IL HB4946

Property leased, subleased, or rented to a taxing district and used exclusively for bona fide taxing district purposes becomes exempt from property taxes beginning in taxable year 2026.

The exemption applies only to the portion of the property actually used for taxing district purposes, not the entire property if only partially used.

Taxing districts must apply to the Department of Revenue for the exemption, providing proof of tax-exempt status and a copy of the lease, sublease, or rental agreement.

The exemption lasts only for the duration of the lease term and automatically terminates unless a lease extension is submitted in a subsequent application.

Amends Section 15-60 of the Property Tax Code (35 ILCS 200/15-60) and takes effect immediately upon becoming law.