Bill Text: IL HB3655 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Creates the School District Extension Freeze Law. Provides that, if at the end of any levy year, a school district has reserves of 50% or more of its operating budget, then the school district's extension for all purposes may not exceed its extension for the previous levy year. Provides that, if the school district has reserves of 60% or more at the end of the immediately preceding levy year, then the district's extension shall be reduced by an amount equal to the difference between the district's reserve amount for the immediately preceding levy year and a reserve amount of 60% for that levy year. Effective July 1, 2019.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB3655 Detail]

Download: Illinois-2019-HB3655-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3655 Introduced , by Rep. Fred Crespo SYNOPSIS AS INTRODUCED:
35 ILCS 200/Art. 18 Div. 7 heading new
35 ILCS 200/18-280 new
35 ILCS 200/18-285 new
35 ILCS 200/18-290 new
35 ILCS 200/20-15
Amends the Property Tax Code. Creates the School District Extension Freeze Law. Provides that, if at the end of any levy year, a school district has reserves of 50% or more of its operating budget, then the school district's extension for all purposes may not exceed its extension for the previous levy year. Provides that, if the school district has reserves of 60% or more at the end of the immediately preceding levy year, then the district's extension shall be reduced by an amount equal to the difference between the district's reserve amount for the immediately preceding levy year and a reserve amount of 60% for that levy year. Effective July 1, 2019.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB3655 LRB101 05856 HLH 50875 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by adding
Division 7 to Article 18 and by changing Section 20-15 as
follows:
(35 ILCS 200/Art. 18 Div. 7 heading new)
Division 7. School District Extension Freeze Law
(35 ILCS 200/18-280 new)
Sec. 18-280. Short title. This Division 7 may be cited as
the School District Extension Freeze Law.
(35 ILCS 200/18-285 new)
Sec. 18-285. Limitation.
(a) If, at the end of any levy year, any school district
has reserves of 50% or more of its operating budget, as
determined by the State Board of Education, then, for the next
levy year, the county clerk shall extend a rate for that
district for all purposes that is no greater than the
educational limiting rate.
(b) Each school district shall transmit to the State Board
of Education any information required by the State Board of

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Education, by rule, for the purposes of making the
determination required under this Section.
(c) In the case of a school district that is subject to
both the Property Tax Extension Limitation Law and this Law,
the provisions of the Property Tax Extension Limitation Law
shall be suspended for that district for any levy year in which
the district is subject to the educational limiting rate under
this Division.
(d) For a school district that has reserves of 50% or more
but not more than 60% of its operating budget at the end of the
immediately preceding levy year, as determined by the State
Board of Education, "educational limiting rate" means a
fraction the numerator of which is the district's last
preceding extension for all purposes and the denominator of
which is the current year's equalized assessed value of all
real property in the territory under the jurisdiction of the
district during the prior levy year. For a school district that
has reserves of 60% or more of its operating budget at the end
of the immediately preceding levy year, as determined by the
State Board of Education, "educational limiting rate" means a
fraction (i) the numerator of which is the district's last
preceding extension for all purposes minus the difference
between the district's reserve amount for the immediately
preceding levy year and a reserve amount of 60% for that levy
year and (ii) the denominator of which is the current year's
equalized assessed value of all real property in the territory

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under the jurisdiction of the taxing district during the prior
levy year. In either case, the denominator shall not include
new property or the recovered tax increment value, as defined
in the Property Tax Extension Limitation Law.
(35 ILCS 200/18-290 new)
Sec. 18-290. Referendum to increase the educational
limiting rate. A school district may increase its educational
limiting rate for one or more levy years if the district holds
a referendum before the levy date for the first levy year at
which a majority of voters voting on the issue approves the
higher educational limiting rate. Referenda shall be conducted
at a regularly scheduled election in accordance with the
Election Code. The question shall be presented in substantially
the following manner:
Shall the educational limiting rate for (school
district) be increased from (applicable educational
limiting rate) to (insert proposed educational limiting
rate) for (insert each levy year for which the increased
extension limitation will apply)?
The votes must be recorded as "Yes" or "No".
If a majority of voters voting on the issue approves the
adoption of the increase, the increase shall be applicable for
each levy year specified.
(35 ILCS 200/20-15)

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Sec. 20-15. Information on bill or separate statement.
There shall be printed on each bill, or on a separate slip
which shall be mailed with the bill:
(a) a statement itemizing the rate at which taxes have
been extended for each of the taxing districts in the
county in whose district the property is located, and in
those counties utilizing electronic data processing
equipment the dollar amount of tax due from the person
assessed allocable to each of those taxing districts,
including a separate statement of the dollar amount of tax
due which is allocable to a tax levied under the Illinois
Local Library Act or to any other tax levied by a
municipality or township for public library purposes,
(b) a separate statement for each of the taxing
districts of the dollar amount of tax due which is
allocable to a tax levied under the Illinois Pension Code
or to any other tax levied by a municipality or township
for public pension or retirement purposes,
(c) the total tax rate,
(d) the total amount of tax due, and
(e) the amount by which the total tax and the tax
allocable to each taxing district differs from the
taxpayer's last prior tax bill, and .
(f) if the property is located in a school district
that had its extension reduced by operation of the School
District Extension Freeze Law because it retained reserves

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of 60% or more at the end of the immediately preceding levy
year, then a separate statement setting forth the amount by
which the extension for educational purposes was reduced.
The county treasurer shall ensure that only those taxing
districts in which a parcel of property is located shall be
listed on the bill for that property.
In all counties the statement shall also provide:
(1) the property index number or other suitable
description,
(2) the assessment of the property,
(3) the statutory amount of each homestead exemption
applied to the property,
(4) the assessed value of the property after
application of all homestead exemptions,
(5) the equalization factors imposed by the county and
by the Department, and
(6) the equalized assessment resulting from the
application of the equalization factors to the basic
assessment.
In all counties which do not classify property for purposes
of taxation, for property on which a single family residence is
situated the statement shall also include a statement to
reflect the fair cash value determined for the property. In all
counties which classify property for purposes of taxation in
accordance with Section 4 of Article IX of the Illinois
Constitution, for parcels of residential property in the lowest

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assessment classification the statement shall also include a
statement to reflect the fair cash value determined for the
property.
In all counties, the statement must include information
that certain taxpayers may be eligible for tax exemptions,
abatements, and other assistance programs and that, for more
information, taxpayers should consult with the office of their
township or county assessor and with the Illinois Department of
Revenue.
In counties which use the estimated or accelerated billing
methods, these statements shall only be provided with the final
installment of taxes due. The provisions of this Section create
a mandatory statutory duty. They are not merely directory or
discretionary. The failure or neglect of the collector to mail
the bill, or the failure of the taxpayer to receive the bill,
shall not affect the validity of any tax, or the liability for
the payment of any tax.
(Source: P.A. 99-143, eff. 7-27-15; 100-621, eff. 7-20-18.)