IL HB3655

Creates the School District Extension Freeze Law, effective July 1, 2019, limiting tax extensions for school districts with excessive reserves.

Freezes a school district's property tax extension at the prior year's level if it has reserves of 50% or more of its operating budget at the end of any levy year.

Requires additional reduction in extensions for school districts with 60% or more in reserves, reducing the extension by the amount exceeding the 60% reserve threshold.

Suspends the Property Tax Extension Limitation Law for any school district subject to the educational limiting rate under this new law.

Allows school districts to increase their educational limiting rate through a referendum held before the levy date, requiring majority voter approval.

Requires property tax bills to include a separate statement showing the reduction amount if a school district's extension was reduced due to holding 60% or more in reserves.