summary
Introduced
01/24/2025
01/24/2025
In Committee
01/24/2025
01/24/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the State Mandates Act. Provides that any State mandate regarding any subject matter enacted on or after the effective date of the amendatory Act that necessitates additional expenditures from local government revenues shall be void and unenforceable unless the General Assembly makes necessary appropriations and reimbursements to implement that mandate. Provides that the failure of the General Assembly to make necessary appropriations and reimbursements shall relieve the local government of the obligation to implement any State mandate. Makes conforming changes. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district shall reduce its aggregate extension base for the purpose of lowering its limiting rate for future years upon referendum approval initiated by the submission of a petition by the voters of the district. Provides that the extension limitation shall be: (a) the lesser of 5% or the average percentage increase in the Consumer Price Index for the immediately preceding 10 years; or (b) the rate of increase approved by the voters. Amends the Illinois Income Tax Act. Increases distributions into the Local Government Distributive Fund on and after August 1, 2025. Effective immediately.
AI Summary
This bill addresses multiple aspects of state and local government finance in Illinois. It amends the State Mandates Act to prohibit unfunded state mandates, ensuring that any new mandate requiring additional local government expenditures must be accompanied by appropriate state appropriations and reimbursements. If the General Assembly fails to provide funding, local governments will be relieved of the obligation to implement such mandates. The bill also modifies the Property Tax Extension Limitation Law, introducing a new mechanism for taxing districts to reduce their aggregate extension base through a voter referendum. For future levy years (starting in 2026), the extension limitation will be calculated using the average Consumer Price Index increase over the previous 10 years, instead of the previous 12-month period. Additionally, the bill increases distributions to the Local Government Distributive Fund, gradually raising the percentage of state income tax revenue transferred to local governments from August 2025 through July 2026. These changes aim to provide more financial flexibility and support for local governments while introducing more predictable and potentially lower property tax increases.
Sponsors (2)
Last Action
Added as Co-Sponsor Sen. Chris Balkema (on 05/30/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1240&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1240.htm |
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