IL HB3656

Modifies the Property Tax Extension Limitation Law to provide that taxing districts with reserves of 50% or more of their operating budget at the end of a levy year face a 0% extension limitation for the next levy year, unless voters approve a higher rate.

Expands the definition of "taxing district" subject to the extension limitation law to include any district that had reserves of 50% or more of its operating budget at the end of the immediately preceding levy year, effective for levy year 2019 and forward.

Changes the referendum ballot language for districts with high reserves to ask voters about increasing the extension limitation from 0% instead of from the lesser of 5% or CPI increase.

Declares that Division 5 of the Property Tax Code (the extension limitation law) is a constitutional limitation on the home rule taxing power of municipalities.

Exempts this amendatory act from State Mandates Act reimbursement requirements, meaning no state funding is required to implement these changes.