Illinois 2025-2026 Regular Session

Illinois House Bill HB2896 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2896 Introduced , by Rep. Matt Hanson SYNOPSIS AS INTRODUCED: 35 ILCS 200/18-190 Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a levy authorized for contributions to a Firefighters' Pension Fund for a municipality with a population of 500,000 or less is not considered a new rate. Effective immediately. LRB104 09215 HLH 19272 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2896 Introduced , by Rep. Matt Hanson SYNOPSIS AS INTRODUCED: 35 ILCS 200/18-190 35 ILCS 200/18-190 Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a levy authorized for contributions to a Firefighters' Pension Fund for a municipality with a population of 500,000 or less is not considered a new rate. Effective immediately. LRB104 09215 HLH 19272 b LRB104 09215 HLH 19272 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2896 Introduced , by Rep. Matt Hanson SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 200/18-190 35 ILCS 200/18-190
4	4	35 ILCS 200/18-190
5	5	Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a levy authorized for contributions to a Firefighters' Pension Fund for a municipality with a population of 500,000 or less is not considered a new rate. Effective immediately.
6	6	LRB104 09215 HLH 19272 b LRB104 09215 HLH 19272 b
7	7	LRB104 09215 HLH 19272 b
8	8	A BILL FOR
9	9	HB2896LRB104 09215 HLH 19272 b HB2896 LRB104 09215 HLH 19272 b
10	10	HB2896 LRB104 09215 HLH 19272 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Property Tax Code is amended by changing
15	15	5 Section 18-190 as follows:
16	16	6 (35 ILCS 200/18-190)
17	17	7 Sec. 18-190. Direct referendum; new rate or increased
18	18	8 limiting rate.
19	19	9 (a) If a new rate is authorized by statute to be imposed
20	20	10 without referendum or is subject to a backdoor referendum, as
21	21	11 defined in Section 28-2 of the Election Code, the governing
22	22	12 body of the affected taxing district before levying the new
23	23	13 rate shall submit the new rate to direct referendum under the
24	24	14 provisions of this Section and of Article 28 of the Election
25	25	15 Code. Notwithstanding any other provision of law, the levies
26	26	16 authorized by Sections 4-118, 21-110, and 21-110.1 of the
27	27	17 Illinois Pension Code shall not be considered new rates;
28	28	18 however, nothing in this amendatory Act of the 98th General
29	29	19 Assembly or this amendatory Act of the 104th General Assembly
30	30	20 authorizes a taxing district to increase its limiting rate or
31	31	21 its aggregate extension without first obtaining referendum
32	32	22 approval as provided in this Section. Notwithstanding any
33	33	23 other provision of law, the levy authorized by Section 18-17
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2896 Introduced , by Rep. Matt Hanson SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 200/18-190 35 ILCS 200/18-190
39	39	35 ILCS 200/18-190
40	40	Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a levy authorized for contributions to a Firefighters' Pension Fund for a municipality with a population of 500,000 or less is not considered a new rate. Effective immediately.
41	41	LRB104 09215 HLH 19272 b LRB104 09215 HLH 19272 b
42	42	LRB104 09215 HLH 19272 b
43	43	A BILL FOR
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49	49	35 ILCS 200/18-190
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68	68	1 is considered part of the annual corporate extension for the
69	69	2 taxing district and is not considered a new rate.
70	70	3 Notwithstanding the provisions, requirements, or limitations
71	71	4 of any other law, any tax levied for the 2005 levy year and all
72	72	5 subsequent levy years by any taxing district subject to this
73	73	6 Law may be extended at a rate exceeding the rate established
74	74	7 for that tax by referendum or statute, provided that the rate
75	75	8 does not exceed the statutory ceiling above which the tax is
76	76	9 not authorized to be further increased either by referendum or
77	77	10 in any other manner. Notwithstanding the provisions,
78	78	11 requirements, or limitations of any other law, all taxing
79	79	12 districts subject to this Law shall follow the provisions of
80	80	13 this Section whenever seeking referenda approval after March
81	81	14 21, 2006 to (i) levy a new tax rate authorized by statute or
82	82	15 (ii) increase the limiting rate applicable to the taxing
83	83	16 district. All taxing districts subject to this Law are
84	84	17 authorized to seek referendum approval of each proposition
85	85	18 described and set forth in this Section.
86	86	19 The proposition seeking to obtain referendum approval to
87	87	20 levy a new tax rate as authorized in clause (i) shall be in
88	88	21 substantially the following form:
89	89	22 Shall ... (insert legal name, number, if any, and
90	90	23 county or counties of taxing district and geographic or
91	91	24 other common name by which a school or community college
92	92	25 district is known and referred to), Illinois, be
93	93	26 authorized to levy a new tax for ... purposes and have an
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104	104	1 additional tax of ...% of the equalized assessed value of
105	105	2 the taxable property therein extended for such purposes?
106	106	3 The votes must be recorded as "Yes" or "No".
107	107	4 The proposition seeking to obtain referendum approval to
108	108	5 increase the limiting rate as authorized in clause (ii) shall
109	109	6 be in substantially the following form:
110	110	7 Shall the limiting rate under the Property Tax
111	111	8 Extension Limitation Law for ... (insert legal name,
112	112	9 number, if any, and county or counties of taxing district
113	113	10 and geographic or other common name by which a school or
114	114	11 community college district is known and referred to),
115	115	12 Illinois, be increased by an additional amount equal to
116	116	13 ...% above the limiting rate for the purpose of...(insert
117	117	14 purpose) for levy year ... (insert the most recent levy
118	118	15 year for which the limiting rate of the taxing district is
119	119	16 known at the time the submission of the proposition is
120	120	17 initiated by the taxing district) and be equal to ...% of
121	121	18 the equalized assessed value of the taxable property
122	122	19 therein for levy year(s) (insert each levy year for which
123	123	20 the increase will be applicable, which years must be
124	124	21 consecutive and may not exceed 4)?
125	125	22 The votes must be recorded as "Yes" or "No".
126	126	23 The ballot for any proposition submitted pursuant to this
127	127	24 Section shall have printed thereon, but not as a part of the
128	128	25 proposition submitted, only the following supplemental
129	129	26 information (which shall be supplied to the election authority
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140	140	1 by the taxing district) in substantially the following form:
141	141	2 (1) The approximate amount of taxes extendable at the
142	142	3 most recently extended limiting rate is $..., and the
143	143	4 approximate amount of taxes extendable if the proposition
144	144	5 is approved is $....
145	145	6 (2) For the ... (insert the first levy year for which
146	146	7 the new rate or increased limiting rate will be
147	147	8 applicable) levy year the approximate amount of the
148	148	9 additional tax extendable against property containing a
149	149	10 single family residence and having a fair market value at
150	150	11 the time of the referendum of $100,000 is estimated to be
151	151	12 $....
152	152	13 (3) Based upon an average annual percentage increase
153	153	14 (or decrease) in the market value of such property of %...
154	154	15 (insert percentage equal to the average annual percentage
155	155	16 increase or decrease for the prior 3 levy years, at the
156	156	17 time the submission of the proposition is initiated by the
157	157	18 taxing district, in the amount of (A) the equalized
158	158	19 assessed value of the taxable property in the taxing
159	159	20 district less (B) the new property included in the
160	160	21 equalized assessed value), the approximate amount of the
161	161	22 additional tax extendable against such property for the
162	162	23 ... levy year is estimated to be $... and for the ... levy
163	163	24 year is estimated to be $ ....
164	164	25 (4) If the proposition is approved, the aggregate
165	165	26 extension for ... (insert each levy year for which the
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176	176	1 increase will apply) will be determined by the limiting
177	177	2 rate set forth in the proposition, rather than the
178	178	3 otherwise applicable limiting rate calculated under the
179	179	4 provisions of the Property Tax Extension Limitation Law
180	180	5 (commonly known as the Property Tax Cap Law).
181	181	6 The approximate amount of taxes extendable shown in paragraph
182	182	7 (1) shall be computed upon the last known equalized assessed
183	183	8 value of taxable property in the taxing district (at the time
184	184	9 the submission of the proposition is initiated by the taxing
185	185	10 district). Paragraph (3) shall be included only if the
186	186	11 increased limiting rate will be applicable for more than one
187	187	12 levy year and shall list each levy year for which the increased
188	188	13 limiting rate will be applicable. The additional tax shown for
189	189	14 each levy year shall be the approximate dollar amount of the
190	190	15 increase over the amount of the most recently completed
191	191	16 extension at the time the submission of the proposition is
192	192	17 initiated by the taxing district. The approximate amount of
193	193	18 the additional taxes extendable shown in paragraphs (2) and
194	194	19 (3) shall be calculated by multiplying $100,000 (the fair
195	195	20 market value of the property without regard to any property
196	196	21 tax exemptions) by (i) the percentage level of assessment
197	197	22 prescribed for that property by statute, or by ordinance of
198	198	23 the county board in counties that classify property for
199	199	24 purposes of taxation in accordance with Section 4 of Article
200	200	25 IX of the Illinois Constitution; (ii) the most recent final
201	201	26 equalization factor certified to the county clerk by the
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212	212	1 Department of Revenue at the time the taxing district
213	213	2 initiates the submission of the proposition to the electors;
214	214	3 and (iii) either the new rate or the amount by which the
215	215	4 limiting rate is to be increased. This amendatory Act of the
216	216	5 97th General Assembly is intended to clarify the existing
217	217	6 requirements of this Section, and shall not be construed to
218	218	7 validate any prior non-compliant referendum language.
219	219	8 Paragraph (4) shall be included if the proposition concerns a
220	220	9 limiting rate increase but shall not be included if the
221	221	10 proposition concerns a new rate. Any notice required to be
222	222	11 published in connection with the submission of the proposition
223	223	12 shall also contain this supplemental information and shall not
224	224	13 contain any other supplemental information regarding the
225	225	14 proposition. Any error, miscalculation, or inaccuracy in
226	226	15 computing any amount set forth on the ballot and in the notice
227	227	16 that is not deliberate shall not invalidate or affect the
228	228	17 validity of any proposition approved. Notice of the referendum
229	229	18 shall be published and posted as otherwise required by law,
230	230	19 and the submission of the proposition shall be initiated as
231	231	20 provided by law.
232	232	21 If a majority of all ballots cast on the proposition are in
233	233	22 favor of the proposition, the following provisions shall be
234	234	23 applicable to the extension of taxes for the taxing district:
235	235	24 (A) a new tax rate shall be first effective for the
236	236	25 levy year in which the new rate is approved;
237	237	26 (B) if the proposition provides for a new tax rate,
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248	248	1 the taxing district is authorized to levy a tax after the
249	249	2 canvass of the results of the referendum by the election
250	250	3 authority for the purposes for which the tax is
251	251	4 authorized;
252	252	5 (C) a limiting rate increase shall be first effective
253	253	6 for the levy year in which the limiting rate increase is
254	254	7 approved, provided that the taxing district may elect to
255	255	8 have a limiting rate increase be effective for the levy
256	256	9 year prior to the levy year in which the limiting rate
257	257	10 increase is approved unless the extension of taxes for the
258	258	11 prior levy year occurs 30 days or less after the canvass of
259	259	12 the results of the referendum by the election authority in
260	260	13 any county in which the taxing district is located;
261	261	14 (D) in order for the limiting rate increase to be
262	262	15 first effective for the levy year prior to the levy year of
263	263	16 the referendum, the taxing district must certify its
264	264	17 election to have the limiting rate increase be effective
265	265	18 for the prior levy year to the clerk of each county in
266	266	19 which the taxing district is located not more than 2 days
267	267	20 after the date the results of the referendum are canvassed
268	268	21 by the election authority; and
269	269	22 (E) if the proposition provides for a limiting rate
270	270	23 increase, the increase may be effective regardless of
271	271	24 whether the proposition is approved before or after the
272	272	25 taxing district adopts or files its levy for any levy
273	273	26 year.
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284	284	1 Rates required to extend taxes on levies subject to a
285	285	2 backdoor referendum in each year there is a levy are not new
286	286	3 rates or rate increases under this Section if a levy has been
287	287	4 made for the fund in one or more of the preceding 3 levy years.
288	288	5 Changes made by this amendatory Act of 1997 to this Section in
289	289	6 reference to rates required to extend taxes on levies subject
290	290	7 to a backdoor referendum in each year there is a levy are
291	291	8 declarative of existing law and not a new enactment.
292	292	9 (b) Whenever other applicable law authorizes a taxing
293	293	10 district subject to the limitation with respect to its
294	294	11 aggregate extension provided for in this Law to issue bonds or
295	295	12 other obligations either without referendum or subject to
296	296	13 backdoor referendum, the taxing district may elect for each
297	297	14 separate bond issuance to submit the question of the issuance
298	298	15 of the bonds or obligations directly to the voters of the
299	299	16 taxing district, and if the referendum passes the taxing
300	300	17 district is not required to comply with any backdoor
301	301	18 referendum procedures or requirements set forth in the other
302	302	19 applicable law. The direct referendum shall be initiated by
303	303	20 ordinance or resolution of the governing body of the taxing
304	304	21 district, and the question shall be certified to the proper
305	305	22 election authorities in accordance with the provisions of the
306	306	23 Election Code.
307	307	24 (Source: P.A. 103-592, eff. 6-7-24.)
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