SB2862 104TH GENERAL ASSEMBLY

LRB104 16653 HLH 30057 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2862

Introduced 1/16/2026, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

35 ILCS 200/18-167 new
35 ILCS 200/20-15

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.

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 adding Sections 18-167 and 20-15 as follows:

(35 ILCS 200/18-167 new)

Sec. 18-167. Retail improvement abatement area.

(a) On and after January 1, 2027, 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.

(b) After the designation of a retail improvement abatement area under this Section, the owner of property that is located in the retail improvement abatement area and that is used primarily for retail purposes 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. An agreement entered into under this subsection (b) 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. The special payment shall be calculated as a percentage of the retail sales that occur at the property during the taxable year. If the retail business is a tenant, then the owners of the retail business may enter into an agreement under this Section if the owners of the retail business enter into a triple net lease with the property owner pursuant to which the owners of the retail business are liable for the payment of property taxes under this Code.

(c) Special payments required under this Section shall be collected and are subject to the same enforcement procedures as provided in Article 21 of this Code with respect to the payment of property taxes under this Code.

(35 ILCS 200/20-15)

Sec. 20-15. Information on bill or separate statement. There shall be printed on each bill, or on a separate slip which shall be mailed with the bill:

(a) a statement itemizing the rate at which taxes have been extended for each of the taxing districts in the county in whose district the property is located, and in those counties utilizing electronic data processing equipment the dollar amount of tax due from the person assessed allocable to each of those taxing districts, including a separate statement of the dollar amount of tax due which is allocable to a tax levied under the Illinois Local Library Act or to any other tax levied by a municipality or township for public library purposes,

(b) a separate statement for each of the taxing districts of the dollar amount of tax due which is allocable to a tax levied under the Illinois Pension Code or to any other tax levied by a municipality or township for public pension or retirement purposes,

(b-5) a list of each tax increment financing (TIF) district in which the property is located, the dollar amount of tax due that is allocable to the TIF district, and each redevelopment project that (i) is associated with the TIF district and (ii) has been completed during or before the taxable year for which the bill is prepared or is in the process of being completed during that taxable year,

(c) the total tax rate,

(d) the total amount of tax due, and

(e) the amount by which the total tax and the tax allocable to each taxing district differs from the taxpayer's last prior tax bill, and .

(f) the amount of any special payment required under Section with respect to the property under Section 18-167.

The county treasurer shall ensure that only those taxing districts in which a parcel of property is located shall be listed on the bill for that property.

In all counties the statement shall also provide:

(1) the property index number or other suitable description,

(2) the assessment of the property,

(3) the statutory amount of each homestead exemption applied to the property,

(4) the assessed value of the property after application of all homestead exemptions,

(5) the equalization factors imposed by the county and by the Department, and

(6) the equalized assessment resulting from the application of the equalization factors to the basic assessment.

In all counties which do not classify property for purposes of taxation, for property on which a single family residence is situated the statement shall also include a statement to reflect the fair cash value determined for the property. In all counties which classify property for purposes of taxation in accordance with Section 4 of Article IX of the Illinois Constitution, for parcels of residential property in the lowest assessment classification the statement shall also include a statement to reflect the fair cash value determined for the property.

In all counties, the statement must include information that certain taxpayers may be eligible for tax exemptions, abatements, and other assistance programs and that, for more information, taxpayers should consult with the office of their township or county assessor and with the Department of Revenue. For bills mailed on or after January 1, 2026, the statement must include, in bold face type, a list of exemptions available to taxpayers and contact information for the chief county assessment officer.

In counties which use the estimated or accelerated billing methods, these statements shall only be provided with the final installment of taxes due. The provisions of this Section create a mandatory statutory duty. They are not merely directory or discretionary. The failure or neglect of the collector to mail the bill, or the failure of the taxpayer to receive the bill, shall not affect the validity of any tax, or the liability for the payment of any tax.

(Source: P.A. 103-592, eff. 1-1-25; 104-6, eff. 6-16-25.)