PROP TX-EXTENSION LIMITATION
Should HB1199 be enacted, it will significantly alter the landscape of property tax assessments in Illinois. By capping the annual property tax increase to a specific inflation measure, it aims to provide taxpayers with more predictability and potentially lower burdens from local tax authorities. This change is likely to affect local government budgets and their ability to fund services, as tax revenue increases will be constrained. Already, conversations around the bill indicate concerns from municipalities about maintaining adequate revenues to support public services.
HB1199 is a proposed amendment to the Property Tax Code in Illinois, introduced by Rep. Rita Mayfield. The bill aims to impose limits on how much property tax can be levied against properties starting in the taxable year 2026. Specifically, it restricts county clerks from extending property taxes beyond the prior year's liability adjusted only by the percentage increase in the Consumer Price Index (CPI) for the year ending in September. The exceptions to this limitation are increases due to property improvements or the removal of exemptions previously granted.
The bill has sparked a debate among legislators and other stakeholders. Proponents argue that the limitations will protect property owners from excessive tax increases, especially in times of economic uncertainty when CPI rates might fluctuate. Conversely, opponents raise concerns about how these restrictions could hinder local governments' financial flexibility to respond to changing community needs. Some local officials and advocacy groups have expressed fears about the adverse effects on essential funding for schools, public safety, and other critical services should revenues decrease because of this statute.