House Sponsors: KOTLARZ. Short description: INCOME TAX-SCHOOL PROP TAX Synopsis of Bill as introduced: Amends the Illinois Income Tax Act to increase the individual income tax rate, beginning January 1, 1997, to 3.15% and the corporate rate to 5.04%. Increases the rates incrementally until January 1, 2000, when the rates shall be 3.55% and 5.68%, respectively. Provides for a tax credit of 10% of property taxes paid on a residence or 5% of rent constituting real property taxes paid on rented property. Provides for supplemental returns, additional withholding, and increased estimated payments to reflect the additional tax liability imposed beginning January 1, 1997. Provides that a portion of the tax collected attributable to the portion of the tax rate in excess of 3% for individuals or 4.8% for corporations shall be deposited into the School Property Tax Relief Fund. Amends the State Finance Act to create that Fund. The Fund shall be used to assist funding school districts. Amends the Property Tax Code to direct the county clerk of each county to reduce the amount of the levy for education based on the amount received from the School Property Tax Relief Fund. Amends the School Code to require each school district to prepare a Public District Fall Enrollment Housing Report and to require the State Board of Education to compute a figure representing the "statewide dollar-per-student-enrolled" to be used in calculating the reduction in real estate taxes. Provides for disbursement from the School Property Tax Relief Fund. Amends the State Revenue Sharing Act to include amounts deposited into the School Property Tax Relief Fund as net revenue realized for purposes of the Local Government Distributive Fund. Amends the State Mandates Act to exempt this amendatory Act from any reimbursement requirement. Effective immediately. STATE MANDATES FISCAL NOTE In the opinion of DCCA, HB 537 creates a "local gov't organiza- tion and structure mandate" for which no reimbursement by the State is required. HB 537 amends the State Mandate Act to re- lieve the State of reimbursement liability. This note makes no representation as to the impact of HB 537 upon the revenues of local school districts. Such an analysis is the responsibility of the State Board of Education. FISCAL NOTE (Dpt. of Revenue) Net estimated FY98 increase, $138 million; FY99, $505 million; FY2000, $749 million; FY2001, $1.1 billion. Last action on Bill: SESSION SINE DIE Last action date: 99-01-12 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 0 END OF INQUIRY Full Text Bill Status