HB5550 104TH GENERAL ASSEMBLY

LRB104 19230 HLH 32676 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5550

Introduced 2/13/2026, by Rep. Bradley Fritts

SYNOPSIS AS INTRODUCED:

35 ILCS 200/18-55
35 ILCS 200/18-56
35 ILCS 200/18-65
35 ILCS 200/18-70
35 ILCS 200/18-80
35 ILCS 200/18-85
35 ILCS 200/18-90

Amends the Truth in Taxation Law in the Property Tax Code. Provides that the notice and hearing requirements apply if the taxing district proposes to extend a tax rate against all taxable property in the district that exceeds the revenue neutral rate. Provides that the term "revenue neutral rate" means an aggregate tax rate for the taxing district that would generate the same amount of property tax revenue as was levied by the taxing district in the previous tax year using the current tax year's total assessed valuation of all property in the taxing district. Makes changes concerning notice provisions.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Sections 18-55, 18-56, 18-65, 18-70, 18-80, 18-85, and 18-90 as follows:

(35 ILCS 200/18-55)

Sec. 18-55. Short title and definitions. This Division 2 may be cited as the Truth in Taxation Law. As used in this Division 2:

(a) "Taxing district" has the meaning specified in Section 1-150 and includes home rule units, but from January 1, 2000 through December 31, 2002 does not include taxing districts that have territory in Cook County.

(b) "Aggregate levy" means the annual corporate levy of the taxing district and those special purpose levies which are made annually (other than debt service levies and levies made for the purpose of paying amounts due under public building commission leases).

(c) "Special purpose levies" include, but are not limited to, levies made on an annual basis for contributions to pension plans, unemployment and worker's compensation, or self-insurance.

(d) "Debt service" means levies made by any taxing district pursuant to home rule authority, statute, referendum, ordinance, resolution, indenture, agreement, or contract to retire the principal or pay interest on bonds, notes, debentures or other financial instruments which evidence indebtedness.

(e) "Revenue neutral rate" means an aggregate tax rate for the taxing district for the current taxable year that, when extended against all of the taxable property in the district for the current tax year, would generate the same amount of property tax revenue as was levied by the taxing district in the previous tax year, using the current tax year's total assessed valuation of all property in the taxing district.

(Source: P.A. 91-357, eff. 7-29-99; 91-523, eff. 1-1-00.)

(35 ILCS 200/18-56)

Sec. 18-56. Legislative purpose. The purpose of this Law is to require taxing districts to disclose by publication and to hold a public hearings hearing on their intention to adopt an aggregate levy that would cause to be extended against the taxable property in the district an aggregate tax rate that exceeds the revenue neutral rate. in amounts more than 105% of the amount of property taxes extended or estimated to be extended, including any amount abated by the taxing district prior to such extension, upon the final aggregate levy of the preceding year.

(Source: P.A. 88-660, eff. 9-16-94.)

(35 ILCS 200/18-65)

Sec. 18-65. Restriction on extension. Until it has complied with the notice and hearing provisions of this Article, no taxing district shall levy an amount of ad valorem tax that would cause to be extended against the taxable property in the district an aggregate tax rate that exceeds the revenue neutral rate. which is more than 105% of the amount, exclusive of election costs, which has been extended or is estimated will be extended, plus any amount abated by the taxing district before extension, upon the final aggregate levy of the preceding year.

(Source: P.A. 86-957; 88-455.)

(35 ILCS 200/18-70)

Sec. 18-70. Notice More than 5% increase; notice and hearing required.

(a) If the estimate of the corporate authority made as provided in Section 18-60 shows that the aggregate levy proposed by the district would cause to be extended against the taxable property in the district an aggregate tax rate that exceeds the revenue neutral rate is more than 105% of the amount extended or estimated to be extended, plus any amount abated by the corporate authority prior to extension, upon the final aggregate levy of the preceding year, exclusive of election costs, the corporate authority shall give public notice of and hold a public hearing on its intent to adopt an aggregate levy would cause to be extended against the taxable property in the district an aggregate tax rate that exceeds the revenue neutral rate. in an amount which is more than 105% of the amount extended or estimated to be extended upon the final aggregate levy extensions, plus any amount abated, exclusive of election costs, for the preceding year. The hearing shall not coincide with the hearing on the proposed budget of the taxing district.

(b) Beginning in levy year 2027, if a taxing district intends to extend a rate against the taxable property in the district that exceeds the revenue neutral rate, the governing body shall notify the county clerk of this intent. This notification must include the date, time, and location of the public hearing, as well as the proposed tax rate. After levy year 2027, the county clerk shall notify each taxpayer with property within the taxing subdivision by mail, directed to the taxpayer's last known address, if a taxing district proposes to exceed the revenue neutral rate. The notification shall be mailed at least 10 days prior to the public hearing. Alternatively, the county clerk may transmit the notice electronically, provided that both the taxpayer and the county clerk have given written consent to electronic communication and that the notice is sent at least 10 days before the public hearing. The county clerk is not required to send a notice to a property owner of property that is exempt from ad valorem taxation. The county clerk shall compile the necessary information for all relevant taxing districts concerning the taxpayer's property into a single notice. This notice shall be formatted as prescribed by this Section. In no event shall this notice replace the notice required under Sec. 18-75.

(c) The notice shall be in the following form:

"Notice of Proposed Property Tax Increase for ... (commonly known name of taxing district).

This notice contains estimates of the tax on your property and proposed property tax increases. THE ACTUAL TAX ON YOUR PROPERTY MAY INCREASE OR DECREASE FROM THESE ESTIMATES. Governing bodies of taxing subdivisions must vote in order to exceed the Revenue Neutral Rate to increase the total property taxes collected. Governing bodies will vote at public hearings at the dates, times and locations listed. Taxpayers may attend and comment at the hearings. Property tax statements will be issued after rates are finalized and taxes are calculated.

Any person desiring to appear at the public hearing and present testimony to the taxing district may contact ... (name, title, address and telephone number of an appropriate official).

The total property taxes extended or abated for ... (preceding year) ... were ... (dollar amount).

The estimated total property taxes to be levied for ... (current year) ... are ... (dollar amount). This represents a ... (percentage increase or decrease) ... over the previous year.

The public hearing shall take place (Date, time, location).".

(Source: P.A. 86-957; 88-455.)

(35 ILCS 200/18-80)

Sec. 18-80. Time and form of notice. The notice shall appear not more than 14 days nor less than 7 days prior to the date of the public hearing. The notice shall be no less than 1/8 page in size, and the smallest type used shall be 12 point and shall be enclosed in a black border no less than 1/4 inch wide. The notice shall not be placed in that portion of the newspaper where legal notices and classified advertisements appear. The notice shall be published in substantially the following form:

Notice of Proposed Property Tax Increase for ... (commonly known name of taxing district).

I. A public hearing to approve a proposed property tax levy increase for ... (legal name of the taxing district)... for ... (year) ... will be held on ... (date) ... at ... (time) ... at ... (location).

Any person desiring to appear at the public hearing and present testimony to the taxing district may contact ... (name, title, address and telephone number of an appropriate official).

II. The corporate and special purpose property taxes extended or abated for ... (preceding year) ... were ... (dollar amount of the final aggregate levy as extended, plus the amount abated by the taxing district prior to extension).

The proposed corporate and special purpose property taxes to be levied for ... (current year) ... are ... (dollar amount of the proposed aggregate levy). This represents a ... (percentage) ... increase over the previous year.

III. The property taxes extended for debt service and public building commission leases for ... (preceding year) ... were ... (dollar amount).

The estimated property taxes to be levied for debt service and public building commission leases for ... (current year) ... are ... (dollar amount). This represents a ... (percentage increase or decrease) ... over the previous year.

IV. The total property taxes extended or abated for ... (preceding year) ... were ... (dollar amount).

The estimated total property taxes to be levied for ... (current year) ... are ... (dollar amount). This represents a ... (percentage increase or decrease) ... over the previous year.

Any notice which includes any information not specified and required by this Article shall be an invalid notice.

All hearings shall be open to the public. The corporate authority of the taxing district shall explain the reasons for the proposed increase and shall permit persons desiring to be heard an opportunity to present testimony within reasonable time limits as it determines.

(Source: P.A. 92-382, eff. 8-16-01.)

(35 ILCS 200/18-85)

Sec. 18-85. Notice if adopted levy exceeds proposed levy. If the final aggregate tax levy resolution or ordinance adopted would cause to be extended against the taxable property in the district an aggregate tax rate that exceeds the revenue neutral rate, is more than 105% of the amount, exclusive of election costs, which was extended or is estimated to be extended, plus any amount abated by the taxing district prior to extension, upon the final aggregate levy of the preceding year and is in excess of the amount of the proposed levy stated in the notice published under Section 18-70, or is more than 105% of that amount and no notice was required under Section 18-70, the corporate authority shall give public notice of its action within 15 days of the adoption of the levy in the following form:

Notice of Adopted Property Tax Increase for ... (commonly known name of taxing district).

I. The corporate and special purpose property taxes extended or abated for ... (preceding year) ... were ... (dollar amount of the final aggregate levy as extended).

The adopted corporate and special purpose property taxes to be levied for ... (current year) ... are ... (dollar amount of the proposed aggregate levy). This represents a ... (percentage) ... increase over the previous year.

II. The property taxes extended for debt service and public building commission leases for ... (preceding year) ... were ... (dollar amount).

The estimated property taxes to be levied for debt service and public building commission leases for ... (current year) ... are ... (dollar amount). This represents a ... (percentage increase or decrease) ... over the previous year.

III. The total property taxes extended or abated for ... (preceding year) ... were ... (dollar amount).

IV. The estimated total property taxes to be levied for ... (current year) ... are ... (dollar amount). This represents a ... (percentage increase or decrease) ... over the previous year.

A taxing district may, in its discretion and if applicable, include the following in the notice:

V. The taxing district has estimated its equalized assessed valuation to secure new growth revenue and must adhere to the Property Tax Extension Limitation Law (PTELL or "tax cap" law). PTELL limits the increase over the prior year in the property tax extension of this taxing district to the lesser of 5% or the percentage increase in the Consumer Price Index (CPI), which is (insert applicable CPI percentage increase).

(Source: P.A. 96-504, eff. 8-14-09.)

(35 ILCS 200/18-90)

Sec. 18-90. Limitation on extension of county clerk. The tax levy resolution or ordinance approved in the manner provided for in this Article shall be filed with the county clerk in the manner and at the time otherwise provided by law. No amount more than the revenue neutral rate 105% of the amount, exclusive of election costs, which has been extended or is estimated to be extended, plus any amount abated by the taxing district prior to extension, upon the final aggregate levy of the preceding year shall be extended unless the tax levy ordinance or resolution is accompanied by a certification by the presiding officer of the corporate authority certifying compliance with or inapplicability of the provisions of Sections 18-60 through 18-85. An amount extended under Section 18-107 in 1994 for a multi-township assessment district that did not file a certification of compliance with the Truth in Taxation Law may not exceed 105% of the amount, exclusive of election costs, that was extended in 1993, plus a proportional amount abated before extension, upon the levy or portion of a levy that is allocable to assessment purposes in each township that is a member of that multi-township assessment district.

(Source: P.A. 88-455; 88-660, eff. 9-16-94.)