Illinois HB5785 limits surplus funds for taxing districts to 200% of previous fiscal year's tax collections.
HB5785, known as the Local Government Surplus Funds Limitation Act, restricts taxing districts, excluding those with populations under 10,000, from holding more than 200% of the previous fiscal year's tax collections in cash or cash-equivalent assets. If a district exceeds this limit at the end of any fiscal quarter, the excess must be refunded to taxpayers based on their percentage of the total levy for the previous year. The act preempts home rule powers and takes effect immediately upon becoming law.
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