Bill > HB4946

This bill amends the Property Tax Code to create a new exemption for property leased, subleased, or rented to a taxing district, which is a governmental entity that levies taxes, provided the property is used exclusively for a bona fide taxing district purpose. This means that if a taxing district rents property for its official government functions, that property will be exempt from property taxes, but only for the portion of the property actually used for those official purposes. This exemption will apply starting in the taxable year 2026 and requires the taxing district to apply to the Department of Revenue, providing proof of its tax-exempt status and a copy of the lease agreement. The exemption will only last for the duration of the lease term specified in the application, and any extensions will require a new application.

https://www.ilga.gov/Legislation/BillStatus?DocNum=4946&GAID=18&DocTypeID=HB&SessionID=114&GA=104