IDR-PROPERTY TAX STUDY

104th Regular Session Introduced by La Shawn Ford

Study feasibility of phasing out property taxes for public schools and replacing with alternative state/local revenue streams.

Rule 19(b) / Re-referred to Rules Committee

Bill Summary: HR 929 (104th General Assembly, Illinois) – IDR-PROPERTY TAX STUDY

Purpose and intent

The resolution directs a study by the Illinois Department of Revenue (IDOR), in collaboration with the Governor’s Office of Management and Budget (GOMB).

The focus is to determine the feasibility of phasing out the use of property taxes as a funding source for public school districts and replacing that revenue with alternative State and local revenue streams.

The overarching aim is to address perceived inequities in the property tax system and its impact on education funding and community wealth.

Key provisions and changes contemplated

Directive to conduct a study on feasibility: The bill asks IDOR, with GOMB, to assess how property tax revenue supporting school districts could be progressively eliminated.

Exploration of alternative funding: The study should identify potential replacement revenue streams at both the state and local levels to sustain funding for public education without relying on local property taxes.

Phasing approach: While the resolution does not mandate a specific timeline or concrete steps, it envisions a phased approach to transitioning away from property taxes as a primary school funding mechanism.

Stakeholder considerations: Implicit in the study are considerations of administrative feasibility, budgetary impact, equity, and the distribution of funding across districts.

Who would be affected

Illinois public school districts: Potential direct impact on how schools are funded if property tax reliance is reduced or eliminated.

Property owners and local governments: Changes could shift how tax burdens are allocated and how revenue streams are sourced at local levels.

State agencies: IDOR and GOMB would lead and coordinate the feasibility study, potentially informing any subsequent policy decisions.

Procedural and timeline aspects

Status: A House Resolution (no binding legislation) requesting a study, not a bill mandating immediate policy changes.

Reporting/deliverables: The resolution obligates the involved agencies to conduct and presumably report on the feasibility of the proposed funding shift. The exact timing for deliverables is not specified in the text provided.

Legislative pathway: As a resolution, it serves as a formal request or directive to study, rather than creating enforceable statutory changes or a program.

Context and potential implications

Policy goal: Address systemic inequities linked to property tax-based school funding, with emphasis on reducing regressive assessment effects, stabilizing community wealth, and diminishing “financial death spiral” risks for families in economically vulnerable areas.

Equity considerations: The measure reflects concern that relying on local property taxes ties educational quality to neighborhood wealth, contributing to racial and socio-economic disparities.

Financial considerations: A shift away from property taxes would require identifying sustainable, stable revenue sources to fund schools while maintaining fiscal balance for local governments and services.

Notes

Primary sponsor: La Shawn Ford (co-sponsor).

The resolution calls for a collaborative feasibility study rather than immediate statutory reform, signaling a preliminary step toward potential future legislation depending on study findings.