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Bill

HJRCA 8

REVENUE-EDUCATION

104th Regular Session Introduced by Curtis Tarver

Imposes a 3% tax on income above $1M, with all proceeds dedicated to Illinois school districts on a per-pupil basis after voter approval.

Referred to Rules Committee
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Bill Summary · HJRCA 8

Summary of HJRCA 8 (Revenue-Education)

Overview

  • Bill type: House Joint Resolution Constitutional Amendment (HJRCA 8)
  • Title: Revenue-Education
  • Purpose: Proposes an additional, constitutionally protected tax dedicated to funding education by distributing revenue to school districts on a per-pupil basis.
  • Status: Referred to Rules Committee
  • Introduced: January 28, 2025 (HC0008); additional actions January 29, 2025
  • Sponsor: Rep. Curtis J. Tarver II (primary)

Core intent

To create a dedicated educational funding mechanism funded by an additional personal income tax, with revenues distributed to school districts based on student counts, thereby linking high-income tax contributions directly to per-pupil education funding.

Key Provisions (as introduced)

  • Constitutional amendment to Article IX, Section 12 (new) in the Illinois Constitution.
  • Imposes an additional personal income tax equal to 3% of the portion of an individual’s net income that exceeds $1,000,000 for the taxable year.
  • Revenue collected from this tax shall be distributed to school districts solely on a per-pupil basis.
  • The General Assembly shall provide for the implementation and enforcement of this section, including the mechanics of collection and distribution.
  • Effective upon being declared adopted (i.e., only after voters approve the amendment).
  • Applies to taxable years beginning on or after the date of adoption.

Distribution and Allocation

  • All revenue from the new 3% tax on income above $1,000,000 would be allocated to school districts.
  • Distribution formula specified as per-pupil basis; specific per-pupil calculations or eligible recipient districts would be determined by further law developed by the General Assembly.

Implementation and Timeline

  • Procedure: Constitutional amendments require voter approval at a general election occurring at least six months after adoption.
  • Implementation details: The General Assembly is tasked with creating the necessary mechanisms for implementation and enforcement.
  • Effective date: The amendment takes effect only after adoption by voters; applicable to taxable years beginning after adoption.

Affected Parties

  • Primary impact: Individuals with net income exceeding $1,000,000 in a taxable year (the portion above the threshold).
  • Recipients: Illinois public school districts (per-pupil funding allocation).
  • State government: Requires new or revised tax administration and school funding distribution processes.

Legislative Actions & Status

  • Filed with the Clerk: January 28, 2025
  • Read in Full (First Time): January 29, 2025
  • Referred to Rules Committee: January 29, 2025

Potential Impacts and Considerations

  • Revenue effect depends on the number of high-income taxpayers and the amount of income above $1,000,000.
  • Creates a dedicated, constitutionally protected stream for education funding, potentially reducing reliance on other funding sources.
  • Allocation on a per-pupil basis could standardize how funds are distributed across districts, but would require detailed implementation rules (per-pupil count methodology, enrollment accounting, and handling of district boundaries).
  • Fiscal volatility tied to high-income tax receipts; subject to economic cycles and taxpayer behavior.
  • Legal and administrative work needed to implement the amendment and ensure compliance with constitutional requirements.

This summary provides the essential details of HJRCA 8 as introduced; subject to amendments during the legislative process and voter approval.

Compiled from official sources — confirm details with the bill’s official record.

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