IL SB3438

Amends the State Mandates Act to prohibit unfunded state mandates enacted on or after the effective date; any mandate requiring additional local government expenditures is void and unenforceable unless the General Assembly appropriates necessary reimbursements, and failure to appropriate relieves local governments of implementation obligations.

Increases distributions to the Local Government Distributive Fund from income tax revenue beginning August 1, 2024, with percentages rising to 7% for individuals and 8.11% for corporations through July 31, 2025, then to 8% and 9.11% respectively beginning August 1, 2025.

Amends the Property Tax Extension Limitation Law to change the extension limitation calculation beginning tax year 2025 from a single-year Consumer Price Index increase to the average percentage increase over the preceding 10 years, capped at 5%.

Creates a new Section 18-207 allowing taxing districts to reduce their aggregate extension base for lowering future limiting rates upon referendum approval initiated by voter petition (at least 10% of votes cast in preceding gubernatorial election).