Bill Text: IL HB1024 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Creates the Prohibition of Closed-Door Tax Increases Act. Provides that a unit of local government may not increase a levied tax without authorization by referendum of the electors of the unit of local government. Provides that a referendum to increase a levied tax must include a sunset clause on which the tax increase authorized by the referendum measure shall expire. Provides that, if an increase in a levied tax is intended to generate a cash flow to service a debt, the increase must sunset no later than the date that the debt is scheduled to be paid off, and, if an increase in a levied tax is intended to generate a cash flow that will be spent for purposes other than debt service, the increase must sunset no later than 10 years after the date on which the tax increase begins. Provides that, to the extent the Act conflicts with any other provision of law, the Act controls. Provides that nothing in the Act infringes upon the right of a unit of local government to impose or increase nontax fines or fees. Provides that the Department of Revenue shall adopt rules to enforce the Act. Limits concurrent exercise of home rule taxing powers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-04 - Assigned to Revenue & Finance Committee [HB1024 Detail]

Download: Illinois-2025-HB1024-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1024 Introduced , by Rep. John M. Cabello SYNOPSIS AS INTRODUCED:
New Act
Creates the Prohibition of Closed-Door Tax Increases Act. Provides that a unit of local government may not increase a levied tax without authorization by referendum of the electors of the unit of local government. Provides that a referendum to increase a levied tax must include a sunset clause on which the tax increase authorized by the referendum measure shall expire. Provides that, if an increase in a levied tax is intended to generate a cash flow to service a debt, the increase must sunset no later than the date that the debt is scheduled to be paid off, and, if an increase in a levied tax is intended to generate a cash flow that will be spent for purposes other than debt service, the increase must sunset no later than 10 years after the date on which the tax increase begins. Provides that, to the extent the Act conflicts with any other provision of law, the Act controls. Provides that nothing in the Act infringes upon the right of a unit of local government to impose or increase nontax fines or fees. Provides that the Department of Revenue shall adopt rules to enforce the Act. Limits concurrent exercise of home rule taxing powers.
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A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Prohibition of Closed-Door Tax Increases Act.
Section 5. Referendums required. A unit of local
government may not increase a levied tax as otherwise provided
by law without authorization by referendum of the electors of
the unit of local government as provided in this Act.
Section 10. Sunset of increased taxes. A referendum to
increase a levied tax must include a sunset clause on which the
tax increase authorized by the referendum measure shall
expire. If an increase in a levied tax is intended to generate
a cash flow to service a debt, the increase must sunset no
later than the date that the debt is scheduled to be paid off.
If an increase in a levied tax is intended to generate a cash
flow that will be spent for purposes other than debt service,
the increase must sunset no later than 10 years after the date
on which the tax increase begins.
Section 15. Referendum language.
(a) The governing body of a unit of local government that

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wishes to submit a tax increase to the electors of the unit of
local government shall submit to the proper election
authorities referendum language substantially in the form
required under this Section.
(b) For a referendum to increase a levied tax to generate a
cash flow to service a debt, the referendum must be
substantially in the following form: "Shall the (name of the
tax) authorized under (statutory or ordinance authority) be
increased to (new tax rate) from (old tax rate) on (date of
increase) to pay the (description of debt), with the increased
rate ending on (the date that the debt is scheduled to be paid
off)?"
(c) For a referendum to increase a levied tax to generate a
cash flow that will be spent for purposes other than debt
service, the referendum must be substantially in the following
form: "Shall the (name of the tax) authorized under (statutory
or ordinance authority) be increased to (new tax rate) from
(old tax rate) on (date of increase) for (description of the
purpose for the tax increase), with the increased rate ending
on (a date no later than 10 years after the date on which the
tax increase begins)?"
Section 85. Conflict with other laws; exclusions.
(a) To the extent this Act conflicts with any other
provision of law, this Act controls.
(b) Nothing in this Act infringes upon the right of a unit

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of local government to impose or increase nontax fines or
fees.
Section 90. Rules. The Department of Revenue shall adopt
rules to enforce this Act.
Section 95. Home rule. A home rule unit may not regulate
the levy of taxes in a manner inconsistent with this Act. This
Act is a limitation under subsections (i) and (g) of Section 6
of Article VII of the Illinois Constitution on the concurrent
exercise by home rule units of powers and functions exercised
by the State.