Illinois-2023-HB4354-Introduced

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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1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Property Tax Code is amended by changing

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

6 (35 ILCS 200/18-161 new)

7 Sec. 18-161. Taxing district extension limitation.

8 (a) Notwithstanding any other provision of law, beginning

9 in taxable year 2024, no taxing district may levy a tax on any

10 parcel of real property under this Code that is more than 105%

11 of the base amount unless (i) the increase is attributable to

12 substantial improvements to the property, (ii) the taxing

13 district did not levy a tax against the property in the

14 previous taxable year, or (iii) the increase is attributable

15 to a special service area. The limitation under this Section

16 includes any increase attributable to an adjustment under

17 Section 18-233.

18 (b) A taxing district may elect to be exempt from the

19 provisions of subsection (a) for one or more taxable years if

20 the exemption is approved by a referendum held before January

21 1 of the first taxable year during which the exemption

22 applies. Referenda shall be conducted at a regularly scheduled

23 election held in accordance with the Election Code. The

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1 question shall be presented in substantially the following

2 form:

3 "For (taxable years), shall (taxing district) be

4 exempt from the provisions of Section 18-161 of the

5 Property Tax Code, which limits increases in the taxes

6 levied by the taxing against real property to 5% per

7 taxable year?"

8 The taxing district may include the following as

9 supplemental information on the ballot:

10 "A "yes" vote means that (taxing district) would be

11 allowed to increase the amount of taxes levied against

12 each parcel of property by more than 5%."

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

14 If a majority of voters voting on the issue approves the

15 exemption, then the taxing district shall be exempt from the

16 provisions of this Section for the taxable years specified.

17 (c) As used in this Section:

18 "Base amount" means the tax levied by the taxing district

19 on the subject property in the immediately preceding taxable

20 year, except that, if the property received a homestead

21 exemption under Article 15 in the immediately preceding

22 taxable year and is not eligible for that exemption in the

23 current taxable year, then the base amount shall be the tax

24 that would have been levied by the taxing district on the

25 subject property in the immediately preceding taxable year if

26 the homestead exemption had not been applied.

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1 "Taxing district" has the same meaning provided in Section

2 1-150, except that "taxing district" does not include home

3 rule units.

4 (35 ILCS 200/18-233)

5 Sec. 18-233. Adjustments for certificates of error,

6 certain court orders, or final administrative decisions of the

7 Property Tax Appeal Board. Subject to the provisions of

8 Section 18-161, beginning ~~Beginning~~ in levy year 2021, a

9 taxing district levy shall be increased by a prior year

10 adjustment whenever an assessment decrease due to the issuance

11 of a certificate of error, a court order issued pursuant to an

12 assessment valuation complaint under Section 23-15, or a final

13 administrative decision of the Property Tax Appeal Board

14 results in a refund from the taxing district of a portion of

15 the property tax revenue distributed to the taxing district.

16 On or before November 15 of each year, the county treasurer

17 shall certify the aggregate refunds paid by a taxing district

18 during such 12-month period for purposes of this Section. For

19 purposes of the Property Tax Extension Limitation Law, the

20 taxing district's most recent aggregate extension base shall

21 not include the prior year adjustment authorized under this

22 Section. For levy year 2024 and thereafter, an adjustment

23 under this Section, when coupled with all other levy increases

24 imposed by the taxing district, may not cause the tax imposed

25 by that taxing district on any parcel of real property to

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1 exceed the limitation set forth in Section 18-161 for that

2 taxing district.

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