Reports

Corporate Personal Property Replacement Tax Revenue and K-12 Education Funding in Illinois: Volume II

Release: June 25, 2024

The aggregate Personal Property Replacement Tax ("PPRT") revenue for all school districts has had an unprecedented surge once again in FY 2024, following the notable increase in FY 2023, outlined in Volume II of this Report, "CPPRT and K-12 Education Funding in Illinois." Between FY 2022 and FY 2024, PPRT has hit a record increase of 255 percent. While that revenue is a welcome addition to school district resources, it is projected that it will decline back to its historical levels in the FY 2025 EBF calculations. This Report takes a look at how the Personal Property Replacement Tax is a relatively odd revenue source that allocates revenue to school districts in accordance with their respective collections of Personal Property Tax revenue in either 1976 or 1977 and how this revenue source has impacted Adequacy Gaps and therefore New Tier Funding across the state.

Issue Brief: CPPRT and K-12 Education Funding in Illinois

Release: April 19, 2023

Between FY 2022 and FY 2023, aggregate Personal Property Replacement Tax ("PPRT") revenue for all school districts increased by a record 76 percent. As things stand today, more record growth in PPRT revenue is projected for FY 2024. That revenue is a welcome addition to school district resources, however, if the projections for FY 2024 prove to be accurate, it will mean that collectively over the FY 2020 through FY 2024 sequence, the statewide Adequacy Gap under the Evidence Based Funding formula was reduced at a significantly faster rate because the local revenue increased at a faster rate over this time period compared to the increase in state-based revenue (new Tier funding).

CTBA’s most recent report highlights how the Personal Property Replacement Tax is a relatively odd revenue source that allocates revenue to school districts in accordance with their respective collections of Personal Property Tax revenue in either 1976 or 1977 and how this revenue source has big impacts on Illinois education policy. 

Illinois Should Decouple from Federal CARES Act Tax Breaks

Release: February 2, 2021

Part of the federal economic stimulus created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, involved increasing the tax relief businesses could claim under the existing net operating loss and excess business loss tax breaks. Among other things, the Cares Act made these tax cuts retroactive, meaning businesses can claim losses and reduce their tax liability for years in which the pandemic had no impact on their profitability. CTBA provides reasoning for supporting decoupling from Federal CARES Act Tax Breaks.