HB2397 Summary

• Modifies the Property Tax Extension Limitation Law to set extension limitation at 0% (rather than 5% or CPI increase) for taxing districts ending a levy year with reserves of 50% or more of their operating budget.

• Allows taxing districts with high reserves to increase extension limitation only through voter-approved referendum, which must show the baseline as 0% rather than the traditional 5%/CPI calculation.

• Expands definition of "taxing district" subject to the law beginning in levy year 2017 to include any district meeting the 50% reserves threshold at end of preceding levy year.

• Establishes this law as a constitutional limitation on home rule units' taxing power under Article VII, Section 6(g) of the Illinois Constitution.

• Exempts the State from reimbursement obligations under the State Mandates Act for implementation costs related to this amendment.