IL HB1199

Caps annual property tax increases on individual properties at the rate of inflation (Consumer Price Index) starting in taxable year 2026

Property taxes cannot exceed the prior year's tax liability multiplied by one plus the CPI percentage increase for the 12-month period ending in September of the preceding year

Exemptions from the cap apply when tax increases result from property improvements or the removal of previously granted tax exemptions

County clerks must proportionally reduce tax extensions across all taxing districts levying against a property when reductions are required under this cap

Amends the Property Tax Code by adding Section 18-105.1 and takes effect immediately upon becoming law