Beginning in FY 20 per Public Act 101 – 0017, the formula to determine eligibility and distribution of the Property Tax Relief Grant (PTRG) has changed. Eligible districts are now determined on a ranking of a value that is their Adjusted Operating Tax Rate divided by the Average Operating Tax Rate for districts within each organization type. Grants will be awarded in the order of that ranking.
Determining the maximum possible abatement amount will now be completed in 2 steps:
Step 1: ISBE must calculate a district's Real Adjusted EAV amount multiplied by a factor that varies by organization type. That factor is 1% for a Unit, 0.69% for an Elementary and 0.31% for a High School.
Step 2: The value determined in Step 1 is further modified by multiplying that value by the Local Capacity Percentage Multiplier. This value is equal to (1- Local Capacity Percentage).
These 2 steps result in the Maximum Abatement amount. Calculating the grant amount is equal to the Maximum Abatement multiplied by the Property Tax Multiplier or (1 – LCP2).
If there are insufficient funds available to fully fund the initial possible grant amount of the last district to qualify for the grant, a revised calculation is made. The final district qualifying may receive a grant equal to the remaining funds appropriated for PTRG. The abatement amount for that district is backed into by dividing the grant amount possible by the Property Tax Multiplier.
Property tax relief grant amounts received in FY 20 will be included in future calculations of those districts' Base Funding Minimum amounts, per 18-8.15 of the School Code. However, a change to be noted per Public Act 101 – 0017 requires participating districts to abate taxes for 2 consecutive years in order to receive the grant in their Base Funding Minimum. Failure to abate in the second year will result in the removal of the grant from the district's Base Funding Minimum in the following and all future years.
Future grant amounts are subject to appropriations.
Final FY 2020 Grant and Abatement Calculations
FY 20 PTRG Eligible Q & A
Due to lack of appropriation, there will be no new Property Tax Relief Grants for FY 2021. All prior year grant recipients will continue to receive the PTRG in their Base Funding Minimum.