By: Brittany Flaherty Theis

Senate Bill 316 sought to amend the Illinois Property Tax Code, the Illinois Pension Code, and the Illinois School Code. A second amendment to Senate Bill 316 (“SB 316 Am. 2”) was filed this morning and was discussed by the Senate Executive Committee thereafter. The Executive Committee recommended SB 316 Am. 2 be adopted. SB 316 failed to receive sufficient votes and was defeated the same day it was filed. However, due to prevailing discussions surrounding the State of Illinois’ budget concerns, one might expect to see similar legislation proposed in the near future.

Property Tax Code

SB 316 Am. 2 amended the extension limitation for the 2016 through 2018 levy years and expanded the taxing districts subject to the extension limitation to include home rule units. For levy years 2016 and 2017, the extension limitation for all (including home rule) taxing districts outside of Cook County would have been set at 0% or the rate previously set by the voters, if applicable. This essentially froze property taxes for levy years 2016 and 2017 at 2015 levels. For those taxing districts, the extension limitation returned to 5%, the increase in the Consumer Price Index, or the rate previously set by the voters, if applicable, for levy year 2018 for those taxing districts that were subject to the extension limitation in 2015. For those not previously subjected to the extension limitation, the limitations would be lifted for levy year 2018 and beyond.