HB4354 103RD GENERAL ASSEMBLY

LRB103 35392 HLH 66000 b

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.

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 Section 18-233 and by adding Section 18-161 as follows:

(35 ILCS 200/18-161 new)

Sec. 18-161. Taxing district extension limitation.

(a) Notwithstanding any other provision of law, beginning in taxable year 2024, no taxing district may levy a tax on any parcel of real property under this Code 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. The limitation under this Section includes any increase attributable to an adjustment under Section 18-233.

(b) A taxing district may elect to be exempt from the provisions of subsection (a) for one or more taxable years if the exemption is approved by a referendum held before January 1 of the first taxable year during which the exemption applies. Referenda shall be conducted at a regularly scheduled election held in accordance with the Election Code. The question shall be presented in substantially the following form:

"For (taxable years), shall (taxing district) be exempt from the provisions of Section 18-161 of the Property Tax Code, which limits increases in the taxes levied by the taxing against real property to 5% per taxable year?"

The taxing district may include the following as supplemental information on the ballot:

"A "yes" vote means that (taxing district) would be allowed to increase the amount of taxes levied against each parcel of property by more than 5%."

The votes must be recorded as "Yes" or "No".

If a majority of voters voting on the issue approves the exemption, then the taxing district shall be exempt from the provisions of this Section for the taxable years specified.

(c) As used in this Section:

"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 under Article 15 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.

"Taxing district" has the same meaning provided in Section 1-150, except that "taxing district" does not include home rule units.

(35 ILCS 200/18-233)

Sec. 18-233. Adjustments for certificates of error, certain court orders, or final administrative decisions of the Property Tax Appeal Board. Subject to the provisions of Section 18-161, beginning Beginning in levy year 2021, a taxing district levy shall be increased by a prior year adjustment whenever an assessment decrease due to the issuance of a certificate of error, a court order issued pursuant to an assessment valuation complaint under Section 23-15, or a final administrative decision of the Property Tax Appeal Board results in a refund from the taxing district of a portion of the property tax revenue distributed to the taxing district. On or before November 15 of each year, the county treasurer shall certify the aggregate refunds paid by a taxing district during such 12-month period for purposes of this Section. For purposes of the Property Tax Extension Limitation Law, the taxing district's most recent aggregate extension base shall not include the prior year adjustment authorized under this Section. For levy year 2024 and thereafter, an adjustment under this Section, when coupled with all other levy increases imposed by the taxing district, may not cause the tax imposed by that taxing district on any parcel of real property to exceed the limitation set forth in Section 18-161 for that taxing district.

(Source: P.A. 102-519, eff. 8-20-21.)

Section 99. Effective date. This Act takes effect upon becoming law.