Bill > HB1497

This bill amends the Property Tax Extension Limitation Law to introduce significant changes for levy years 2026 through 2030, primarily affecting how home rule taxing districts are regulated. Specifically, the bill establishes that for these levy years, the extension limitation (the amount by which property tax extensions can increase) will be 0% or the rate of increase approved by voters. The bill also includes home rule taxing districts within the scope of the Property Tax Extension Limitation Law, which was previously not the case. The Department of Revenue is granted new powers during this period, including the ability to review and audit property tax levies and, upon request, allow taxing districts to be exempt from the law for up to one levy year. Additionally, the bill provides a mechanism for taxing districts to increase their extension limitation through a voter referendum, where voters can approve a higher percentage increase for specified levy years. The bill is intended to limit the taxing power of home rule units and provides a framework for more controlled property tax increases during the specified years. The provisions are set to be repealed on January 1, 2032, suggesting a temporary experimental approach to property tax regulation.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1497&GAID=18&DocTypeID=HB&SessionID=114&GA=104