IL HB4354

Establishes a 5% annual cap on property tax increases beginning in taxable year 2024, limiting taxes levied by non-home rule taxing districts to no more than 105% of the previous year's base amount.

Exempts from the cap increases attributable to substantial property improvements, newly taxed properties, or special service areas.

Defines "base amount" as the prior year's tax levied, or if a homestead exemption was received in the prior year but not the current year, the tax amount that would have been levied without the exemption.

Allows taxing districts to opt out of the cap for specified taxable years through voter referendum approval held before January 1 of the first year the exemption applies.

Clarifies that adjustments for assessment refunds under Section 18-233 must comply with the new 5% limitation cap when combined with other levy increases.