90th General Assembly
Summary of SB0563
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Short description: 
LOCAL OPTION SCH DIST INC TAX                                              

Synopsis of Bill as introduced:
        Creates the Local Option School District Income  Tax  Act              
   and amends the School Code, the State Finance Act, the Illinois Income      
   Tax  Act,  and  the  Property Tax Code. Authorizes school districts by      
   referendum to impose an income tax  on  individuals  resident  of  the      
   district.   Provides  that  with  referendum  approval, the income tax      
   shall be levied at an annual  rate,  adjusted  each  year,  that  will      
   produce  for  distribution  to  the  district in each calendar year an      
   amount equal to the corresponding 50% reduction that is required to be      
   made in the annual extension of  the  real  property  taxes  that  are      
   levied  by  the district against residential property for educational,      
   operations and maintenance, and transportation purposes and  that  are      
   collected and distributed to the district in the same calendar year in      
   which  the corresponding income tax revenues are distributed. Provides      
   for a referendum repeal of the  tax.    Provides  for  the  manner  of      
   levying  and  collecting  the  tax  and  for deposit of the income tax      
   revenues  in  the  educational,  operations   and   maintenance,   and      
   transportation  funds  of the district in proportion to the respective      
   amounts by which the taxes in those funds are abated.    Provides  for      
   disbursement  of  the  tax to school districts by the State Treasurer.      
   Amends the Property Tax Extension Limitation Law to exclude  from  the      
   definition  of  "aggregate  extension"  school district levies made to      
   cover amounts lost because of the repeal of the local income  tax  for      
   schools  as  formerly  imposed by the district under the  Local Option      
   School District Income Tax Act.   Changes the school State aid formula      
   to provide that any tax abatement  required  under  the  Local  Option      
   School  District  Income Tax Act shall be disregarded in computing the      
   operating tax rate of school districts for State aid formula  purposes      
   and  shall  not  otherwise  affect  the computation or distribution of      
   State aid for school districts.   Effective immediately.                    
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   0


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