Public Act 0715 93RD GENERAL ASSEMBLY

SB2112 Enrolled LRB093 13600 SJM 18975 b

Public Act 093-0715

AN ACT in relation to taxes.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Economic Development Area Tax Increment

Allocation Act is amended by changing Section 6 as follows:

(20 ILCS 620/6) (from Ch. 67 1/2, par. 1006)

Sec. 6. Filing with county clerk; certification of initial

equalized assessed value.

(a) The municipality shall file a certified copy of any

ordinance authorizing tax increment allocation financing for

an economic development project area with the county clerk, and

the county clerk shall immediately thereafter determine (1) the

most recently ascertained equalized assessed value of each lot,

block, tract or parcel of real property within the economic

development project area from which shall be deducted the

homestead exemptions provided by Sections 15-170, and 15-175,

and 15-176 of the Property Tax Code, which value shall be the

"initial equalized assessed value" of each such piece of

property, and (2) the total equalized assessed value of all

taxable real property within the economic development project

area by adding together the most recently ascertained equalized

assessed value of each taxable lot, block, tract, or parcel of

real property within such economic development project area,

from which shall be deducted the homestead exemptions provided

by Sections 15-170, and 15-175, and 15-176 of the Property Tax

Code, and shall certify such amount as the "total initial

equalized assessed value" of the taxable real property within

the economic development project area.

(b) After the county clerk has certified the "total initial

equalized assessed value" of the taxable real property in the

economic development project area, then in respect to every

taxing district containing an economic development project

area, the county clerk or any other official required by law to

ascertain the amount of the equalized assessed value of all

taxable property within that taxing district for the purpose of

computing the rate per cent of tax to be extended upon taxable

property within that taxing district, shall in every year that

tax increment allocation financing is in effect ascertain the

amount of value of taxable property in an economic development

project area by including in that amount the lower of the

current equalized assessed value or the certified "total

initial equalized assessed value" of all taxable real property

in such area. The rate per cent of tax determined shall be

extended to the current equalized assessed value of all

property in the economic development project area in the same

manner as the rate per cent of tax is extended to all other

taxable property in the taxing district. The method of

allocating taxes established under this Section shall

terminate when the municipality adopts an ordinance dissolving

the special tax allocation fund for the economic development

project area, terminating the economic development project

area, and terminating the use of tax increment allocation

financing for the economic development project area. This Act

shall not be construed as relieving property owners within an

economic development project area from paying a uniform rate of

taxes upon the current equalized assessed value of their

taxable property as provided in the Property Tax Code.

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

Section 10. The Property Tax Code is amended by changing

Sections 14-15, 15-10, 15-170, 15-172, 15-175, 15-180, and

20-178 and by adding Section 15-176 as follows:

(35 ILCS 200/14-15)

Sec. 14-15. Certificate of error; counties of 3,000,000 or

more.

(a) In counties with 3,000,000 or more inhabitants, if,

after the assessment is certified pursuant to Section 16-150,

but subject to the limitations of subsection (c) of this

Section, the county assessor discovers an error or mistake in

the assessment, the assessor shall execute a certificate

setting forth the nature and cause of the error. The

certificate when endorsed by the county assessor, or when

endorsed by the county assessor and board of appeals (until the

first Monday in December 1998 and the board of review beginning

the first Monday in December 1998 and thereafter) where the

certificate is executed for any assessment which was the

subject of a complaint filed in the board of appeals (until the

first Monday in December 1998 and the board of review beginning

the first Monday in December 1998 and thereafter) for the tax

year for which the certificate is issued, may, either be

certified according to the procedure authorized by this Section

or be presented and received in evidence in any court of

competent jurisdiction. Certification is authorized, at the

discretion of the county assessor, for: (1) certificates of

error allowing homestead exemptions pursuant to Sections

15-170, 15-172, and 15-175, and 15-176; (2) certificates of

error on residential property of 6 units or less; (3)

certificates of error allowing exemption of the property

pursuant to Section 14-25; and (4) other certificates of error

reducing assessed value by less than $100,000. Any certificate

of error not certified shall be presented to the court. The

county assessor shall develop reasonable procedures for the

filing and processing of certificates of error. Prior to the

certification or presentation to the court, the county assessor

or his or her designee shall execute and include in the

certificate of error a statement attesting that all procedural

requirements pertaining to the issuance of the certificate of

error have been met and that in fact an error exists. When so

introduced in evidence such certificate shall become a part of

the court records, and shall not be removed from the files

except upon the order of the court.

Certificates of error that will be presented to the court

shall be filed as an objection in the application for judgment

and order of sale for the year in relation to which the

certificate is made or as an amendment to the objection under

subsection (b). Certificates of error that are to be certified

according to the procedure authorized by this Section need not

be presented to the court as an objection or an amendment under

subsection (b). The State's Attorney of the county in which the

property is situated shall mail a copy of any final judgment

entered by the court regarding any certificate of error to the

taxpayer of record for the year in question.

Any unpaid taxes after the entry of the final judgment by

the court or certification on certificates issued under this

Section may be included in a special tax sale, provided that an

advertisement is published and a notice is mailed to the person

in whose name the taxes were last assessed, in a form and

manner substantially similar to the advertisement and notice

required under Sections 21-110 and 21-135. The advertisement

and sale shall be subject to all provisions of law regulating

the annual advertisement and sale of delinquent property, to

the extent that those provisions may be made applicable.

A certificate of error certified under this Section shall

be given effect by the county treasurer, who shall mark the tax

books and, upon receipt of one of the following certificates

from the county assessor or the county assessor and the board

of review where the board of review is required to endorse the

certificate of error, shall issue refunds to the taxpayer

accordingly:

"CERTIFICATION

I, .................., county assessor, hereby certify

that the Certificates of Error set out on the attached list

have been duly issued to correct an error or mistake in the

assessment."

"CERTIFICATION

I, .................., county assessor, and we,

........................................................,

members of the board of review, hereby certify that the

Certificates of Error set out on the attached list have

been duly issued to correct an error or mistake in the

assessment and that any certificates of error required to

be endorsed by the board of review have been so endorsed."

The county treasurer has the power to mark the tax books to

reflect the issuance of certificates of error certified

according to the procedure authorized in this Section for

certificates of error issued under Section 14-25 or

certificates of error issued to and including 3 years after the

date on which the annual judgment and order of sale for that

tax year was first entered. The county treasurer has the power

to issue refunds to the taxpayer as set forth above until all

refunds authorized by this Section have been completed.

To the extent that the certificate of error obviates the

liability for nonpayment of taxes, certification of a

certificate of error according to the procedure authorized in

this Section shall operate to vacate any judgment or forfeiture

as to that year's taxes, and the warrant books and judgment

books shall be marked to reflect that the judgment or

forfeiture has been vacated.

(b) Nothing in subsection (a) of this Section shall be

construed to prohibit the execution, endorsement, issuance,

and adjudication of a certificate of error if (i) the annual

judgment and order of sale for the tax year in question is

reopened for further proceedings upon consent of the county

collector and county assessor, represented by the State's

Attorney, and (ii) a new final judgment is subsequently entered

pursuant to the certificate. This subsection (b) shall be

construed as declarative of existing law and not as a new

enactment.

(c) No certificate of error, other than a certificate to

establish an exemption under Section 14-25, shall be executed

for any tax year more than 3 years after the date on which the

annual judgment and order of sale for that tax year was first

entered, except that during calendar years 1999 and 2000 a

certificate of error may be executed for any tax year, provided

that the error or mistake in the assessment was discovered no

more than 3 years after the date on which the annual judgment

and order of sale for that tax year was first entered.

(d) The time limitation of subsection (c) shall not apply

to a certificate of error correcting an assessment to $1, under

Section 10-35, on a parcel that a subdivision or planned

development has acquired by adverse possession, if during the

tax year for which the certificate is executed the subdivision

or planned development used the parcel as common area, as

defined in Section 10-35, and if application for the

certificate of error is made prior to December 1, 1997.

(e) The changes made by this amendatory Act of the 91st

General Assembly apply to certificates of error issued before,

on, and after the effective date of this amendatory Act of the

91st General Assembly.

(Source: P.A. 90-4, eff. 3-7-97; 90-288, eff. 8-1-97; 90-655,

eff. 7-30-98; 91-393, eff. 7-30-99; 91-686, eff. 1-26-00.)

(35 ILCS 200/15-10)

Sec. 15-10. Exempt property; procedures for certification.

All property granted an exemption by the Department pursuant to

the requirements of Section 15-5 and described in the Sections

following Section 15-30 and preceding Section 16-5, to the

extent therein limited, is exempt from taxation. In order to

maintain that exempt status, the titleholder or the owner of

the beneficial interest of any property that is exempt must

file with the chief county assessment officer, on or before

January 31 of each year (May 31 in the case of property

exempted by Section 15-170), an affidavit stating whether there

has been any change in the ownership or use of the property or

the status of the owner-resident, or that a disabled veteran

who qualifies under Section 15-165 owned and used the property

as of January 1 of that year. The nature of any change shall be

stated in the affidavit. Failure to file an affidavit shall, in

the discretion of the assessment officer, constitute cause to

terminate the exemption of that property, notwithstanding any

other provision of this Code. Owners of 5 or more such exempt

parcels within a county may file a single annual affidavit in

lieu of an affidavit for each parcel. The assessment officer,

upon request, shall furnish an affidavit form to the owners, in

which the owner may state whether there has been any change in

the ownership or use of the property or status of the owner or

resident as of January 1 of that year. The owner of 5 or more

exempt parcels shall list all the properties giving the same

information for each parcel as required of owners who file

individual affidavits.

However, titleholders or owners of the beneficial interest

in any property exempted under any of the following provisions

are not required to submit an annual filing under this Section:

(1) Section 15-45 (burial grounds) in counties of less

than 3,000,000 inhabitants and owned by a not-for-profit

organization.

(2) Section 15-40.

(3) Section 15-50 (United States property).

If there is a change in use or ownership, however, notice

must be filed pursuant to Section 15-20.

An application for homestead exemptions shall be filed as

provided in Section 15-170 (senior citizens homestead

exemption), Section 15-172 (senior citizens assessment freeze

homestead exemption), and Sections Section 15-175 and 15-176

(general homestead exemption), respectively.

(Source: P.A. 92-333, eff. 8-10-01; 92-729, eff. 7-25-02.)

(35 ILCS 200/15-170)

Sec. 15-170. Senior Citizens Homestead Exemption. An

annual homestead exemption limited, except as described here

with relation to cooperatives or life care facilities, to a

maximum reduction set forth below from the property's value, as

equalized or assessed by the Department, is granted for

property that is occupied as a residence by a person 65 years

of age or older who is liable for paying real estate taxes on

the property and is an owner of record of the property or has a

legal or equitable interest therein as evidenced by a written

instrument, except for a leasehold interest, other than a

leasehold interest of land on which a single family residence

is located, which is occupied as a residence by a person 65

years or older who has an ownership interest therein, legal,

equitable or as a lessee, and on which he or she is liable for

the payment of property taxes. Before taxable year 2004, the

The maximum reduction shall be $2,500 in counties with

3,000,000 or more inhabitants and $2,000 in all other counties.

For taxable years 2004 and thereafter, the maximum reduction

shall be $3,000 in all counties. For land improved with an

apartment building owned and operated as a cooperative, the

maximum reduction from the value of the property, as equalized

by the Department, shall be multiplied by the number of

apartments or units occupied by a person 65 years of age or

older who is liable, by contract with the owner or owners of

record, for paying property taxes on the property and is an

owner of record of a legal or equitable interest in the

cooperative apartment building, other than a leasehold

interest. For land improved with a life care facility, the

maximum reduction from the value of the property, as equalized

by the Department, shall be multiplied by the number of

apartments or units occupied by persons 65 years of age or

older, irrespective of any legal, equitable, or leasehold

interest in the facility, who are liable, under a contract with

the owner or owners of record of the facility, for paying

property taxes on the property. In a cooperative or a life care

facility where a homestead exemption has been granted, the

cooperative association or the management firm of the

cooperative or facility shall credit the savings resulting from

that exemption only to the apportioned tax liability of the

owner or resident who qualified for the exemption. Any person

who willfully refuses to so credit the savings shall be guilty

of a Class B misdemeanor. Under this Section and Sections

Section 15-175 and 15-176, "life care facility" means a

facility as defined in Section 2 of the Life Care Facilities

Act, with which the applicant for the homestead exemption has a

life care contract as defined in that Act.

When a homestead exemption has been granted under this

Section and the person qualifying subsequently becomes a

resident of a facility licensed under the Nursing Home Care

Act, the exemption shall continue so long as the residence

continues to be occupied by the qualifying person's spouse if

the spouse is 65 years of age or older, or if the residence

remains unoccupied but is still owned by the person qualified

for the homestead exemption.

A person who will be 65 years of age during the current

assessment year shall be eligible to apply for the homestead

exemption during that assessment year. Application shall be

made during the application period in effect for the county of

his residence.

Beginning with assessment year 2003, for taxes payable in

2004, property that is first occupied as a residence after

January 1 of any assessment year by a person who is eligible

for the senior citizens homestead exemption under this Section

must be granted a pro-rata exemption for the assessment year.

The amount of the pro-rata exemption is the exemption allowed

in the county under this Section divided by 365 and multiplied

by the number of days during the assessment year the property

is occupied as a residence by a person eligible for the

exemption under this Section. The chief county assessment

officer must adopt reasonable procedures to establish

eligibility for this pro-rata exemption.

The assessor or chief county assessment officer may

determine the eligibility of a life care facility to receive

the benefits provided by this Section, by affidavit,

application, visual inspection, questionnaire or other

reasonable methods in order to insure that the tax savings

resulting from the exemption are credited by the management

firm to the apportioned tax liability of each qualifying

resident. The assessor may request reasonable proof that the

management firm has so credited the exemption.

The chief county assessment officer of each county with

less than 3,000,000 inhabitants shall provide to each person

allowed a homestead exemption under this Section a form to

designate any other person to receive a duplicate of any notice

of delinquency in the payment of taxes assessed and levied

under this Code on the property of the person receiving the

exemption. The duplicate notice shall be in addition to the

notice required to be provided to the person receiving the

exemption, and shall be given in the manner required by this

Code. The person filing the request for the duplicate notice

shall pay a fee of $5 to cover administrative costs to the

supervisor of assessments, who shall then file the executed

designation with the county collector. Notwithstanding any

other provision of this Code to the contrary, the filing of

such an executed designation requires the county collector to

provide duplicate notices as indicated by the designation. A

designation may be rescinded by the person who executed such

designation at any time, in the manner and form required by the

chief county assessment officer.

The assessor or chief county assessment officer may

determine the eligibility of residential property to receive

the homestead exemption provided by this Section by

application, visual inspection, questionnaire or other

reasonable methods. The determination shall be made in

accordance with guidelines established by the Department.

In counties with less than 3,000,000 inhabitants, the

county board may by resolution provide that if a person has

been granted a homestead exemption under this Section, the

person qualifying need not reapply for the exemption.

In counties with less than 3,000,000 inhabitants, if the

assessor or chief county assessment officer requires annual

application for verification of eligibility for an exemption

once granted under this Section, the application shall be

mailed to the taxpayer.

The assessor or chief county assessment officer shall

notify each person who qualifies for an exemption under this

Section that the person may also qualify for deferral of real

estate taxes under the Senior Citizens Real Estate Tax Deferral

Act. The notice shall set forth the qualifications needed for

deferral of real estate taxes, the address and telephone number

of county collector, and a statement that applications for

deferral of real estate taxes may be obtained from the county

collector.

Notwithstanding Sections 6 and 8 of the State Mandates Act,

no reimbursement by the State is required for the

implementation of any mandate created by this Section.

(Source: P.A. 92-196, eff. 1-1-02; 93-511, eff. 8-11-03.)

(35 ILCS 200/15-172)

Sec. 15-172. Senior Citizens Assessment Freeze Homestead

Exemption.

(a) This Section may be cited as the Senior Citizens

Assessment Freeze Homestead Exemption.

(b) As used in this Section:

"Applicant" means an individual who has filed an

application under this Section.

"Base amount" means the base year equalized assessed value

of the residence plus the first year's equalized assessed value

of any added improvements which increased the assessed value of

the residence after the base year.

"Base year" means the taxable year prior to the taxable

year for which the applicant first qualifies and applies for

the exemption provided that in the prior taxable year the

property was improved with a permanent structure that was

occupied as a residence by the applicant who was liable for

paying real property taxes on the property and who was either

(i) an owner of record of the property or had legal or

equitable interest in the property as evidenced by a written

instrument or (ii) had a legal or equitable interest as a

lessee in the parcel of property that was single family

residence. If in any subsequent taxable year for which the

applicant applies and qualifies for the exemption the equalized

assessed value of the residence is less than the equalized

assessed value in the existing base year (provided that such

equalized assessed value is not based on an assessed value that

results from a temporary irregularity in the property that

reduces the assessed value for one or more taxable years), then

that subsequent taxable year shall become the base year until a

new base year is established under the terms of this paragraph.

For taxable year 1999 only, the Chief County Assessment Officer

shall review (i) all taxable years for which the applicant

applied and qualified for the exemption and (ii) the existing

base year. The assessment officer shall select as the new base

year the year with the lowest equalized assessed value. An

equalized assessed value that is based on an assessed value

that results from a temporary irregularity in the property that

reduces the assessed value for one or more taxable years shall

not be considered the lowest equalized assessed value. The

selected year shall be the base year for taxable year 1999 and

thereafter until a new base year is established under the terms

of this paragraph.

"Chief County Assessment Officer" means the County

Assessor or Supervisor of Assessments of the county in which

the property is located.

"Equalized assessed value" means the assessed value as

equalized by the Illinois Department of Revenue.

"Household" means the applicant, the spouse of the

applicant, and all persons using the residence of the applicant

as their principal place of residence.

"Household income" means the combined income of the members

of a household for the calendar year preceding the taxable

year.

"Income" has the same meaning as provided in Section 3.07

of the Senior Citizens and Disabled Persons Property Tax Relief

and Pharmaceutical Assistance Act, except that, beginning in

assessment year 2001, "income" does not include veteran's

benefits.

"Internal Revenue Code of 1986" means the United States

Internal Revenue Code of 1986 or any successor law or laws

relating to federal income taxes in effect for the year

preceding the taxable year.

"Life care facility that qualifies as a cooperative" means

a facility as defined in Section 2 of the Life Care Facilities

Act.

"Residence" means the principal dwelling place and

appurtenant structures used for residential purposes in this

State occupied on January 1 of the taxable year by a household

and so much of the surrounding land, constituting the parcel

upon which the dwelling place is situated, as is used for

residential purposes. If the Chief County Assessment Officer

has established a specific legal description for a portion of

property constituting the residence, then that portion of

property shall be deemed the residence for the purposes of this

Section.

"Taxable year" means the calendar year during which ad

valorem property taxes payable in the next succeeding year are

levied.

(c) Beginning in taxable year 1994, a senior citizens

assessment freeze homestead exemption is granted for real

property that is improved with a permanent structure that is

occupied as a residence by an applicant who (i) is 65 years of

age or older during the taxable year, (ii) has a household

income of $35,000 or less prior to taxable year 1999, or

$40,000 or less in taxable years year 1999 through 2003, and

$45,000 or less in taxable year 2004 and thereafter, (iii) is

liable for paying real property taxes on the property, and (iv)

is an owner of record of the property or has a legal or

equitable interest in the property as evidenced by a written

instrument. This homestead exemption shall also apply to a

leasehold interest in a parcel of property improved with a

permanent structure that is a single family residence that is

occupied as a residence by a person who (i) is 65 years of age

or older during the taxable year, (ii) has a household income

of $35,000 or less prior to taxable year 1999, or $40,000 or

less in taxable years year 1999 through 2003, and $45,000 or

less in taxable year 2004 and thereafter, (iii) has a legal or

equitable ownership interest in the property as lessee, and

(iv) is liable for the payment of real property taxes on that

property.

The amount of this exemption shall be the equalized

assessed value of the residence in the taxable year for which

application is made minus the base amount.

When the applicant is a surviving spouse of an applicant

for a prior year for the same residence for which an exemption

under this Section has been granted, the base year and base

amount for that residence are the same as for the applicant for

the prior year.

Each year at the time the assessment books are certified to

the County Clerk, the Board of Review or Board of Appeals shall

give to the County Clerk a list of the assessed values of

improvements on each parcel qualifying for this exemption that

were added after the base year for this parcel and that

increased the assessed value of the property.

In the case of land improved with an apartment building

owned and operated as a cooperative or a building that is a

life care facility that qualifies as a cooperative, the maximum

reduction from the equalized assessed value of the property is

limited to the sum of the reductions calculated for each unit

occupied as a residence by a person or persons (i) 65 years of

age or older, (ii) with a household income of $35,000 or less

prior to taxable year 1999, or $40,000 or less in taxable years

year 1999 through 2003, and $45,000 or less in taxable year

2004 and thereafter, (iii) who is liable, by contract with the

owner or owners of record, for paying real property taxes on

the property, and (iv) who is an owner of record of a legal or

equitable interest in the cooperative apartment building,

other than a leasehold interest. In the instance of a

cooperative where a homestead exemption has been granted under

this Section, the cooperative association or its management

firm shall credit the savings resulting from that exemption

only to the apportioned tax liability of the owner who

qualified for the exemption. Any person who willfully refuses

to credit that savings to an owner who qualifies for the

exemption is guilty of a Class B misdemeanor.

When a homestead exemption has been granted under this

Section and an applicant then becomes a resident of a facility

licensed under the Nursing Home Care Act, the exemption shall

be granted in subsequent years so long as the residence (i)

continues to be occupied by the qualified applicant's spouse or

(ii) if remaining unoccupied, is still owned by the qualified

applicant for the homestead exemption.

Beginning January 1, 1997, when an individual dies who

would have qualified for an exemption under this Section, and

the surviving spouse does not independently qualify for this

exemption because of age, the exemption under this Section

shall be granted to the surviving spouse for the taxable year

preceding and the taxable year of the death, provided that,

except for age, the surviving spouse meets all other

qualifications for the granting of this exemption for those

years.

When married persons maintain separate residences, the

exemption provided for in this Section may be claimed by only

one of such persons and for only one residence.

For taxable year 1994 only, in counties having less than

3,000,000 inhabitants, to receive the exemption, a person shall

submit an application by February 15, 1995 to the Chief County

Assessment Officer of the county in which the property is

located. In counties having 3,000,000 or more inhabitants, for

taxable year 1994 and all subsequent taxable years, to receive

the exemption, a person may submit an application to the Chief

County Assessment Officer of the county in which the property

is located during such period as may be specified by the Chief

County Assessment Officer. The Chief County Assessment Officer

in counties of 3,000,000 or more inhabitants shall annually

give notice of the application period by mail or by

publication. In counties having less than 3,000,000

inhabitants, beginning with taxable year 1995 and thereafter,

to receive the exemption, a person shall submit an application

by July 1 of each taxable year to the Chief County Assessment

Officer of the county in which the property is located. A

county may, by ordinance, establish a date for submission of

applications that is different than July 1. The applicant shall

submit with the application an affidavit of the applicant's

total household income, age, marital status (and if married the

name and address of the applicant's spouse, if known), and

principal dwelling place of members of the household on January

1 of the taxable year. The Department shall establish, by rule,

a method for verifying the accuracy of affidavits filed by

applicants under this Section. The applications shall be

clearly marked as applications for the Senior Citizens

Assessment Freeze Homestead Exemption.

Notwithstanding any other provision to the contrary, in

counties having fewer than 3,000,000 inhabitants, if an

applicant fails to file the application required by this

Section in a timely manner and this failure to file is due to a

mental or physical condition sufficiently severe so as to

render the applicant incapable of filing the application in a

timely manner, the Chief County Assessment Officer may extend

the filing deadline for a period of 30 days after the applicant

regains the capability to file the application, but in no case

may the filing deadline be extended beyond 3 months of the

original filing deadline. In order to receive the extension

provided in this paragraph, the applicant shall provide the

Chief County Assessment Officer with a signed statement from

the applicant's physician stating the nature and extent of the

condition, that, in the physician's opinion, the condition was

so severe that it rendered the applicant incapable of filing

the application in a timely manner, and the date on which the

applicant regained the capability to file the application.

Beginning January 1, 1998, notwithstanding any other

provision to the contrary, in counties having fewer than

3,000,000 inhabitants, if an applicant fails to file the

application required by this Section in a timely manner and

this failure to file is due to a mental or physical condition

sufficiently severe so as to render the applicant incapable of

filing the application in a timely manner, the Chief County

Assessment Officer may extend the filing deadline for a period

of 3 months. In order to receive the extension provided in this

paragraph, the applicant shall provide the Chief County

Assessment Officer with a signed statement from the applicant's

physician stating the nature and extent of the condition, and

that, in the physician's opinion, the condition was so severe

that it rendered the applicant incapable of filing the

application in a timely manner.

In counties having less than 3,000,000 inhabitants, if an

applicant was denied an exemption in taxable year 1994 and the

denial occurred due to an error on the part of an assessment

official, or his or her agent or employee, then beginning in

taxable year 1997 the applicant's base year, for purposes of

determining the amount of the exemption, shall be 1993 rather

than 1994. In addition, in taxable year 1997, the applicant's

exemption shall also include an amount equal to (i) the amount

of any exemption denied to the applicant in taxable year 1995

as a result of using 1994, rather than 1993, as the base year,

(ii) the amount of any exemption denied to the applicant in

taxable year 1996 as a result of using 1994, rather than 1993,

as the base year, and (iii) the amount of the exemption

erroneously denied for taxable year 1994.

For purposes of this Section, a person who will be 65 years

of age during the current taxable year shall be eligible to

apply for the homestead exemption during that taxable year.

Application shall be made during the application period in

effect for the county of his or her residence.

The Chief County Assessment Officer may determine the

eligibility of a life care facility that qualifies as a

cooperative to receive the benefits provided by this Section by

use of an affidavit, application, visual inspection,

questionnaire, or other reasonable method in order to insure

that the tax savings resulting from the exemption are credited

by the management firm to the apportioned tax liability of each

qualifying resident. The Chief County Assessment Officer may

request reasonable proof that the management firm has so

credited that exemption.

Except as provided in this Section, all information

received by the chief county assessment officer or the

Department from applications filed under this Section, or from

any investigation conducted under the provisions of this

Section, shall be confidential, except for official purposes or

pursuant to official procedures for collection of any State or

local tax or enforcement of any civil or criminal penalty or

sanction imposed by this Act or by any statute or ordinance

imposing a State or local tax. Any person who divulges any such

information in any manner, except in accordance with a proper

judicial order, is guilty of a Class A misdemeanor.

Nothing contained in this Section shall prevent the

Director or chief county assessment officer from publishing or

making available reasonable statistics concerning the

operation of the exemption contained in this Section in which

the contents of claims are grouped into aggregates in such a

way that information contained in any individual claim shall

not be disclosed.

(d) Each Chief County Assessment Officer shall annually

publish a notice of availability of the exemption provided

under this Section. The notice shall be published at least 60

days but no more than 75 days prior to the date on which the

application must be submitted to the Chief County Assessment

Officer of the county in which the property is located. The

notice shall appear in a newspaper of general circulation in

the county.

Notwithstanding Sections 6 and 8 of the State Mandates Act,

no reimbursement by the State is required for the

implementation of any mandate created by this Section.

(Source: P.A. 90-14, eff. 7-1-97; 90-204, eff. 7-25-97; 90-523,

eff. 11-13-97; 90-524, eff. 1-1-98; 90-531, eff. 1-1-98;

90-655, eff. 7-30-98; 91-45, eff. 6-30-99; 91-56, eff. 6-30-99;

91-819, eff. 6-13-00.)

(35 ILCS 200/15-175)

Sec. 15-175. General homestead exemption. Except as

provided in Section 15-176, homestead property is entitled to

an annual homestead exemption limited, except as described here

with relation to cooperatives, to a reduction in the equalized

assessed value of homestead property equal to the increase in

equalized assessed value for the current assessment year above

the equalized assessed value of the property for 1977, up to

the maximum reduction set forth below. If however, the 1977

equalized assessed value upon which taxes were paid is

subsequently determined by local assessing officials, the

Property Tax Appeal Board, or a court to have been excessive,

the equalized assessed value which should have been placed on

the property for 1977 shall be used to determine the amount of

the exemption.

Except as provided in Section 15-176, the maximum reduction

before taxable year 2004 shall be $4,500 in counties with

3,000,000 or more inhabitants and $3,500 in all other counties.

Except as provided in Section 15-176, for taxable years 2004

and thereafter, the maximum reduction shall be $5,000 in all

counties. If a county has elected to subject itself to the

provisions of Section 15-176 as provided in subsection (k) of

that Section, then, for the first taxable year only after the

provisions of Section 15-176 no longer apply, for owners (i)

who have not been granted a senior citizens assessment freeze

homestead exemption under Section 15-172 for the taxable year

and (ii) whose qualified property has an assessed valuation

that has increased by more than 20% over the previous assessed

valuation of the property, there shall be an additional

exemption of $5,000 for owners with a household income of

$30,000 or less. For purposes of this paragraph, "household

income" has the meaning set forth in this Section 15-175.

In counties with fewer than 3,000,000 inhabitants, if,

based on the most recent assessment, the equalized assessed

value of the homestead property for the current assessment year

is greater than the equalized assessed value of the property

for 1977, the owner of the property shall automatically receive

the exemption granted under this Section in an amount equal to

the increase over the 1977 assessment up to the maximum

reduction set forth in this Section.

If in any assessment year beginning with the 2000

assessment year, homestead property has a pro-rata valuation

under Section 9-180 resulting in an increase in the assessed

valuation, a reduction in equalized assessed valuation equal to

the increase in equalized assessed value of the property for

the year of the pro-rata valuation above the equalized assessed

value of the property for 1977 shall be applied to the property

on a proportionate basis for the period the property qualified

as homestead property during the assessment year. The maximum

proportionate homestead exemption shall not exceed the maximum

homestead exemption allowed in the county under this Section

divided by 365 and multiplied by the number of days the

property qualified as homestead property.

"Homestead property" under this Section includes

residential property that is occupied by its owner or owners as

his or their principal dwelling place, or that is a leasehold

interest on which a single family residence is situated, which

is occupied as a residence by a person who has an ownership

interest therein, legal or equitable or as a lessee, and on

which the person is liable for the payment of property taxes.

For land improved with an apartment building owned and operated

as a cooperative or a building which is a life care facility as

defined in Section 15-170 and considered to be a cooperative

under Section 15-170, the maximum reduction from the equalized

assessed value shall be limited to the increase in the value

above the equalized assessed value of the property for 1977, up

to the maximum reduction set forth above, multiplied by the

number of apartments or units occupied by a person or persons

who is liable, by contract with the owner or owners of record,

for paying property taxes on the property and is an owner of

record of a legal or equitable interest in the cooperative

apartment building, other than a leasehold interest. For

purposes of this Section, the term "life care facility" has the

meaning stated in Section 15-170.

"Household", as used in this Section, means the owner, the

spouse of the owner, and all persons using the residence of the

owner as their principal place of residence.

"Household income", as used in this Section, means the

combined income of the members of a household for the calendar

year preceding the taxable year.

"Income", as used in this Section, has the same meaning as

provided in Section 3.07 of the Senior Citizens and Disabled

Persons Property Tax Relief and Pharmaceutical Assistance Act,

except that "income" does not include veteran's benefits.

In a cooperative where a homestead exemption has been

granted, the cooperative association or its management firm

shall credit the savings resulting from that exemption only to

the apportioned tax liability of the owner who qualified for

the exemption. Any person who willfully refuses to so credit

the savings shall be guilty of a Class B misdemeanor.

Where married persons maintain and reside in separate

residences qualifying as homestead property, each residence

shall receive 50% of the total reduction in equalized assessed

valuation provided by this Section.

In all counties with more than 3,000,000 inhabitants, the

assessor or chief county assessment officer may determine the

eligibility of residential property to receive the homestead

exemption and the amount of the exemption by application,

visual inspection, questionnaire or other reasonable methods.

The determination shall be made in accordance with guidelines

established by the Department, provided that the taxpayer

applying for an additional general exemption under this Section

shall submit to the chief county assessment officer an

application with an affidavit of the applicant's total

household income, age, marital status (and, if married, the

name and address of the applicant's spouse, if known), and

principal dwelling place of members of the household on January

1 of the taxable year. The Department shall issue guidelines

establishing a method for verifying the accuracy of the

affidavits filed by applicants under this paragraph. The

applications shall be clearly marked as applications for the

Additional General Homestead Exemption.

In counties with fewer than 3,000,000 inhabitants, in the

event of a sale of homestead property the homestead exemption

shall remain in effect for the remainder of the assessment year

of the sale. The assessor or chief county assessment officer

may require the new owner of the property to apply for the

homestead exemption for the following assessment year.

Notwithstanding Sections 6 and 8 of the State Mandates Act,

no reimbursement by the State is required for the

implementation of any mandate created by this Section.

(Source: P.A. 90-368, eff. 1-1-98; 90-552, eff. 12-12-97;

90-655, eff. 7-30-98; 91-346, eff. 7-29-99.)

(35 ILCS 200/15-176 new)

Sec. 15-176. Alternative general homestead exemption.

(a) For the assessment years as determined under subsection

(j), in any county that has elected, by an ordinance in

accordance with subsection (k), to be subject to the provisions

of this Section in lieu of the provisions of Section 15-175,

homestead property is entitled to an annual homestead exemption

equal to a reduction in the property's equalized assessed value

calculated as provided in this Section.

(b) As used in this Section:

(1) "Assessor" means the supervisor of assessments or

the chief county assessment officer of each county.

(2) "Adjusted homestead value" means the lesser of the

following values:

(A) The property's base homestead value increased

by 7% for each tax year after the base year through and

including the current tax year, or, if the property is

sold or ownership is otherwise transferred, the

property's base homestead value increased by 7% for

each tax year after the year of the sale or transfer

through and including the current tax year. The

increase by 7% each year is an increase by 7% over the

prior year.

(B) The property's equalized assessed value for

the current tax year minus (i) $4,500 in Cook County or

$3,500 in all other counties in tax year 2003 or (ii)

$5,000 in all counties in tax year 2004 and thereafter.

(3) "Base homestead value".

(A) Except as provided in subdivision (b)(3)(B),

"base homestead value" means the equalized assessed

value of the property for the base year prior to

exemptions, minus (i) $4,500 in Cook County or $3,500

in all other counties in tax year 2003 or (ii) $5,000

in all counties in tax year 2004 and thereafter,

provided that it was assessed for that year as

residential property qualified for any of the

homestead exemptions under Sections 15-170 through

15-175 of this Code, then in force, and further

provided that the property's assessment was not based

on a reduced assessed value resulting from a temporary

irregularity in the property for that year. Except as

provided in subdivision (b)(3)(B), if the property did

not have a residential equalized assessed value for the

base year, then "base homestead value" means the base

homestead value established by the assessor under

subsection (c).

(B) If the property is sold or ownership is

otherwise transferred, other than sales or transfers

between spouses or between a parent and a child, "base

homestead value" means the equalized assessed value of

the property at the time of the sale or transfer prior

to exemptions, minus (i) $4,500 in Cook County or

$3,500 in all other counties in tax year 2003 or (ii)

$5,000 in all counties in tax year 2004 and thereafter,

provided that it was assessed as residential property

qualified for any of the homestead exemptions under

Sections 15-170 through 15-175 of this Code, then in

force, and further provided that the property's

assessment was not based on a reduced assessed value

resulting from a temporary irregularity in the

property.

(3.5) "Base year" means (i) tax year 2002 in Cook

County or (ii) tax year 2002 or 2003 in all other counties

in accordance with the designation made by the county as

provided in subsection (k).

(4) "Current tax year" means the tax year for which the

exemption under this Section is being applied.

(5) "Equalized assessed value" means the property's

assessed value as equalized by the Department.

(6) "Homestead" or "homestead property" means:

(A) Residential property that as of January 1 of

the tax year is occupied by its owner or owners as his,

her, or their principal dwelling place, or that is a

leasehold interest on which a single family residence

is situated, that is occupied as a residence by a

person who has a legal or equitable interest therein

evidenced by a written instrument, as an owner or as a

lessee, and on which the person is liable for the

payment of property taxes. Residential units in an

apartment building owned and operated as a

cooperative, or as a life care facility, which are

occupied by persons who hold a legal or equitable

interest in the cooperative apartment building or life

care facility as owners or lessees, and who are liable

by contract for the payment of property taxes, shall be

included within this definition of homestead property.

(B) A homestead includes the dwelling place,

appurtenant structures, and so much of the surrounding

land constituting the parcel on which the dwelling

place is situated as is used for residential purposes.

If the assessor has established a specific legal

description for a portion of property constituting the

homestead, then the homestead shall be limited to the

property within that description.

(7) "Life care facility" means a facility as defined in

Section 2 of the Life Care Facilities Act.

(c) If the property did not have a residential equalized

assessed value for the base year as provided in subdivision

(b)(3)(A) of this Section, then the assessor shall first

determine an initial value for the property by comparison with

assessed values for the base year of other properties having

physical and economic characteristics similar to those of the

subject property, so that the initial value is uniform in

relation to assessed values of those other properties for the

base year. The product of the initial value multiplied by the

equalized factor for the base year for homestead properties in

that county, less (i) $4,500 in Cook County or $3,500 in all

other counties in tax year 2003 or (ii) $5,000 in all counties

in tax year 2004 and thereafter, is the base homestead value.

For any tax year for which the assessor determines or

adjusts an initial value and hence a base homestead value under

this subsection (c), the initial value shall be subject to

review by the same procedures applicable to assessed values

established under this Code for that tax year.

(d) The base homestead value shall remain constant, except

that the assessor may revise it under the following

circumstances:

(1) If the equalized assessed value of a homestead

property for the current tax year is less than the previous

base homestead value for that property, then the current

equalized assessed value (provided it is not based on a

reduced assessed value resulting from a temporary

irregularity in the property) shall become the base

homestead value in subsequent tax years.

(2) For any year in which new buildings, structures, or

other improvements are constructed on the homestead

property that would increase its assessed value, the

assessor shall adjust the base homestead value as provided

in subsection (c) of this Section with due regard to the

value added by the new improvements.

(3) If the property is sold or ownership is otherwise

transferred, the base homestead value of the property shall

be adjusted as provided in subdivision (b)(3)(B). This item

(3) does not apply to sales or transfers between spouses or

between a parent and a child.

(e) The amount of the exemption under this Section is the

equalized assessed value of the homestead property for the

current tax year, minus the adjusted homestead value, with the

following exceptions:

(1) The exemption under this Section shall not exceed

$20,000 for any taxable year.

(2) In the case of homestead property that also

qualifies for the exemption under Section 15-172, the

property is entitled to the exemption under this Section,

limited to the amount of (i) $4,500 in Cook County or

$3,500 in all other counties in tax year 2003 or (ii)

$5,000 in all counties in tax year 2004 and thereafter.

(f) In the case of an apartment building owned and operated

as a cooperative, or as a life care facility, that contains

residential units that qualify as homestead property under this

Section, the maximum cumulative exemption amount attributed to

the entire building or facility shall not exceed the sum of the

exemptions calculated for each qualified residential unit. The

cooperative association, management firm, or other person or

entity that manages or controls the cooperative apartment

building or life care facility shall credit the exemption

attributable to each residential unit only to the apportioned

tax liability of the owner or other person responsible for

payment of taxes as to that unit. Any person who willfully

refuses to so credit the exemption is guilty of a Class B

misdemeanor.

(g) When married persons maintain separate residences, the

exemption provided under this Section shall be claimed by only

one such person and for only one residence.

(h) In the event of a sale or other transfer in ownership

of the homestead property, the exemption under this Section

shall remain in effect for the remainder of the tax year in

which the sale or transfer occurs, but (other than for sales or

transfers between spouses or between a parent and a child)

shall be calculated using the new base homestead value as

provided in subdivision (b)(3)(B). The assessor may require the

new owner of the property to apply for the exemption in the

following year.

(i) The assessor may determine whether property qualifies

as a homestead under this Section by application, visual

inspection, questionnaire, or other reasonable methods. Each

year, at the time the assessment books are certified to the

county clerk by the board of review, the assessor shall furnish

to the county clerk a list of the properties qualified for the

homestead exemption under this Section. The list shall note the

base homestead value of each property to be used in the

calculation of the exemption for the current tax year.

(j) In counties with 3,000,000 or more inhabitants, the

provisions of this Section apply as follows:

(1) If the general assessment year for the property is

2003, this Section applies for assessment years 2003, 2004,

and 2005. Thereafter, the provisions of Section 15-175

apply.

(2) If the general assessment year for the property is

2004, this Section applies for assessment years 2004, 2005,

and 2006. Thereafter, the provisions of Section 15-175

apply.

(3) If the general assessment year for the property is

2005, this Section applies for assessment years 2005, 2006,

and 2007. Thereafter, the provisions of Section 15-175

apply.

In counties with less than 3,000,000 inhabitants, this

Section applies for assessment years (i) 2003, 2004, and 2005

if 2002 is the designated base year or (ii) 2004, 2005, and

2006 if 2003 is the designated base year. Thereafter, the

provisions of Section 15-175 apply.

(k) To be subject to the provisions of this Section in lieu

of Section 15-175, a county must adopt an ordinance to subject

itself to the provisions of this Section within 6 months after

the effective date of this amendatory Act of the 93rd General

Assembly. In a county other than Cook County, the ordinance

must designate either tax year 2002 or tax year 2003 as the

base year.

(l) Notwithstanding Sections 6 and 8 of the State Mandates

Act, no reimbursement by the State is required for the

implementation of any mandate created by this Section.

(35 ILCS 200/15-180)

Sec. 15-180. Homestead improvements. Homestead properties

that have been improved and residential structures on homestead

property that have been rebuilt following a catastrophic event

are entitled to a homestead improvement exemption, limited to

$30,000 per year through December 31, 1997, and $45,000

beginning January 1, 1998 and through December 31, 2003, and

$75,000 per year for that homestead property beginning January

1, 2004 and thereafter, in fair cash value, when that property

is owned and used exclusively for a residential purpose and

upon demonstration that a proposed increase in assessed value

is attributable solely to a new improvement of an existing

structure or the rebuilding of a residential structure

following a catastrophic event. To be eligible for an exemption

under this Section after a catastrophic event, the residential

structure must be rebuilt within 2 years after the catastrophic

event. The exemption for rebuilt structures under this Section

applies to the increase in value of the rebuilt structure over

the value of the structure before the catastrophic event. The

amount of the exemption shall be limited to the fair cash value

added by the new improvement or rebuilding and shall continue

for 4 years from the date the improvement or rebuilding is

completed and occupied, or until the next following general

assessment of that property, whichever is later.

A proclamation of disaster by the President of the United

States or Governor of the State of Illinois is not a

prerequisite to the classification of an occurrence as a

catastrophic event under this Section. A "catastrophic event"

may include an occurrence of widespread or severe damage or

loss of property resulting from any catastrophic cause

including but not limited to fire, including arson (provided

the fire was not caused by the willful action of an owner or

resident of the property), flood, earthquake, wind, storm,

explosion, or extended periods of severe inclement weather. In

the case of a residential structure affected by flooding, the

structure shall not be eligible for this homestead improvement

exemption unless it is located within a local jurisdiction

which is participating in the National Flood Insurance Program.

In counties of less than 3,000,000 inhabitants, in addition

to the notice requirement under Section 12-30, a supervisor of

assessments, county assessor, or township or multi-township

assessor responsible for adding an assessable improvement to a

residential property's assessment shall either notify a

taxpayer whose assessment has been changed since the last

preceding assessment that he or she may be eligible for the

exemption provided under this Section or shall grant the

exemption automatically.

Beginning January 1, 1999, in counties of 3,000,000 or more

inhabitants, an application for a homestead improvement

exemption for a residential structure that has been rebuilt

following a catastrophic event must be submitted to the Chief

County Assessment Officer with a valuation complaint and a copy

of the building permit to rebuild the structure. The Chief

County Assessment Officer may require additional documentation

which must be provided by the applicant.

Notwithstanding Sections 6 and 8 of the State Mandates Act,

no reimbursement by the State is required for the

implementation of any mandate created by this Section.

(Source: P.A. 89-595, eff. 1-1-97; 89-690, eff. 6-1-97; 90-14,

eff. 7-1-97; 90-186, eff. 7-24-97; 90-655, eff. 7-30-98;

90-704, eff. 8-7-98.)

(35 ILCS 200/20-178)

Sec. 20-178. Certificate of error; refund; interest. When

the county collector makes any refunds due on certificates of

error issued under Sections 14-15 through 14-25 that have been

either certified or adjudicated, the county collector shall pay

the taxpayer interest on the amount of the refund at the rate

of 0.5% per month.

No interest shall be due under this Section for any time

prior to 60 days after the effective date of this amendatory

Act of the 91st General Assembly. For certificates of error

issued prior to the effective date of this amendatory Act of

the 91st General Assembly, the county collector shall pay the

taxpayer interest from 60 days after the effective date of this

amendatory Act of the 91st General Assembly until the date the

refund is paid. For certificates of error issued on or after

the effective date of this amendatory Act of the 91st General

Assembly, interest shall be paid from 60 days after the

certificate of error is issued by the chief county assessment

officer to the date the refund is made. To cover the cost of

interest, the county collector shall proportionately reduce

the distribution of taxes collected for each taxing district in

which the property is situated.

This Section shall not apply to any certificate of error

granting a homestead exemption under Section 15-170, 15-172, or

15-175, or 15-176.

(Source: P.A. 91-393, eff. 7-30-99.)

Section 13. The Longtime Owner-Occupant Property Tax

Relief Act is amended by changing Section 20 as follows:

(35 ILCS 250/20)

Sec. 20. Conditions of deferral or exemption.

(a) Any deferral or exemption of payment of an increase in

real property taxes granted under this Act shall be limited to

real property that meets both of the following conditions:

(1) The property is owned and occupied by a longtime

owner-occupant.

(2) The property is the principal residence and

domicile of the longtime owner-occupant.

The corporate authorities of a county, by ordinance or

resolution, may impose additional criteria for qualifying for a

deferral or exemption under this Act including, but not limited

to, (i) requiring the owner-occupant to have owned and occupied

the same dwelling place as principal residence and domicile for

a period of more than 10 years, (ii) establishing age criteria

for eligibility of an owner-occupant, and (iii) establishing

income criteria for eligibility of an owner-occupant. A

deferral or exemption, or combination thereof, under an

ordinance or resolution adopted pursuant to this Act, may not

exceed $20,000 in equalized assessed value per tax year.

(b) No penalties or interest shall accrue on the portion of

any deferral granted under this Act.

(c) Except as provided in subsection (d) of Section 15,

school districts and municipalities within a county to which

this Act applies may determine whether financial need, age, or

both, of the longtime owner-occupant shall be used to determine

eligibility.

(Source: P.A. 90-648, eff. 7-24-98.)

Section 15. The County Economic Development Project Area

Property Tax Allocation Act is amended by changing Section 6 as

follows:

(55 ILCS 85/6) (from Ch. 34, par. 7006)

Sec. 6. Filing with county clerk; certification of initial

equalized assessed value.

(a) The county shall file a certified copy of any ordinance

authorizing property tax allocation financing for an economic

development project area with the county clerk, and the county

clerk shall immediately thereafter determine (1) the most

recently ascertained equalized assessed value of each lot,

block, tract or parcel of real property within the economic

development project area from which shall be deducted the

homestead exemptions provided by Sections 15-170, and 15-175,

and 15-176 of the Property Tax Code, which value shall be the

"initial equalized assessed value" of each such piece of

property, and (2) the total equalized assessed value of all

taxable real property within the economic development project

area by adding together the most recently ascertained equalized

assessed value of each taxable lot, block, tract, or parcel of

real property within such economic development project area,

from which shall be deducted the homestead exemptions provided

by Sections 15-170, and 15-175, and 15-176 of the Property Tax

Code. Upon receiving written notice from the Department of its

approval and certification of such economic development

project area, the county clerk shall immediately certify such

amount as the "total initial equalized assessed value" of the

taxable property within the economic development project area.

(b) After the county clerk has certified the "total initial

equalized assessed value" of the taxable real property in the

economic development project area, then in respect to every

taxing district containing an economic development project

area, the county clerk or any other official required by law to

ascertain the amount of the equalized assessed value of all

taxable property within that taxing district for the purpose of

computing the rate percent of tax to be extended upon taxable

property within the taxing district, shall in every year that

property tax allocation financing is in effect ascertain the

amount of value of taxable property in an economic development

project area by including in that amount the lower of the

current equalized assessed value or the certified "total

initial equalized assessed value" of all taxable real property

in such area. The rate percent of tax determined shall be

extended to the current equalized assessed value of all

property in the economic development project area in the same

manner as the rate percent of tax is extended to all other

taxable property in the taxing district. The method of

allocating taxes established under this Section shall

terminate when the county adopts an ordinance dissolving the

special tax allocation fund for the economic development

project area. This Act shall not be construed as relieving

property owners within an economic development project area

from paying a uniform rate of taxes upon the current equalized

assessed value of their taxable property as provided in the

Property Tax Code.

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

Section 20. The County Economic Development Project Area

Tax Increment Allocation Act of 1991 is amended by changing

Section 45 as follows:

(55 ILCS 90/45) (from Ch. 34, par. 8045)

Sec. 45. Filing with county clerk; certification of initial

equalized assessed value.

(a) A county that has by ordinance approved an economic

development plan, established an economic development project

area, and adopted tax increment allocation financing for that

area shall file certified copies of the ordinance or ordinances

with the county clerk. Upon receiving the ordinance or

ordinances, the county clerk shall immediately determine (i)

the most recently ascertained equalized assessed value of each

lot, block, tract, or parcel of real property within the

economic development project area from which shall be deducted

the homestead exemptions provided by Sections 15-170, and

15-175, and 15-176 of the Property Tax Code (that value being

the "initial equalized assessed value" of each such piece of

property) and (ii) the total equalized assessed value of all

taxable real property within the economic development project

area by adding together the most recently ascertained equalized

assessed value of each taxable lot, block, tract, or parcel of

real property within the economic development project area,

from which shall be deducted the homestead exemptions provided

by Sections 15-170, and 15-175, and 15-176 of the Property Tax

Code, and shall certify that amount as the "total initial

equalized assessed value" of the taxable real property within

the economic development project area.

(b) After the county clerk has certified the "total initial

equalized assessed value" of the taxable real property in the

economic development project area, then in respect to every

taxing district containing an economic development project

area, the county clerk or any other official required by law to

ascertain the amount of the equalized assessed value of all

taxable property within the taxing district for the purpose of

computing the rate per cent of tax to be extended upon taxable

property within the taxing district shall, in every year that

tax increment allocation financing is in effect, ascertain the

amount of value of taxable property in an economic development

project area by including in that amount the lower of the

current equalized assessed value or the certified "total

initial equalized assessed value" of all taxable real property

in the area. The rate per cent of tax determined shall be

extended to the current equalized assessed value of all

property in the economic development project area in the same

manner as the rate per cent of tax is extended to all other

taxable property in the taxing district. The method of

extending taxes established under this Section shall terminate

when the county adopts an ordinance dissolving the special tax

allocation fund for the economic development project area. This

Act shall not be construed as relieving property owners within

an economic development project area from paying a uniform rate

of taxes upon the current equalized assessed value of their

taxable property as provided in the Property Tax Code.

(Source: P.A. 87-1; 88-670, eff. 12-2-94.)

Section 25. The Illinois Municipal Code is amended by

changing Sections 11-74.4-8, 11-74.4-9, and 11-74.6-40 as

follows:

(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)

Sec. 11-74.4-8. Tax increment allocation financing. A

municipality may not adopt tax increment financing in a

redevelopment project area after the effective date of this

amendatory Act of 1997 that will encompass an area that is

currently included in an enterprise zone created under the

Illinois Enterprise Zone Act unless that municipality,

pursuant to Section 5.4 of the Illinois Enterprise Zone Act,

amends the enterprise zone designating ordinance to limit the

eligibility for tax abatements as provided in Section 5.4.1 of

the Illinois Enterprise Zone Act. A municipality, at the time a

redevelopment project area is designated, may adopt tax

increment allocation financing by passing an ordinance

providing that the ad valorem taxes, if any, arising from the

levies upon taxable real property in such redevelopment project

area by taxing districts and tax rates determined in the manner

provided in paragraph (c) of Section 11-74.4-9 each year after

the effective date of the ordinance until redevelopment project

costs and all municipal obligations financing redevelopment

project costs incurred under this Division have been paid shall

be divided as follows:

(a) That portion of taxes levied upon each taxable lot,

block, tract or parcel of real property which is attributable

to the lower of the current equalized assessed value or the

initial equalized assessed value of each such taxable lot,

block, tract or parcel of real property in the redevelopment

project area shall be allocated to and when collected shall be

paid by the county collector to the respective affected taxing

districts in the manner required by law in the absence of the

adoption of tax increment allocation financing.

(b) Except from a tax levied by a township to retire bonds

issued to satisfy court-ordered damages, that portion, if any,

of such taxes which is attributable to the increase in the

current equalized assessed valuation of each taxable lot,

block, tract or parcel of real property in the redevelopment

project area over and above the initial equalized assessed

value of each property in the project area shall be allocated

to and when collected shall be paid to the municipal treasurer

who shall deposit said taxes into a special fund called the

special tax allocation fund of the municipality for the purpose

of paying redevelopment project costs and obligations incurred

in the payment thereof. In any county with a population of

3,000,000 or more that has adopted a procedure for collecting

taxes that provides for one or more of the installments of the

taxes to be billed and collected on an estimated basis, the

municipal treasurer shall be paid for deposit in the special

tax allocation fund of the municipality, from the taxes

collected from estimated bills issued for property in the

redevelopment project area, the difference between the amount

actually collected from each taxable lot, block, tract, or

parcel of real property within the redevelopment project area

and an amount determined by multiplying the rate at which taxes

were last extended against the taxable lot, block, track, or

parcel of real property in the manner provided in subsection

(c) of Section 11-74.4-9 by the initial equalized assessed

value of the property divided by the number of installments in

which real estate taxes are billed and collected within the

county; provided that the payments on or before December 31,

1999 to a municipal treasurer shall be made only if each of the

following conditions are met:

(1) The total equalized assessed value of the

redevelopment project area as last determined was not less

than 175% of the total initial equalized assessed value.

(2) Not more than 50% of the total equalized assessed

value of the redevelopment project area as last determined

is attributable to a piece of property assigned a single

real estate index number.

(3) The municipal clerk has certified to the county

clerk that the municipality has issued its obligations to

which there has been pledged the incremental property taxes

of the redevelopment project area or taxes levied and

collected on any or all property in the municipality or the

full faith and credit of the municipality to pay or secure

payment for all or a portion of the redevelopment project

costs. The certification shall be filed annually no later

than September 1 for the estimated taxes to be distributed

in the following year; however, for the year 1992 the

certification shall be made at any time on or before March

31, 1992.

(4) The municipality has not requested that the total

initial equalized assessed value of real property be

adjusted as provided in subsection (b) of Section

11-74.4-9.

The conditions of paragraphs (1) through (4) do not apply

after December 31, 1999 to payments to a municipal treasurer

made by a county with 3,000,000 or more inhabitants that has

adopted an estimated billing procedure for collecting taxes. If

a county that has adopted the estimated billing procedure makes

an erroneous overpayment of tax revenue to the municipal

treasurer, then the county may seek a refund of that

overpayment. The county shall send the municipal treasurer a

notice of liability for the overpayment on or before the

mailing date of the next real estate tax bill within the

county. The refund shall be limited to the amount of the

overpayment.

It is the intent of this Division that after the effective

date of this amendatory Act of 1988 a municipality's own ad

valorem tax arising from levies on taxable real property be

included in the determination of incremental revenue in the

manner provided in paragraph (c) of Section 11-74.4-9. If the

municipality does not extend such a tax, it shall annually

deposit in the municipality's Special Tax Increment Fund an

amount equal to 10% of the total contributions to the fund from

all other taxing districts in that year. The annual 10% deposit

required by this paragraph shall be limited to the actual

amount of municipally produced incremental tax revenues

available to the municipality from taxpayers located in the

redevelopment project area in that year if: (a) the plan for

the area restricts the use of the property primarily to

industrial purposes, (b) the municipality establishing the

redevelopment project area is a home-rule community with a 1990

population of between 25,000 and 50,000, (c) the municipality

is wholly located within a county with a 1990 population of

over 750,000 and (d) the redevelopment project area was

established by the municipality prior to June 1, 1990. This

payment shall be in lieu of a contribution of ad valorem taxes

on real property. If no such payment is made, any redevelopment

project area of the municipality shall be dissolved.

If a municipality has adopted tax increment allocation

financing by ordinance and the County Clerk thereafter

certifies the "total initial equalized assessed value as

adjusted" of the taxable real property within such

redevelopment project area in the manner provided in paragraph

(b) of Section 11-74.4-9, each year after the date of the

certification of the total initial equalized assessed value as

adjusted until redevelopment project costs and all municipal

obligations financing redevelopment project costs have been

paid the ad valorem taxes, if any, arising from the levies upon

the taxable real property in such redevelopment project area by

taxing districts and tax rates determined in the manner

provided in paragraph (c) of Section 11-74.4-9 shall be divided

as follows:

(1) That portion of the taxes levied upon each taxable

lot, block, tract or parcel of real property which is

attributable to the lower of the current equalized assessed

value or "current equalized assessed value as adjusted" or

the initial equalized assessed value of each such taxable

lot, block, tract, or parcel of real property existing at

the time tax increment financing was adopted, minus the

total current homestead exemptions provided by Sections

15-170, and 15-175, and 15-176 of the Property Tax Code in

the redevelopment project area shall be allocated to and

when collected shall be paid by the county collector to the

respective affected taxing districts in the manner

required by law in the absence of the adoption of tax

increment allocation financing.

(2) That portion, if any, of such taxes which is

attributable to the increase in the current equalized

assessed valuation of each taxable lot, block, tract, or

parcel of real property in the redevelopment project area,

over and above the initial equalized assessed value of each

property existing at the time tax increment financing was

adopted, minus the total current homestead exemptions

pertaining to each piece of property provided by Sections

15-170, and 15-175, and 15-176 of the Property Tax Code in

the redevelopment project area, shall be allocated to and

when collected shall be paid to the municipal Treasurer,

who shall deposit said taxes into a special fund called the

special tax allocation fund of the municipality for the

purpose of paying redevelopment project costs and

obligations incurred in the payment thereof.

The municipality may pledge in the ordinance the funds in

and to be deposited in the special tax allocation fund for the

payment of such costs and obligations. No part of the current

equalized assessed valuation of each property in the

redevelopment project area attributable to any increase above

the total initial equalized assessed value, or the total

initial equalized assessed value as adjusted, of such

properties shall be used in calculating the general State

school aid formula, provided for in Section 18-8 of the School

Code, until such time as all redevelopment project costs have

been paid as provided for in this Section.

Whenever a municipality issues bonds for the purpose of

financing redevelopment project costs, such municipality may

provide by ordinance for the appointment of a trustee, which

may be any trust company within the State, and for the

establishment of such funds or accounts to be maintained by

such trustee as the municipality shall deem necessary to

provide for the security and payment of the bonds. If such

municipality provides for the appointment of a trustee, such

trustee shall be considered the assignee of any payments

assigned by the municipality pursuant to such ordinance and

this Section. Any amounts paid to such trustee as assignee

shall be deposited in the funds or accounts established

pursuant to such trust agreement, and shall be held by such

trustee in trust for the benefit of the holders of the bonds,

and such holders shall have a lien on and a security interest

in such funds or accounts so long as the bonds remain

outstanding and unpaid. Upon retirement of the bonds, the

trustee shall pay over any excess amounts held to the

municipality for deposit in the special tax allocation fund.

When such redevelopment projects costs, including without

limitation all municipal obligations financing redevelopment

project costs incurred under this Division, have been paid, all

surplus funds then remaining in the special tax allocation fund

shall be distributed by being paid by the municipal treasurer

to the Department of Revenue, the municipality and the county

collector; first to the Department of Revenue and the

municipality in direct proportion to the tax incremental

revenue received from the State and the municipality, but not

to exceed the total incremental revenue received from the State

or the municipality less any annual surplus distribution of

incremental revenue previously made; with any remaining funds

to be paid to the County Collector who shall immediately

thereafter pay said funds to the taxing districts in the

redevelopment project area in the same manner and proportion as

the most recent distribution by the county collector to the

affected districts of real property taxes from real property in

the redevelopment project area.

Upon the payment of all redevelopment project costs, the

retirement of obligations, the distribution of any excess

monies pursuant to this Section, and final closing of the books

and records of the redevelopment project area, the municipality

shall adopt an ordinance dissolving the special tax allocation

fund for the redevelopment project area and terminating the

designation of the redevelopment project area as a

redevelopment project area. Title to real or personal property

and public improvements acquired by or for the municipality as

a result of the redevelopment project and plan shall vest in

the municipality when acquired and shall continue to be held by

the municipality after the redevelopment project area has been

terminated. Municipalities shall notify affected taxing

districts prior to November 1 if the redevelopment project area

is to be terminated by December 31 of that same year. If a

municipality extends estimated dates of completion of a

redevelopment project and retirement of obligations to finance

a redevelopment project, as allowed by this amendatory Act of

1993, that extension shall not extend the property tax

increment allocation financing authorized by this Section.

Thereafter the rates of the taxing districts shall be extended

and taxes levied, collected and distributed in the manner

applicable in the absence of the adoption of tax increment

allocation financing.

Nothing in this Section shall be construed as relieving

property in such redevelopment project areas from being

assessed as provided in the Property Tax Code or as relieving

owners of such property from paying a uniform rate of taxes, as

required by Section 4 of Article 9 of the Illinois

Constitution.

(Source: P.A. 92-16, eff. 6-28-01; 93-298, eff. 7-23-03.)

(65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)

Sec. 11-74.4-9. Equalized assessed value of property.

(a) If a municipality by ordinance provides for tax

increment allocation financing pursuant to Section 11-74.4-8,

the county clerk immediately thereafter shall determine (1) the

most recently ascertained equalized assessed value of each lot,

block, tract or parcel of real property within such

redevelopment project area from which shall be deducted the

homestead exemptions provided by Sections 15-170, and 15-175,

and 15-176 of the Property Tax Code, which value shall be the

"initial equalized assessed value" of each such piece of

property, and (2) the total equalized assessed value of all

taxable real property within such redevelopment project area by

adding together the most recently ascertained equalized

assessed value of each taxable lot, block, tract, or parcel of

real property within such project area, from which shall be

deducted the homestead exemptions provided by Sections 15-170,

and 15-175, and 15-176 of the Property Tax Code, and shall

certify such amount as the "total initial equalized assessed

value" of the taxable real property within such project area.

(b) In reference to any municipality which has adopted tax

increment financing after January 1, 1978, and in respect to

which the county clerk has certified the "total initial

equalized assessed value" of the property in the redevelopment

area, the municipality may thereafter request the clerk in

writing to adjust the initial equalized value of all taxable

real property within the redevelopment project area by

deducting therefrom the exemptions provided for by Sections

15-170, and 15-175, and 15-176 of the Property Tax Code

applicable to each lot, block, tract or parcel of real property

within such redevelopment project area. The county clerk shall

immediately after the written request to adjust the total

initial equalized value is received determine the total

homestead exemptions in the redevelopment project area

provided by Sections 15-170, and 15-175, and 15-176 of the

Property Tax Code by adding together the homestead exemptions

provided by said Sections on each lot, block, tract or parcel

of real property within such redevelopment project area and

then shall deduct the total of said exemptions from the total

initial equalized assessed value. The county clerk shall then

promptly certify such amount as the "total initial equalized

assessed value as adjusted" of the taxable real property within

such redevelopment project area.

(c) After the county clerk has certified the "total initial

equalized assessed value" of the taxable real property in such

area, then in respect to every taxing district containing a

redevelopment project area, the county clerk or any other

official required by law to ascertain the amount of the

equalized assessed value of all taxable property within such

district for the purpose of computing the rate per cent of tax

to be extended upon taxable property within such district,

shall in every year that tax increment allocation financing is

in effect ascertain the amount of value of taxable property in

a redevelopment project area by including in such amount the

lower of the current equalized assessed value or the certified

"total initial equalized assessed value" of all taxable real

property in such area, except that after he has certified the

"total initial equalized assessed value as adjusted" he shall

in the year of said certification if tax rates have not been

extended and in every year thereafter that tax increment

allocation financing is in effect ascertain the amount of value

of taxable property in a redevelopment project area by

including in such amount the lower of the current equalized

assessed value or the certified "total initial equalized

assessed value as adjusted" of all taxable real property in

such area. The rate per cent of tax determined shall be

extended to the current equalized assessed value of all

property in the redevelopment project area in the same manner

as the rate per cent of tax is extended to all other taxable

property in the taxing district. The method of extending taxes

established under this Section shall terminate when the

municipality adopts an ordinance dissolving the special tax

allocation fund for the redevelopment project area. This

Division shall not be construed as relieving property owners

within a redevelopment project area from paying a uniform rate

of taxes upon the current equalized assessed value of their

taxable property as provided in the Property Tax Code.

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

(65 ILCS 5/11-74.6-40)

Sec. 11-74.6-40. Equalized assessed value determination;

property tax extension.

(a) If a municipality by ordinance provides for tax

increment allocation financing under Section 11-74.6-35, the

county clerk immediately thereafter:

(1) shall determine the initial equalized assessed

value of each parcel of real property in the redevelopment

project area, which is the most recently established

equalized assessed value of each lot, block, tract or

parcel of taxable real property within the redevelopment

project area, minus the homestead exemptions provided by

Sections 15-170, and 15-175, and 15-176 of the Property Tax

Code; and

(2) shall certify to the municipality the total initial

equalized assessed value of all taxable real property

within the redevelopment project area.

(b) Any municipality that has established a vacant

industrial buildings conservation area may, by ordinance

passed after the adoption of tax increment allocation

financing, provide that the county clerk immediately

thereafter shall again determine:

(1) the updated initial equalized assessed value of

each lot, block, tract or parcel of real property, which is

the most recently ascertained equalized assessed value of

each lot, block, tract or parcel of real property within

the vacant industrial buildings conservation area; and

(2) the total updated initial equalized assessed value

of all taxable real property within the redevelopment

project area, which is the total of the updated initial

equalized assessed value of all taxable real property

within the vacant industrial buildings conservation area.

The county clerk shall certify to the municipality the

total updated initial equalized assessed value of all taxable

real property within the industrial buildings conservation

area.

(c) After the county clerk has certified the total initial

equalized assessed value or the total updated initial equalized

assessed value of the taxable real property in the area, for

each taxing district in which a redevelopment project area is

situated, the county clerk or any other official required by

law to determine the amount of the equalized assessed value of

all taxable property within the district for the purpose of

computing the percentage rate of tax to be extended upon

taxable property within the district, shall in every year that

tax increment allocation financing is in effect determine the

total equalized assessed value of taxable property in a

redevelopment project area by including in that amount the

lower of the current equalized assessed value or the certified

total initial equalized assessed value or, if the total of

updated equalized assessed value has been certified, the total

updated initial equalized assessed value of all taxable real

property in the redevelopment project area. After he has

certified the total initial equalized assessed value he shall

in the year of that certification, if tax rates have not been

extended, and in every subsequent year that tax increment

allocation financing is in effect, determine the amount of

equalized assessed value of taxable property in a redevelopment

project area by including in that amount the lower of the

current total equalized assessed value or the certified total

initial equalized assessed value or, if the total of updated

initial equalized assessed values have been certified, the

total updated initial equalized assessed value of all taxable

real property in the redevelopment project area.

(d) The percentage rate of tax determined shall be extended

on the current equalized assessed value of all property in the

redevelopment project area in the same manner as the rate per

cent of tax is extended to all other taxable property in the

taxing district. The method of extending taxes established

under this Section shall terminate when the municipality adopts

an ordinance dissolving the special tax allocation fund for the

redevelopment project area. This Law shall not be construed as

relieving property owners within a redevelopment project area

from paying a uniform rate of taxes upon the current equalized

assessed value of their taxable property as provided in the

Property Tax Code.

(Source: P.A. 88-537; 88-670, eff. 12-2-94.)

Section 30. The Economic Development Project Area Tax

Increment Allocation Act of 1995 is amended by changing Section

45 as follows:

(65 ILCS 110/45)

Sec. 45. Filing with county clerk; certification of initial

equalized assessed value.

(a) A municipality that has by ordinance approved an

economic development plan, established an economic development

project area, and adopted tax increment allocation financing

for that area shall file certified copies of the ordinance or

ordinances with the county clerk. Upon receiving the ordinance

or ordinances, the county clerk shall immediately determine (i)

the most recently ascertained equalized assessed value of each

lot, block, tract, or parcel of real property within the

economic development project area from which shall be deducted

the homestead exemptions provided by Sections 15-170, and

15-175, and 15-176 of the Property Tax Code (that value being

the "initial equalized assessed value" of each such piece of

property) and (ii) the total equalized assessed value of all

taxable real property within the economic development project

area by adding together the most recently ascertained equalized

assessed value of each taxable lot, block, tract, or parcel of

real property within the economic development project area,

from which shall be deducted the homestead exemptions provided

by Sections 15-170, and 15-175, and 15-176 of the Property Tax

Code, and shall certify that amount as the "total initial

equalized assessed value" of the taxable real property within

the economic development project area.

(b) After the county clerk has certified the "total initial

equalized assessed value" of the taxable real property in the

economic development project area, then in respect to every

taxing district containing an economic development project

area, the county clerk or any other official required by law to

ascertain the amount of the equalized assessed value of all

taxable property within the taxing district for the purpose of

computing the rate per cent of tax to be extended upon taxable

property within the taxing district shall, in every year that

tax increment allocation financing is in effect, ascertain the

amount of value of taxable property in an economic development

project area by including in that amount the lower of the

current equalized assessed value or the certified "total

initial equalized assessed value" of all taxable real property

in the area. The rate per cent of tax determined shall be

extended to the current equalized assessed value of all

property in the economic development project area in the same

manner as the rate per cent of tax is extended to all other

taxable property in the taxing district. The method of

extending taxes established under this Section shall terminate

when the municipality adopts an ordinance dissolving the

special tax allocation fund for the economic development

project area. This Act shall not be construed as relieving

owners or lessees of property within an economic development

project area from paying a uniform rate of taxes upon the

current equalized assessed value of their taxable property as

provided in the Property Tax Code.

(Source: P.A. 89-176, eff. 1-1-96.)

Section 35. The School Code is amended by changing Section

18-8.05 as follows:

(105 ILCS 5/18-8.05)

Sec. 18-8.05. Basis for apportionment of general State

financial aid and supplemental general State aid to the common

schools for the 1998-1999 and subsequent school years.

(A) General Provisions.

(1) The provisions of this Section apply to the 1998-1999

and subsequent school years. The system of general State

financial aid provided for in this Section is designed to

assure that, through a combination of State financial aid and

required local resources, the financial support provided each

pupil in Average Daily Attendance equals or exceeds a

prescribed per pupil Foundation Level. This formula approach

imputes a level of per pupil Available Local Resources and

provides for the basis to calculate a per pupil level of

general State financial aid that, when added to Available Local

Resources, equals or exceeds the Foundation Level. The amount

of per pupil general State financial aid for school districts,

in general, varies in inverse relation to Available Local

Resources. Per pupil amounts are based upon each school

district's Average Daily Attendance as that term is defined in

this Section.

(2) In addition to general State financial aid, school

districts with specified levels or concentrations of pupils

from low income households are eligible to receive supplemental

general State financial aid grants as provided pursuant to

subsection (H). The supplemental State aid grants provided for

school districts under subsection (H) shall be appropriated for

distribution to school districts as part of the same line item

in which the general State financial aid of school districts is

appropriated under this Section.

(3) To receive financial assistance under this Section,

school districts are required to file claims with the State

Board of Education, subject to the following requirements:

(a) Any school district which fails for any given

school year to maintain school as required by law, or to

maintain a recognized school is not eligible to file for

such school year any claim upon the Common School Fund. In

case of nonrecognition of one or more attendance centers in

a school district otherwise operating recognized schools,

the claim of the district shall be reduced in the

proportion which the Average Daily Attendance in the

attendance center or centers bear to the Average Daily

Attendance in the school district. A "recognized school"

means any public school which meets the standards as

established for recognition by the State Board of

Education. A school district or attendance center not

having recognition status at the end of a school term is

entitled to receive State aid payments due upon a legal

claim which was filed while it was recognized.

(b) School district claims filed under this Section are

subject to Sections 18-9, 18-10, and 18-12, except as

otherwise provided in this Section.

(c) If a school district operates a full year school

under Section 10-19.1, the general State aid to the school

district shall be determined by the State Board of

Education in accordance with this Section as near as may be

applicable.

(d) (Blank).

(4) Except as provided in subsections (H) and (L), the

board of any district receiving any of the grants provided for

in this Section may apply those funds to any fund so received

for which that board is authorized to make expenditures by law.

School districts are not required to exert a minimum

Operating Tax Rate in order to qualify for assistance under

this Section.

(5) As used in this Section the following terms, when

capitalized, shall have the meaning ascribed herein:

(a) "Average Daily Attendance": A count of pupil

attendance in school, averaged as provided for in

subsection (C) and utilized in deriving per pupil financial

support levels.

(b) "Available Local Resources": A computation of

local financial support, calculated on the basis of Average

Daily Attendance and derived as provided pursuant to

subsection (D).

(c) "Corporate Personal Property Replacement Taxes":

Funds paid to local school districts pursuant to "An Act in

relation to the abolition of ad valorem personal property

tax and the replacement of revenues lost thereby, and

amending and repealing certain Acts and parts of Acts in

connection therewith", certified August 14, 1979, as

amended (Public Act 81-1st S.S.-1).

(d) "Foundation Level": A prescribed level of per pupil

financial support as provided for in subsection (B).

(e) "Operating Tax Rate": All school district property

taxes extended for all purposes, except Bond and Interest,

Summer School, Rent, Capital Improvement, and Vocational

Education Building purposes.

(B) Foundation Level.

(1) The Foundation Level is a figure established by the

State representing the minimum level of per pupil financial

support that should be available to provide for the basic

education of each pupil in Average Daily Attendance. As set

forth in this Section, each school district is assumed to exert

a sufficient local taxing effort such that, in combination with

the aggregate of general State financial aid provided the

district, an aggregate of State and local resources are

available to meet the basic education needs of pupils in the

district.

(2) For the 1998-1999 school year, the Foundation Level of

support is $4,225. For the 1999-2000 school year, the

Foundation Level of support is $4,325. For the 2000-2001 school

year, the Foundation Level of support is $4,425.

(3) For the 2001-2002 school year and 2002-2003 school

year, the Foundation Level of support is $4,560.

(4) For the 2003-2004 school year and each school year

thereafter, the Foundation Level of support is $4,810 or such

greater amount as may be established by law by the General

Assembly.

(C) Average Daily Attendance.

(1) For purposes of calculating general State aid pursuant

to subsection (E), an Average Daily Attendance figure shall be

utilized. The Average Daily Attendance figure for formula

calculation purposes shall be the monthly average of the actual

number of pupils in attendance of each school district, as

further averaged for the best 3 months of pupil attendance for

each school district. In compiling the figures for the number

of pupils in attendance, school districts and the State Board

of Education shall, for purposes of general State aid funding,

conform attendance figures to the requirements of subsection

(F).

(2) The Average Daily Attendance figures utilized in

subsection (E) shall be the requisite attendance data for the

school year immediately preceding the school year for which

general State aid is being calculated or the average of the

attendance data for the 3 preceding school years, whichever is

greater. The Average Daily Attendance figures utilized in

subsection (H) shall be the requisite attendance data for the

school year immediately preceding the school year for which

general State aid is being calculated.

(D) Available Local Resources.

(1) For purposes of calculating general State aid pursuant

to subsection (E), a representation of Available Local

Resources per pupil, as that term is defined and determined in

this subsection, shall be utilized. Available Local Resources

per pupil shall include a calculated dollar amount representing

local school district revenues from local property taxes and

from Corporate Personal Property Replacement Taxes, expressed

on the basis of pupils in Average Daily Attendance.

(2) In determining a school district's revenue from local

property taxes, the State Board of Education shall utilize the

equalized assessed valuation of all taxable property of each

school district as of September 30 of the previous year. The

equalized assessed valuation utilized shall be obtained and

determined as provided in subsection (G).

(3) For school districts maintaining grades kindergarten

through 12, local property tax revenues per pupil shall be

calculated as the product of the applicable equalized assessed

valuation for the district multiplied by 3.00%, and divided by

the district's Average Daily Attendance figure. For school

districts maintaining grades kindergarten through 8, local

property tax revenues per pupil shall be calculated as the

product of the applicable equalized assessed valuation for the

district multiplied by 2.30%, and divided by the district's

Average Daily Attendance figure. For school districts

maintaining grades 9 through 12, local property tax revenues

per pupil shall be the applicable equalized assessed valuation

of the district multiplied by 1.05%, and divided by the

district's Average Daily Attendance figure.

(4) The Corporate Personal Property Replacement Taxes paid

to each school district during the calendar year 2 years before

the calendar year in which a school year begins, divided by the

Average Daily Attendance figure for that district, shall be

added to the local property tax revenues per pupil as derived

by the application of the immediately preceding paragraph (3).

The sum of these per pupil figures for each school district

shall constitute Available Local Resources as that term is

utilized in subsection (E) in the calculation of general State

aid.

(E) Computation of General State Aid.

(1) For each school year, the amount of general State aid

allotted to a school district shall be computed by the State

Board of Education as provided in this subsection.

(2) For any school district for which Available Local

Resources per pupil is less than the product of 0.93 times the

Foundation Level, general State aid for that district shall be

calculated as an amount equal to the Foundation Level minus

Available Local Resources, multiplied by the Average Daily

Attendance of the school district.

(3) For any school district for which Available Local

Resources per pupil is equal to or greater than the product of

0.93 times the Foundation Level and less than the product of

1.75 times the Foundation Level, the general State aid per

pupil shall be a decimal proportion of the Foundation Level

derived using a linear algorithm. Under this linear algorithm,

the calculated general State aid per pupil shall decline in

direct linear fashion from 0.07 times the Foundation Level for

a school district with Available Local Resources equal to the

product of 0.93 times the Foundation Level, to 0.05 times the

Foundation Level for a school district with Available Local

Resources equal to the product of 1.75 times the Foundation

Level. The allocation of general State aid for school districts

subject to this paragraph 3 shall be the calculated general

State aid per pupil figure multiplied by the Average Daily

Attendance of the school district.

(4) For any school district for which Available Local

Resources per pupil equals or exceeds the product of 1.75 times

the Foundation Level, the general State aid for the school

district shall be calculated as the product of $218 multiplied

by the Average Daily Attendance of the school district.

(5) The amount of general State aid allocated to a school

district for the 1999-2000 school year meeting the requirements

set forth in paragraph (4) of subsection (G) shall be increased

by an amount equal to the general State aid that would have

been received by the district for the 1998-1999 school year by

utilizing the Extension Limitation Equalized Assessed

Valuation as calculated in paragraph (4) of subsection (G) less

the general State aid allotted for the 1998-1999 school year.

This amount shall be deemed a one time increase, and shall not

affect any future general State aid allocations.

(F) Compilation of Average Daily Attendance.

(1) Each school district shall, by July 1 of each year,

submit to the State Board of Education, on forms prescribed by

the State Board of Education, attendance figures for the school

year that began in the preceding calendar year. The attendance

information so transmitted shall identify the average daily

attendance figures for each month of the school year. Beginning

with the general State aid claim form for the 2002-2003 school

year, districts shall calculate Average Daily Attendance as

provided in subdivisions (a), (b), and (c) of this paragraph

(1).

(a) In districts that do not hold year-round classes,

days of attendance in August shall be added to the month of

September and any days of attendance in June shall be added

to the month of May.

(b) In districts in which all buildings hold year-round

classes, days of attendance in July and August shall be

added to the month of September and any days of attendance

in June shall be added to the month of May.

(c) In districts in which some buildings, but not all,

hold year-round classes, for the non-year-round buildings,

days of attendance in August shall be added to the month of

September and any days of attendance in June shall be added

to the month of May. The average daily attendance for the

year-round buildings shall be computed as provided in

subdivision (b) of this paragraph (1). To calculate the

Average Daily Attendance for the district, the average

daily attendance for the year-round buildings shall be

multiplied by the days in session for the non-year-round

buildings for each month and added to the monthly

attendance of the non-year-round buildings.

Except as otherwise provided in this Section, days of

attendance by pupils shall be counted only for sessions of not

less than 5 clock hours of school work per day under direct

supervision of: (i) teachers, or (ii) non-teaching personnel or

volunteer personnel when engaging in non-teaching duties and

supervising in those instances specified in subsection (a) of

Section 10-22.34 and paragraph 10 of Section 34-18, with pupils

of legal school age and in kindergarten and grades 1 through

12.

Days of attendance by tuition pupils shall be accredited

only to the districts that pay the tuition to a recognized

school.

(2) Days of attendance by pupils of less than 5 clock hours

of school shall be subject to the following provisions in the

compilation of Average Daily Attendance.

(a) Pupils regularly enrolled in a public school for

only a part of the school day may be counted on the basis

of 1/6 day for every class hour of instruction of 40

minutes or more attended pursuant to such enrollment,

unless a pupil is enrolled in a block-schedule format of 80

minutes or more of instruction, in which case the pupil may

be counted on the basis of the proportion of minutes of

school work completed each day to the minimum number of

minutes that school work is required to be held that day.

(b) Days of attendance may be less than 5 clock hours

on the opening and closing of the school term, and upon the

first day of pupil attendance, if preceded by a day or days

utilized as an institute or teachers' workshop.

(c) A session of 4 or more clock hours may be counted

as a day of attendance upon certification by the regional

superintendent, and approved by the State Superintendent

of Education to the extent that the district has been

forced to use daily multiple sessions.

(d) A session of 3 or more clock hours may be counted

as a day of attendance (1) when the remainder of the school

day or at least 2 hours in the evening of that day is

utilized for an in-service training program for teachers,

up to a maximum of 5 days per school year of which a

maximum of 4 days of such 5 days may be used for

parent-teacher conferences, provided a district conducts

an in-service training program for teachers which has been

approved by the State Superintendent of Education; or, in

lieu of 4 such days, 2 full days may be used, in which

event each such day may be counted as a day of attendance;

and (2) when days in addition to those provided in item (1)

are scheduled by a school pursuant to its school

improvement plan adopted under Article 34 or its revised or

amended school improvement plan adopted under Article 2,

provided that (i) such sessions of 3 or more clock hours

are scheduled to occur at regular intervals, (ii) the

remainder of the school days in which such sessions occur

are utilized for in-service training programs or other

staff development activities for teachers, and (iii) a

sufficient number of minutes of school work under the

direct supervision of teachers are added to the school days

between such regularly scheduled sessions to accumulate

not less than the number of minutes by which such sessions

of 3 or more clock hours fall short of 5 clock hours. Any

full days used for the purposes of this paragraph shall not

be considered for computing average daily attendance. Days

scheduled for in-service training programs, staff

development activities, or parent-teacher conferences may

be scheduled separately for different grade levels and

different attendance centers of the district.

(e) A session of not less than one clock hour of

teaching hospitalized or homebound pupils on-site or by

telephone to the classroom may be counted as 1/2 day of

attendance, however these pupils must receive 4 or more

clock hours of instruction to be counted for a full day of

attendance.

(f) A session of at least 4 clock hours may be counted

as a day of attendance for first grade pupils, and pupils

in full day kindergartens, and a session of 2 or more hours

may be counted as 1/2 day of attendance by pupils in

kindergartens which provide only 1/2 day of attendance.

(g) For children with disabilities who are below the

age of 6 years and who cannot attend 2 or more clock hours

because of their disability or immaturity, a session of not

less than one clock hour may be counted as 1/2 day of

attendance; however for such children whose educational

needs so require a session of 4 or more clock hours may be

counted as a full day of attendance.

(h) A recognized kindergarten which provides for only

1/2 day of attendance by each pupil shall not have more

than 1/2 day of attendance counted in any one day. However,

kindergartens may count 2 1/2 days of attendance in any 5

consecutive school days. When a pupil attends such a

kindergarten for 2 half days on any one school day, the

pupil shall have the following day as a day absent from

school, unless the school district obtains permission in

writing from the State Superintendent of Education.

Attendance at kindergartens which provide for a full day of

attendance by each pupil shall be counted the same as

attendance by first grade pupils. Only the first year of

attendance in one kindergarten shall be counted, except in

case of children who entered the kindergarten in their

fifth year whose educational development requires a second

year of kindergarten as determined under the rules and

regulations of the State Board of Education.

(G) Equalized Assessed Valuation Data.

(1) For purposes of the calculation of Available Local

Resources required pursuant to subsection (D), the State Board

of Education shall secure from the Department of Revenue the

value as equalized or assessed by the Department of Revenue of

all taxable property of every school district, together with

(i) the applicable tax rate used in extending taxes for the

funds of the district as of September 30 of the previous year

and (ii) the limiting rate for all school districts subject to

property tax extension limitations as imposed under the

Property Tax Extension Limitation Law.

The Department of Revenue shall add to the equalized

assessed value of all taxable property of each school district

situated entirely or partially within a county that is or was

subject to the alternative general homestead exemption

provisions of Section 15-176 of the Property Tax Code (i) an

amount equal to the total amount by which the homestead

exemption allowed under Section 15-176 of the Property Tax Code

for real property situated in that school district exceeds the

total amount that would have been allowed in that school

district if the maximum reduction under Section 15-176 was (i)

$4,500 in Cook County or $3,500 in all other counties in tax

year 2003 or (ii) $5,000 in all counties in tax year 2004 and

thereafter and (ii) an amount equal to the aggregate amount for

the taxable year of all additional exemptions under Section

15-175 of the Property Tax Code for owners with a household

income of $30,000 or less. The county clerk of any county that

is or was subject to the alternative general homestead

exemption provisions of Section 15-176 of the Property Tax Code

shall annually calculate and certify to the Department of

Revenue for each school district all homestead exemption

amounts under Section 15-176 of the Property Tax Code and all

amounts of additional exemptions under Section 15-175 of the

Property Tax Code for owners with a household income of $30,000

or less. It is the intent of this paragraph that if the general

homestead exemption for a parcel of property is determined

under Section 15-176 of the Property Tax Code rather than

Section 15-175, then the calculation of Available Local

Resources shall not be affected by the difference, if any,

between the amount of the general homestead exemption allowed

for that parcel of property under Section 15-176 of the

Property Tax Code and the amount that would have been allowed

had the general homestead exemption for that parcel of property

been determined under Section 15-175 of the Property Tax Code.

It is further the intent of this paragraph that if additional

exemptions are allowed under Section 15-175 of the Property Tax

Code for owners with a household income of less than $30,000,

then the calculation of Available Local Resources shall not be

affected by the difference, if any, because of those additional

exemptions.

This equalized assessed valuation, as adjusted further by

the requirements of this subsection, shall be utilized in the

calculation of Available Local Resources.

(2) The equalized assessed valuation in paragraph (1) shall

be adjusted, as applicable, in the following manner:

(a) For the purposes of calculating State aid under

this Section, with respect to any part of a school district

within a redevelopment project area in respect to which a

municipality has adopted tax increment allocation

financing pursuant to the Tax Increment Allocation

Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11

of the Illinois Municipal Code or the Industrial Jobs

Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the

Illinois Municipal Code, no part of the current equalized

assessed valuation of real property located in any such

project area which is attributable to an increase above the

total initial equalized assessed valuation of such

property shall be used as part of the equalized assessed

valuation of the district, until such time as all

redevelopment project costs have been paid, as provided in

Section 11-74.4-8 of the Tax Increment Allocation

Redevelopment Act or in Section 11-74.6-35 of the

Industrial Jobs Recovery Law. For the purpose of the

equalized assessed valuation of the district, the total

initial equalized assessed valuation or the current

equalized assessed valuation, whichever is lower, shall be

used until such time as all redevelopment project costs

have been paid.

(b) The real property equalized assessed valuation for

a school district shall be adjusted by subtracting from the

real property value as equalized or assessed by the

Department of Revenue for the district an amount computed

by dividing the amount of any abatement of taxes under

Section 18-170 of the Property Tax Code by 3.00% for a

district maintaining grades kindergarten through 12, by

2.30% for a district maintaining grades kindergarten

through 8, or by 1.05% for a district maintaining grades 9

through 12 and adjusted by an amount computed by dividing

the amount of any abatement of taxes under subsection (a)

of Section 18-165 of the Property Tax Code by the same

percentage rates for district type as specified in this

subparagraph (b).

(3) For the 1999-2000 school year and each school year

thereafter, if a school district meets all of the criteria of

this subsection (G)(3), the school district's Available Local

Resources shall be calculated under subsection (D) using the

district's Extension Limitation Equalized Assessed Valuation

as calculated under this subsection (G)(3).

For purposes of this subsection (G)(3) the following terms

shall have the following meanings:

"Budget Year": The school year for which general State

aid is calculated and awarded under subsection (E).

"Base Tax Year": The property tax levy year used to

calculate the Budget Year allocation of general State aid.

"Preceding Tax Year": The property tax levy year

immediately preceding the Base Tax Year.

"Base Tax Year's Tax Extension": The product of the

equalized assessed valuation utilized by the County Clerk

in the Base Tax Year multiplied by the limiting rate as

calculated by the County Clerk and defined in the Property

Tax Extension Limitation Law.

"Preceding Tax Year's Tax Extension": The product of

the equalized assessed valuation utilized by the County

Clerk in the Preceding Tax Year multiplied by the Operating

Tax Rate as defined in subsection (A).

"Extension Limitation Ratio": A numerical ratio,

certified by the County Clerk, in which the numerator is

the Base Tax Year's Tax Extension and the denominator is

the Preceding Tax Year's Tax Extension.

"Operating Tax Rate": The operating tax rate as defined

in subsection (A).

If a school district is subject to property tax extension

limitations as imposed under the Property Tax Extension

Limitation Law, the State Board of Education shall calculate

the Extension Limitation Equalized Assessed Valuation of that

district. For the 1999-2000 school year, the Extension

Limitation Equalized Assessed Valuation of a school district as

calculated by the State Board of Education shall be equal to

the product of the district's 1996 Equalized Assessed Valuation

and the district's Extension Limitation Ratio. For the

2000-2001 school year and each school year thereafter, the

Extension Limitation Equalized Assessed Valuation of a school

district as calculated by the State Board of Education shall be

equal to the product of the Equalized Assessed Valuation last

used in the calculation of general State aid and the district's

Extension Limitation Ratio. If the Extension Limitation

Equalized Assessed Valuation of a school district as calculated

under this subsection (G)(3) is less than the district's

equalized assessed valuation as calculated pursuant to

subsections (G)(1) and (G)(2), then for purposes of calculating

the district's general State aid for the Budget Year pursuant

to subsection (E), that Extension Limitation Equalized

Assessed Valuation shall be utilized to calculate the

district's Available Local Resources under subsection (D).

(4) For the purposes of calculating general State aid for

the 1999-2000 school year only, if a school district

experienced a triennial reassessment on the equalized assessed

valuation used in calculating its general State financial aid

apportionment for the 1998-1999 school year, the State Board of

Education shall calculate the Extension Limitation Equalized

Assessed Valuation that would have been used to calculate the

district's 1998-1999 general State aid. This amount shall equal

the product of the equalized assessed valuation used to

calculate general State aid for the 1997-1998 school year and

the district's Extension Limitation Ratio. If the Extension

Limitation Equalized Assessed Valuation of the school district

as calculated under this paragraph (4) is less than the

district's equalized assessed valuation utilized in

calculating the district's 1998-1999 general State aid

allocation, then for purposes of calculating the district's

general State aid pursuant to paragraph (5) of subsection (E),

that Extension Limitation Equalized Assessed Valuation shall

be utilized to calculate the district's Available Local

Resources.

(5) For school districts having a majority of their

equalized assessed valuation in any county except Cook, DuPage,

Kane, Lake, McHenry, or Will, if the amount of general State

aid allocated to the school district for the 1999-2000 school

year under the provisions of subsection (E), (H), and (J) of

this Section is less than the amount of general State aid

allocated to the district for the 1998-1999 school year under

these subsections, then the general State aid of the district

for the 1999-2000 school year only shall be increased by the

difference between these amounts. The total payments made under

this paragraph (5) shall not exceed $14,000,000. Claims shall

be prorated if they exceed $14,000,000.

(H) Supplemental General State Aid.

(1) In addition to the general State aid a school district

is allotted pursuant to subsection (E), qualifying school

districts shall receive a grant, paid in conjunction with a

district's payments of general State aid, for supplemental

general State aid based upon the concentration level of

children from low-income households within the school

district. Supplemental State aid grants provided for school

districts under this subsection shall be appropriated for

distribution to school districts as part of the same line item

in which the general State financial aid of school districts is

appropriated under this Section. If the appropriation in any

fiscal year for general State aid and supplemental general

State aid is insufficient to pay the amounts required under the

general State aid and supplemental general State aid

calculations, then the State Board of Education shall ensure

that each school district receives the full amount due for

general State aid and the remainder of the appropriation shall

be used for supplemental general State aid, which the State

Board of Education shall calculate and pay to eligible

districts on a prorated basis.

(1.5) This paragraph (1.5) applies only to those school

years preceding the 2003-2004 school year. For purposes of this

subsection (H), the term "Low-Income Concentration Level"

shall be the low-income eligible pupil count from the most

recently available federal census divided by the Average Daily

Attendance of the school district. If, however, (i) the

percentage decrease from the 2 most recent federal censuses in

the low-income eligible pupil count of a high school district

with fewer than 400 students exceeds by 75% or more the

percentage change in the total low-income eligible pupil count

of contiguous elementary school districts, whose boundaries

are coterminous with the high school district, or (ii) a high

school district within 2 counties and serving 5 elementary

school districts, whose boundaries are coterminous with the

high school district, has a percentage decrease from the 2 most

recent federal censuses in the low-income eligible pupil count

and there is a percentage increase in the total low-income

eligible pupil count of a majority of the elementary school

districts in excess of 50% from the 2 most recent federal

censuses, then the high school district's low-income eligible

pupil count from the earlier federal census shall be the number

used as the low-income eligible pupil count for the high school

district, for purposes of this subsection (H). The changes made

to this paragraph (1) by Public Act 92-28 shall apply to

supplemental general State aid grants for school years

preceding the 2003-2004 school year that are paid in fiscal

year 1999 or thereafter and to any State aid payments made in

fiscal year 1994 through fiscal year 1998 pursuant to

subsection 1(n) of Section 18-8 of this Code (which was

repealed on July 1, 1998), and any high school district that is

affected by Public Act 92-28 is entitled to a recomputation of

its supplemental general State aid grant or State aid paid in

any of those fiscal years. This recomputation shall not be

affected by any other funding.

(1.10) This paragraph (1.10) applies to the 2003-2004

school year and each school year thereafter. For purposes of

this subsection (H), the term "Low-Income Concentration Level"

shall, for each fiscal year, be the low-income eligible pupil

count as of July 1 of the immediately preceding fiscal year (as

determined by the Department of Human Services based on the

number of pupils who are eligible for at least one of the

following low income programs: Medicaid, KidCare, TANF, or Food

Stamps, excluding pupils who are eligible for services provided

by the Department of Children and Family Services, averaged

over the 2 immediately preceding fiscal years for fiscal year

2004 and over the 3 immediately preceding fiscal years for each

fiscal year thereafter) divided by the Average Daily Attendance

of the school district.

(2) Supplemental general State aid pursuant to this

subsection (H) shall be provided as follows for the 1998-1999,

1999-2000, and 2000-2001 school years only:

(a) For any school district with a Low Income

Concentration Level of at least 20% and less than 35%, the

grant for any school year shall be $800 multiplied by the

low income eligible pupil count.

(b) For any school district with a Low Income

Concentration Level of at least 35% and less than 50%, the

grant for the 1998-1999 school year shall be $1,100

multiplied by the low income eligible pupil count.

(c) For any school district with a Low Income

Concentration Level of at least 50% and less than 60%, the

grant for the 1998-99 school year shall be $1,500

multiplied by the low income eligible pupil count.

(d) For any school district with a Low Income

Concentration Level of 60% or more, the grant for the

1998-99 school year shall be $1,900 multiplied by the low

income eligible pupil count.

(e) For the 1999-2000 school year, the per pupil amount

specified in subparagraphs (b), (c), and (d) immediately

above shall be increased to $1,243, $1,600, and $2,000,

respectively.

(f) For the 2000-2001 school year, the per pupil

amounts specified in subparagraphs (b), (c), and (d)

immediately above shall be $1,273, $1,640, and $2,050,

respectively.

(2.5) Supplemental general State aid pursuant to this

subsection (H) shall be provided as follows for the 2002-2003

school year:

(a) For any school district with a Low Income

Concentration Level of less than 10%, the grant for each

school year shall be $355 multiplied by the low income

eligible pupil count.

(b) For any school district with a Low Income

Concentration Level of at least 10% and less than 20%, the

grant for each school year shall be $675 multiplied by the

low income eligible pupil count.

(c) For any school district with a Low Income

Concentration Level of at least 20% and less than 35%, the

grant for each school year shall be $1,330 multiplied by

the low income eligible pupil count.

(d) For any school district with a Low Income

Concentration Level of at least 35% and less than 50%, the

grant for each school year shall be $1,362 multiplied by

the low income eligible pupil count.

(e) For any school district with a Low Income

Concentration Level of at least 50% and less than 60%, the

grant for each school year shall be $1,680 multiplied by

the low income eligible pupil count.

(f) For any school district with a Low Income

Concentration Level of 60% or more, the grant for each

school year shall be $2,080 multiplied by the low income

eligible pupil count.

(2.10) Except as otherwise provided, supplemental general

State aid pursuant to this subsection (H) shall be provided as

follows for the 2003-2004 school year and each school year

thereafter:

(a) For any school district with a Low Income

Concentration Level of 15% or less, the grant for each

school year shall be $355 multiplied by the low income

eligible pupil count.

(b) For any school district with a Low Income

Concentration Level greater than 15%, the grant for each

school year shall be $294.25 added to the product of $2,700

and the square of the Low Income Concentration Level, all

multiplied by the low income eligible pupil count.

For the 2003-2004 school year only, the grant shall be no

less than the grant for the 2002-2003 school year. For the

2004-2005 school year only, the grant shall be no less than the

grant for the 2002-2003 school year multiplied by 0.66. For the

2005-2006 school year only, the grant shall be no less than the

grant for the 2002-2003 school year multiplied by 0.33.

For the 2003-2004 school year only, the grant shall be no

greater than the grant received during the 2002-2003 school

year added to the product of 0.25 multiplied by the difference

between the grant amount calculated under subsection (a) or (b)

of this paragraph (2.10), whichever is applicable, and the

grant received during the 2002-2003 school year. For the

2004-2005 school year only, the grant shall be no greater than

the grant received during the 2002-2003 school year added to

the product of 0.50 multiplied by the difference between the

grant amount calculated under subsection (a) or (b) of this

paragraph (2.10), whichever is applicable, and the grant

received during the 2002-2003 school year. For the 2005-2006

school year only, the grant shall be no greater than the grant

received during the 2002-2003 school year added to the product

of 0.75 multiplied by the difference between the grant amount

calculated under subsection (a) or (b) of this paragraph

(2.10), whichever is applicable, and the grant received during

the 2002-2003 school year.

(3) School districts with an Average Daily Attendance of

more than 1,000 and less than 50,000 that qualify for

supplemental general State aid pursuant to this subsection

shall submit a plan to the State Board of Education prior to

October 30 of each year for the use of the funds resulting from

this grant of supplemental general State aid for the

improvement of instruction in which priority is given to

meeting the education needs of disadvantaged children. Such

plan shall be submitted in accordance with rules and

regulations promulgated by the State Board of Education.

(4) School districts with an Average Daily Attendance of

50,000 or more that qualify for supplemental general State aid

pursuant to this subsection shall be required to distribute

from funds available pursuant to this Section, no less than

$261,000,000 in accordance with the following requirements:

(a) The required amounts shall be distributed to the

attendance centers within the district in proportion to the

number of pupils enrolled at each attendance center who are

eligible to receive free or reduced-price lunches or

breakfasts under the federal Child Nutrition Act of 1966

and under the National School Lunch Act during the

immediately preceding school year.

(b) The distribution of these portions of supplemental

and general State aid among attendance centers according to

these requirements shall not be compensated for or

contravened by adjustments of the total of other funds

appropriated to any attendance centers, and the Board of

Education shall utilize funding from one or several sources

in order to fully implement this provision annually prior

to the opening of school.

(c) Each attendance center shall be provided by the

school district a distribution of noncategorical funds and

other categorical funds to which an attendance center is

entitled under law in order that the general State aid and

supplemental general State aid provided by application of

this subsection supplements rather than supplants the

noncategorical funds and other categorical funds provided

by the school district to the attendance centers.

(d) Any funds made available under this subsection that

by reason of the provisions of this subsection are not

required to be allocated and provided to attendance centers

may be used and appropriated by the board of the district

for any lawful school purpose.

(e) Funds received by an attendance center pursuant to

this subsection shall be used by the attendance center at

the discretion of the principal and local school council

for programs to improve educational opportunities at

qualifying schools through the following programs and

services: early childhood education, reduced class size or

improved adult to student classroom ratio, enrichment

programs, remedial assistance, attendance improvement, and

other educationally beneficial expenditures which

supplement the regular and basic programs as determined by

the State Board of Education. Funds provided shall not be

expended for any political or lobbying purposes as defined

by board rule.

(f) Each district subject to the provisions of this

subdivision (H)(4) shall submit an acceptable plan to meet

the educational needs of disadvantaged children, in

compliance with the requirements of this paragraph, to the

State Board of Education prior to July 15 of each year.

This plan shall be consistent with the decisions of local

school councils concerning the school expenditure plans

developed in accordance with part 4 of Section 34-2.3. The

State Board shall approve or reject the plan within 60 days

after its submission. If the plan is rejected, the district

shall give written notice of intent to modify the plan

within 15 days of the notification of rejection and then

submit a modified plan within 30 days after the date of the

written notice of intent to modify. Districts may amend

approved plans pursuant to rules promulgated by the State

Board of Education.

Upon notification by the State Board of Education that

the district has not submitted a plan prior to July 15 or a

modified plan within the time period specified herein, the

State aid funds affected by that plan or modified plan

shall be withheld by the State Board of Education until a

plan or modified plan is submitted.

If the district fails to distribute State aid to

attendance centers in accordance with an approved plan, the

plan for the following year shall allocate funds, in

addition to the funds otherwise required by this

subsection, to those attendance centers which were

underfunded during the previous year in amounts equal to

such underfunding.

For purposes of determining compliance with this

subsection in relation to the requirements of attendance

center funding, each district subject to the provisions of

this subsection shall submit as a separate document by

December 1 of each year a report of expenditure data for

the prior year in addition to any modification of its

current plan. If it is determined that there has been a

failure to comply with the expenditure provisions of this

subsection regarding contravention or supplanting, the

State Superintendent of Education shall, within 60 days of

receipt of the report, notify the district and any affected

local school council. The district shall within 45 days of

receipt of that notification inform the State

Superintendent of Education of the remedial or corrective

action to be taken, whether by amendment of the current

plan, if feasible, or by adjustment in the plan for the

following year. Failure to provide the expenditure report

or the notification of remedial or corrective action in a

timely manner shall result in a withholding of the affected

funds.

The State Board of Education shall promulgate rules and

regulations to implement the provisions of this

subsection. No funds shall be released under this

subdivision (H)(4) to any district that has not submitted a

plan that has been approved by the State Board of

Education.

(I) General State Aid for Newly Configured School Districts.

(1) For a new school district formed by combining property

included totally within 2 or more previously existing school

districts, for its first year of existence the general State

aid and supplemental general State aid calculated under this

Section shall be computed for the new district and for the

previously existing districts for which property is totally

included within the new district. If the computation on the

basis of the previously existing districts is greater, a

supplementary payment equal to the difference shall be made for

the first 4 years of existence of the new district.

(2) For a school district which annexes all of the

territory of one or more entire other school districts, for the

first year during which the change of boundaries attributable

to such annexation becomes effective for all purposes as

determined under Section 7-9 or 7A-8, the general State aid and

supplemental general State aid calculated under this Section

shall be computed for the annexing district as constituted

after the annexation and for the annexing and each annexed

district as constituted prior to the annexation; and if the

computation on the basis of the annexing and annexed districts

as constituted prior to the annexation is greater, a

supplementary payment equal to the difference shall be made for

the first 4 years of existence of the annexing school district

as constituted upon such annexation.

(3) For 2 or more school districts which annex all of the

territory of one or more entire other school districts, and for

2 or more community unit districts which result upon the

division (pursuant to petition under Section 11A-2) of one or

more other unit school districts into 2 or more parts and which

together include all of the parts into which such other unit

school district or districts are so divided, for the first year

during which the change of boundaries attributable to such

annexation or division becomes effective for all purposes as

determined under Section 7-9 or 11A-10, as the case may be, the

general State aid and supplemental general State aid calculated

under this Section shall be computed for each annexing or

resulting district as constituted after the annexation or

division and for each annexing and annexed district, or for

each resulting and divided district, as constituted prior to

the annexation or division; and if the aggregate of the general

State aid and supplemental general State aid as so computed for

the annexing or resulting districts as constituted after the

annexation or division is less than the aggregate of the

general State aid and supplemental general State aid as so

computed for the annexing and annexed districts, or for the

resulting and divided districts, as constituted prior to the

annexation or division, then a supplementary payment equal to

the difference shall be made and allocated between or among the

annexing or resulting districts, as constituted upon such

annexation or division, for the first 4 years of their

existence. The total difference payment shall be allocated

between or among the annexing or resulting districts in the

same ratio as the pupil enrollment from that portion of the

annexed or divided district or districts which is annexed to or

included in each such annexing or resulting district bears to

the total pupil enrollment from the entire annexed or divided

district or districts, as such pupil enrollment is determined

for the school year last ending prior to the date when the

change of boundaries attributable to the annexation or division

becomes effective for all purposes. The amount of the total

difference payment and the amount thereof to be allocated to

the annexing or resulting districts shall be computed by the

State Board of Education on the basis of pupil enrollment and

other data which shall be certified to the State Board of

Education, on forms which it shall provide for that purpose, by

the regional superintendent of schools for each educational

service region in which the annexing and annexed districts, or

resulting and divided districts are located.

(3.5) Claims for financial assistance under this

subsection (I) shall not be recomputed except as expressly

provided under this Section.

(4) Any supplementary payment made under this subsection

(I) shall be treated as separate from all other payments made

pursuant to this Section.

(J) Supplementary Grants in Aid.

(1) Notwithstanding any other provisions of this Section,

the amount of the aggregate general State aid in combination

with supplemental general State aid under this Section for

which each school district is eligible shall be no less than

the amount of the aggregate general State aid entitlement that

was received by the district under Section 18-8 (exclusive of

amounts received under subsections 5(p) and 5(p-5) of that

Section) for the 1997-98 school year, pursuant to the

provisions of that Section as it was then in effect. If a

school district qualifies to receive a supplementary payment

made under this subsection (J), the amount of the aggregate

general State aid in combination with supplemental general

State aid under this Section which that district is eligible to

receive for each school year shall be no less than the amount

of the aggregate general State aid entitlement that was

received by the district under Section 18-8 (exclusive of

amounts received under subsections 5(p) and 5(p-5) of that

Section) for the 1997-1998 school year, pursuant to the

provisions of that Section as it was then in effect.

(2) If, as provided in paragraph (1) of this subsection

(J), a school district is to receive aggregate general State

aid in combination with supplemental general State aid under

this Section for the 1998-99 school year and any subsequent

school year that in any such school year is less than the

amount of the aggregate general State aid entitlement that the

district received for the 1997-98 school year, the school

district shall also receive, from a separate appropriation made

for purposes of this subsection (J), a supplementary payment

that is equal to the amount of the difference in the aggregate

State aid figures as described in paragraph (1).

(3) (Blank).

(K) Grants to Laboratory and Alternative Schools.

In calculating the amount to be paid to the governing board

of a public university that operates a laboratory school under

this Section or to any alternative school that is operated by a

regional superintendent of schools, the State Board of

Education shall require by rule such reporting requirements as

it deems necessary.

As used in this Section, "laboratory school" means a public

school which is created and operated by a public university and

approved by the State Board of Education. The governing board

of a public university which receives funds from the State

Board under this subsection (K) may not increase the number of

students enrolled in its laboratory school from a single

district, if that district is already sending 50 or more

students, except under a mutual agreement between the school

board of a student's district of residence and the university

which operates the laboratory school. A laboratory school may

not have more than 1,000 students, excluding students with

disabilities in a special education program.

As used in this Section, "alternative school" means a

public school which is created and operated by a Regional

Superintendent of Schools and approved by the State Board of

Education. Such alternative schools may offer courses of

instruction for which credit is given in regular school

programs, courses to prepare students for the high school

equivalency testing program or vocational and occupational

training. A regional superintendent of schools may contract

with a school district or a public community college district

to operate an alternative school. An alternative school serving

more than one educational service region may be established by

the regional superintendents of schools of the affected

educational service regions. An alternative school serving

more than one educational service region may be operated under

such terms as the regional superintendents of schools of those

educational service regions may agree.

Each laboratory and alternative school shall file, on forms

provided by the State Superintendent of Education, an annual

State aid claim which states the Average Daily Attendance of

the school's students by month. The best 3 months' Average

Daily Attendance shall be computed for each school. The general

State aid entitlement shall be computed by multiplying the

applicable Average Daily Attendance by the Foundation Level as

determined under this Section.

(L) Payments, Additional Grants in Aid and Other Requirements.

(1) For a school district operating under the financial

supervision of an Authority created under Article 34A, the

general State aid otherwise payable to that district under this

Section, but not the supplemental general State aid, shall be

reduced by an amount equal to the budget for the operations of

the Authority as certified by the Authority to the State Board

of Education, and an amount equal to such reduction shall be

paid to the Authority created for such district for its

operating expenses in the manner provided in Section 18-11. The

remainder of general State school aid for any such district

shall be paid in accordance with Article 34A when that Article

provides for a disposition other than that provided by this

Article.

(2) (Blank).

(3) Summer school. Summer school payments shall be made as

provided in Section 18-4.3.

(M) Education Funding Advisory Board.

The Education Funding Advisory Board, hereinafter in this

subsection (M) referred to as the "Board", is hereby created.

The Board shall consist of 5 members who are appointed by the

Governor, by and with the advice and consent of the Senate. The

members appointed shall include representatives of education,

business, and the general public. One of the members so

appointed shall be designated by the Governor at the time the

appointment is made as the chairperson of the Board. The

initial members of the Board may be appointed any time after

the effective date of this amendatory Act of 1997. The regular

term of each member of the Board shall be for 4 years from the

third Monday of January of the year in which the term of the

member's appointment is to commence, except that of the 5

initial members appointed to serve on the Board, the member who

is appointed as the chairperson shall serve for a term that

commences on the date of his or her appointment and expires on

the third Monday of January, 2002, and the remaining 4 members,

by lots drawn at the first meeting of the Board that is held

after all 5 members are appointed, shall determine 2 of their

number to serve for terms that commence on the date of their

respective appointments and expire on the third Monday of

January, 2001, and 2 of their number to serve for terms that

commence on the date of their respective appointments and

expire on the third Monday of January, 2000. All members

appointed to serve on the Board shall serve until their

respective successors are appointed and confirmed. Vacancies

shall be filled in the same manner as original appointments. If

a vacancy in membership occurs at a time when the Senate is not

in session, the Governor shall make a temporary appointment

until the next meeting of the Senate, when he or she shall

appoint, by and with the advice and consent of the Senate, a

person to fill that membership for the unexpired term. If the

Senate is not in session when the initial appointments are

made, those appointments shall be made as in the case of

vacancies.

The Education Funding Advisory Board shall be deemed

established, and the initial members appointed by the Governor

to serve as members of the Board shall take office, on the date

that the Governor makes his or her appointment of the fifth

initial member of the Board, whether those initial members are

then serving pursuant to appointment and confirmation or

pursuant to temporary appointments that are made by the

Governor as in the case of vacancies.

The State Board of Education shall provide such staff

assistance to the Education Funding Advisory Board as is

reasonably required for the proper performance by the Board of

its responsibilities.

For school years after the 2000-2001 school year, the

Education Funding Advisory Board, in consultation with the

State Board of Education, shall make recommendations as

provided in this subsection (M) to the General Assembly for the

foundation level under subdivision (B)(3) of this Section and

for the supplemental general State aid grant level under

subsection (H) of this Section for districts with high

concentrations of children from poverty. The recommended

foundation level shall be determined based on a methodology

which incorporates the basic education expenditures of

low-spending schools exhibiting high academic performance. The

Education Funding Advisory Board shall make such

recommendations to the General Assembly on January 1 of odd

numbered years, beginning January 1, 2001.

(N) (Blank).

(O) References.

(1) References in other laws to the various subdivisions of

Section 18-8 as that Section existed before its repeal and

replacement by this Section 18-8.05 shall be deemed to refer to

the corresponding provisions of this Section 18-8.05, to the

extent that those references remain applicable.

(2) References in other laws to State Chapter 1 funds shall

be deemed to refer to the supplemental general State aid

provided under subsection (H) of this Section.

(Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,

eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 92-636,

eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 7-1-03.)

Section 40. The Criminal Code of 1961 is amended by

changing Section 17A-1 as follows:

(720 ILCS 5/17A-1) (from Ch. 38, par. 17A-1)

Sec. 17A-1. Persons under deportation order; ineligible

for benefits. An individual against whom a United States

Immigration Judge has issued an order of deportation which has

been affirmed by the Board of Immigration Review, as well as an

individual who appeals such an order pending appeal, under

paragraph 19 of Section 241(a) of the Immigration and

Nationality Act relating to persecution of others on account of

race, religion, national origin or political opinion under the

direction of or in association with the Nazi government of

Germany or its allies, shall be ineligible for the following

benefits authorized by State law:

(a) The homestead exemptions exemption and homestead

improvement exemption under Sections 15-170, 15-175, 15-176,

and 15-180 of the Property Tax Code.

(b) Grants under the Senior Citizens and Disabled Persons

Property Tax Relief and Pharmaceutical Assistance Act.

(c) The double income tax exemption conferred upon persons

65 years of age or older by Section 204 of the Illinois Income

Tax Act.

(d) Grants provided by the Department on Aging.

(e) Reductions in vehicle registration fees under Section

3-806.3 of the Illinois Vehicle Code.

(f) Free fishing and reduced fishing license fees under

Sections 20-5 and 20-40 of the Fish and Aquatic Life Code.

(g) Tuition free courses for senior citizens under the

Senior Citizen Courses Act.

(h) Any benefits under the Illinois Public Aid Code.

(Source: P.A. 87-895; 88-670, eff. 12-2-94.)

Section 90. The State Mandates Act is amended by adding

Section 8.28 as follows:

(30 ILCS 805/8.28 new)

Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8

of this Act, no reimbursement by the State is required for the

implementation of any mandate created by the Senior Citizens

Assessment Freeze Homestead Exemption under Section 15-172 of

the Property Tax Code, the General Homestead Exemption under

Section 15-175 of the Property Tax Code, the alternative

General Homestead Exemption under Section 15-176 of the

Property Tax Code, the Homestead Improvements Exemption under

Section 15-180 of the Property Tax Code, and by this amendatory

Act of the 93rd General Assembly.

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