Bill > HB3209

This bill establishes a Municipal Property Tax Relief Reimbursement Pilot Program that will run from State fiscal years 2026 to 2031, designed to compensate municipalities for revenue losses caused by tax-exempt State-owned properties. Under this program, county clerks will apply to the Department of Revenue on behalf of eligible municipalities to receive reimbursements for lost property tax revenue. The reimbursement amount will be calculated by comparing the property tax revenue that would have been collected if the State property were taxable versus the actual revenue collected. The program has a total annual funding cap of $100,000,000, and if total eligible reimbursement requests exceed this amount, each municipality's reimbursement will be proportionally reduced. The Department of Revenue will administer the program, with the ability to audit applications and create implementing rules, and reimbursement payments will be made to counties and then distributed to the specific municipalities. This pilot program aims to provide financial relief to local governments that lose potential tax revenue due to State property exemptions.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3209&GAID=18&DocTypeID=HB&SessionID=114&GA=104