   The  Economic Development Project Area Tax
25    Increment Allocation Act  of  1995  is  amended  by  changing
26    Section 45 as follows:

27        (65 ILCS 110/45)
28        Sec.  45.   Filing  with  county  clerk; certification of
29    initial equalized assessed value.
30        (a)  A municipality that has  by  ordinance  approved  an
31    economic    development   plan,   established   an   economic
32    development  project  area,   and   adopted   tax   increment
 
                            -47-     LRB093 06568 SJM 20199 a
 1    allocation  financing  for  that  area  shall  file certified
 2    copies of the ordinance or ordinances with the county  clerk.
 3    Upon  receiving the ordinance or ordinances, the county clerk
 4    shall immediately determine (i) the most recently ascertained
 5    equalized assessed value of each lot, block, tract, or parcel
 6    of real property within the economic development project area
 7    from  which  shall  be  deducted  the  homestead   exemptions
 8    provided  by  Sections  15-170, and 15-175, and 15-176 of the
 9    Property Tax Code (that value being  the  "initial  equalized
10    assessed  value" of each such piece of property) and (ii) the
11    total equalized assessed value of all taxable  real  property
12    within  the  economic  development  project  area  by  adding
13    together  the  most  recently  ascertained equalized assessed
14    value of each taxable lot, block, tract, or  parcel  of  real
15    property  within  the economic development project area, from
16    which shall be deducted the homestead exemptions provided  by
17    Sections  15-170,  and 15-175, and 15-176 of the Property Tax
18    Code, and shall certify that amount  as  the  "total  initial
19    equalized assessed value" of the taxable real property within
20    the economic development project area.
21        (b)  After  the  county  clerk  has  certified the "total
22    initial  equalized  assessed  value"  of  the  taxable   real
23    property  in  the  economic development project area, then in
24    respect to  every  taxing  district  containing  an  economic
25    development  project  area,  the  county  clerk  or any other
26    official required by law  to  ascertain  the  amount  of  the
27    equalized  assessed  value of all taxable property within the
28    taxing district for the purpose of  computing  the  rate  per
29    cent  of  tax to be extended upon taxable property within the
30    taxing district shall,  in  every  year  that  tax  increment
31    allocation  financing  is  in effect, ascertain the amount of
32    value of taxable property in an economic development  project
33    area  by  including  in  that amount the lower of the current
34    equalized assessed value  or  the  certified  "total  initial
 
                            -48-     LRB093 06568 SJM 20199 a
 1    equalized assessed value" of all taxable real property in the
 2    area.   The rate per cent of tax determined shall be extended
 3    to the current equalized assessed value of  all  property  in
 4    the  economic  development project area in the same manner as
 5    the rate per cent of tax is extended  to  all  other  taxable
 6    property  in  the  taxing  district.  The method of extending
 7    taxes established under this Section shall terminate when the
 8    municipality adopts an ordinance dissolving the  special  tax
 9    allocation  fund  for  the economic development project area.
10    This Act shall  not  be  construed  as  relieving  owners  or
11    lessees  of  property  within an economic development project
12    area from paying a uniform rate of  taxes  upon  the  current
13    equalized   assessed  value  of  their  taxable  property  as
14    provided in the Property Tax Code.
15    (Source: P.A. 89-176, eff. 1-1-96.)

16        Section 35.  The  School  Code  is  amended  by  changing
17    Section 18-8.05 as follows:

18        (105 ILCS 5/18-8.05)
19        Sec.  18-8.05.  Basis  for apportionment of general State
20    financial aid and  supplemental  general  State  aid  to  the
21    common schools for the 1998-1999 and subsequent school years.

22    (A)  General Provisions.
23        (1)  The   provisions   of  this  Section  apply  to  the
24    1998-1999 and subsequent school years.  The system of general
25    State financial aid provided for in this Section is  designed
26    to  assure that, through a combination of State financial aid
27    and required local resources, the financial support  provided
28    each  pupil  in  Average Daily Attendance equals or exceeds a
29    prescribed per pupil Foundation Level.  This formula approach
30    imputes a level of per pupil Available  Local  Resources  and
31    provides  for  the  basis  to  calculate a per pupil level of
32    general State financial aid that,  when  added  to  Available
 
                            -49-     LRB093 06568 SJM 20199 a
 1    Local Resources, equals or exceeds the Foundation Level.  The
 2    amount  of  per  pupil general State financial aid for school
 3    districts,  in  general,  varies  in  inverse   relation   to
 4    Available  Local Resources.  Per pupil amounts are based upon
 5    each school district's Average Daily Attendance as that  term
 6    is defined in this Section.
 7        (2)  In  addition  to general State financial aid, school
 8    districts with specified levels or concentrations  of  pupils
 9    from   low   income   households   are  eligible  to  receive
10    supplemental general State financial aid grants  as  provided
11    pursuant to subsection (H). The supplemental State aid grants
12    provided  for  school districts under subsection (H) shall be
13    appropriated for distribution to school districts as part  of
14    the  same  line item in which the general State financial aid
15    of school districts is appropriated under this Section.
16        (3)  To receive financial assistance under this  Section,
17    school  districts  are required to file claims with the State
18    Board of Education, subject to the following requirements:
19             (a)  Any school district which fails for  any  given
20        school  year to maintain school as required by law, or to
21        maintain a recognized school is not eligible to file  for
22        such  school  year any claim upon the Common School Fund.
23        In case of  nonrecognition  of  one  or  more  attendance
24        centers   in   a   school  district  otherwise  operating
25        recognized schools, the claim of the  district  shall  be
26        reduced   in  the  proportion  which  the  Average  Daily
27        Attendance in the attendance center or  centers  bear  to
28        the  Average  Daily Attendance in the school district.  A
29        "recognized school" means any public school  which  meets
30        the standards as established for recognition by the State
31        Board  of  Education.   A  school  district or attendance
32        center not having recognition status  at  the  end  of  a
33        school term is entitled to receive State aid payments due
34        upon   a  legal  claim  which  was  filed  while  it  was
 
                            -50-     LRB093 06568 SJM 20199 a
 1        recognized.
 2             (b)  School district claims filed under this Section
 3        are subject to Sections 18-9, 18-10, and 18-12, except as
 4        otherwise provided in this Section.
 5             (c)  If a  school  district  operates  a  full  year
 6        school  under  Section  10-19.1, the general State aid to
 7        the school district shall  be  determined  by  the  State
 8        Board  of  Education  in  accordance with this Section as
 9        near as may be applicable.
10             (d)  (Blank).
11        (4)  Except as provided in subsections (H) and  (L),  the
12    board  of  any  district receiving any of the grants provided
13    for in this Section may apply those  funds  to  any  fund  so
14    received   for   which  that  board  is  authorized  to  make
15    expenditures by law.
16        School districts are not  required  to  exert  a  minimum
17    Operating  Tax  Rate in order to qualify for assistance under
18    this Section.
19        (5)  As used in this Section the  following  terms,  when
20    capitalized, shall have the meaning ascribed herein:
21             (a)  "Average  Daily  Attendance":  A count of pupil
22        attendance  in  school,  averaged  as  provided  for   in
23        subsection   (C)  and  utilized  in  deriving  per  pupil
24        financial support levels.
25             (b)  "Available Local Resources":  A computation  of
26        local  financial  support,  calculated  on  the  basis of
27        Average Daily Attendance and derived as provided pursuant
28        to subsection (D).
29             (c)  "Corporate   Personal   Property    Replacement
30        Taxes":  Funds paid to local school districts pursuant to
31        "An  Act  in  relation  to  the  abolition  of ad valorem
32        personal property tax and  the  replacement  of  revenues
33        lost thereby, and amending and repealing certain Acts and
34        parts  of Acts in connection therewith", certified August
 
                            -51-     LRB093 06568 SJM 20199 a
 1        14, 1979, as amended (Public Act 81-1st S.S.-1).
 2             (d)  "Foundation Level":  A prescribed level of  per
 3        pupil  financial  support  as  provided for in subsection
 4        (B).
 5             (e)  "Operating  Tax  Rate":   All  school  district
 6        property taxes extended for all purposes, except Bond and
 7        Interest, Summer School, Rent, Capital  Improvement,  and
 8        Vocational Education Building purposes.

 9    (B)  Foundation Level.
10        (1)  The  Foundation Level is a figure established by the
11    State representing the minimum level of per  pupil  financial
12    support  that  should  be  available to provide for the basic
13    education of each pupil in Average Daily Attendance.  As  set
14    forth  in  this  Section,  each school district is assumed to
15    exert  a  sufficient  local  taxing  effort  such  that,   in
16    combination with the aggregate of general State financial aid
17    provided  the  district,  an  aggregate  of  State  and local
18    resources are available to meet the basic education needs  of
19    pupils in the district.
20        (2)  For  the 1998-1999 school year, the Foundation Level
21    of support is $4,225.  For the  1999-2000  school  year,  the
22    Foundation  Level  of  support  is $4,325.  For the 2000-2001
23    school year, the Foundation Level of support is $4,425.
24        (3)  For the 2001-2002 school year and  2002-2003  school
25    year, the Foundation Level of support is $4,560.
26        (4)  For  the  2003-2004 school year and each school year
27    thereafter, the Foundation Level of support is $4,810 or such
28    greater amount as may be established by law  by  the  General
29    Assembly.

30    (C)  Average Daily Attendance.
31        (1)  For   purposes  of  calculating  general  State  aid
32    pursuant to  subsection  (E),  an  Average  Daily  Attendance
33    figure  shall  be  utilized.   The  Average  Daily Attendance
 
                            -52-     LRB093 06568 SJM 20199 a
 1    figure for formula calculation purposes shall be the  monthly
 2    average  of the actual number of pupils in attendance of each
 3    school district, as further averaged for the best 3 months of
 4    pupil attendance for each school district.  In compiling  the
 5    figures  for  the  number  of  pupils  in  attendance, school
 6    districts  and  the  State  Board  of  Education  shall,  for
 7    purposes of general State  aid  funding,  conform  attendance
 8    figures to the requirements of subsection (F).
 9        (2)  The  Average  Daily  Attendance  figures utilized in
10    subsection (E) shall be the requisite attendance data for the
11    school year immediately preceding the school year  for  which
12    general  State  aid is being calculated or the average of the
13    attendance data for the 3 preceding school  years,  whichever
14    is greater.  The Average Daily Attendance figures utilized in
15    subsection (H) shall be the requisite attendance data for the
16    school  year  immediately preceding the school year for which
17    general State aid is being calculated.

18    (D)  Available Local Resources.
19        (1)  For  purposes  of  calculating  general  State   aid
20    pursuant  to  subsection  (E),  a representation of Available
21    Local Resources per  pupil,  as  that  term  is  defined  and
22    determined  in this subsection, shall be utilized.  Available
23    Local Resources per pupil shall include a  calculated  dollar
24    amount representing local school district revenues from local
25    property   taxes   and   from   Corporate  Personal  Property
26    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
27    Average Daily Attendance.
28        (2)  In  determining  a  school  district's  revenue from
29    local property taxes, the  State  Board  of  Education  shall
30    utilize  the  equalized  assessed  valuation  of  all taxable
31    property of each school district as of September  30  of  the
32    previous  year.   The  equalized  assessed valuation utilized
33    shall be obtained and determined as  provided  in  subsection
34    (G).
 
                            -53-     LRB093 06568 SJM 20199 a
 1        (3)  For school districts maintaining grades kindergarten
 2    through  12,  local  property tax revenues per pupil shall be
 3    calculated  as  the  product  of  the  applicable   equalized
 4    assessed  valuation for the district multiplied by 3.00%, and
 5    divided by the district's Average  Daily  Attendance  figure.
 6    For  school districts maintaining grades kindergarten through
 7    8, local property tax revenues per pupil shall be  calculated
 8    as the product of the applicable equalized assessed valuation
 9    for  the  district  multiplied  by  2.30%, and divided by the
10    district's  Average  Daily  Attendance  figure.   For  school
11    districts maintaining grades 9 through 12, local property tax
12    revenues per pupil shall be the applicable equalized assessed
13    valuation of the district multiplied by 1.05%, and divided by
14    the district's Average Daily Attendance figure.
15        (4)  The Corporate Personal  Property  Replacement  Taxes
16    paid to each school district during the calendar year 2 years
17    before  the  calendar  year  in  which  a school year begins,
18    divided by the  Average  Daily  Attendance  figure  for  that
19    district,  shall  be added to the local property tax revenues
20    per pupil as derived by the application  of  the  immediately
21    preceding  paragraph (3).  The sum of these per pupil figures
22    for each school district  shall  constitute  Available  Local
23    Resources  as  that term is utilized in subsection (E) in the
24    calculation of general State aid.

25    (E)  Computation of General State Aid.
26        (1)  For each school year, the amount  of  general  State
27    aid  allotted  to  a school district shall be computed by the
28    State Board of Education as provided in this subsection.
29        (2)  For any school district for  which  Available  Local
30    Resources  per  pupil  is less than the product of 0.93 times
31    the Foundation Level, general State  aid  for  that  district
32    shall  be  calculated  as  an  amount equal to the Foundation
33    Level minus Available  Local  Resources,  multiplied  by  the
34    Average Daily Attendance of the school district.
 
                            -54-     LRB093 06568 SJM 20199 a
 1        (3)  For  any  school  district for which Available Local
 2    Resources per pupil is equal to or greater than  the  product
 3    of  0.93 times the Foundation Level and less than the product
 4    of 1.75 times the Foundation Level, the general State aid per
 5    pupil shall be a decimal proportion of the  Foundation  Level
 6    derived   using   a  linear  algorithm.   Under  this  linear
 7    algorithm, the calculated general State aid per  pupil  shall
 8    decline   in  direct  linear  fashion  from  0.07  times  the
 9    Foundation Level for a school district with  Available  Local
10    Resources  equal  to the product of 0.93 times the Foundation
11    Level, to 0.05  times  the  Foundation  Level  for  a  school
12    district  with Available Local Resources equal to the product
13    of 1.75  times  the  Foundation  Level.   The  allocation  of
14    general  State  aid  for  school  districts  subject  to this
15    paragraph 3 shall be the calculated  general  State  aid  per
16    pupil  figure  multiplied  by the Average Daily Attendance of
17    the school district.
18        (4)  For any school district for  which  Available  Local
19    Resources  per  pupil  equals  or exceeds the product of 1.75
20    times the Foundation Level, the general  State  aid  for  the
21    school  district  shall  be calculated as the product of $218
22    multiplied by the Average  Daily  Attendance  of  the  school
23    district.
24        (5)  The  amount  of  general  State  aid  allocated to a
25    school district for the 1999-2000  school  year  meeting  the
26    requirements  set  forth  in  paragraph (4) of subsection (G)
27    shall be increased by an amount equal to  the  general  State
28    aid  that  would  have  been received by the district for the
29    1998-1999 school year by utilizing the  Extension  Limitation
30    Equalized  Assessed  Valuation as calculated in paragraph (4)
31    of subsection (G) less the general State aid allotted for the
32    1998-1999 school year.  This amount shall  be  deemed  a  one
33    time  increase, and shall not affect any future general State
34    aid allocations.
 
                            -55-     LRB093 06568 SJM 20199 a
 1    (F)  Compilation of Average Daily Attendance.
 2        (1)  Each school district shall, by July 1 of each  year,
 3    submit  to  the State Board of Education, on forms prescribed
 4    by the State Board of Education, attendance figures  for  the
 5    school  year  that began in the preceding calendar year.  The
 6    attendance information  so  transmitted  shall  identify  the
 7    average daily attendance figures for each month of the school
 8    year.   Beginning  with  the general State aid claim form for
 9    the 2002-2003 school year, districts shall calculate  Average
10    Daily  Attendance  as  provided in subdivisions (a), (b), and
11    (c) of this paragraph (1).
12             (a)  In  districts  that  do  not  hold   year-round
13        classes,  days  of attendance in August shall be added to
14        the month of September and any days of attendance in June
15        shall be added to the month of May.
16             (b)  In  districts  in  which  all  buildings   hold
17        year-round classes, days of attendance in July and August
18        shall  be added to the month of September and any days of
19        attendance in June shall be added to the month of May.
20             (c)  In districts in which some buildings,  but  not
21        all,  hold  year-round  classes,  for  the non-year-round
22        buildings, days of attendance in August shall be added to
23        the month of September and any days of attendance in June
24        shall be added to the month of  May.  The  average  daily
25        attendance for the year-round buildings shall be computed
26        as  provided in subdivision (b) of this paragraph (1). To
27        calculate the Average Daily Attendance for the  district,
28        the average daily attendance for the year-round buildings
29        shall  be  multiplied  by  the  days  in  session for the
30        non-year-round buildings for each month and added to  the
31        monthly attendance of the non-year-round buildings.
32        Except  as  otherwise  provided  in this Section, days of
33    attendance by pupils shall be counted only  for  sessions  of
34    not  less  than  5  clock  hours of school work per day under
 
                            -56-     LRB093 06568 SJM 20199 a
 1    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
 2    personnel   or   volunteer   personnel   when   engaging   in
 3    non-teaching   duties  and  supervising  in  those  instances
 4    specified in subsection (a) of Section 10-22.34 and paragraph
 5    10 of Section 34-18, with pupils of legal school age  and  in
 6    kindergarten and grades 1 through 12.
 7        Days  of attendance by tuition pupils shall be accredited
 8    only to the districts that pay the tuition  to  a  recognized
 9    school.
10        (2)  Days  of  attendance  by pupils of less than 5 clock
11    hours of school shall be subject to the following  provisions
12    in the compilation of Average Daily Attendance.
13             (a)  Pupils  regularly  enrolled  in a public school
14        for only a part of the school day may be counted  on  the
15        basis  of  1/6 day for every class hour of instruction of
16        40 minutes or more attended pursuant to such  enrollment,
17        unless  a pupil is enrolled in a block-schedule format of
18        80 minutes or more of  instruction,  in  which  case  the
19        pupil  may  be  counted on the basis of the proportion of
20        minutes of school work completed each day to the  minimum
21        number of minutes that school work is required to be held
22        that day.
23             (b)  Days  of  attendance  may  be less than 5 clock
24        hours on the opening and closing of the school term,  and
25        upon  the first day of pupil attendance, if preceded by a
26        day  or  days  utilized  as  an  institute  or  teachers'
27        workshop.
28             (c)  A session of 4  or  more  clock  hours  may  be
29        counted  as a day of attendance upon certification by the
30        regional  superintendent,  and  approved  by  the   State
31        Superintendent  of  Education  to  the  extent  that  the
32        district has been forced to use daily multiple sessions.
33             (d)  A  session  of  3  or  more  clock hours may be
34        counted as a day of attendance (1) when the remainder  of
 
                            -57-     LRB093 06568 SJM 20199 a
 1        the school day or at least 2 hours in the evening of that
 2        day  is  utilized  for an in-service training program for
 3        teachers, up to a maximum of 5 days per  school  year  of
 4        which  a maximum of 4 days of such 5 days may be used for
 5        parent-teacher conferences, provided a district  conducts
 6        an  in-service  training  program  for teachers which has
 7        been approved by the State Superintendent  of  Education;
 8        or,  in  lieu of 4 such days, 2 full days may be used, in
 9        which event each such day may be  counted  as  a  day  of
10        attendance;  and  (2)  when  days  in  addition  to those
11        provided in item (1) are scheduled by a  school  pursuant
12        to  its  school improvement plan adopted under Article 34
13        or its revised or amended school improvement plan adopted
14        under Article 2, provided that (i) such sessions of 3  or
15        more  clock  hours  are  scheduled  to  occur  at regular
16        intervals, (ii) the remainder of the school days in which
17        such sessions occur are utilized for in-service  training
18        programs   or  other  staff  development  activities  for
19        teachers, and (iii) a sufficient  number  of  minutes  of
20        school  work under the direct supervision of teachers are
21        added to the school days between such regularly scheduled
22        sessions to  accumulate  not  less  than  the  number  of
23        minutes  by  which such sessions of 3 or more clock hours
24        fall short of 5 clock hours. Any full days used  for  the
25        purposes  of  this  paragraph shall not be considered for
26        computing average daily attendance.  Days  scheduled  for
27        in-service    training    programs,   staff   development
28        activities,  or   parent-teacher   conferences   may   be
29        scheduled  separately  for  different  grade  levels  and
30        different attendance centers of the district.
31             (e)  A  session  of  not less than one clock hour of
32        teaching hospitalized or homebound pupils on-site  or  by
33        telephone  to  the classroom may be counted as 1/2 day of
34        attendance, however these pupils must receive 4  or  more
 
                            -58-     LRB093 06568 SJM 20199 a
 1        clock  hours  of instruction to be counted for a full day
 2        of attendance.
 3             (f)  A session of at least  4  clock  hours  may  be
 4        counted  as  a  day of attendance for first grade pupils,
 5        and pupils in full day kindergartens, and a session of  2
 6        or  more hours may be counted as 1/2 day of attendance by
 7        pupils in kindergartens which provide  only  1/2  day  of
 8        attendance.
 9             (g)  For  children  with  disabilities who are below
10        the age of 6 years and who cannot attend 2 or more  clock
11        hours  because  of  their  disability  or  immaturity,  a
12        session of not less than one clock hour may be counted as
13        1/2  day  of  attendance; however for such children whose
14        educational needs so require a session of 4 or more clock
15        hours may be counted as a full day of attendance.
16             (h)  A recognized kindergarten  which  provides  for
17        only  1/2  day of attendance by each pupil shall not have
18        more than 1/2 day of attendance counted in any  one  day.
19        However, kindergartens may count 2 1/2 days of attendance
20        in  any  5 consecutive school days.  When a pupil attends
21        such a kindergarten for 2 half days  on  any  one  school
22        day,  the  pupil  shall  have  the following day as a day
23        absent from school, unless the  school  district  obtains
24        permission  in  writing  from the State Superintendent of
25        Education. Attendance at kindergartens which provide  for
26        a  full  day of attendance by each pupil shall be counted
27        the same as attendance by first grade  pupils.  Only  the
28        first  year  of  attendance  in one kindergarten shall be
29        counted, except in  case  of  children  who  entered  the
30        kindergarten   in  their  fifth  year  whose  educational
31        development requires a second  year  of  kindergarten  as
32        determined  under  the rules and regulations of the State
33        Board of Education.

34    (G)  Equalized Assessed Valuation Data.
 
                            -59-     LRB093 06568 SJM 20199 a
 1        (1)  For purposes of the calculation of  Available  Local
 2    Resources  required  pursuant  to  subsection  (D), the State
 3    Board of  Education  shall  secure  from  the  Department  of
 4    Revenue  the value as equalized or assessed by the Department
 5    of Revenue of all taxable property of every school  district,
 6    together  with  (i) the applicable tax rate used in extending
 7    taxes for the funds of the district as of September 30 of the
 8    previous year and (ii)  the  limiting  rate  for  all  school
 9    districts  subject  to  property tax extension limitations as
10    imposed under the Property Tax Extension Limitation Law.  The
11    Department  of  Revenue  shall  add to the equalized assessed
12    value  of  all  taxable  property  of  each  school  district
13    situated entirely or partially within a county with 3,000,000
14    or more inhabitants an amount equal to the  total  amount  by
15    which the homestead exemption allowed under Section 15-176 of
16    the  Property  Tax  Code  for  real property situated in that
17    school district exceeds the total amount that would have been
18    allowed in that school  district  if  the  maximum  reduction
19    under  Section  15-176  was  $4,500.  The county clerk of any
20    county with 3,000,000  or  more  inhabitants  shall  annually
21    calculate  and  certify to the Department of Revenue for each
22    school district all homestead exemption amounts under Section
23    15-176.
24        This equalized assessed valuation, as adjusted further by
25    the requirements of this subsection, shall be utilized in the
26    calculation of Available Local Resources.
27        (2)  The equalized assessed valuation  in  paragraph  (1)
28    shall be adjusted, as applicable, in the following manner:
29             (a)  For the purposes of calculating State aid under
30        this  Section,  with  respect  to  any  part  of a school
31        district within a redevelopment project area  in  respect
32        to   which  a  municipality  has  adopted  tax  increment
33        allocation  financing  pursuant  to  the  Tax   Increment
34        Allocation  Redevelopment Act, Sections 11-74.4-1 through
 
                            -60-     LRB093 06568 SJM 20199 a
 1        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
 2        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
 3        11-74.6-50 of the Illinois Municipal Code, no part of the
 4        current equalized assessed  valuation  of  real  property
 5        located in any such project area which is attributable to
 6        an  increase  above  the total initial equalized assessed
 7        valuation of such property shall be used as part  of  the
 8        equalized  assessed valuation of the district, until such
 9        time as all redevelopment project costs have  been  paid,
10        as  provided  in  Section  11-74.4-8 of the Tax Increment
11        Allocation Redevelopment Act or in Section 11-74.6-35  of
12        the Industrial Jobs Recovery Law.  For the purpose of the
13        equalized  assessed  valuation of the district, the total
14        initial  equalized  assessed  valuation  or  the  current
15        equalized assessed valuation, whichever is  lower,  shall
16        be  used  until  such  time  as all redevelopment project
17        costs have been paid.
18             (b)  The real property equalized assessed  valuation
19        for  a  school  district shall be adjusted by subtracting
20        from the real property value as equalized or assessed  by
21        the  Department  of  Revenue  for  the district an amount
22        computed by dividing the amount of any abatement of taxes
23        under Section 18-170 of the Property Tax  Code  by  3.00%
24        for  a  district  maintaining grades kindergarten through
25        12,  by  2.30%  for   a   district   maintaining   grades
26        kindergarten  through  8,  or  by  1.05%  for  a district
27        maintaining grades 9 through 12 and adjusted by an amount
28        computed by dividing the amount of any abatement of taxes
29        under subsection (a) of Section 18-165  of  the  Property
30        Tax  Code  by the same percentage rates for district type
31        as specified in this subparagraph (b).
32        (3)  For the 1999-2000 school year and each  school  year
33    thereafter, if a school district meets all of the criteria of
34    this subsection (G)(3), the school district's Available Local
 
                            -61-     LRB093 06568 SJM 20199 a
 1    Resources  shall be calculated under subsection (D) using the
 2    district's Extension Limitation Equalized Assessed  Valuation
 3    as calculated under this subsection (G)(3).
 4        For  purposes  of  this  subsection  (G)(3) the following
 5    terms shall have the following meanings:
 6             "Budget Year":  The school year  for  which  general
 7        State aid is calculated and awarded under subsection (E).
 8             "Base  Tax Year": The property tax levy year used to
 9        calculate the Budget Year  allocation  of  general  State
10        aid.
11             "Preceding  Tax  Year":  The  property tax levy year
12        immediately preceding the Base Tax Year.
13             "Base Tax Year's Tax Extension": The product of  the
14        equalized assessed valuation utilized by the County Clerk
15        in  the  Base Tax Year multiplied by the limiting rate as
16        calculated  by  the  County  Clerk  and  defined  in  the
17        Property Tax Extension Limitation Law.
18             "Preceding Tax Year's Tax Extension": The product of
19        the equalized assessed valuation utilized by  the  County
20        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
21        Operating Tax Rate as defined in subsection (A).
22             "Extension  Limitation  Ratio":  A  numerical ratio,
23        certified by the County Clerk, in which the numerator  is
24        the  Base Tax Year's Tax Extension and the denominator is
25        the Preceding Tax Year's Tax Extension.
26             "Operating Tax Rate":  The  operating  tax  rate  as
27        defined in subsection (A).
28        If a school district is subject to property tax extension
29    limitations  as  imposed  under  the  Property  Tax Extension
30    Limitation Law, the State Board of Education shall  calculate
31    the Extension Limitation Equalized Assessed Valuation of that
32    district.   For  the  1999-2000  school  year,  the Extension
33    Limitation Equalized Assessed Valuation of a school  district
34    as  calculated by the State Board of Education shall be equal
 
                            -62-     LRB093 06568 SJM 20199 a
 1    to the product of  the  district's  1996  Equalized  Assessed
 2    Valuation and the district's Extension Limitation Ratio.  For
 3    the  2000-2001  school  year and each school year thereafter,
 4    the Extension Limitation Equalized Assessed  Valuation  of  a
 5    school district as calculated by the State Board of Education
 6    shall  be  equal  to  the  product  of the Equalized Assessed
 7    Valuation last used in the calculation of general  State  aid
 8    and   the  district's  Extension  Limitation  Ratio.  If  the
 9    Extension Limitation Equalized Assessed Valuation of a school
10    district as calculated under this subsection (G)(3)  is  less
11    than   the   district's   equalized   assessed  valuation  as
12    calculated pursuant to subsections (G)(1)  and  (G)(2),  then
13    for  purposes of calculating the district's general State aid
14    for  the  Budget  Year  pursuant  to  subsection  (E),   that
15    Extension  Limitation  Equalized  Assessed Valuation shall be
16    utilized  to  calculate  the   district's   Available   Local
17    Resources under subsection (D).
18        (4)  For  the  purposes  of calculating general State aid
19    for the 1999-2000 school year  only,  if  a  school  district
20    experienced   a   triennial  reassessment  on  the  equalized
21    assessed valuation used  in  calculating  its  general  State
22    financial  aid  apportionment  for the 1998-1999 school year,
23    the State Board of Education shall  calculate  the  Extension
24    Limitation  Equalized Assessed Valuation that would have been
25    used to calculate the district's 1998-1999 general State aid.
26    This amount shall equal the product of the equalized assessed
27    valuation  used  to  calculate  general  State  aid  for  the
28    1997-1998 school year and the district's Extension Limitation
29    Ratio.   If  the  Extension  Limitation  Equalized   Assessed
30    Valuation  of  the  school  district as calculated under this
31    paragraph (4) is less than the district's equalized  assessed
32    valuation  utilized  in  calculating the district's 1998-1999
33    general  State  aid  allocation,   then   for   purposes   of
34    calculating  the  district's  general  State  aid pursuant to
 
                            -63-     LRB093 06568 SJM 20199 a
 1    paragraph (5) of subsection (E),  that  Extension  Limitation
 2    Equalized  Assessed  Valuation shall be utilized to calculate
 3    the district's Available Local Resources.
 4        (5)  For school districts  having  a  majority  of  their
 5    equalized  assessed  valuation  in  any  county  except Cook,
 6    DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
 7    general  State  aid  allocated to the school district for the
 8    1999-2000 school year under the provisions of subsection (E),
 9    (H), and (J) of this Section  is  less  than  the  amount  of
10    general State aid allocated to the district for the 1998-1999
11    school  year  under these subsections, then the general State
12    aid of the district for the 1999-2000 school year only  shall
13    be  increased  by  the difference between these amounts.  The
14    total payments made under this paragraph (5) shall not exceed
15    $14,000,000.   Claims  shall  be  prorated  if  they   exceed
16    $14,000,000.

17    (H)  Supplemental General State Aid.
18        (1)  In  addition  to  the  general  State  aid  a school
19    district is allotted pursuant to subsection  (E),  qualifying
20    school  districts  shall receive a grant, paid in conjunction
21    with  a  district's  payments  of  general  State  aid,   for
22    supplemental  general  State aid based upon the concentration
23    level of  children  from  low-income  households  within  the
24    school  district.  Supplemental State aid grants provided for
25    school districts under this subsection shall be  appropriated
26    for distribution to school districts as part of the same line
27    item  in  which  the  general  State  financial aid of school
28    districts  is  appropriated  under  this  Section.   If   the
29    appropriation  in  any  fiscal year for general State aid and
30    supplemental general State aid is  insufficient  to  pay  the
31    amounts required under the general State aid and supplemental
32    general  State  aid  calculations,  then  the  State Board of
33    Education shall ensure that each school district receives the
34    full amount due for general State aid and  the  remainder  of
 
                            -64-     LRB093 06568 SJM 20199 a
 1    the  appropriation  shall  be  used  for supplemental general
 2    State aid, which the State Board of Education shall calculate
 3    and pay to eligible districts on a prorated basis.
 4        (1.5)  This paragraph (1.5) applies only to those  school
 5    years  preceding  the  2003-2004 school year. For purposes of
 6    this  subsection  (H),  the  term  "Low-Income  Concentration
 7    Level" shall be the low-income eligible pupil count from  the
 8    most recently available federal census divided by the Average
 9    Daily Attendance of the school district. If, however, (i) the
10    percentage  decrease  from the 2 most recent federal censuses
11    in the low-income eligible  pupil  count  of  a  high  school
12    district  with fewer than 400 students exceeds by 75% or more
13    the percentage change in the total low-income eligible  pupil
14    count   of  contiguous  elementary  school  districts,  whose
15    boundaries are coterminous with the high school district,  or
16    (ii)  a  high school district within 2 counties and serving 5
17    elementary school districts, whose boundaries are coterminous
18    with the high school district, has a percentage decrease from
19    the 2 most recent federal censuses in the low-income eligible
20    pupil count and there is a percentage increase in  the  total
21    low-income   eligible  pupil  count  of  a  majority  of  the
22    elementary school districts in excess of 50% from the 2  most
23    recent  federal  censuses,  then  the  high school district's
24    low-income eligible pupil  count  from  the  earlier  federal
25    census  shall  be  the number used as the low-income eligible
26    pupil count for the high school  district,  for  purposes  of
27    this  subsection (H).  The changes made to this paragraph (1)
28    by Public Act 92-28 shall apply to supplemental general State
29    aid grants for school years preceding  the  2003-2004  school
30    year  that are paid in fiscal year 1999 or thereafter  and to
31    any State aid payments  made  in  fiscal  year  1994  through
32    fiscal  year 1998 pursuant to subsection 1(n) of Section 18-8
33    of this Code (which was repealed on July 1,  1998),  and  any
34    high  school district that is affected by Public Act 92-28 is
 
                            -65-     LRB093 06568 SJM 20199 a
 1    entitled to a recomputation of its supplemental general State
 2    aid grant or State aid paid in any  of  those  fiscal  years.
 3    This  recomputation  shall  not  be  affected  by  any  other
 4    funding.
 5        (1.10)  This  paragraph  (1.10)  applies to the 2003-2004
 6    school year and each school year thereafter. For purposes  of
 7    this  subsection  (H),  the  term  "Low-Income  Concentration
 8    Level"  shall,  for  each  fiscal  year,  be  the  low-income
 9    eligible  pupil  count  as  of  July  1  of  the  immediately
10    preceding  fiscal  year  (as  determined by the Department of
11    Human Services based on the number of pupils who are eligible
12    for at least  one  of  the  following  low  income  programs:
13    Medicaid, KidCare, TANF, or Food Stamps, excluding pupils who
14    are  eligible  for  services  provided  by  the Department of
15    Children and Family Services, averaged over the 2 immediately
16    preceding fiscal years for fiscal year 2004 and  over  the  3
17    immediately  preceding  fiscal  years  for  each  fiscal year
18    thereafter) divided by the Average Daily  Attendance  of  the
19    school district.
20        (2)  Supplemental  general  State  aid  pursuant  to this
21    subsection  (H)  shall  be  provided  as  follows   for   the
22    1998-1999, 1999-2000, and 2000-2001 school years only:
23             (a)  For  any  school  district  with  a  Low Income
24        Concentration Level of at least 20% and  less  than  35%,
25        the grant for any school year shall be $800 multiplied by
26        the low income eligible pupil count.
27             (b)  For  any  school  district  with  a  Low Income
28        Concentration Level of at least 35% and  less  than  50%,
29        the  grant  for the 1998-1999 school year shall be $1,100
30        multiplied by the low income eligible pupil count.
31             (c)  For any  school  district  with  a  Low  Income
32        Concentration  Level  of  at least 50% and less than 60%,
33        the grant for the 1998-99 school  year  shall  be  $1,500
34        multiplied by the low income eligible pupil count.
 
                            -66-     LRB093 06568 SJM 20199 a
 1             (d)  For  any  school  district  with  a  Low Income
 2        Concentration Level of 60% or more,  the  grant  for  the
 3        1998-99 school year shall be $1,900 multiplied by the low
 4        income eligible pupil count.
 5             (e)  For  the  1999-2000  school year, the per pupil
 6        amount specified  in  subparagraphs  (b),  (c),  and  (d)
 7        immediately  above  shall be increased to $1,243, $1,600,
 8        and $2,000, respectively.
 9             (f)  For the 2000-2001 school year,  the  per  pupil
10        amounts  specified  in  subparagraphs  (b),  (c), and (d)
11        immediately above shall be $1,273,  $1,640,  and  $2,050,
12        respectively.
13        (2.5)  Supplemental  general  State  aid pursuant to this
14    subsection (H) shall be provided as follows for the 2002-2003
15    school year:
16             (a)  For any  school  district  with  a  Low  Income
17        Concentration  Level of less than 10%, the grant for each
18        school year shall be $355 multiplied by  the  low  income
19        eligible pupil count.
20             (b)  For  any  school  district  with  a  Low Income
21        Concentration Level of at least 10% and  less  than  20%,
22        the  grant  for each school year shall be $675 multiplied
23        by the low income eligible pupil count.
24             (c)  For any  school  district  with  a  Low  Income
25        Concentration  Level  of  at least 20% and less than 35%,
26        the grant for each school year shall be $1,330 multiplied
27        by the low income eligible pupil count.
28             (d)  For any  school  district  with  a  Low  Income
29        Concentration  Level  of  at least 35% and less than 50%,
30        the grant for each school year shall be $1,362 multiplied
31        by the low income eligible pupil count.
32             (e)  For any  school  district  with  a  Low  Income
33        Concentration  Level  of  at least 50% and less than 60%,
34        the grant for each school year shall be $1,680 multiplied
 
                            -67-     LRB093 06568 SJM 20199 a
 1        by the low income eligible pupil count.
 2             (f)  For any  school  district  with  a  Low  Income
 3        Concentration  Level  of  60% or more, the grant for each
 4        school year shall be $2,080 multiplied by the low  income
 5        eligible pupil count.
 6        (2.10)  Except   as   otherwise   provided,  supplemental
 7    general State aid pursuant to this subsection  (H)  shall  be
 8    provided  as  follows  for the 2003-2004 school year and each
 9    school year thereafter:
10             (a)  For any  school  district  with  a  Low  Income
11        Concentration  Level  of  15% or less, the grant for each
12        school year shall be $355 multiplied by  the  low  income
13        eligible pupil count.
14             (b)  For  any  school  district  with  a  Low Income
15        Concentration Level greater than 15%, the grant for  each
16        school  year  shall  be  $294.25  added to the product of
17        $2,700 and the square of  the  Low  Income  Concentration
18        Level,  all  multiplied  by the low income eligible pupil
19        count.
20        For the 2003-2004 school year only, the grant shall be no
21    less than the grant for the 2002-2003 school  year.  For  the
22    2004-2005  school  year only, the grant shall be no less than
23    the grant for the 2002-2003 school year multiplied  by  0.66.
24    For  the  2005-2006  school  year only, the grant shall be no
25    less than the grant for the 2002-2003 school year  multiplied
26    by 0.33.
27        For the 2003-2004 school year only, the grant shall be no
28    greater  than  the grant received during the 2002-2003 school
29    year  added  to  the  product  of  0.25  multiplied  by   the
30    difference   between   the   grant  amount  calculated  under
31    subsection (a) or (b) of this paragraph (2.10), whichever  is
32    applicable,  and  the  grant  received  during  the 2002-2003
33    school year. For the 2004-2005 school year  only,  the  grant
34    shall  be  no  greater  than  the  grant  received during the
 
                            -68-     LRB093 06568 SJM 20199 a
 1    2002-2003 school year added to the product of 0.50 multiplied
 2    by the difference between the grant amount  calculated  under
 3    subsection  (a) or (b) of this paragraph (2.10), whichever is
 4    applicable, and  the  grant  received  during  the  2002-2003
 5    school  year.  For  the 2005-2006 school year only, the grant
 6    shall be no  greater  than  the  grant  received  during  the
 7    2002-2003 school year added to the product of 0.75 multiplied
 8    by  the  difference between the grant amount calculated under
 9    subsection (a) or (b) of this paragraph (2.10), whichever  is
10    applicable,  and  the  grant  received  during  the 2002-2003
11    school year.
12        (3)  School districts with an Average Daily Attendance of
13    more than  1,000  and  less  than  50,000  that  qualify  for
14    supplemental  general  State  aid pursuant to this subsection
15    shall submit a plan to the State Board of Education prior  to
16    October  30  of  each year for the use of the funds resulting
17    from this grant of supplemental general  State  aid  for  the
18    improvement  of  instruction  in  which  priority is given to
19    meeting the education needs of disadvantaged children.   Such
20    plan   shall  be  submitted  in  accordance  with  rules  and
21    regulations promulgated by the State Board of Education.
22        (4)  School districts with an Average Daily Attendance of
23    50,000 or more that qualify for  supplemental  general  State
24    aid   pursuant  to  this  subsection  shall  be  required  to
25    distribute from funds available pursuant to this Section,  no
26    less  than  $261,000,000  in  accordance  with  the following
27    requirements:
28             (a)  The required amounts shall  be  distributed  to
29        the  attendance centers within the district in proportion
30        to the number  of  pupils  enrolled  at  each  attendance
31        center  who are eligible to receive free or reduced-price
32        lunches or breakfasts under the federal  Child  Nutrition
33        Act  of  1966  and  under  the  National School Lunch Act
34        during the immediately preceding school year.
 
                            -69-     LRB093 06568 SJM 20199 a
 1             (b)  The   distribution   of   these   portions   of
 2        supplemental  and  general  State  aid  among  attendance
 3        centers according to  these  requirements  shall  not  be
 4        compensated  for  or  contravened  by  adjustments of the
 5        total of  other  funds  appropriated  to  any  attendance
 6        centers, and the Board of Education shall utilize funding
 7        from  one  or several sources in order to fully implement
 8        this provision annually prior to the opening of school.
 9             (c)  Each attendance center shall be provided by the
10        school district a distribution  of  noncategorical  funds
11        and other categorical funds to which an attendance center
12        is entitled under law in order that the general State aid
13        and   supplemental   general   State   aid   provided  by
14        application of this subsection  supplements  rather  than
15        supplants  the noncategorical funds and other categorical
16        funds provided by the school district to  the  attendance
17        centers.
18             (d)  Any  funds made available under this subsection
19        that by reason of the provisions of this  subsection  are
20        not  required  to be allocated and provided to attendance
21        centers may be used and appropriated by the board of  the
22        district for any lawful school purpose.
23             (e)  Funds received by an attendance center pursuant
24        to this subsection shall be used by the attendance center
25        at  the  discretion  of  the  principal  and local school
26        council for programs to improve educational opportunities
27        at qualifying schools through the following programs  and
28        services:  early  childhood education, reduced class size
29        or improved adult to student classroom ratio,  enrichment
30        programs,  remedial  assistance,  attendance improvement,
31        and other  educationally  beneficial  expenditures  which
32        supplement  the  regular and basic programs as determined
33        by the State Board of Education. Funds provided shall not
34        be expended for any political  or  lobbying  purposes  as
 
                            -70-     LRB093 06568 SJM 20199 a
 1        defined by board rule.
 2             (f)  Each district subject to the provisions of this
 3        subdivision  (H)(4)  shall  submit  an acceptable plan to
 4        meet the educational needs of disadvantaged children,  in
 5        compliance  with  the  requirements of this paragraph, to
 6        the State Board of Education prior to  July  15  of  each
 7        year. This plan shall be consistent with the decisions of
 8        local  school  councils concerning the school expenditure
 9        plans developed in accordance  with  part  4  of  Section
10        34-2.3.  The State Board shall approve or reject the plan
11        within  60  days  after  its  submission.  If the plan is
12        rejected, the  district  shall  give  written  notice  of
13        intent   to  modify  the  plan  within  15  days  of  the
14        notification of rejection and then submit a modified plan
15        within 30 days after the date of the  written  notice  of
16        intent  to  modify.  Districts  may  amend approved plans
17        pursuant to rules  promulgated  by  the  State  Board  of
18        Education.
19             Upon  notification  by  the State Board of Education
20        that the district has not submitted a plan prior to  July
21        15  or  a  modified plan within the time period specified
22        herein, the State aid funds  affected  by  that  plan  or
23        modified  plan  shall  be  withheld by the State Board of
24        Education until a plan or modified plan is submitted.
25             If the district fails to  distribute  State  aid  to
26        attendance  centers  in accordance with an approved plan,
27        the plan for the following year shall allocate funds,  in
28        addition   to   the  funds  otherwise  required  by  this
29        subsection,  to  those  attendance  centers  which   were
30        underfunded  during the previous year in amounts equal to
31        such underfunding.
32             For purposes of  determining  compliance  with  this
33        subsection  in relation to the requirements of attendance
34        center funding, each district subject to  the  provisions
 
                            -71-     LRB093 06568 SJM 20199 a
 1        of this subsection shall submit as a separate document by
 2        December  1 of each year a report of expenditure data for
 3        the prior year in addition to  any  modification  of  its
 4        current  plan.  If it is determined that there has been a
 5        failure to comply with the expenditure provisions of this
 6        subsection regarding contravention  or  supplanting,  the
 7        State  Superintendent  of Education shall, within 60 days
 8        of receipt of the report, notify  the  district  and  any
 9        affected local school council.  The district shall within
10        45  days of receipt of that notification inform the State
11        Superintendent of Education of the remedial or corrective
12        action to be taken, whether  by amendment of the  current
13        plan,  if  feasible, or by adjustment in the plan for the
14        following  year.   Failure  to  provide  the  expenditure
15        report or the  notification  of  remedial  or  corrective
16        action  in  a timely manner shall result in a withholding
17        of the affected funds.
18             The State Board of Education shall promulgate  rules
19        and  regulations  to  implement  the  provisions  of this
20        subsection.   No  funds  shall  be  released  under  this
21        subdivision (H)(4) to any district that has not submitted
22        a plan that has been  approved  by  the  State  Board  of
23        Education.

24    (I)  General State Aid for Newly Configured School Districts.
25        (1)  For  a  new  school  district  formed  by  combining
26    property   included  totally  within  2  or  more  previously
27    existing school districts, for its first  year  of  existence
28    the  general  State  aid  and  supplemental general State aid
29    calculated under this Section shall be computed for  the  new
30    district  and for the previously existing districts for which
31    property is totally included within the new district.  If the
32    computation on the basis of the previously existing districts
33    is greater, a supplementary payment equal to  the  difference
34    shall  be  made for the first 4 years of existence of the new
 
                            -72-     LRB093 06568 SJM 20199 a
 1    district.
 2        (2)  For a school  district  which  annexes  all  of  the
 3    territory  of  one or more entire other school districts, for
 4    the  first  year  during  which  the  change  of   boundaries
 5    attributable  to  such  annexation  becomes effective for all
 6    purposes as determined under Section 7-9 or 7A-8, the general
 7    State aid and supplemental general State aid calculated under
 8    this Section shall be computed for the annexing  district  as
 9    constituted  after  the  annexation  and for the annexing and
10    each annexed district as constituted prior to the annexation;
11    and if the computation on  the  basis  of  the  annexing  and
12    annexed  districts  as constituted prior to the annexation is
13    greater, a supplementary  payment  equal  to  the  difference
14    shall  be  made  for  the  first  4 years of existence of the
15    annexing school district as constituted upon such annexation.
16        (3)  For 2 or more school districts which  annex  all  of
17    the  territory  of one or more entire other school districts,
18    and for 2 or more community unit districts which result  upon
19    the  division  (pursuant  to petition under Section 11A-2) of
20    one or more other unit school districts into 2 or more  parts
21    and  which  together include all of the parts into which such
22    other unit school district or districts are so  divided,  for
23    the   first  year  during  which  the  change  of  boundaries
24    attributable to such annexation or division becomes effective
25    for all purposes as determined under Section 7-9  or  11A-10,
26    as  the  case  may be, the general State aid and supplemental
27    general State aid calculated  under  this  Section  shall  be
28    computed   for   each   annexing  or  resulting  district  as
29    constituted after the annexation or  division  and  for  each
30    annexing  and  annexed  district,  or  for each resulting and
31    divided district, as constituted prior to the  annexation  or
32    division;  and  if the aggregate of the general State aid and
33    supplemental  general  State  aid  as  so  computed  for  the
34    annexing or resulting  districts  as  constituted  after  the
 
                            -73-     LRB093 06568 SJM 20199 a
 1    annexation  or  division  is  less  than the aggregate of the
 2    general State aid and supplemental general State  aid  as  so
 3    computed  for  the annexing and annexed districts, or for the
 4    resulting and divided districts, as constituted prior to  the
 5    annexation or division, then a supplementary payment equal to
 6    the  difference  shall be made and allocated between or among
 7    the annexing or resulting districts, as constituted upon such
 8    annexation or division,  for  the  first  4  years  of  their
 9    existence.   The  total difference payment shall be allocated
10    between or among the annexing or resulting districts  in  the
11    same  ratio  as the pupil enrollment from that portion of the
12    annexed or divided district or districts which is annexed  to
13    or included in each such annexing or resulting district bears
14    to  the  total  pupil  enrollment  from the entire annexed or
15    divided district or districts, as such  pupil  enrollment  is
16    determined  for the school year last ending prior to the date
17    when the change of boundaries attributable to the  annexation
18    or  division  becomes effective for all purposes.  The amount
19    of the total difference payment and the amount thereof to  be
20    allocated  to  the  annexing  or resulting districts shall be
21    computed by the State Board of  Education  on  the  basis  of
22    pupil  enrollment  and other data which shall be certified to
23    the State Board of Education, on forms which it shall provide
24    for that purpose, by the regional superintendent  of  schools
25    for each educational service region in which the annexing and
26    annexed  districts,  or  resulting  and divided districts are
27    located.
28        (3.5)  Claims  for  financial   assistance   under   this
29    subsection  (I)  shall  not be recomputed except as expressly
30    provided under this Section.
31        (4)  Any supplementary payment made under this subsection
32    (I) shall be treated as separate from all other payments made
33    pursuant to this Section.

34    (J)  Supplementary Grants in Aid.
 
                            -74-     LRB093 06568 SJM 20199 a
 1        (1)  Notwithstanding  any  other   provisions   of   this
 2    Section,  the  amount  of  the aggregate general State aid in
 3    combination with supplemental general State  aid  under  this
 4    Section  for  which each school district is eligible shall be
 5    no less than the amount of the aggregate  general  State  aid
 6    entitlement  that  was received by the district under Section
 7    18-8 (exclusive of amounts received  under  subsections  5(p)
 8    and  5(p-5)  of  that  Section)  for the 1997-98 school year,
 9    pursuant to the provisions of that Section as it was then  in
10    effect.   If   a  school  district  qualifies  to  receive  a
11    supplementary payment made under  this  subsection  (J),  the
12    amount of the aggregate general State aid in combination with
13    supplemental  general State aid under this Section which that
14    district is eligible to receive for each school year shall be
15    no less than the amount of the aggregate  general  State  aid
16    entitlement  that  was received by the district under Section
17    18-8 (exclusive of amounts received  under  subsections  5(p)
18    and  5(p-5)  of  that Section) for the 1997-1998 school year,
19    pursuant to the provisions of that Section as it was then  in
20    effect.
21        (2)  If,  as provided in paragraph (1) of this subsection
22    (J), a school district is to receive aggregate general  State
23    aid  in combination with supplemental general State aid under
24    this Section for the 1998-99 school year and  any  subsequent
25    school  year  that  in  any such school year is less than the
26    amount of the aggregate general State  aid  entitlement  that
27    the district received for the 1997-98 school year, the school
28    district  shall  also  receive, from a separate appropriation
29    made for purposes of this  subsection  (J),  a  supplementary
30    payment  that is equal to the amount of the difference in the
31    aggregate State aid figures as described in paragraph (1).
32        (3)  (Blank).

33    (K)  Grants to Laboratory and Alternative Schools.
34        In calculating the amount to be  paid  to  the  governing
 
                            -75-     LRB093 06568 SJM 20199 a
 1    board  of  a  public  university  that  operates a laboratory
 2    school under this Section or to any alternative  school  that
 3    is  operated  by  a  regional  superintendent of schools, the
 4    State Board of Education shall require by rule such reporting
 5    requirements as it deems necessary.
 6        As used in this  Section,  "laboratory  school"  means  a
 7    public  school  which  is  created  and  operated by a public
 8    university and approved by the State Board of Education.  The
 9    governing board of a public university which  receives  funds
10    from  the  State  Board  under  this  subsection  (K) may not
11    increase the number of students enrolled  in  its  laboratory
12    school  from  a  single district, if that district is already
13    sending 50 or more students, except under a mutual  agreement
14    between the school board of a student's district of residence
15    and  the  university which operates the laboratory school.  A
16    laboratory school may not  have  more  than  1,000  students,
17    excluding  students  with disabilities in a special education
18    program.
19        As used in this Section,  "alternative  school"  means  a
20    public  school  which  is  created and operated by a Regional
21    Superintendent of Schools and approved by the State Board  of
22    Education.   Such  alternative  schools  may offer courses of
23    instruction for which  credit  is  given  in  regular  school
24    programs,  courses  to  prepare  students for the high school
25    equivalency testing program or  vocational  and  occupational
26    training.   A regional superintendent of schools may contract
27    with a school district or a public community college district
28    to  operate  an  alternative  school.   An alternative school
29    serving more than  one  educational  service  region  may  be
30    established by the regional superintendents of schools of the
31    affected  educational service regions.  An alternative school
32    serving more than  one  educational  service  region  may  be
33    operated  under such terms as the regional superintendents of
34    schools of those educational service regions may agree.
 
                            -76-     LRB093 06568 SJM 20199 a
 1        Each laboratory and alternative  school  shall  file,  on
 2    forms  provided  by the State Superintendent of Education, an
 3    annual  State  aid  claim  which  states  the  Average  Daily
 4    Attendance of the school's students by  month.   The  best  3
 5    months'  Average  Daily Attendance shall be computed for each
 6    school. The general State aid entitlement shall  be  computed
 7    by multiplying the applicable Average Daily Attendance by the
 8    Foundation Level as determined under this Section.

 9    (L)  Payments,   Additional   Grants   in   Aid   and   Other
10    Requirements.
11        (1)  For  a school district operating under the financial
12    supervision of an Authority created under  Article  34A,  the
13    general  State  aid  otherwise payable to that district under
14    this Section, but not the  supplemental  general  State  aid,
15    shall  be  reduced  by  an amount equal to the budget for the
16    operations of the Authority as certified by the Authority  to
17    the  State  Board  of  Education, and an amount equal to such
18    reduction shall be paid to the  Authority  created  for  such
19    district for its operating expenses in the manner provided in
20    Section 18-11.  The remainder of general State school aid for
21    any  such  district  shall be paid in accordance with Article
22    34A when that Article provides for a disposition  other  than
23    that provided by this Article.
24        (2)  (Blank).
25        (3)  Summer school.  Summer school payments shall be made
26    as provided in Section 18-4.3.

27    (M)  Education Funding Advisory Board.
28        The Education Funding Advisory Board, hereinafter in this
29    subsection (M) referred to as the "Board", is hereby created.
30    The Board shall consist of 5 members who are appointed by the
31    Governor,  by  and with the advice and consent of the Senate.
32    The  members  appointed  shall  include  representatives   of
33    education,  business,  and  the  general  public.  One of the
 
                            -77-     LRB093 06568 SJM 20199 a
 1    members so appointed shall be designated by the  Governor  at
 2    the  time  the  appointment is made as the chairperson of the
 3    Board. The initial members of the Board may be appointed  any
 4    time after the effective date of this amendatory Act of 1997.
 5    The  regular  term of each member of the Board shall be for 4
 6    years from the third Monday of January of the year  in  which
 7    the  term  of the member's appointment is to commence, except
 8    that of the 5 initial  members  appointed  to  serve  on  the
 9    Board,  the  member who is appointed as the chairperson shall
10    serve for a term that commences on the date  of  his  or  her
11    appointment and expires on the third Monday of January, 2002,
12    and  the  remaining  4  members,  by  lots drawn at the first
13    meeting of the Board that is held after  all  5  members  are
14    appointed,  shall  determine  2  of their number to serve for
15    terms  that  commence  on  the  date  of   their   respective
16    appointments and expire on the third Monday of January, 2001,
17    and 2 of their number to serve for terms that commence on the
18    date of their respective appointments and expire on the third
19    Monday  of  January, 2000.  All members appointed to serve on
20    the Board shall serve until their respective  successors  are
21    appointed  and  confirmed.   Vacancies shall be filled in the
22    same manner  as  original  appointments.   If  a  vacancy  in
23    membership  occurs  at  a  time  when  the  Senate  is not in
24    session, the Governor  shall  make  a  temporary  appointment
25    until  the  next  meeting of the Senate, when he or she shall
26    appoint, by and with the advice and consent of the Senate,  a
27    person  to  fill  that membership for the unexpired term.  If
28    the Senate is not in session when  the  initial  appointments
29    are  made, those appointments shall be made as in the case of
30    vacancies.
31        The Education Funding  Advisory  Board  shall  be  deemed
32    established,   and  the  initial  members  appointed  by  the
33    Governor to serve as members of the Board shall take  office,
34    on the date that the Governor makes his or her appointment of
 
                            -78-     LRB093 06568 SJM 20199 a
 1    the  fifth initial member of the Board, whether those initial
 2    members  are  then  serving  pursuant  to   appointment   and
 3    confirmation  or  pursuant to temporary appointments that are
 4    made by the Governor as in the case of vacancies.
 5        The State Board of Education  shall  provide  such  staff
 6    assistance  to  the  Education  Funding  Advisory Board as is
 7    reasonably required for the proper performance by  the  Board
 8    of its responsibilities.
 9        For  school  years  after  the 2000-2001 school year, the
10    Education Funding Advisory Board, in  consultation  with  the
11    State  Board  of  Education,  shall  make  recommendations as
12    provided in this subsection (M) to the General  Assembly  for
13    the foundation level under subdivision (B)(3) of this Section
14    and  for the supplemental general State aid grant level under
15    subsection (H)  of  this  Section  for  districts  with  high
16    concentrations  of  children  from  poverty.  The recommended
17    foundation level shall be determined based on  a  methodology
18    which   incorporates  the  basic  education  expenditures  of
19    low-spending schools exhibiting  high  academic  performance.
20    The   Education   Funding  Advisory  Board  shall  make  such
21    recommendations to the General Assembly on January 1  of  odd
22    numbered years, beginning January 1, 2001.

23    (N)  (Blank).

24    (O)  References.
25        (1)  References in other laws to the various subdivisions
26    of Section 18-8 as that Section existed before its repeal and
27    replacement  by this Section 18-8.05 shall be deemed to refer
28    to the corresponding provisions of this Section  18-8.05,  to
29    the extent that those references remain applicable.
30        (2)  References  in  other  laws to State Chapter 1 funds
31    shall be deemed to refer to the  supplemental  general  State
32    aid provided under subsection (H) of this Section.
33    (Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,
 
                            -79-     LRB093 06568 SJM 20199 a
 1    eff.  7-1-01;  92-269,  eff.  8-7-01;  92-604,  eff.  7-1-02;
 2    92-636,  eff.  7-11-02;  92-651,  eff.  7-11-02;  93-21, eff.
 3    7-1-03.)

 4        Section 40.  The Criminal Code  of  1961  is  amended  by
 5    changing Section 17A-1 as follows:

 6        (720 ILCS 5/17A-1) (from Ch. 38, par. 17A-1)
 7        Sec.  17A-1.  Persons under deportation order; ineligible
 8    for benefits.  An individual against  whom  a  United  States
 9    Immigration  Judge  has  issued an order of deportation which
10    has been affirmed by the Board of Immigration Review, as well
11    as an individual who appeals such an  order  pending  appeal,
12    under  paragraph  19 of Section 241(a) of the Immigration and
13    Nationality Act relating to persecution of others on  account
14    of race, religion, national origin or political opinion under
15    the  direction  of or in association with the Nazi government
16    of Germany  or  its  allies,  shall  be  ineligible  for  the
17    following benefits authorized by State law:
18        (a)  The  homestead  exemptions  exemption  and homestead
19    improvement exemption under Sections 15-170, 15-175,  15-176,
20    and 15-180 of the Property Tax Code.
21        (b)  Grants   under  the  Senior  Citizens  and  Disabled
22    Persons Property Tax  Relief  and  Pharmaceutical  Assistance
23    Act.
24        (c)  The  double  income  tax  exemption  conferred  upon
25    persons  65  years  of  age  or  older  by Section 204 of the
26    Illinois Income Tax Act.
27        (d)  Grants provided by the Department on Aging.
28        (e)  Reductions  in  vehicle  registration   fees   under
29    Section 3-806.3 of the Illinois Vehicle Code.
30        (f)  Free  fishing and reduced fishing license fees under
31    Sections 20-5 and 20-40 of the Fish and Aquatic Life Code.
32        (g)  Tuition free courses for senior citizens  under  the
 
                            -80-     LRB093 06568 SJM 20199 a
 1    Senior Citizen Courses Act.
 2        (h)  Any benefits under the Illinois Public Aid Code.
 3    (Source: P.A. 87-895; 88-670, eff. 12-2-94.)

 4        Section  90.  The State Mandates Act is amended by adding
 5    Section 8.28 as follows:

 6        (30 ILCS 805/8.28 new)
 7        Sec. 8.28. Exempt mandate.   Notwithstanding  Sections  6
 8    and  8 of this Act, no reimbursement by the State is required
 9    for the implementation of any  mandate  created  by  (i)  the
10    General  Homestead  Exemption  under  Section  15-176  of the
11    Property Tax Code or  (ii)  the  Senior  Citizens  Assessment
12    Freeze  Homestead  Exemption  under  Section  15-172  of  the
13    Property Tax Code.".