SB1498ham008 93RD GENERAL ASSEMBLY

Lee A. Daniels

Filed: 2/18/2004

09300SB1498ham008 LRB093 06568 BDD 47013 a

AMENDMENT TO SENATE BILL 1498

AMENDMENT NO. ____. Amend Senate Bill 1498, AS AMENDED, by replacing everything after the enacting clause with the following:

5		"Section 5. The Economic Development Area Tax Increment
6		Allocation Act is amended by changing Section 6 as follows:
7		(20 ILCS 620/6) (from Ch. 67 1/2, par. 1006)
8		Sec. 6. Filing with county clerk; certification of initial
9		equalized assessed value.
10		(a) The municipality shall file a certified copy of any
11		ordinance authorizing tax increment allocation financing for
12		an economic development project area with the county clerk, and
13		the county clerk shall immediately thereafter determine (1) the
14		most recently ascertained equalized assessed value of each lot,
15		block, tract or parcel of real property within the economic
16		development project area from which shall be deducted the
17		homestead exemptions provided by Sections 15-170, and 15-175,
18		and 15-176 of the Property Tax Code, which value shall be the
19		"initial equalized assessed value" of each such piece of
20		property, and (2) the total equalized assessed value of all
21		taxable real property within the economic development project
22		area by adding together the most recently ascertained equalized
23		assessed value of each taxable lot, block, tract, or parcel of
24		real property within such economic development project area,

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

1		(Source: P.A. 88-670, eff. 12-2-94.)

2		Section 10. The Property Tax Code is amended by changing
3		Sections 14-15, 15-10, 15-170, 15-175, and 20-178 and by adding
4		Section 15-176 as follows:
5		(35 ILCS 200/14-15)
6		Sec. 14-15. Certificate of error; counties of 3,000,000 or
7		more.
8		(a) In counties with 3,000,000 or more inhabitants, if,
9		after the assessment is certified pursuant to Section 16-150,
10		but subject to the limitations of subsection (c) of this
11		Section, the county assessor discovers an error or mistake in
12		the assessment, the assessor shall execute a certificate
13		setting forth the nature and cause of the error. The
14		certificate when endorsed by the county assessor, or when
15		endorsed by the county assessor and board of appeals (until the
16		first Monday in December 1998 and the board of review beginning
17		the first Monday in December 1998 and thereafter) where the
18		certificate is executed for any assessment which was the
19		subject of a complaint filed in the board of appeals (until the
20		first Monday in December 1998 and the board of review beginning
21		the first Monday in December 1998 and thereafter) for the tax
22		year for which the certificate is issued, may, either be
23		certified according to the procedure authorized by this Section
24		or be presented and received in evidence in any court of
25		competent jurisdiction. Certification is authorized, at the
26		discretion of the county assessor, for: (1) certificates of
27		error allowing homestead exemptions pursuant to Sections
28		15-170, 15-172, and 15-175, and 15-176; (2) certificates of
29		error on residential property of 6 units or less; (3)
30		certificates of error allowing exemption of the property
31		pursuant to Section 14-25; and (4) other certificates of error
32		reducing assessed value by less than $100,000. Any certificate

1		of error not certified shall be presented to the court. The
2		county assessor shall develop reasonable procedures for the
3		filing and processing of certificates of error. Prior to the
4		certification or presentation to the court, the county assessor
5		or his or her designee shall execute and include in the
6		certificate of error a statement attesting that all procedural
7		requirements pertaining to the issuance of the certificate of
8		error have been met and that in fact an error exists. When so
9		introduced in evidence such certificate shall become a part of
10		the court records, and shall not be removed from the files
11		except upon the order of the court.
12		Certificates of error that will be presented to the court
13		shall be filed as an objection in the application for judgment
14		and order of sale for the year in relation to which the
15		certificate is made or as an amendment to the objection under
16		subsection (b). Certificates of error that are to be certified
17		according to the procedure authorized by this Section need not
18		be presented to the court as an objection or an amendment under
19		subsection (b). The State's Attorney of the county in which the
20		property is situated shall mail a copy of any final judgment
21		entered by the court regarding any certificate of error to the
22		taxpayer of record for the year in question.
23		Any unpaid taxes after the entry of the final judgment by
24		the court or certification on certificates issued under this
25		Section may be included in a special tax sale, provided that an
26		advertisement is published and a notice is mailed to the person
27		in whose name the taxes were last assessed, in a form and
28		manner substantially similar to the advertisement and notice
29		required under Sections 21-110 and 21-135. The advertisement
30		and sale shall be subject to all provisions of law regulating
31		the annual advertisement and sale of delinquent property, to
32		the extent that those provisions may be made applicable.
33		A certificate of error certified under this Section shall
34		be given effect by the county treasurer, who shall mark the tax

1		books and, upon receipt of one of the following certificates
2		from the county assessor or the county assessor and the board
3		of review where the board of review is required to endorse the
4		certificate of error, shall issue refunds to the taxpayer
5		accordingly:
6		"CERTIFICATION
7		I, .................., county assessor, hereby certify
8		that the Certificates of Error set out on the attached list
9		have been duly issued to correct an error or mistake in the
10		assessment."
11		"CERTIFICATION
12		I, .................., county assessor, and we,
13		........................................................,
14		members of the board of review, hereby certify that the
15		Certificates of Error set out on the attached list have
16		been duly issued to correct an error or mistake in the
17		assessment and that any certificates of error required to
18		be endorsed by the board of review have been so endorsed."
19		The county treasurer has the power to mark the tax books to
20		reflect the issuance of certificates of error certified
21		according to the procedure authorized in this Section for
22		certificates of error issued under Section 14-25 or
23		certificates of error issued to and including 3 years after the
24		date on which the annual judgment and order of sale for that
25		tax year was first entered. The county treasurer has the power
26		to issue refunds to the taxpayer as set forth above until all
27		refunds authorized by this Section have been completed.
28		To the extent that the certificate of error obviates the
29		liability for nonpayment of taxes, certification of a
30		certificate of error according to the procedure authorized in
31		this Section shall operate to vacate any judgment or forfeiture

1		as to that year's taxes, and the warrant books and judgment
2		books shall be marked to reflect that the judgment or
3		forfeiture has been vacated.
4		(b) Nothing in subsection (a) of this Section shall be
5		construed to prohibit the execution, endorsement, issuance,
6		and adjudication of a certificate of error if (i) the annual
7		judgment and order of sale for the tax year in question is
8		reopened for further proceedings upon consent of the county
9		collector and county assessor, represented by the State's
10		Attorney, and (ii) a new final judgment is subsequently entered
11		pursuant to the certificate. This subsection (b) shall be
12		construed as declarative of existing law and not as a new
13		enactment.
14		(c) No certificate of error, other than a certificate to
15		establish an exemption under Section 14-25, shall be executed
16		for any tax year more than 3 years after the date on which the
17		annual judgment and order of sale for that tax year was first
18		entered, except that during calendar years 1999 and 2000 a
19		certificate of error may be executed for any tax year, provided
20		that the error or mistake in the assessment was discovered no
21		more than 3 years after the date on which the annual judgment
22		and order of sale for that tax year was first entered.
23		(d) The time limitation of subsection (c) shall not apply
24		to a certificate of error correcting an assessment to $1, under
25		Section 10-35, on a parcel that a subdivision or planned
26		development has acquired by adverse possession, if during the
27		tax year for which the certificate is executed the subdivision
28		or planned development used the parcel as common area, as
29		defined in Section 10-35, and if application for the
30		certificate of error is made prior to December 1, 1997.
31		(e) The changes made by this amendatory Act of the 91st
32		General Assembly apply to certificates of error issued before,
33		on, and after the effective date of this amendatory Act of the
34		91st General Assembly.

1		(Source: P.A. 90-4, eff. 3-7-97; 90-288, eff. 8-1-97; 90-655,
2		eff. 7-30-98; 91-393, eff. 7-30-99; 91-686, eff. 1-26-00.)
3		(35 ILCS 200/15-10)
4		Sec. 15-10. Exempt property; procedures for certification.
5		All property granted an exemption by the Department pursuant to
6		the requirements of Section 15-5 and described in the Sections
7		following Section 15-30 and preceding Section 16-5, to the
8		extent therein limited, is exempt from taxation. In order to
9		maintain that exempt status, the titleholder or the owner of
10		the beneficial interest of any property that is exempt must
11		file with the chief county assessment officer, on or before
12		January 31 of each year (May 31 in the case of property
13		exempted by Section 15-170), an affidavit stating whether there
14		has been any change in the ownership or use of the property or
15		the status of the owner-resident, or that a disabled veteran
16		who qualifies under Section 15-165 owned and used the property
17		as of January 1 of that year. The nature of any change shall be
18		stated in the affidavit. Failure to file an affidavit shall, in
19		the discretion of the assessment officer, constitute cause to
20		terminate the exemption of that property, notwithstanding any
21		other provision of this Code. Owners of 5 or more such exempt
22		parcels within a county may file a single annual affidavit in
23		lieu of an affidavit for each parcel. The assessment officer,
24		upon request, shall furnish an affidavit form to the owners, in
25		which the owner may state whether there has been any change in
26		the ownership or use of the property or status of the owner or
27		resident as of January 1 of that year. The owner of 5 or more
28		exempt parcels shall list all the properties giving the same
29		information for each parcel as required of owners who file
30		individual affidavits.
31		However, titleholders or owners of the beneficial interest
32		in any property exempted under any of the following provisions
33		are not required to submit an annual filing under this Section:

1		(1) Section 15-45 (burial grounds) in counties of less
2		than 3,000,000 inhabitants and owned by a not-for-profit
3		organization.
4		(2) Section 15-40.
5		(3) Section 15-50 (United States property).
6		If there is a change in use or ownership, however, notice
7		must be filed pursuant to Section 15-20.
8		An application for homestead exemptions shall be filed as
9		provided in Section 15-170 (senior citizens homestead
10		exemption), Section 15-172 (senior citizens assessment freeze
11		homestead exemption), and Sections Section 15-175 and 15-176
12		(general homestead exemption), respectively.
13		(Source: P.A. 92-333, eff. 8-10-01; 92-729, eff. 7-25-02.)
14		(35 ILCS 200/15-170)
15		Sec. 15-170. Senior Citizens Homestead Exemption. An
16		annual homestead exemption limited, except as described here
17		with relation to cooperatives or life care facilities, to a
18		maximum reduction set forth below from the property's value, as
19		equalized or assessed by the Department, is granted for
20		property that is occupied as a residence by a person 65 years
21		of age or older who is liable for paying real estate taxes on
22		the property and is an owner of record of the property or has a
23		legal or equitable interest therein as evidenced by a written
24		instrument, except for a leasehold interest, other than a
25		leasehold interest of land on which a single family residence
26		is located, which is occupied as a residence by a person 65
27		years or older who has an ownership interest therein, legal,
28		equitable or as a lessee, and on which he or she is liable for
29		the payment of property taxes. The maximum reduction shall be
30		$2,500 in counties with 3,000,000 or more inhabitants and
31		$2,000 in all other counties. For land improved with an
32		apartment building owned and operated as a cooperative, the
33		maximum reduction from the value of the property, as equalized

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

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

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

1		Notwithstanding Sections 6 and 8 of the State Mandates Act,
2		no reimbursement by the State is required for the
3		implementation of any mandate created by this Section.
4		(Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03.)
5		(35 ILCS 200/15-175)
6		Sec. 15-175. General homestead exemption. Except as
7		provided in Section 15-176, homestead property is entitled to
8		an annual homestead exemption limited, except as described here
9		with relation to cooperatives, to a reduction in the equalized
10		assessed value of homestead property equal to the increase in
11		equalized assessed value for the current assessment year above
12		the equalized assessed value of the property for 1977, up to
13		the maximum reduction set forth below. If however, the 1977
14		equalized assessed value upon which taxes were paid is
15		subsequently determined by local assessing officials, the
16		Property Tax Appeal Board, or a court to have been excessive,
17		the equalized assessed value which should have been placed on
18		the property for 1977 shall be used to determine the amount of
19		the exemption.
20		Except as provided in Section 15-176, the maximum reduction
21		shall be $4,500 in counties with 3,000,000 or more inhabitants
22		and $3,500 in all other counties.
23		In counties with fewer than 3,000,000 inhabitants, if,
24		based on the most recent assessment, the equalized assessed
25		value of the homestead property for the current assessment year
26		is greater than the equalized assessed value of the property
27		for 1977, the owner of the property shall automatically receive
28		the exemption granted under this Section in an amount equal to
29		the increase over the 1977 assessment up to the maximum
30		reduction set forth in this Section.
31		If in any assessment year beginning with the 2000
32		assessment year, homestead property has a pro-rata valuation
33		under Section 9-180 resulting in an increase in the assessed

1		valuation, a reduction in equalized assessed valuation equal to
2		the increase in equalized assessed value of the property for
3		the year of the pro-rata valuation above the equalized assessed
4		value of the property for 1977 shall be applied to the property
5		on a proportionate basis for the period the property qualified
6		as homestead property during the assessment year. The maximum
7		proportionate homestead exemption shall not exceed the maximum
8		homestead exemption allowed in the county under this Section
9		divided by 365 and multiplied by the number of days the
10		property qualified as homestead property.
11		"Homestead property" under this Section includes
12		residential property that is occupied by its owner or owners as
13		his or their principal dwelling place, or that is a leasehold
14		interest on which a single family residence is situated, which
15		is occupied as a residence by a person who has an ownership
16		interest therein, legal or equitable or as a lessee, and on
17		which the person is liable for the payment of property taxes.
18		For land improved with an apartment building owned and operated
19		as a cooperative or a building which is a life care facility as
20		defined in Section 15-170 and considered to be a cooperative
21		under Section 15-170, the maximum reduction from the equalized
22		assessed value shall be limited to the increase in the value
23		above the equalized assessed value of the property for 1977, up
24		to the maximum reduction set forth above, multiplied by the
25		number of apartments or units occupied by a person or persons
26		who is liable, by contract with the owner or owners of record,
27		for 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 the
31		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 to

1		the apportioned tax liability of the owner who qualified for
2		the exemption. Any person who willfully refuses to so credit
3		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 assessed
7		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 year
17		of the sale. The assessor or chief county assessment officer
18		may require the new owner of the property to apply for the
19		homestead exemption for the following assessment year.
20		(Source: P.A. 90-368, eff. 1-1-98; 90-552, eff. 12-12-97;
21		90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)
22		(35 ILCS 200/15-176 new)
23		Sec. 15-176. General homestead exemption in certain
24		counties.
25		(a) In counties (i) with 3,000,000 or more inhabitants or
26		(ii) that are contiguous to a county with 3,000,000 or more
27		inhabitants and that have elected, by ordinance, to be subject
28		to the provisions of this Section instead of the provisions of
29		Section 15-175, for the assessment years as determined under
30		subsection (j), homestead property is entitled to an annual
31		homestead exemption equal to a reduction in the property's
32		equalized assessed value calculated as provided in this
33		Section.

1		(b) As used in this Section:
2		(1) "Assessor" means the supervisor of assessments or
3		the county assessor.
4		(2) "Adjusted homestead value" means the lesser of the
5		following values:
6		(A) The property's base homestead value increased
7		by 7% for each tax year after 2002 through and
8		including the current tax year, or, if the property is
9		sold or ownership is otherwise transferred, the
10		property's base homestead value increased by 7% for
11		each tax year after the year of the sale or transfer
12		through and including the current tax year. The
13		increase by 7% each year is an increase by 7% over the
14		prior year.
15		(B) The property's equalized assessed value for
16		the current tax year minus $4,500 in Cook County and
17		$3,500 in all other counties.
18		(3) "Base homestead value".
19		(A) Except as provided in subdivision ((b)(3)(B),
20		"base homestead value" means the equalized assessed
21		value of the property for tax year 2002 prior to
22		exemptions, minus $4,500 in Cook County and $3,500 in
23		all other counties, provided that it was assessed for
24		that year as residential property qualified for any of
25		the homestead exemptions under Sections 15-170 through
26		15-175 of this Code, then in force, and further
27		provided that the property's assessment was not based
28		on a reduced assessed value resulting from a temporary
29		irregularity in the property for that year. Except as
30		provided in subdivision (b)(3)(B), if the property did
31		not have a residential equalized assessed value for tax
32		year 2002, then "base homestead value" means the base
33		homestead value established by the assessor under
34		subsection (c).

1		(B) If the property is sold or ownership is
2		otherwise transferred, "base homestead value" means
3		the equalized assessed value of the property at the
4		time of the sale or transfer prior to exemptions, minus
5		$4,500 in Cook County and $3,500 in all other counties,
6		provided that it was assessed as residential property
7		qualified for any of the homestead exemptions under
8		Sections 15-170 through 15-175 of this Code, then in
9		force, and further provided that the property's
10		assessment was not based on a reduced assessed value
11		resulting from a temporary irregularity in the
12		property.
13		(4) "Current tax year" means the tax year for which the
14		exemption under this Section is being applied.
15		(5) "Equalized assessed value" means the property's
16		assessed value as equalized by the Department.
17		(6) "Homestead" or "homestead property" means:
18		(A) Residential property that as of January 1 of
19		the tax year is occupied by its owner or owners as his,
20		her, or their principal dwelling place, or that is a
21		leasehold interest on which a single family residence
22		is situated, that is occupied as a residence by a
23		person who has a legal or equitable interest therein
24		evidenced by a written instrument, as an owner or as a
25		lessee, and on which the person is liable for the
26		payment of property taxes. Residential units in an
27		apartment building owned and operated as a
28		cooperative, or as a life care facility, which are
29		occupied by persons who hold a legal or equitable
30		interest in the cooperative apartment building or life
31		care facility as owners or lessees, and who are liable
32		by contract for the payment of property taxes, shall be
33		included within this definition of homestead property.
34		Residential property containing 6 or fewer dwelling

1		units shall also be included in this definition of
2		homestead property provided that at least one such unit
3		is occupied by the property's owner or owners as his,
4		her, or their principal dwelling place.
5		(B) A homestead includes the dwelling place,
6		appurtenant structures, and so much of the surrounding
7		land constituting the parcel on which the dwelling
8		place is situated as is used for residential purposes.
9		If the assessor has established a specific legal
10		description for a portion of property constituting the
11		homestead, then the homestead shall be limited to the
12		property within that description.
13		(7) "Life care facility" means a facility as defined in
14		Section 2 of the Life Care Facilities Act.
15		(c) If the property did not have a residential equalized
16		assessed value for tax year 2002 as provided in subdivision
17		(b)(3)(A) of this Section, then the assessor shall first
18		determine an initial value for the property by comparison with
19		assessed values for tax year 2002 of other properties having
20		physical and economic characteristics similar to those of the
21		subject property, so that the initial value is uniform in
22		relation to assessed values of those other properties for tax
23		year 2002. The product of the initial value multiplied by the
24		2002 equalization factor for homestead properties in that
25		county, less $4,500 in Cook County and $3,500 in all other
26		counties, is the base homestead value.
27		For any tax year for which the assessor determines or
28		adjusts an initial value and hence a base homestead value under
29		this subsection (c), the initial value shall be subject to
30		review by the same procedures applicable to assessed values
31		established under this Code for that tax year.
32		(d) The base homestead value shall remain constant, except
33		that the assessor may revise it under the following
34		circumstances:

1		(1) If the equalized assessed value of a homestead
2		property for the current tax year is less than the previous
3		base homestead value for that property, then the current
4		equalized assessed value (provided it is not based on a
5		reduced assessed value resulting from a temporary
6		irregularity in the property) shall become the base
7		homestead value in subsequent tax years.
8		(2) For any year in which new buildings, structures, or
9		other improvements are constructed on the homestead
10		property that would increase its assessed value, the
11		assessor shall adjust the base homestead value as provided
12		in subsection (c) of this Section with due regard to the
13		value added by the new improvements.
14		(3) If the property is sold or ownership is otherwise
15		transferred, the base homestead value of the property shall
16		be adjusted as provided in subdivision (b)(3)(B).
17		(e) The amount of the exemption under this Section is the
18		equalized assessed value of the homestead property for the
19		current tax year, minus the adjusted homestead value, with the
20		following exceptions:
21		(1) The exemption under this Section shall not exceed
22		$25,000 for any taxable year.
23		(2) In the case of homestead property that also
24		qualifies for the exemption under Section 15-172, the
25		property is entitled to the exemption under this Section,
26		limited to the amount of $4,500 in Cook County and $3,500
27		in all other counties.
28		(f) In the case of an apartment building owned and operated
29		as a cooperative, or as a life care facility, that contains
30		residential units that qualify as homestead property under this
31		Section, the maximum cumulative exemption amount attributed to
32		the entire building or facility shall not exceed the sum of the
33		exemptions calculated for each qualified residential unit. The
34		cooperative association, management firm, or other person or

1		entity that manages or controls the cooperative apartment
2		building or life care facility shall credit the exemption
3		attributable to each residential unit only to the apportioned
4		tax liability of the owner or other person responsible for
5		payment of taxes as to that unit. Any person who willfully
6		refuses to so credit the exemption is guilty of a Class B
7		misdemeanor.
8		(g) When married persons maintain separate residences, the
9		exemption provided under this Section shall be claimed by only
10		one such person and for only one residence.
11		(h) In the event of a sale or other transfer in ownership
12		of the homestead property, the exemption under this Section
13		shall remain in effect for the remainder of the tax year in
14		which the sale or transfer occurs, but shall be calculated
15		using the new base homestead value as provided in subdivision
16		(b)(3)(B). The assessor may require the new owner of the
17		property to apply for the exemption in the following year.
18		(i) The assessor may determine whether property qualifies
19		as a homestead under this Section by application, visual
20		inspection, questionnaire, or other reasonable methods. Each
21		year, at the time the assessment books are certified to the
22		county clerk by the board of review, the assessor shall furnish
23		to the county clerk a list of the properties qualified for the
24		homestead exemption under this Section. The list shall note the
25		base homestead value of each property to be used in the
26		calculation of the exemption for the current tax year.
27		(j) The provisions of this Section apply as follows:
28		(1) If the general assessment year for the property is
29		2003, this Section applies for assessment years 2003, 2004,
30		and 2005. Thereafter, the provisions of Section 15-175
31		apply.
32		(2) If the general assessment year for the property is
33		2004, this Section applies for assessment years 2004, 2005,
34		and 2006. Thereafter, the provisions of Section 15-175

1		apply.
2		(3) If the general assessment year for the property is
3		2005, this Section applies for assessment years 2005, 2006,
4		and 2007. Thereafter, the provisions of Section 15-175
5		apply.
6		(4) In any county other than Cook County, if the
7		general assessment year for the property is 2006, this
8		Section applies for assessment years 2006, 2007, and 2008.
9		Thereafter, the provisions of Section 15-175 apply.
10		(k) Notwithstanding Sections 6 and 8 of the State Mandates
11		Act, no reimbursement by the State is required for the
12		implementation of any mandate created by this Section.
13		(35 ILCS 200/20-178)
14		Sec. 20-178. Certificate of error; refund; interest. When
15		the county collector makes any refunds due on certificates of
16		error issued under Sections 14-15 through 14-25 that have been
17		either certified or adjudicated, the county collector shall pay
18		the taxpayer interest on the amount of the refund at the rate
19		of 0.5% per month.
20		No interest shall be due under this Section for any time
21		prior to 60 days after the effective date of this amendatory
22		Act of the 91st General Assembly. For certificates of error
23		issued prior to the effective date of this amendatory Act of
24		the 91st General Assembly, the county collector shall pay the
25		taxpayer interest from 60 days after the effective date of this
26		amendatory Act of the 91st General Assembly until the date the
27		refund is paid. For certificates of error issued on or after
28		the effective date of this amendatory Act of the 91st General
29		Assembly, interest shall be paid from 60 days after the
30		certificate of error is issued by the chief county assessment
31		officer to the date the refund is made. To cover the cost of
32		interest, the county collector shall proportionately reduce
33		the distribution of taxes collected for each taxing district in

1		which the property is situated.
2		This Section shall not apply to any certificate of error
3		granting a homestead exemption under Section 15-170, 15-172, or
4		15-175, or 15-176.
5		(Source: P.A. 91-393, eff. 7-30-99.)

6		Section 15. The County Economic Development Project Area
7		Property Tax Allocation Act is amended by changing Section 6 as
8		follows:
9		(55 ILCS 85/6) (from Ch. 34, par. 7006)
10		Sec. 6. Filing with county clerk; certification of initial
11		equalized assessed value.
12		(a) The county shall file a certified copy of any ordinance
13		authorizing property tax allocation financing for an economic
14		development project area with the county clerk, and the county
15		clerk shall immediately thereafter determine (1) the most
16		recently ascertained equalized assessed value of each lot,
17		block, tract or parcel of real property within the economic
18		development project area from which shall be deducted the
19		homestead exemptions provided by Sections 15-170, and 15-175,
20		and 15-176 of the Property Tax Code, which value shall be the
21		"initial equalized assessed value" of each such piece of
22		property, and (2) the total equalized assessed value of all
23		taxable real property within the economic development project
24		area by adding together the most recently ascertained equalized
25		assessed value of each taxable lot, block, tract, or parcel of
26		real property within such economic development project area,
27		from which shall be deducted the homestead exemptions provided
28		by Sections 15-170, and 15-175, and 15-176 of the Property Tax
29		Code. Upon receiving written notice from the Department of its
30		approval and certification of such economic development
31		project area, the county clerk shall immediately certify such
32		amount as the "total initial equalized assessed value" of the

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

30		Section 20. The County Economic Development Project Area
31		Tax Increment Allocation Act of 1991 is amended by changing
32		Section 45 as follows:

1		(55 ILCS 90/45) (from Ch. 34, par. 8045)
2		Sec. 45. Filing with county clerk; certification of initial
3		equalized assessed value.
4		(a) A county that has by ordinance approved an economic
5		development plan, established an economic development project
6		area, and adopted tax increment allocation financing for that
7		area shall file certified copies of the ordinance or ordinances
8		with the county clerk. Upon receiving the ordinance or
9		ordinances, the county clerk shall immediately determine (i)
10		the most recently ascertained equalized assessed value of each
11		lot, block, tract, or parcel of real property within the
12		economic development project area from which shall be deducted
13		the homestead exemptions provided by Sections 15-170, and
14		15-175, and 15-176 of the Property Tax Code (that value being
15		the "initial equalized assessed value" of each such piece of
16		property) and (ii) the total equalized assessed value of all
17		taxable real property within the economic development project
18		area by adding together the most recently ascertained equalized
19		assessed value of each taxable lot, block, tract, or parcel of
20		real property within the economic development project area,
21		from which shall be deducted the homestead exemptions provided
22		by Sections 15-170, and 15-175, and 15-176 of the Property Tax
23		Code, and shall certify that amount as the "total initial
24		equalized assessed value" of the taxable real property within
25		the economic development project area.
26		(b) After the county clerk has certified the "total initial
27		equalized assessed value" of the taxable real property in the
28		economic development project area, then in respect to every
29		taxing district containing an economic development project
30		area, the county clerk or any other official required by law to
31		ascertain the amount of the equalized assessed value of all
32		taxable property within the taxing district for the purpose of
33		computing the rate per cent of tax to be extended upon taxable
34		property within the taxing district shall, in every year that

1		tax increment allocation financing is in effect, ascertain the
2		amount of value of taxable property in an economic development
3		project area by including in that amount the lower of the
4		current equalized assessed value or the certified "total
5		initial equalized assessed value" of all taxable real property
6		in the area. The rate per cent of tax determined shall be
7		extended to the current equalized assessed value of all
8		property in the economic development project area in the same
9		manner as the rate per cent of tax is extended to all other
10		taxable property in the taxing district. The method of
11		extending taxes established under this Section shall terminate
12		when the county adopts an ordinance dissolving the special tax
13		allocation fund for the economic development project area. This
14		Act shall not be construed as relieving property owners within
15		an economic development project area from paying a uniform rate
16		of taxes upon the current equalized assessed value of their
17		taxable property as provided in the Property Tax Code.
18		(Source: P.A. 87-1; 88-670, eff. 12-2-94.)

19		Section 25. The Illinois Municipal Code is amended by
20		changing Sections 11-74.4-8, 11-74.4-9, and 11-74.6-40 as
21		follows:
22		(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
23		Sec. 11-74.4-8. Tax increment allocation financing. A
24		municipality may not adopt tax increment financing in a
25		redevelopment project area after the effective date of this
26		amendatory Act of 1997 that will encompass an area that is
27		currently included in an enterprise zone created under the
28		Illinois Enterprise Zone Act unless that municipality,
29		pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
30		amends the enterprise zone designating ordinance to limit the
31		eligibility for tax abatements as provided in Section 5.4.1 of
32		the Illinois Enterprise Zone Act. A municipality, at the time a

1		redevelopment project area is designated, may adopt tax
2		increment allocation financing by passing an ordinance
3		providing that the ad valorem taxes, if any, arising from the
4		levies upon taxable real property in such redevelopment project
5		area by taxing districts and tax rates determined in the manner
6		provided in paragraph (c) of Section 11-74.4-9 each year after
7		the effective date of the ordinance until redevelopment project
8		costs and all municipal obligations financing redevelopment
9		project costs incurred under this Division have been paid shall
10		be divided as follows:
11		(a) That portion of taxes levied upon each taxable lot,
12		block, tract or parcel of real property which is attributable
13		to the lower of the current equalized assessed value or the
14		initial equalized assessed value of each such taxable lot,
15		block, tract or parcel of real property in the redevelopment
16		project area shall be allocated to and when collected shall be
17		paid by the county collector to the respective affected taxing
18		districts in the manner required by law in the absence of the
19		adoption of tax increment allocation financing.
20		(b) Except from a tax levied by a township to retire bonds
21		issued to satisfy court-ordered damages, that portion, if any,
22		of such taxes which is attributable to the increase in the
23		current equalized assessed valuation of each taxable lot,
24		block, tract or parcel of real property in the redevelopment
25		project area over and above the initial equalized assessed
26		value of each property in the project area shall be allocated
27		to and when collected shall be paid to the municipal treasurer
28		who shall deposit said taxes into a special fund called the
29		special tax allocation fund of the municipality for the purpose
30		of paying redevelopment project costs and obligations incurred
31		in the payment thereof. In any county with a population of
32		3,000,000 or more that has adopted a procedure for collecting
33		taxes that provides for one or more of the installments of the
34		taxes to be billed and collected on an estimated basis, the

1		municipal treasurer shall be paid for deposit in the special
2		tax allocation fund of the municipality, from the taxes
3		collected from estimated bills issued for property in the
4		redevelopment project area, the difference between the amount
5		actually collected from each taxable lot, block, tract, or
6		parcel of real property within the redevelopment project area
7		and an amount determined by multiplying the rate at which taxes
8		were last extended against the taxable lot, block, track, or
9		parcel of real property in the manner provided in subsection
10		(c) of Section 11-74.4-9 by the initial equalized assessed
11		value of the property divided by the number of installments in
12		which real estate taxes are billed and collected within the
13		county; provided that the payments on or before December 31,
14		1999 to a municipal treasurer shall be made only if each of the
15		following conditions are met:
16		(1) The total equalized assessed value of the
17		redevelopment project area as last determined was not less
18		than 175% of the total initial equalized assessed value.
19		(2) Not more than 50% of the total equalized assessed
20		value of the redevelopment project area as last determined
21		is attributable to a piece of property assigned a single
22		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 taxes
26		of the redevelopment project area or taxes levied and
27		collected on any or all property in the municipality or the
28		full faith and credit of the municipality to pay or secure
29		payment for all or a portion of the redevelopment project
30		costs. The certification shall be filed annually no later
31		than September 1 for the estimated taxes to be distributed
32		in the following year; however, for the year 1992 the
33		certification shall be made at any time on or before March
34		31, 1992.

1		(4) The municipality has not requested that the total
2		initial equalized assessed value of real property be
3		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. If
9		a county that has adopted the estimated billing procedure makes
10		an erroneous overpayment of tax revenue to the municipal
11		treasurer, then the county may seek a refund of that
12		overpayment. The county shall send the municipal treasurer a
13		notice of liability for the overpayment on or before the
14		mailing date of the next real estate tax bill within the
15		county. The refund shall be limited to the amount of the
16		overpayment.
17		It is the intent of this Division that after the effective
18		date of this amendatory Act of 1988 a municipality's own ad
19		valorem tax arising from levies on taxable real property be
20		included in the determination of incremental revenue in the
21		manner provided in paragraph (c) of Section 11-74.4-9. If the
22		municipality does not extend such a tax, it shall annually
23		deposit in the municipality's Special Tax Increment Fund an
24		amount equal to 10% of the total contributions to the fund from
25		all other taxing districts in that year. The annual 10% deposit
26		required by this paragraph shall be limited to the actual
27		amount of municipally produced incremental tax revenues
28		available to the municipality from taxpayers located in the
29		redevelopment project area in that year if: (a) the plan for
30		the area restricts the use of the property primarily to
31		industrial purposes, (b) the municipality establishing the
32		redevelopment project area is a home-rule community with a 1990
33		population of between 25,000 and 50,000, (c) the municipality
34		is wholly located within a county with a 1990 population of

1		over 750,000 and (d) the redevelopment project area was
2		established by the municipality prior to June 1, 1990. This
3		payment shall be in lieu of a contribution of ad valorem taxes
4		on real property. If no such payment is made, any redevelopment
5		project area of the municipality shall be dissolved.
6		If a municipality has adopted tax increment allocation
7		financing by ordinance and the County Clerk thereafter
8		certifies the "total initial equalized assessed value as
9		adjusted" of the taxable real property within such
10		redevelopment project area in the manner provided in paragraph
11		(b) of Section 11-74.4-9, each year after the date of the
12		certification of the total initial equalized assessed value as
13		adjusted until redevelopment project costs and all municipal
14		obligations financing redevelopment project costs have been
15		paid the ad valorem taxes, if any, arising from the levies upon
16		the taxable real property in such redevelopment project area by
17		taxing districts and tax rates determined in the manner
18		provided in paragraph (c) of Section 11-74.4-9 shall be divided
19		as follows:
20		(1) That portion of the taxes levied upon each taxable
21		lot, block, tract or parcel of real property which is
22		attributable to the lower of the current equalized assessed
23		value or "current equalized assessed value as adjusted" or
24		the initial equalized assessed value of each such taxable
25		lot, block, tract, or parcel of real property existing at
26		the time tax increment financing was adopted, minus the
27		total current homestead exemptions provided by Sections
28		15-170, and 15-175, and 15-176 of the Property Tax Code in
29		the redevelopment project area shall be allocated to and
30		when collected shall be paid by the county collector to the
31		respective affected taxing districts in the manner
32		required by law in the absence of the adoption of tax
33		increment allocation financing.
34		(2) That portion, if any, of such taxes which is

1		attributable to the increase in the current equalized
2		assessed valuation of each taxable lot, block, tract, or
3		parcel of real property in the redevelopment project area,
4		over and above the initial equalized assessed value of each
5		property existing at the time tax increment financing was
6		adopted, minus the total current homestead exemptions
7		pertaining to each piece of property provided by Sections
8		15-170, and 15-175, and 15-176 of the Property Tax Code in
9		the redevelopment project area, shall be allocated to and
10		when collected shall be paid to the municipal Treasurer,
11		who shall deposit said taxes into a special fund called the
12		special tax allocation fund of the municipality for the
13		purpose of paying redevelopment project costs and
14		obligations incurred in the payment thereof.
15		The municipality may pledge in the ordinance the funds in
16		and to be deposited in the special tax allocation fund for the
17		payment of such costs and obligations. No part of the current
18		equalized assessed valuation of each property in the
19		redevelopment project area attributable to any increase above
20		the total initial equalized assessed value, or the total
21		initial equalized assessed value as adjusted, of such
22		properties shall be used in calculating the general State
23		school aid formula, provided for in Section 18-8 of the School
24		Code, until such time as all redevelopment project costs have
25		been paid as provided for in this Section.
26		Whenever a municipality issues bonds for the purpose of
27		financing redevelopment project costs, such municipality may
28		provide by ordinance for the appointment of a trustee, which
29		may be any trust company within the State, and for the
30		establishment of such funds or accounts to be maintained by
31		such trustee as the municipality shall deem necessary to
32		provide for the security and payment of the bonds. If such
33		municipality provides for the appointment of a trustee, such
34		trustee shall be considered the assignee of any payments

1		assigned by the municipality pursuant to such ordinance and
2		this Section. Any amounts paid to such trustee as assignee
3		shall be deposited in the funds or accounts established
4		pursuant to such trust agreement, and shall be held by such
5		trustee in trust for the benefit of the holders of the bonds,
6		and such holders shall have a lien on and a security interest
7		in such funds or accounts so long as the bonds remain
8		outstanding and unpaid. Upon retirement of the bonds, the
9		trustee shall pay over any excess amounts held to the
10		municipality for deposit in the special tax allocation fund.
11		When such redevelopment projects costs, including without
12		limitation all municipal obligations financing redevelopment
13		project costs incurred under this Division, have been paid, all
14		surplus funds then remaining in the special tax allocation fund
15		shall be distributed by being paid by the municipal treasurer
16		to the Department of Revenue, the municipality and the county
17		collector; first to the Department of Revenue and the
18		municipality in direct proportion to the tax incremental
19		revenue received from the State and the municipality, but not
20		to exceed the total incremental revenue received from the State
21		or the municipality less any annual surplus distribution of
22		incremental revenue previously made; with any remaining funds
23		to be paid to the County Collector who shall immediately
24		thereafter pay said funds to the taxing districts in the
25		redevelopment project area in the same manner and proportion as
26		the most recent distribution by the county collector to the
27		affected districts of real property taxes from real property in
28		the redevelopment project area.
29		Upon the payment of all redevelopment project costs, the
30		retirement of obligations, the distribution of any excess
31		monies pursuant to this Section, and final closing of the books
32		and records of the redevelopment project area, the municipality
33		shall adopt an ordinance dissolving the special tax allocation
34		fund for the redevelopment project area and terminating the

1		designation of the redevelopment project area as a
2		redevelopment project area. Title to real or personal property
3		and public improvements acquired by or for the municipality as
4		a result of the redevelopment project and plan shall vest in
5		the municipality when acquired and shall continue to be held by
6		the municipality after the redevelopment project area has been
7		terminated. Municipalities shall notify affected taxing
8		districts prior to November 1 if the redevelopment project area
9		is to be terminated by December 31 of that same year. If a
10		municipality extends estimated dates of completion of a
11		redevelopment project and retirement of obligations to finance
12		a redevelopment project, as allowed by this amendatory Act of
13		1993, that extension shall not extend the property tax
14		increment allocation financing authorized by this Section.
15		Thereafter the rates of the taxing districts shall be extended
16		and taxes levied, collected and distributed in the manner
17		applicable in the absence of the adoption of tax increment
18		allocation financing.
19		Nothing in this Section shall be construed as relieving
20		property in such redevelopment project areas from being
21		assessed as provided in the Property Tax Code or as relieving
22		owners of such property from paying a uniform rate of taxes, as
23		required by Section 4 of Article 9 of the Illinois
24		Constitution.
25		(Source: P.A. 92-16, eff. 6-28-01; 93-298, eff. 7-23-03.)
26		(65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
27		Sec. 11-74.4-9. Equalized assessed value of property.
28		(a) If a municipality by ordinance provides for tax
29		increment allocation financing pursuant to Section 11-74.4-8,
30		the county clerk immediately thereafter shall determine (1) the
31		most recently ascertained equalized assessed value of each lot,
32		block, tract or parcel of real property within such
33		redevelopment project area from which shall be deducted the

1		homestead exemptions provided by Sections 15-170, and 15-175,
2		and 15-176 of the Property Tax Code, which value shall be the
3		"initial equalized assessed value" of each such piece of
4		property, and (2) the total equalized assessed value of all
5		taxable real property within such redevelopment project area by
6		adding together the most recently ascertained equalized
7		assessed value of each taxable lot, block, tract, or parcel of
8		real property within such project area, from which shall be
9		deducted the homestead exemptions provided by Sections 15-170,
10		and 15-175, and 15-176 of the Property Tax Code, and shall
11		certify such amount as the "total initial equalized assessed
12		value" of the taxable real property within such project area.
13		(b) In reference to any municipality which has adopted tax
14		increment financing after January 1, 1978, and in respect to
15		which the county clerk has certified the "total initial
16		equalized assessed value" of the property in the redevelopment
17		area, the municipality may thereafter request the clerk in
18		writing to adjust the initial equalized value of all taxable
19		real property within the redevelopment project area by
20		deducting therefrom the exemptions provided for by Sections
21		15-170, and 15-175, and 15-176 of the Property Tax Code
22		applicable to each lot, block, tract or parcel of real property
23		within such redevelopment project area. The county clerk shall
24		immediately after the written request to adjust the total
25		initial equalized value is received determine the total
26		homestead exemptions in the redevelopment project area
27		provided by Sections 15-170, and 15-175, and 15-176 of the
28		Property Tax Code by adding together the homestead exemptions
29		provided by said Sections on each lot, block, tract or parcel
30		of real property within such redevelopment project area and
31		then shall deduct the total of said exemptions from the total
32		initial equalized assessed value. The county clerk shall then
33		promptly certify such amount as the "total initial equalized
34		assessed value as adjusted" of the taxable real property within

1		such redevelopment project area.
2		(c) After the county clerk has certified the "total initial
3		equalized assessed value" of the taxable real property in such
4		area, then in respect to every taxing district containing a
5		redevelopment project area, the county clerk or any other
6		official required by law to ascertain the amount of the
7		equalized assessed value of all taxable property within such
8		district for the purpose of computing the rate per cent of tax
9		to be extended upon taxable property within such district,
10		shall in every year that tax increment allocation financing is
11		in effect ascertain the amount of value of taxable property in
12		a redevelopment project area by including in such amount the
13		lower of the current equalized assessed value or the certified
14		"total initial equalized assessed value" of all taxable real
15		property in such area, except that after he has certified the
16		"total initial equalized assessed value as adjusted" he shall
17		in the year of said certification if tax rates have not been
18		extended and in every year thereafter that tax increment
19		allocation financing is in effect ascertain the amount of value
20		of taxable property in a redevelopment project area by
21		including in such amount the lower of the current equalized
22		assessed value or the certified "total initial equalized
23		assessed value as adjusted" of all taxable real property in
24		such area. The rate per cent of tax determined shall be
25		extended to the current equalized assessed value of all
26		property in the redevelopment project area in the same manner
27		as the rate per cent of tax is extended to all other taxable
28		property in the taxing district. The method of extending taxes
29		established under this Section shall terminate when the
30		municipality adopts an ordinance dissolving the special tax
31		allocation fund for the redevelopment project area. This
32		Division shall not be construed as relieving property owners
33		within a redevelopment project area from paying a uniform rate
34		of taxes upon the current equalized assessed value of their

1		taxable property as provided in the Property Tax Code.
2		(Source: P.A. 88-670, eff. 12-2-94.)
3		(65 ILCS 5/11-74.6-40)
4		Sec. 11-74.6-40. Equalized assessed value determination;
5		property tax extension.
6		(a) If a municipality by ordinance provides for tax
7		increment allocation financing under Section 11-74.6-35, the
8		county clerk immediately thereafter:
9		(1) shall determine the initial equalized assessed
10		value of each parcel of real property in the redevelopment
11		project area, which is the most recently established
12		equalized assessed value of each lot, block, tract or
13		parcel of taxable real property within the redevelopment
14		project area, minus the homestead exemptions provided by
15		Sections 15-170, and 15-175, and 15-176 of the Property Tax
16		Code; and
17		(2) shall certify to the municipality the total initial
18		equalized assessed value of all taxable real property
19		within the redevelopment project area.
20		(b) Any municipality that has established a vacant
21		industrial buildings conservation area may, by ordinance
22		passed after the adoption of tax increment allocation
23		financing, provide that the county clerk immediately
24		thereafter shall again determine:
25		(1) the updated initial equalized assessed value of
26		each lot, block, tract or parcel of real property, which is
27		the most recently ascertained equalized assessed value of
28		each lot, block, tract or parcel of real property within
29		the vacant industrial buildings conservation area; and
30		(2) the total updated initial equalized assessed value
31		of all taxable real property within the redevelopment
32		project area, which is the total of the updated initial
33		equalized assessed value of all taxable real property

1		within the vacant industrial buildings conservation area.
2		The county clerk shall certify to the municipality the
3		total updated initial equalized assessed value of all taxable
4		real property within the industrial buildings conservation
5		area.
6		(c) After the county clerk has certified the total initial
7		equalized assessed value or the total updated initial equalized
8		assessed value of the taxable real property in the area, for
9		each taxing district in which a redevelopment project area is
10		situated, the county clerk or any other official required by
11		law to determine the amount of the equalized assessed value of
12		all taxable property within the district for the purpose of
13		computing the percentage rate of tax to be extended upon
14		taxable property within the district, shall in every year that
15		tax increment allocation financing is in effect determine the
16		total equalized assessed value of taxable property in a
17		redevelopment project area by including in that amount the
18		lower of the current equalized assessed value or the certified
19		total initial equalized assessed value or, if the total of
20		updated equalized assessed value has been certified, the total
21		updated initial equalized assessed value of all taxable real
22		property in the redevelopment project area. After he has
23		certified the total initial equalized assessed value he shall
24		in the year of that certification, if tax rates have not been
25		extended, and in every subsequent year that tax increment
26		allocation financing is in effect, determine the amount of
27		equalized assessed value of taxable property in a redevelopment
28		project area by including in that amount the lower of the
29		current total equalized assessed value or the certified total
30		initial equalized assessed value or, if the total of updated
31		initial equalized assessed values have been certified, the
32		total updated initial equalized assessed value of all taxable
33		real property in the redevelopment project area.
34		(d) The percentage rate of tax determined shall be extended

1		on the current equalized assessed value of all property in the
2		redevelopment project area in the same manner as the rate per
3		cent of tax is extended to all other taxable property in the
4		taxing district. The method of extending taxes established
5		under this Section shall terminate when the municipality adopts
6		an ordinance dissolving the special tax allocation fund for the
7		redevelopment project area. This Law shall not be construed as
8		relieving property owners within a redevelopment project area
9		from paying a uniform rate of taxes upon the current equalized
10		assessed value of their taxable property as provided in the
11		Property Tax Code.
12		(Source: P.A. 88-537; 88-670, eff. 12-2-94.)

13		Section 30. The Economic Development Project Area Tax
14		Increment Allocation Act of 1995 is amended by changing Section
15		45 as follows:
16		(65 ILCS 110/45)
17		Sec. 45. Filing with county clerk; certification of initial
18		equalized assessed value.
19		(a) A municipality that has by ordinance approved an
20		economic development plan, established an economic development
21		project area, and adopted tax increment allocation financing
22		for that area shall file certified copies of the ordinance or
23		ordinances with the county clerk. Upon receiving the ordinance
24		or ordinances, the county clerk shall immediately determine (i)
25		the most recently ascertained equalized assessed value of each
26		lot, block, tract, or parcel of real property within the
27		economic development project area from which shall be deducted
28		the homestead exemptions provided by Sections 15-170, and
29		15-175, and 15-176 of the Property Tax Code (that value being
30		the "initial equalized assessed value" of each such piece of
31		property) and (ii) the total equalized assessed value of all
32		taxable real property within the economic development project

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

1		provided in the Property Tax Code.
2		(Source: P.A. 89-176, eff. 1-1-96.)

3		Section 35. The School Code is amended by changing Section
4		18-8.05 as follows:
5		(105 ILCS 5/18-8.05)
6		Sec. 18-8.05. Basis for apportionment of general State
7		financial aid and supplemental general State aid to the common
8		schools for the 1998-1999 and subsequent school years.
9		(A) General Provisions.
10		(1) The provisions of this Section apply to the 1998-1999
11		and subsequent school years. The system of general State
12		financial aid provided for in this Section is designed to
13		assure that, through a combination of State financial aid and
14		required local resources, the financial support provided each
15		pupil in Average Daily Attendance equals or exceeds a
16		prescribed per pupil Foundation Level. This formula approach
17		imputes a level of per pupil Available Local Resources and
18		provides for the basis to calculate a per pupil level of
19		general State financial aid that, when added to Available Local
20		Resources, equals or exceeds the Foundation Level. The amount
21		of per pupil general State financial aid for school districts,
22		in general, varies in inverse relation to Available Local
23		Resources. Per pupil amounts are based upon each school
24		district's Average Daily Attendance as that term is defined in
25		this Section.
26		(2) In addition to general State financial aid, school
27		districts with specified levels or concentrations of pupils
28		from low income households are eligible to receive supplemental
29		general State financial aid grants as provided pursuant to
30		subsection (H). The supplemental State aid grants provided for
31		school districts under subsection (H) shall be appropriated for

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

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

1		a sufficient local taxing effort such that, in combination with
2		the aggregate of general State financial aid provided the
3		district, an aggregate of State and local resources are
4		available to meet the basic education needs of pupils in the
5		district.
6		(2) For the 1998-1999 school year, the Foundation Level of
7		support is $4,225. For the 1999-2000 school year, the
8		Foundation Level of support is $4,325. For the 2000-2001 school
9		year, the Foundation Level of support is $4,425.
10		(3) For the 2001-2002 school year and 2002-2003 school
11		year, the Foundation Level of support is $4,560.
12		(4) For the 2003-2004 school year and each school year
13		thereafter, the Foundation Level of support is $4,810 or such
14		greater amount as may be established by law by the General
15		Assembly.
16		(C) Average Daily Attendance.
17		(1) For purposes of calculating general State aid pursuant
18		to subsection (E), an Average Daily Attendance figure shall be
19		utilized. The Average Daily Attendance figure for formula
20		calculation purposes shall be the monthly average of the actual
21		number of pupils in attendance of each school district, as
22		further averaged for the best 3 months of pupil attendance for
23		each school district. In compiling the figures for the number
24		of pupils in attendance, school districts and the State Board
25		of Education shall, for purposes of general State aid funding,
26		conform attendance figures to the requirements of subsection
27		(F).
28		(2) The Average Daily Attendance figures utilized in
29		subsection (E) shall be the requisite attendance data for the
30		school year immediately preceding the school year for which
31		general State aid is being calculated or the average of the
32		attendance data for the 3 preceding school years, whichever is
33		greater. The Average Daily Attendance figures utilized in

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

1		to each school district during the calendar year 2 years before
2		the calendar year in which a school year begins, divided by the
3		Average Daily Attendance figure for that district, shall be
4		added to the local property tax revenues per pupil as derived
5		by the application of the immediately preceding paragraph (3).
6		The sum of these per pupil figures for each school district
7		shall constitute Available Local Resources as that term is
8		utilized in subsection (E) in the calculation of general State
9		aid.
10		(E) Computation of General State Aid.
11		(1) For each school year, the amount of general State aid
12		allotted to a school district shall be computed by the State
13		Board of Education as provided in this subsection.
14		(2) For any school district for which Available Local
15		Resources per pupil is less than the product of 0.93 times the
16		Foundation Level, general State aid for that district shall be
17		calculated as an amount equal to the Foundation Level minus
18		Available Local Resources, multiplied by the Average Daily
19		Attendance of the school district.
20		(3) For any school district for which Available Local
21		Resources per pupil is equal to or greater than the product of
22		0.93 times the Foundation Level and less than the product of
23		1.75 times the Foundation Level, the general State aid per
24		pupil shall be a decimal proportion of the Foundation Level
25		derived using a linear algorithm. Under this linear algorithm,
26		the calculated general State aid per pupil shall decline in
27		direct linear fashion from 0.07 times the Foundation Level for
28		a school district with Available Local Resources equal to the
29		product of 0.93 times the Foundation Level, to 0.05 times the
30		Foundation Level for a school district with Available Local
31		Resources equal to the product of 1.75 times the Foundation
32		Level. The allocation of general State aid for school districts
33		subject to this paragraph 3 shall be the calculated general

1		State aid per pupil figure multiplied by the Average Daily
2		Attendance of the school district.
3		(4) For any school district for which Available Local
4		Resources per pupil equals or exceeds the product of 1.75 times
5		the Foundation Level, the general State aid for the school
6		district shall be calculated as the product of $218 multiplied
7		by the Average Daily Attendance of the school district.
8		(5) The amount of general State aid allocated to a school
9		district for the 1999-2000 school year meeting the requirements
10		set forth in paragraph (4) of subsection (G) shall be increased
11		by an amount equal to the general State aid that would have
12		been received by the district for the 1998-1999 school year by
13		utilizing the Extension Limitation Equalized Assessed
14		Valuation as calculated in paragraph (4) of subsection (G) less
15		the general State aid allotted for the 1998-1999 school year.
16		This amount shall be deemed a one time increase, and shall not
17		affect any future general State aid allocations.
18		(F) Compilation of Average Daily Attendance.
19		(1) Each school district shall, by July 1 of each year,
20		submit to the State Board of Education, on forms prescribed by
21		the State Board of Education, attendance figures for the school
22		year that began in the preceding calendar year. The attendance
23		information so transmitted shall identify the average daily
24		attendance figures for each month of the school year. Beginning
25		with the general State aid claim form for the 2002-2003 school
26		year, districts shall calculate Average Daily Attendance as
27		provided in subdivisions (a), (b), and (c) of this paragraph
28		(1).
29		(a) In districts that do not hold year-round classes,
30		days of attendance in August shall be added to the month of
31		September and any days of attendance in June shall be added
32		to the month of May.
33		(b) In districts in which all buildings hold year-round

1		classes, days of attendance in July and August shall be
2		added to the month of September and any days of attendance
3		in June shall be added to the month of May.
4		(c) In districts in which some buildings, but not all,
5		hold year-round classes, for the non-year-round buildings,
6		days of attendance in August shall be added to the month of
7		September and any days of attendance in June shall be added
8		to the month of May. The average daily attendance for the
9		year-round buildings shall be computed as provided in
10		subdivision (b) of this paragraph (1). To calculate the
11		Average Daily Attendance for the district, the average
12		daily attendance for the year-round buildings shall be
13		multiplied by the days in session for the non-year-round
14		buildings for each month and added to the monthly
15		attendance of the non-year-round buildings.
16		Except as otherwise provided in this Section, days of
17		attendance by pupils shall be counted only for sessions of not
18		less than 5 clock hours of school work per day under direct
19		supervision of: (i) teachers, or (ii) non-teaching personnel or
20		volunteer personnel when engaging in non-teaching duties and
21		supervising in those instances specified in subsection (a) of
22		Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
23		of legal school age and in kindergarten and grades 1 through
24		12.
25		Days of attendance by tuition pupils shall be accredited
26		only to the districts that pay the tuition to a recognized
27		school.
28		(2) Days of attendance by pupils of less than 5 clock hours
29		of school shall be subject to the following provisions in the
30		compilation of Average Daily Attendance.
31		(a) Pupils regularly enrolled in a public school for
32		only a part of the school day may be counted on the basis
33		of 1/6 day for every class hour of instruction of 40
34		minutes or more attended pursuant to such enrollment,

1		unless a pupil is enrolled in a block-schedule format of 80
2		minutes or more of instruction, in which case the pupil may
3		be counted on the basis of the proportion of minutes of
4		school work completed each day to the minimum number of
5		minutes that school work is required to be held that day.
6		(b) Days of attendance may be less than 5 clock hours
7		on the opening and closing of the school term, and upon the
8		first day of pupil attendance, if preceded by a day or days
9		utilized as an institute or teachers' workshop.
10		(c) A session of 4 or more clock hours may be counted
11		as a day of attendance upon certification by the regional
12		superintendent, and approved by the State Superintendent
13		of Education to the extent that the district has been
14		forced to use daily multiple sessions.
15		(d) A session of 3 or more clock hours may be counted
16		as a day of attendance (1) when the remainder of the school
17		day or at least 2 hours in the evening of that day is
18		utilized for an in-service training program for teachers,
19		up to a maximum of 5 days per school year of which a
20		maximum of 4 days of such 5 days may be used for
21		parent-teacher conferences, provided a district conducts
22		an in-service training program for teachers which has been
23		approved by the State Superintendent of Education; or, in
24		lieu of 4 such days, 2 full days may be used, in which
25		event each such day may be counted as a day of attendance;
26		and (2) when days in addition to those provided in item (1)
27		are scheduled by a school pursuant to its school
28		improvement plan adopted under Article 34 or its revised or
29		amended school improvement plan adopted under Article 2,
30		provided that (i) such sessions of 3 or more clock hours
31		are scheduled to occur at regular intervals, (ii) the
32		remainder of the school days in which such sessions occur
33		are utilized for in-service training programs or other
34		staff development activities for teachers, and (iii) a

1		sufficient number of minutes of school work under the
2		direct supervision of teachers are added to the school days
3		between such regularly scheduled sessions to accumulate
4		not less than the number of minutes by which such sessions
5		of 3 or more clock hours fall short of 5 clock hours. Any
6		full days used for the purposes of this paragraph shall not
7		be considered for computing average daily attendance. Days
8		scheduled for in-service training programs, staff
9		development activities, or parent-teacher conferences may
10		be scheduled separately for different grade levels and
11		different attendance centers of the district.
12		(e) A session of not less than one clock hour of
13		teaching hospitalized or homebound pupils on-site or by
14		telephone to the classroom may be counted as 1/2 day of
15		attendance, however these pupils must receive 4 or more
16		clock hours of instruction to be counted for a full day of
17		attendance.
18		(f) A session of at least 4 clock hours may be counted
19		as a day of attendance for first grade pupils, and pupils
20		in full day kindergartens, and a session of 2 or more hours
21		may be counted as 1/2 day of attendance by pupils in
22		kindergartens which provide only 1/2 day of attendance.
23		(g) For children with disabilities who are below the
24		age of 6 years and who cannot attend 2 or more clock hours
25		because of their disability or immaturity, a session of not
26		less than one clock hour may be counted as 1/2 day of
27		attendance; however for such children whose educational
28		needs so require a session of 4 or more clock hours may be
29		counted as a full day of attendance.
30		(h) A recognized kindergarten which provides for only
31		1/2 day of attendance by each pupil shall not have more
32		than 1/2 day of attendance counted in any one day. However,
33		kindergartens may count 2 1/2 days of attendance in any 5
34		consecutive school days. When a pupil attends such a

1		kindergarten for 2 half days on any one school day, the
2		pupil shall have the following day as a day absent from
3		school, unless the school district obtains permission in
4		writing from the State Superintendent of Education.
5		Attendance at kindergartens which provide for a full day of
6		attendance by each pupil shall be counted the same as
7		attendance by first grade pupils. Only the first year of
8		attendance in one kindergarten shall be counted, except in
9		case of children who entered the kindergarten in their
10		fifth year whose educational development requires a second
11		year of kindergarten as determined under the rules and
12		regulations of the State Board of Education.
13		(G) Equalized Assessed Valuation Data.
14		(1) For purposes of the calculation of Available Local
15		Resources required pursuant to subsection (D), the State Board
16		of Education shall secure from the Department of Revenue the
17		value as equalized or assessed by the Department of Revenue of
18		all taxable property of every school district, together with
19		(i) the applicable tax rate used in extending taxes for the
20		funds of the district as of September 30 of the previous year
21		and (ii) the limiting rate for all school districts subject to
22		property tax extension limitations as imposed under the
23		Property Tax Extension Limitation Law.
24		The Department of Revenue shall add to the equalized
25		assessed value of all taxable property of each school district
26		situated entirely or partially within a county with 3,000,000
27		or more inhabitants an amount equal to the total amount by
28		which the homestead exemption allowed under Section 15-176 of
29		the Property Tax Code for real property located in Cook County
30		and situated in that school district exceeds the total amount
31		that would have been allowed in that school district if the
32		maximum reduction under Section 15-176 was $4,500 in Cook
33		County and $3,500 in all other counties. The county clerk of

1		any county with 3,000,000 or more inhabitants shall annually
2		calculate and certify to the Department of Revenue for each
3		school district all homestead exemption amounts under Section
4		15-176. It is the intent of this paragraph that if the general
5		homestead exemption for a parcel of property is determined
6		under Section 15-176 of the Property Tax Code rather than
7		Section 15-175, then the calculation of Available Local
8		Resources shall not be affected by the difference, if any,
9		between the amount of the general homestead exemption allowed
10		for that parcel of property under Section 15-176 of the
11		Property Tax Code and the amount that would have been allowed
12		had the general homestead exemption for that parcel of property
13		been determined under Section 15-175 of the Property Tax Code.
14		This equalized assessed valuation, as adjusted further by
15		the requirements of this subsection, shall be utilized in the
16		calculation of Available Local Resources.
17		(2) The equalized assessed valuation in paragraph (1) shall
18		be adjusted, as applicable, in the following manner:
19		(a) For the purposes of calculating State aid under
20		this Section, with respect to any part of a school district
21		within a redevelopment project area in respect to which a
22		municipality has adopted tax increment allocation
23		financing pursuant to the Tax Increment Allocation
24		Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
25		of the Illinois Municipal Code or the Industrial Jobs
26		Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
27		Illinois Municipal Code, no part of the current equalized
28		assessed valuation of real property located in any such
29		project area which is attributable to an increase above the
30		total initial equalized assessed valuation of such
31		property shall be used as part of the equalized assessed
32		valuation of the district, until such time as all
33		redevelopment project costs have been paid, as provided in
34		Section 11-74.4-8 of the Tax Increment Allocation

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

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

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

1		difference between these amounts. The total payments made under
2		this paragraph (5) shall not exceed $14,000,000. Claims shall
3		be prorated if they exceed $14,000,000.
4		(H) Supplemental General State Aid.
5		(1) In addition to the general State aid a school district
6		is allotted pursuant to subsection (E), qualifying school
7		districts shall receive a grant, paid in conjunction with a
8		district's payments of general State aid, for supplemental
9		general State aid based upon the concentration level of
10		children from low-income households within the school
11		district. Supplemental State aid grants provided for school
12		districts under this subsection shall be appropriated for
13		distribution to school districts as part of the same line item
14		in which the general State financial aid of school districts is
15		appropriated under this Section. If the appropriation in any
16		fiscal year for general State aid and supplemental general
17		State aid is insufficient to pay the amounts required under the
18		general State aid and supplemental general State aid
19		calculations, then the State Board of Education shall ensure
20		that each school district receives the full amount due for
21		general State aid and the remainder of the appropriation shall
22		be used for supplemental general State aid, which the State
23		Board of Education shall calculate and pay to eligible
24		districts on a prorated basis.
25		(1.5) This paragraph (1.5) applies only to those school
26		years preceding the 2003-2004 school year. For purposes of this
27		subsection (H), the term "Low-Income Concentration Level"
28		shall be the low-income eligible pupil count from the most
29		recently available federal census divided by the Average Daily
30		Attendance of the school district. If, however, (i) the
31		percentage decrease from the 2 most recent federal censuses in
32		the low-income eligible pupil count of a high school district
33		with fewer than 400 students exceeds by 75% or more the

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

1		by the Department of Children and Family Services, averaged
2		over the 2 immediately preceding fiscal years for fiscal year
3		2004 and over the 3 immediately preceding fiscal years for each
4		fiscal year thereafter) divided by the Average Daily Attendance
5		of the school district.
6		(2) Supplemental general State aid pursuant to this
7		subsection (H) shall be provided as follows for the 1998-1999,
8		1999-2000, and 2000-2001 school years only:
9		(a) For any school district with a Low Income
10		Concentration Level of at least 20% and less than 35%, the
11		grant for any school year shall be $800 multiplied by the
12		low income eligible pupil count.
13		(b) For any school district with a Low Income
14		Concentration Level of at least 35% and less than 50%, the
15		grant for the 1998-1999 school year shall be $1,100
16		multiplied by the low income eligible pupil count.
17		(c) For any school district with a Low Income
18		Concentration Level of at least 50% and less than 60%, the
19		grant for the 1998-99 school year shall be $1,500
20		multiplied by the low income eligible pupil count.
21		(d) For any school district with a Low Income
22		Concentration Level of 60% or more, the grant for the
23		1998-99 school year shall be $1,900 multiplied by the low
24		income eligible pupil count.
25		(e) For the 1999-2000 school year, the per pupil amount
26		specified in subparagraphs (b), (c), and (d) immediately
27		above shall be increased to $1,243, $1,600, and $2,000,
28		respectively.
29		(f) For the 2000-2001 school year, the per pupil
30		amounts specified in subparagraphs (b), (c), and (d)
31		immediately above shall be $1,273, $1,640, and $2,050,
32		respectively.
33		(2.5) Supplemental general State aid pursuant to this
34		subsection (H) shall be provided as follows for the 2002-2003

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

1		Concentration Level greater than 15%, the grant for each
2		school year shall be $294.25 added to the product of $2,700
3		and the square of the Low Income Concentration Level, all
4		multiplied by the low income eligible pupil count.
5		For the 2003-2004 school year only, the grant shall be no
6		less than the grant for the 2002-2003 school year. For the
7		2004-2005 school year only, the grant shall be no less than the
8		grant for the 2002-2003 school year multiplied by 0.66. For the
9		2005-2006 school year only, the grant shall be no less than the
10		grant for the 2002-2003 school year multiplied by 0.33.
11		For the 2003-2004 school year only, the grant shall be no
12		greater than the grant received during the 2002-2003 school
13		year added to the product of 0.25 multiplied by the difference
14		between the grant amount calculated under subsection (a) or (b)
15		of this paragraph (2.10), whichever is applicable, and the
16		grant received during the 2002-2003 school year. For the
17		2004-2005 school year only, the grant shall be no greater than
18		the grant received during the 2002-2003 school year added to
19		the product of 0.50 multiplied by the difference between the
20		grant amount calculated under subsection (a) or (b) of this
21		paragraph (2.10), whichever is applicable, and the grant
22		received during the 2002-2003 school year. For the 2005-2006
23		school year only, the grant shall be no greater than the grant
24		received during the 2002-2003 school year added to the product
25		of 0.75 multiplied by the difference between the grant amount
26		calculated under subsection (a) or (b) of this paragraph
27		(2.10), whichever is applicable, and the grant received during
28		the 2002-2003 school year.
29		(3) School districts with an Average Daily Attendance of
30		more than 1,000 and less than 50,000 that qualify for
31		supplemental general State aid pursuant to this subsection
32		shall submit a plan to the State Board of Education prior to
33		October 30 of each year for the use of the funds resulting from
34		this grant of supplemental general State aid for the

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

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

1		modified plan within the time period specified herein, the
2		State aid funds affected by that plan or modified plan
3		shall be withheld by the State Board of Education until a
4		plan or modified plan is submitted.
5		If the district fails to distribute State aid to
6		attendance centers in accordance with an approved plan, the
7		plan for the following year shall allocate funds, in
8		addition to the funds otherwise required by this
9		subsection, to those attendance centers which were
10		underfunded during the previous year in amounts equal to
11		such underfunding.
12		For purposes of determining compliance with this
13		subsection in relation to the requirements of attendance
14		center funding, each district subject to the provisions of
15		this subsection shall submit as a separate document by
16		December 1 of each year a report of expenditure data for
17		the prior year in addition to any modification of its
18		current plan. If it is determined that there has been a
19		failure to comply with the expenditure provisions of this
20		subsection regarding contravention or supplanting, the
21		State Superintendent of Education shall, within 60 days of
22		receipt of the report, notify the district and any affected
23		local school council. The district shall within 45 days of
24		receipt of that notification inform the State
25		Superintendent of Education of the remedial or corrective
26		action to be taken, whether by amendment of the current
27		plan, if feasible, or by adjustment in the plan for the
28		following year. Failure to provide the expenditure report
29		or the notification of remedial or corrective action in a
30		timely manner shall result in a withholding of the affected
31		funds.
32		The State Board of Education shall promulgate rules and
33		regulations to implement the provisions of this
34		subsection. No funds shall be released under this

1		subdivision (H)(4) to any district that has not submitted a
2		plan that has been approved by the State Board of
3		Education.
4		(I) General State Aid for Newly Configured School Districts.
5		(1) For a new school district formed by combining property
6		included totally within 2 or more previously existing school
7		districts, for its first year of existence the general State
8		aid and supplemental general State aid calculated under this
9		Section shall be computed for the new district and for the
10		previously existing districts for which property is totally
11		included within the new district. If the computation on the
12		basis of the previously existing districts is greater, a
13		supplementary payment equal to the difference shall be made for
14		the first 4 years of existence of the new district.
15		(2) For a school district which annexes all of the
16		territory of one or more entire other school districts, for the
17		first year during which the change of boundaries attributable
18		to such annexation becomes effective for all purposes as
19		determined under Section 7-9 or 7A-8, the general State aid and
20		supplemental general State aid calculated under this Section
21		shall be computed for the annexing district as constituted
22		after the annexation and for the annexing and each annexed
23		district as constituted prior to the annexation; and if the
24		computation on the basis of the annexing and annexed districts
25		as constituted prior to the annexation is greater, a
26		supplementary payment equal to the difference shall be made for
27		the first 4 years of existence of the annexing school district
28		as constituted upon such annexation.
29		(3) For 2 or more school districts which annex all of the
30		territory of one or more entire other school districts, and for
31		2 or more community unit districts which result upon the
32		division (pursuant to petition under Section 11A-2) of one or
33		more other unit school districts into 2 or more parts and which

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

1		other data which shall be certified to the State Board of
2		Education, on forms which it shall provide for that purpose, by
3		the regional superintendent of schools for each educational
4		service region in which the annexing and annexed districts, or
5		resulting and divided districts are located.
6		(3.5) Claims for financial assistance under this
7		subsection (I) shall not be recomputed except as expressly
8		provided under this Section.
9		(4) Any supplementary payment made under this subsection
10		(I) shall be treated as separate from all other payments made
11		pursuant to this Section.
12		(J) Supplementary Grants in Aid.
13		(1) Notwithstanding any other provisions of this Section,
14		the amount of the aggregate general State aid in combination
15		with supplemental general State aid under this Section for
16		which each school district is eligible shall be no less than
17		the amount of the aggregate general State aid entitlement that
18		was received by the district under Section 18-8 (exclusive of
19		amounts received under subsections 5(p) and 5(p-5) of that
20		Section) for the 1997-98 school year, pursuant to the
21		provisions of that Section as it was then in effect. If a
22		school district qualifies to receive a supplementary payment
23		made under this subsection (J), the amount of the aggregate
24		general State aid in combination with supplemental general
25		State aid under this Section which that district is eligible to
26		receive for each school year shall be no less than the amount
27		of the aggregate general State aid entitlement that was
28		received by the district under Section 18-8 (exclusive of
29		amounts received under subsections 5(p) and 5(p-5) of that
30		Section) for the 1997-1998 school year, pursuant to the
31		provisions of that Section as it was then in effect.
32		(2) If, as provided in paragraph (1) of this subsection
33		(J), a school district is to receive aggregate general State

1		aid in combination with supplemental general State aid under
2		this Section for the 1998-99 school year and any subsequent
3		school year that in any such school year is less than the
4		amount of the aggregate general State aid entitlement that the
5		district received for the 1997-98 school year, the school
6		district shall also receive, from a separate appropriation made
7		for purposes of this subsection (J), a supplementary payment
8		that is equal to the amount of the difference in the aggregate
9		State aid figures as described in paragraph (1).
10		(3) (Blank).
11		(K) Grants to Laboratory and Alternative Schools.
12		In calculating the amount to be paid to the governing board
13		of a public university that operates a laboratory school under
14		this Section or to any alternative school that is operated by a
15		regional superintendent of schools, the State Board of
16		Education shall require by rule such reporting requirements as
17		it deems necessary.
18		As used in this Section, "laboratory school" means a public
19		school which is created and operated by a public university and
20		approved by the State Board of Education. The governing board
21		of a public university which receives funds from the State
22		Board under this subsection (K) may not increase the number of
23		students enrolled in its laboratory school from a single
24		district, if that district is already sending 50 or more
25		students, except under a mutual agreement between the school
26		board of a student's district of residence and the university
27		which operates the laboratory school. A laboratory school may
28		not have more than 1,000 students, excluding students with
29		disabilities in a special education program.
30		As used in this Section, "alternative school" means a
31		public school which is created and operated by a Regional
32		Superintendent of Schools and approved by the State Board of
33		Education. Such alternative schools may offer courses of

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

1		Article.
2		(2) (Blank).
3		(3) Summer school. Summer school payments shall be made as
4		provided in Section 18-4.3.
5		(M) Education Funding Advisory Board.
6		The Education Funding Advisory Board, hereinafter in this
7		subsection (M) referred to as the "Board", is hereby created.
8		The Board shall consist of 5 members who are appointed by the
9		Governor, by and with the advice and consent of the Senate. The
10		members appointed shall include representatives of education,
11		business, and the general public. One of the members so
12		appointed shall be designated by the Governor at the time the
13		appointment is made as the chairperson of the Board. The
14		initial members of the Board may be appointed any time after
15		the effective date of this amendatory Act of 1997. The regular
16		term of each member of the Board shall be for 4 years from the
17		third Monday of January of the year in which the term of the
18		member's appointment is to commence, except that of the 5
19		initial members appointed to serve on the Board, the member who
20		is appointed as the chairperson shall serve for a term that
21		commences on the date of his or her appointment and expires on
22		the third Monday of January, 2002, and the remaining 4 members,
23		by lots drawn at the first meeting of the Board that is held
24		after all 5 members are appointed, shall determine 2 of their
25		number to serve for terms that commence on the date of their
26		respective appointments and expire on the third Monday of
27		January, 2001, and 2 of their number to serve for terms that
28		commence on the date of their respective appointments and
29		expire on the third Monday of January, 2000. All members
30		appointed to serve on the Board shall serve until their
31		respective successors are appointed and confirmed. Vacancies
32		shall be filled in the same manner as original appointments. If
33		a vacancy in membership occurs at a time when the Senate is not

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

1		(N) (Blank).
2		(O) References.
3		(1) References in other laws to the various subdivisions of
4		Section 18-8 as that Section existed before its repeal and
5		replacement by this Section 18-8.05 shall be deemed to refer to
6		the corresponding provisions of this Section 18-8.05, to the
7		extent that those references remain applicable.
8		(2) References in other laws to State Chapter 1 funds shall
9		be deemed to refer to the supplemental general State aid
10		provided under subsection (H) of this Section.
11		(Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,
12		eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 92-636,
13		eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 7-1-03.)

14		Section 40. The Criminal Code of 1961 is amended by
15		changing Section 17A-1 as follows:
16		(720 ILCS 5/17A-1) (from Ch. 38, par. 17A-1)
17		Sec. 17A-1. Persons under deportation order; ineligible
18		for benefits. An individual against whom a United States
19		Immigration Judge has issued an order of deportation which has
20		been affirmed by the Board of Immigration Review, as well as an
21		individual who appeals such an order pending appeal, under
22		paragraph 19 of Section 241(a) of the Immigration and
23		Nationality Act relating to persecution of others on account of
24		race, religion, national origin or political opinion under the
25		direction of or in association with the Nazi government of
26		Germany or its allies, shall be ineligible for the following
27		benefits authorized by State law:
28		(a) The homestead exemptions exemption and homestead
29		improvement exemption under Sections 15-170, 15-175, 15-176,
30		and 15-180 of the Property Tax Code.
31		(b) Grants under the Senior Citizens and Disabled Persons

1		Property Tax Relief and Pharmaceutical Assistance Act.
2		(c) The double income tax exemption conferred upon persons
3		65 years of age or older by Section 204 of the Illinois Income
4		Tax Act.
5		(d) Grants provided by the Department on Aging.
6		(e) Reductions in vehicle registration fees under Section
7		3-806.3 of the Illinois Vehicle Code.
8		(f) Free fishing and reduced fishing license fees under
9		Sections 20-5 and 20-40 of the Fish and Aquatic Life Code.
10		(g) Tuition free courses for senior citizens under the
11		Senior Citizen Courses Act.
12		(h) Any benefits under the Illinois Public Aid Code.
13		(Source: P.A. 87-895; 88-670, eff. 12-2-94.)

14		Section 90. The State Mandates Act is amended by adding
15		Section 8.28 as follows:
16		(30 ILCS 805/8.28 new)
17		Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
18		of this Act, no reimbursement by the State is required for the
19		implementation of any mandate created by the General Homestead
20		Exemption under Section 15-176 of the Property Tax Code.

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