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HB 5612

REVENUE-PROP TAX RELIEF

104th Regular Session Introduced by Mike Coffey and 6 co-sponsors

Illinois creates a per-pupil grants program that caps a district’s tax extensions in exchange for receiving property tax relief grants from a new Education Property Tax Relief Fund

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Bill Summary · HB 5612

Summary of HB5612 (Illinois 104th General Assembly)

Purpose and intent

  • HB5612 creates a new program and funding mechanism to provide property tax relief to Illinois school districts.
  • The core idea: provide grants to school districts for property tax relief, in exchange for limiting the district’s tax extensions for the taxable year to not exceed its adjusted maximum, effectively capping growth in local property tax collections for districts receiving grants.

Key provisions and changes

1) Education Property Tax Relief Fund (new)

  • Establishes a new special fund: the Education Property Tax Relief Fund.
  • Moneys for the fund come from annual appropriations certified by the Governor’s Office of Management and Budget (GOMB) and transferred by the State Comptroller and State Treasurer from the General Revenue Fund.
  • By September 1 of specified years, the Governor’s Office of Management and Budget (GOMB) must certify a total amount to be transferred:
    • $600,000,000 for each fiscal year 2030–2033.
    • $1,700,000,000 for fiscal year 2034 and every year thereafter.
  • Any unexpended funds remaining in the Education Property Tax Relief Fund at the end of the fiscal year revert to the General Revenue Fund.

2) School district property tax relief grants program (new in the School Code)

  • Adds Section 2-3.214 to the School Code, creating a grant program administered by the State Board of Education (ISBE).
  • Target year: State fiscal year 2030 and each year thereafter.
  • How grants work:
    • ISBE shall establish and administer the program to award property tax relief grants to school districts.
    • In exchange for receiving a grant, a school district’s maximum aggregate property tax extension for the taxable year beginning January 1 of the grant year may not exceed that district’s adjusted maximum aggregate property tax extension for that same year.
    • Grants are distributed from the Education Property Tax Relief Fund on a pro rata basis, determined by per-pupil average daily attendance (ADA) as reported in the district’s report card for the immediately preceding school year (Section 10-17a).

3) Definitions (for purposes of the program)

  • Adjusted maximum aggregate property tax extension: The highest aggregate property tax extension a district is authorized by law to levy for the year, minus the grant amount received for the prior fiscal year ending during that year.
  • Aggregate property tax extension: Includes the annual corporate extension and any annual special-purpose extensions for the district.
  • Taxable year: The calendar year in which property taxes payable in the next year are levied.

Who is affected

  • Illinois school districts: Eligible to receive property tax relief grants starting in State fiscal year 2030, contingent on ISBE administering the program and districts agreeing to the tax-extension cap in exchange for the grant.
  • State agencies: ISBE administers the grant program; the Governor’s Office of Management and Budget (GOMB) certifies funding; the Comptroller and Treasurer execute fund transfers.
  • General public/property taxpayers: Potential reduction or stabilization in local property tax extensions for districts receiving grants, due to the cap tied to grant receipt.

Procedural and timeline aspects

  • Effective implementation timeline begins in State fiscal year 2030 for the grant program.
  • Funding: annual certification and appropriation process is required, with a multi-year ramp:
    • $600 million annually (2030–2033)
    • $1.7 billion annually (2034 onward)
  • Any remaining funds at the end of a fiscal year revert to the General Revenue Fund (i.e., not carried over to subsequent years).

Observations

  • The bill creates a new funding stream (Education Property Tax Relief Fund) and ties DPIS (grants) to a statutory cap on district tax extensions, effectively linking state support to local tax restraint.
  • The per-pupil basis for grant distribution aims to achieve a targeted, district-need-aware allocation, though actual equity impacts would depend on ADA distributions and preexisting tax capacities.
  • The program depends on future appropriations and ISBE administration; effectiveness contingent on annual funding stability and district compliance.

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

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