103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4354

 

Introduced 1/16/2024, by Rep. Tom Weber

 

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 base amount 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 "base amount" means the tax levied by the taxing district on the subject property in the immediately preceding taxable year, except that, if the property received a homestead exemption in the immediately preceding taxable year and is not eligible for that exemption in the current taxable year, then the base amount shall be the tax that would have been levied by the taxing district on the subject property in the immediately preceding taxable year if the homestead exemption had not been applied. Provides that a taxing district may elect to be exempt from those provisions for one or more taxable years if the exemption is approved by referendum. Effective immediately.


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A BILL FOR

 

HB4354LRB103 35392 HLH 66000 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 base amount unless (i) the increase is attributable to
12substantial improvements to the property, (ii) the taxing
13district did not levy a tax against the property in the
14previous taxable year, or (iii) the increase is attributable
15to a special service area. The limitation under this Section
16includes any increase attributable to an adjustment under
17Section 18-233.
18    (b) A taxing district may elect to be exempt from the
19provisions of subsection (a) for one or more taxable years if
20the exemption is approved by a referendum held before January
211 of the first taxable year during which the exemption
22applies. Referenda shall be conducted at a regularly scheduled
23election held in accordance with the Election Code. The

 

 

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1question shall be presented in substantially the following
2form:
3        "For (taxable years), shall (taxing district) be
4    exempt from the provisions of Section 18-161 of the
5    Property Tax Code, which limits increases in the taxes
6    levied by the taxing against real property to 5% per
7    taxable year?"
8    The taxing district may include the following as
9supplemental information on the ballot:
10        "A "yes" vote means that (taxing district) would be
11    allowed to increase the amount of taxes levied against
12    each parcel of property by more than 5%."
13    The votes must be recorded as "Yes" or "No".
14    If a majority of voters voting on the issue approves the
15exemption, then the taxing district shall be exempt from the
16provisions of this Section for the taxable years specified.
17    (c) As used in this Section:
18    "Base amount" means the tax levied by the taxing district
19on the subject property in the immediately preceding taxable
20year, except that, if the property received a homestead
21exemption under Article 15 in the immediately preceding
22taxable year and is not eligible for that exemption in the
23current taxable year, then the base amount shall be the tax
24that would have been levied by the taxing district on the
25subject property in the immediately preceding taxable year if
26the homestead exemption had not been applied.

 

 

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1    "Taxing district" has the same meaning provided in Section
21-150, except that "taxing district" does not include home
3rule units.
 
4    (35 ILCS 200/18-233)
5    Sec. 18-233. Adjustments for certificates of error,
6certain court orders, or final administrative decisions of the
7Property Tax Appeal Board. Subject to the provisions of
8Section 18-161, beginning Beginning in levy year 2021, a
9taxing district levy shall be increased by a prior year
10adjustment whenever an assessment decrease due to the issuance
11of a certificate of error, a court order issued pursuant to an
12assessment valuation complaint under Section 23-15, or a final
13administrative decision of the Property Tax Appeal Board
14results in a refund from the taxing district of a portion of
15the property tax revenue distributed to the taxing district.
16On or before November 15 of each year, the county treasurer
17shall certify the aggregate refunds paid by a taxing district
18during such 12-month period for purposes of this Section. For
19purposes of the Property Tax Extension Limitation Law, the
20taxing district's most recent aggregate extension base shall
21not include the prior year adjustment authorized under this
22Section. For levy year 2024 and thereafter, an adjustment
23under this Section, when coupled with all other levy increases
24imposed by the taxing district, may not cause the tax imposed
25by that taxing district on any parcel of real property to

 

 

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1exceed the limitation set forth in Section 18-161 for that
2taxing district.
3(Source: P.A. 102-519, eff. 8-20-21.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.