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HB0009

School District Property Tax Relief Grant Program

Last scannedAug 24, 2026, 10:00 AM

In one sentence

This bill creates a state fund to give grants to school districts, which must lower their maximum property tax limit by the amount of the grant they receive.

What it does

  • Creates the Education Property Tax Relief Fund as a special account in the State treasury.
  • Requires the State Board of Education to run a program that awards property tax relief grants starting in fiscal year 2026.
  • Sets a rule that schools receiving these grants must lower their maximum aggregate property tax extension by the amount of the grant they receive for that taxable year.
  • Distributes money to school districts based on average daily attendance reported in the previous year's report card.
  • Moves any leftover money in the relief fund back into the General Revenue Fund at the end of each fiscal year.

Who it affects

  • School districts in Illinois that receive property tax relief grants.
  • The State Board of Education, which must manage and run the grant program.
  • State agencies including the Governor's Office of Management and Budget, the State Comptroller, and the State Treasurer.

Limits and unknowns

  • The total money in the fund depends on calculations made each year comparing general appropriations to pension contributions.
  • It is unclear if every school district must join this program or only those that choose to apply for grants, as the text states districts receive grants 'in exchange' but does not explicitly state participation is mandatory.

Plain language

Terms to know

Education Property Tax Relief Fund
A special account in the state treasury that holds money to pay for grants given to school districts.
Adjusted maximum aggregate property tax extension
The highest amount of property taxes a school district can collect, calculated by taking their normal limit and subtracting the grant they received from the state.

Official record

Sources

Source attached

Official summary

SCHOOL CD-PROPERTY TAX RELIEF