HB1768 Summary

• Extends Property Tax Extension Limitation Law (PTELL) to home rule units beginning with the 2017 levy year, effectively removing their previous exemption from tax increase caps.

• For 2017 and 2018 levy years, non-school taxing districts face aggregate extension reductions of 5% and 10% respectively from their 2016 baseline before the PTELL freeze applies.

• Beginning in 2017 for school districts and community colleges, and 2019 for all other taxing districts, the extension limitation becomes 0% (a hard freeze on tax increases unless voters approve increases by referendum).

• Prohibits home rule units from opting out of PTELL by referendum beginning with taxable year 2017, effectively preempting home rule powers to increase property taxes.

• Amends the State Mandates Act to exempt this legislation from state reimbursement requirements for implementation.