IL SB2862

Municipalities may designate "retail improvement abatement areas" by ordinance starting January 1, 2027, for contiguous areas between 0.5 and 12 square miles with retail vacancy rates exceeding 40%

Retail property owners in designated areas may enter agreements with taxing districts to abate all or part of property taxes, replacing them with special payments calculated as a percentage of retail sales

Retail business tenants under triple net leases who are liable for property taxes may also enter into abatement agreements with taxing districts

Property tax bills must include a separate line item showing any special payments required under the retail improvement abatement program

Amends the Illinois Property Tax Code by adding Section 18-167 and modifying Section 20-15 regarding tax bill information requirements