IL HB3645

Creates the School District Extension Freeze Law, limiting school district property tax extensions when reserves exceed 50% of operating budget.

If a school district has reserves of 50-60% of operating budget, its tax extension for the next levy year cannot exceed the previous year's extension amount.

If reserves reach 60% or more, the district's extension shall be reduced by the amount exceeding the 60% reserve threshold.

School districts may increase their extension limits through a referendum approved by a majority of voters before the levy date.

Requires tax bills to disclose when a school district's extension was reduced under this law, and suspends the Property Tax Extension Limitation Law for districts subject to this new law.

Effective July 1, 2023.