103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5552

 

Introduced 2/9/2024, by Rep. Brad Stephens

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-161 new
35 ILCS 200/18-233

    Amends the Property Tax Code. Provides that, beginning in taxable year 2024, no taxing district, other than a home rule unit, may levy a tax on any parcel of real property that is more than 105% of the tax levied by that taxing district on that property in the immediately preceding taxable year unless (i) the increase is attributable to substantial improvements to the property, (ii) the taxing district did not levy a tax against the property in the previous taxable year, or (iii) the increase is attributable to a special service area. Provides that a taxing district may elect to be exempt from these provisions for one or more taxable years if the exemption is approved by referendum. Effective immediately.


LRB103 35500 HLH 65570 b

 

 

A BILL FOR

 

HB5552LRB103 35500 HLH 65570 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 18-233 and by adding Section 18-161 as follows:
 
6    (35 ILCS 200/18-161 new)
7    Sec. 18-161. Taxing district extension limitation.
8    (a) Notwithstanding any other provision of law, beginning
9in taxable year 2024, no taxing district may levy a tax on any
10parcel of real property under this Code that is more than 105%
11of the tax levied by that taxing district on that property in
12the immediately preceding taxable year unless (i) the increase
13is attributable to substantial improvements to the property,
14(ii) the taxing district did not levy a tax against the
15property in the previous taxable year, or (iii) the increase
16is attributable to a special service area. The limitation
17under this Section includes any increase attributable to an
18adjustment under Section 18-233.
19    (b) A taxing district may elect to be exempt from the
20provisions of subsection (a) for one or more taxable years if
21the exemption is approved by a referendum held before January
221 of the first taxable year during which the exemption
23applies. Referenda shall be conducted at a regularly scheduled

 

 

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1election held in accordance with the Election Code. The
2question shall be presented in substantially the following
3form:
4        "For (taxable years), shall (taxing district) be
5    exempt from the provisions of Section 18-161 of the
6    Property Tax Code, which limits increases in the taxes
7    levied by the taxing against real property to 5% per
8    taxable year?"
9    The taxing district may include the following as
10supplemental information on the ballot:
11        "A "yes" vote means that (taxing district) would be
12    allowed to increase the amount of taxes levied against
13    each parcel of property by more than 5%."
14    The votes must be recorded as "Yes" or "No".
15    If a majority of voters voting on the issue approves the
16exemption, then the taxing district shall be exempt from the
17provisions of this Section for the taxable years specified.
18    (c) As used in this Section:
19    "Taxing district" has the same meaning provided in Section
201-150, except that "taxing district" does not include home
21rule units.
 
22    (35 ILCS 200/18-233)
23    Sec. 18-233. Adjustments for certificates of error,
24certain court orders, or final administrative decisions of the
25Property Tax Appeal Board. Subject to the provisions of

 

 

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1Section 18-161, beginning Beginning in levy year 2021, a
2taxing district levy shall be increased by a prior year
3adjustment whenever an assessment decrease due to the issuance
4of a certificate of error, a court order issued pursuant to an
5assessment valuation complaint under Section 23-15, or a final
6administrative decision of the Property Tax Appeal Board
7results in a refund from the taxing district of a portion of
8the property tax revenue distributed to the taxing district.
9On or before November 15 of each year, the county treasurer
10shall certify the aggregate refunds paid by a taxing district
11during such 12-month period for purposes of this Section. For
12purposes of the Property Tax Extension Limitation Law, the
13taxing district's most recent aggregate extension base shall
14not include the prior year adjustment authorized under this
15Section. For levy year 2024 and thereafter, an adjustment
16under this Section, when coupled with all other levy increases
17imposed by the taxing district, may not cause the tax imposed
18by that taxing district on any parcel of real property to
19exceed the limitation set forth in Section 18-161 for that
20taxing district.
21(Source: P.A. 102-519, eff. 8-20-21.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.