IL HB5371

City of Chicago would be classified as a taxing district under the Property Tax Extension Limitation Law (PTELL) beginning in taxable year 2027, subjecting it to property tax caps that limit annual levy increases to the lesser of 5% or the Consumer Price Index.

The bill amends the Property Tax Code (35 ILCS 200/18-185) and adds new Section 18-244 to specifically include Chicago within PTELL coverage.

Chicago's home rule powers are preempted regarding property tax extension limitations, removing the city's ability to opt out of these state-imposed caps.

The extension limitation caps would apply to Chicago's annual corporate and special purpose tax extensions, with various exclusions for voter-approved bond debt, pre-existing obligations, pension contributions, and certain other specified purposes.

The bill takes effect immediately upon becoming law, with the PTELL provisions applying to Chicago starting with the 2027 taxable year.