Bill > HB3105

This bill amends the Property Tax Code by introducing the School District Extension Freeze Law, which establishes new rules for school district tax extensions based on their financial reserves. Specifically, if a school district has reserves equal to or greater than 50% of its operating budget at the end of a levy year, the county clerk will be required to limit the district's tax extension in the next levy year to its previous year's rate. For districts with reserves of 60% or more, the tax extension will be further reduced by the amount of reserves exceeding 60%. The bill also provides a mechanism for school districts to increase their educational limiting rate through a voter referendum, allowing residents to approve a higher tax rate. Additionally, the bill requires that tax bills for properties in affected school districts include a separate statement indicating the reduction in educational purpose extensions if the district's reserves triggered the extension limitation. The law is set to become effective on July 1, 2025, and aims to encourage school districts to maintain more moderate financial reserves while providing transparency to taxpayers about potential tax rate changes.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3105&GAID=18&DocTypeID=HB&SessionID=114&GA=104