LOCAL OPTION SCH DIST INC TAX

Creates the Local Option School District Income Tax Act and amends the School Code, the State Finance Act, the Illinois Income Tax Act, and the Property Tax Code. Authorizes school districts by referendum to impose an income tax on individual residents of the district. Provides that, with referendum approval, the income tax shall be levied at an annual rate, adjusted each year, that will produce for distribution to the district in each calendar year an amount equal to the corresponding 50% reduction that is required to be made in the annual extension of the real property taxes that are levied by the district against residential property for educational, operations and maintenance, and transportation purposes and that are collected and distributed to the district in the same calendar year in which the corresponding income tax revenues are distributed. Provides for a referendum repeal of the tax. Provides for the manner of levying and collecting the tax and for deposit of the income tax revenues in the educational, operations and maintenance, and transportation funds of the district in proportion to the respective amounts by which the taxes in those funds are abated. Provides for disbursement of the tax to school districts by the State Treasurer. Amends the Property Tax Extension Limitation Law to exclude from the definition of "aggregate extension" school district levies made to cover amounts lost because of the repeal of the local income tax for schools as formerly imposed by the district under the Local Option School District Income Tax Act. Amends the State aid formula provisions of the School Code. Provides that the adoption or failure to adopt a local income tax for schools and any disbursement of funds or any tax abatement required under the Local Option School District Income Tax Act shall not affect the computation or distribution of State aid for school districts. Effective immediately.