IL HB3209

Creates a Municipal Property Tax Relief Reimbursement Pilot Program administered by the Department of Revenue for state fiscal years beginning July 1, 2026 through July 1, 2031

Reimburses eligible municipalities for revenue loss caused by tax-exempt State property located within their boundaries, with payments distributed through the county

County clerks must apply to the Department of Revenue on behalf of qualifying municipalities and may consolidate multiple municipal applications into a single submission

Reimbursement amount equals the difference between what property taxes would have been collected without the State property exemption versus the actual taxes collected, based on data from two years prior

Caps total annual reimbursements at $100,000,000 statewide; if eligible claims exceed this amount, payments are reduced proportionally across all municipalities