For informational purposes only.

1. ILLINOIS SCHOOL
FACILITIES OCCUPATION
TAX
P.A. 95-0675
P.A. 97-0542

2. These slides are for informational purposes
only and do not serve to show support or
lack of support of the Illinois School
Facilities Occupation Tax

3. County School Facility Occupation Tax
• New approach for Illinois to fund school facility
needs
• Allows for Sales Tax rather than Property Tax
• The Regional Supt. Of Schools now will certify
the ballot question to county voters to implement
a sales tax for school facility purposes
• In 0.25% increments
• Up to 1%

4. County School Facility Occupation Tax
• Tax is imposed on the same general
merchandise base as state sales tax except:
• Licensed and titled vehicles
• Boats and RVs
• Unprepared food intended for home consumption
• Drugs including vitamins and over-the-counter meds
• Farm equipment, parts and inputs like fertilizer and
seed, etc.
• It doesn’t tax anything that isn’t currently taxed

5. County School Facility Occupation Tax
• How can the sales tax be spent?
• Pay for Life/Safety and other approved facility needs on a pay-as-
you-go basis
• Accumulate funds for future building or facility improvement
projects
• Issue Bonds to pay for facility improvements (Life/Safety, Alternate
Revenue, Debt Certificates, etc.)
• Abate taxes on Bonds issued for the facility improvements
• Any combination of the above
• Interest earned on the monies in the School Facility Fund may be
transferred to the Education or O&M Funds

6. County School Facility Occupation Tax
• “School Facility Purposes” means:
• Acquisition, development, construction, reconstruction, rehabilitation,
improvement, financing, architectural planning and installation of
capital facilities consisting of buildings, structures, and durable
equipment
• Acquisition and improvement of real property required, or expected to
be required, in connection with capital facilities
• Payment of bonds or other obligations issued for school facility
purposes or issued to refund such bonds or other obligations, provided
that the taxes levied to pay such bonds are abated by the sales tax
proceeds used to pay such bonds
• Fire prevention, safety, energy conservation, disabled accessibility,
-chool security, and specified repair purposes set forth under Section
17-2.11 of the School Code

7. County School Facility Occupation Tax
• Not an eligible School Facility Purpose
• Buses, trucks, mowers, etc.
• Computers
• Moveable equipment
• Salaries, benefits, utilities, supplies, or any
other operational costs

8. County School Facility Occupation Tax
• Distribution of funds
• Distributed by enrollment on Fall Housing Report
• Only students residing in the County are eligible for funding
• Need to determine distribution process with ROE
• This allocation % will change each year
• Districts must deposit the sales tax proceeds in a
separate School Facility Occupation Tax Fund, which may
only be used for school facility purposes

9. County School Facility Occupation Tax
• What you will see on your ballot:

10. These slides are for informational purposes
only and do not serve to show support or
lack of support of the Illinois School
Facilities Occupation Tax