The study described in this report was conducted to assess the probable impact of selected tax limitation measures on the revenues available to the Illinois community college districts and on revenue equity among these districts. First the report examines the major philosophical goals of community college finance (i.e., to achieve equal access to education, maintain local college control, and provide equitable distribution of resources); the concern for these goals reflected in the Illinois Community College Funding System; the implications of tax limitation measures passed in other states; and the prospects for tax limitation in Illinois. The remainder of the report describes the study itself, which assessed the probable impact of five possible tax limitations on Illinois' community colleges: (1) limiting property tax increases to 75% of the increase in the previous year's consumer price index; (2) limiting increases in property tax collections to 2% per year; (3) reducing equalized assessed valuations from 33.3% of 25% of the market value; (4) limiting state expenditures to 8% of Illinois' aggregate personal income; and (5) limiting increases in state tax increases to 5.5% per year. In this section, the report describes the study's design and procedures, which involved a survey of college districts and a computer simulation; identifies data sources; and details findings in terms of the probable impact of these measures on state and local revenues for 1981 and on revenue equity. (JP)