HB4426 Summary

• Modifies the Property Tax Extension Limitation Law to provide alternative extension limitation calculations when equalized assessed value (EAV) declines in a taxing district.

• If total EAV for current levy year is less than previous levy year, or if median EAV for current year and prior 2 years is less than median for the 3 preceding years before that, the extension limitation becomes either 0% or the voter-approved rate instead of the standard lesser of 5% or Consumer Price Index increase.

• Excludes new property, recovered tax increment value, and annexed/disconnected property from the EAV decline calculations.

• Updates Section 18-205 referendum ballot language to reference the extension limitation as defined in Section 18-185, clarifying calculation methods when extension limitations are subject to voter approval.

• Takes effect immediately upon enactment.