104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3209
 
Introduced 2/18/2025, by Rep. Michael J. Coffey, Jr.
 
SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-817 new
    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue shall reimburse eligible municipalities for revenue loss associated with tax exempt State property located in the municipality. Provides that the aggregate amount of reimbursements for all taxing districts in any calendar year may not exceed $100,000,000. Sets forth the amount of the reimbursement. 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, 
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil 
5Administrative Code of Illinois is amended by adding Section 
62505-817 as follows:
 
7    (20 ILCS 2505/2505-817 new)
8    Sec. 2505-817. Municipal Property Tax Relief Reimbursement 
9Pilot Program.
10    (a) Subject to appropriation, for State fiscal years that 
11begin on or after July 1, 2026 and before July 1, 2031, the 
12Department shall establish and administer a Municipal Property 
13Tax Relief Reimbursement Pilot Program. For purposes of the 
14Program, the Department shall reimburse eligible 
15municipalities for revenue loss associated with tax exempt 
16State property located in the municipality. Reimbursement 
17payments shall be made to the county that applies to the 
18Department of Revenue on behalf of the municipality under 
19subsection (b) and shall be distributed by the county to the 
20municipality as directed by the Department of Revenue.
21    (b) If the county clerk determines that that one or more 
22municipalities located in whole or in part in the county 
23qualify for reimbursement under this Section, then the county 
 
 
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1clerk shall apply to the Department of Revenue on behalf of the 
2municipality for reimbursement under this Section in the form 
3and manner required by the Department. The county clerk shall 
4consolidate applications submitted on behalf of more than one 
5municipality into a single application. The Department of 
6Revenue may audit the information submitted by the county 
7clerk as part of the application under this Section for the 
8purpose of verifying the accuracy of the information. 
9    (c) The maximum amount of the reimbursement the difference 
10between (i) the amount of property tax revenue that would have 
11been required to be collected and distributed to the 
12municipality for the taxable year that falls 2 years before 
13the start of the State fiscal year if the property tax 
14exemption for State property had not been applied; and (2) the 
15amount of property tax revenue that was actually required to 
16be collected and distributed to the municipality for that 
17taxable year. 
18    The aggregate amount of reimbursements that may be awarded 
19under this Section for all municipalities in any calendar year 
20may not exceed $100,000,000. If the total amount of eligible 
21reimbursements under this Section exceeds $100,000,000 in any 
22calendar year, then the reimbursement amount awarded to each 
23particular municipality shall be reduced on a pro rata basis 
24until the aggregate amount of reimbursements awarded under 
25this Section for the calendar year does not exceed 
26$100,000,000. 
 
 
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1    (d) The Department of Revenue may adopt rules necessary 
2for the implementation of this Section. 
3    (e) As used in this Section, "taxable year" means the 
4calendar year during which property taxes payable in the next 
5succeeding year are levied. 
 
6    Section 99. Effective date. This Act takes effect upon 
7becoming law.