summary
Introduced
01/16/2026
01/16/2026
In Committee
02/03/2026
02/03/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Property Tax Code. Provides that a municipality may, by ordinance, designate an area within its jurisdiction as a retail improvement abatement area if the area (i) is a contiguous area, (ii) consists of at least one-half square mile and  not more than 12 square miles, exclusive of lakes and waterways, and (iii) has a vacancy rate for retail properties that exceeds 40% at the time the ordinance is adopted. Provides that owners of retail property that is in a retail improvement abatement area may enter into one or more agreements with any of the taxing districts in which the property is located to abate all or a portion of the taxes levied by the taxing district on the subject property. Provides that the agreement shall require the property owner to make a special payment to the taxing district in lieu of the property taxes that would otherwise be imposed on the property.
AI Summary
This bill allows municipalities to create "retail improvement abatement areas" in contiguous sections of land between one-half and twelve square miles, provided that at least 40% of the retail properties within that area are vacant when the area is designated. Property owners in these designated areas can then negotiate agreements with local taxing districts (like cities or school districts) to reduce or eliminate their property taxes. In exchange for this tax abatement, property owners must make a "special payment" to the taxing district, calculated as a percentage of the retail sales generated at the property. If the retail business is a tenant, they can enter into this agreement if they have a "triple net lease" where they are responsible for property taxes. The bill also updates tax bills to include information about these special payments.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Assigned to Revenue (on 02/03/2026)
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