State Representative Dave Severin (R-Benton), a member of the Appropriations-Elementary & Secondary Education Committee, announced that the Illinois State Board of Education (ISBE) is now accepting applications for property tax relief grants to eligible school districts. This property tax swap is intended to incentivize high-taxed low-wealth districts to decrease their property tax burden. $50 million has been appropriated for Fiscal Year 2019.
“I am pleased that some tax relief is available for residents in this area of the state,” said Rep. Dave Severin. “I encourage all of the schools in my district to apply for these grants as soon as possible. This could mean over thirteen million dollars in property tax relief. That’s real value for the working men and women of southern Illinois!”
Maximum Possible Tax Relief for Schools in the 117th District is estimated at $13,558,393.19. The breakdown is as follows:
Aikin Community Consolidated School (Dist. 91) $ 337,761.72
Benton Community Consolidated School (Dist. 47) $ 701,976.07
Benton Consolidated High School (Dist. 103) $ 376,489.64
Carterville Community Unit School (Dist. 5) $ 1,925,831.03
Christopher Unit (Dist. 99) $ 307,437.15
Crab Orchard Community Unit School (Dist. 3) $ 323,974.72
Ewing Northern Consolidated School (Dist. 115) $ 156,204.28
Frankfort Community Unit School (Dist. 168) $ 902,734.18
Herrin Community Unit School (Dist. 4) $ 1,665,216.45
Johnston City Community Unit School (Dist. 1) $ 760,098.76
Marion Community Unit School (Dist. 2) $ 5,343,534.85
Sesser-Valier Community Unit School (Dist. 196) $ 317,714.12
Thompsonville Community Unit School (Dist. 174) $ 195,763.11
Ziegler-Royalton Community Unit School (Dist. 188) $ 243,657.11
The total grant to a school district is calculated based on the total amount of reduction in the school district’s aggregate extension, up to a limit of 1% of a district’s equalized assessed value for a unit school district, .69% for an elementary school district, and .31% for a high school district, multiplied by the property tax multiplier or the amount that the unit equivalent tax rate is greater than the rate determined by the State Board, whichever is less. Below is the link to the eligible school districts. The spreadsheet identifies school districts to House districts. School districts must apply for the grant.
Beginning in FY 19, the State Board will provide up to $50 million in property tax relief grants to eligible school districts. Eligible districts are those that exceed a threshold tax rate and that agree to abate a portion of taxes, up to a statutory limit, in the coming tax cycle. In return, qualifying districts receive a state grant in an amount that is a proportion of the tax relief provided.
Eligible districts are those with Unit Equivalent Tax Rates that exceed the threshold Unit Equivalent Tax Rate. That threshold rate is determined based on the data for districts that apply for this program and will not be known until all applications have been received and reviewed. Grants are prioritized in order of highest Unit Equivalent Tax Rates among grant applicants.
The tax relief a district is eligible to provide may be no greater than the lesser of (A) 1% of EAV for a unit district, 0.69% of EAV for an elementary school district, or 0.31% of EAV for a high school district, or (B) the difference between the district’s Unit Equivalent Tax Rate and the threshold Unit Equivalent Tax Rate. If the latter is the lesser amount and the difference is less than 1%, that difference is further modified by multiplying the difference by 1 for a Unit district, by 0.69 for an elementary district and by 0.31 for a high school district.
Property tax relief grant amounts received in FY 19 will be included in future calculations of those districts’ Base Funding Minimum amounts, per 18-8.15 of the School Code. Future grant amounts are subject to appropriations. Applications for these grants are available on line at https://www.isbe.net/proptaxrelief.