Illinois 2023-2024 Regular Session

Illinois House Bill HB3467

Introduced
2/17/23  
Introduced
2/17/23  
Refer
2/28/23  
Refer
2/17/23  
Refer
3/10/23  
Refer
2/28/23  

Caption

SCHOOL CD-PROPERTY TAX RELIEF

Impact

The enactment of HB3467 will create the Education Property Tax Relief Fund, which will serve as the primary source of funding for the grants awarded to school districts. This fund will be financed through appropriations from the state budget, ensuring that selected districts receive monetary support to offset local property taxes. Such structured funding could have a significant impact on the financial health of various school districts, enabling them to allocate resources towards educational needs rather than tax increases.

Summary

House Bill 3467 introduces a program aimed at providing property tax relief to school districts in Illinois. The bill mandates the State Board of Education to establish and administer an annual program that awards property tax relief grants to school districts across the state. In order to receive such a grant, a school district must agree to limit its maximum aggregate property tax extension for the relevant taxable year. This program is designed to ease the financial pressures that schools face and alleviate the burden on taxpayers by capping property tax increases in exchange for receiving state funds.

Conclusion

Overall, HB3467 reflects an effort to modernize and relieve fiscal pressures on Illinois school districts. However, as the bill moves forward, it will be crucial to monitor stakeholder responses, particularly from educators and local governments, to ensure that the intended benefits do not exacerbate existing disparities in educational funding across different regions.

Contention

The bill's provisions and the establishment of a cap on property tax extensions may generate discussions around equity and district funding. While proponents of the bill may argue that this approach provides necessary relief, critics could voice concerns about the implications for districts that rely heavily on property taxes for funding. Such reliance may particularly disadvantage low-income districts or those with less commercial property to tax, potentially leading to inequalities in education funding across urban and rural settings.

Companion Bills

No companion bills found.

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