HB1126ham002 100TH GENERAL ASSEMBLY

Rep. William Davis

Filed: 5/30/2017

10000HB1126ham002 LRB100 03832 AXK 27373 a

AMENDMENT TO HOUSE BILL 1126

AMENDMENT NO. ______. Amend House Bill 1126, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Property Tax Code is amended by adding Division 5.2 to Article 18 as follows:

(35 ILCS 200/Art. 18 Div. 5.2 heading new)

Division 5.2. School District Property Tax Freeze

(35 ILCS 200/18-249.6 new)

Sec. 18-249.6. School districts.

(a) Notwithstanding any other provision of law, the corporate authorities of a school district that meets the criteria set forth in this Division may, by resolution, submit to the voters of the school district the question of whether or not to apply a property tax freeze for a period of 3 years to the school district. In addition, if a written petition calling for a referendum on that question signed by a number of voters of a school district that meets the criteria set forth in this Division equal to at least 5% of the total votes cast for candidates for Governor in the preceding gubernatorial election by the registered voters of the school district is submitted to the corporate authorities of the school district, then the corporate authorities shall adopt a resolution for the submission of that proposition at the next regular election held in that school district. In either case, the corporate authorities shall certify the resolution and the proposition to the proper election officials, who shall submit the proposition at the election in accordance with the general election law.

(b) The question shall be substantially in the following form:

Shall (name of school district) apply a property tax freeze for a period of 3 years? This would mean that (school district) may not increase its annual corporate extension or certain special purpose extensions without referendum approval.

Votes shall be recorded as a "yes" or "no".

If a majority of the votes cast on the proposition are in favor of the proposition, then, for that 3-year period, the school district may not increase its aggregate extension to an amount that exceeds its aggregate extension for the base year.

(c) As used in this Division:

"Aggregate extension" means the school district's annual corporate extension and those special purpose extensions that are made annually for the district, excluding those special purpose extensions made for the payment of bonds or other evidences of indebtedness issued by the school district.

"Base year" means the levy year prior to the levy year in which the property tax freeze will take effect.

(d) If a school district fails to obtain approval for the proposition, the school district shall not submit another petition calling for a referendum under this Section for a period of at least 10 years.

(e) This Section shall apply only to a school district with (1) a Final Percent of Adequacy of over 125%, as defined under Section 18-8.15 of the School Code; and (2) a Unit Equivalent Operating Tax Rate, as defined under Section 2-3.170 of the School Code, that is greater than 4%.

(f) If the school district would otherwise be subject to the provisions of the Property Tax Extension Limitation Law during the 3-year freeze period, then this Division shall supersede the Property Tax Extension Limitation Law during that 3-year period.

Section 99. Effective date. This Act takes effect upon becoming law, but this Act does not take effect at all unless Senate Bill 1 of the 100th General Assembly becomes law.".