Bill Text: IL HB4354 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Moderate Partisan Bill (Republican 24-3)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4354 Detail]

Download: Illinois-2023-HB4354-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4354 Introduced , 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
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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

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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.

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"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

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exceed the limitation set forth in Section 18-161 for that
taxing district.
(Source: P.A. 102-519, eff. 8-20-21.)