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HB5237 • 2026
LOCAL GOV-PREEMPT TAX
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
LOCAL GOV-PREEMPT TAX
Rule 19(a) / Re-referred to Rules Committee
Second Reading - Short Debate
Held on Calendar Order of Second Reading - Short Debate
Added Chief Co-Sponsor Rep. Dave Vella
Added Chief Co-Sponsor Rep. Robert "Bob" Rita
Added Co-Sponsor Rep. Amy Briel
Added Co-Sponsor Rep. Angelica Guerrero-Cuellar
Added Co-Sponsor Rep. Stephanie A. Kifowit
Added Co-Sponsor Rep. Sue Scherer
Added Co-Sponsor Rep. Daniel Didech
Recommends Do Pass Subcommittee/ Revenue & Finance Committee ; 005-000-000
Reported Back To Revenue & Finance Committee ;
Do Pass / Short Debate Revenue & Finance Committee ; 019-000-000
Placed on Calendar 2nd Reading - Short Debate
To Tax Policy: Other Taxes Subcommittee
Added Chief Co-Sponsor Rep. Curtis J. Tarver, II
Assigned to Revenue & Finance Committee
First Reading
Referred to Rules Committee
Filed with the Clerk by Rep. Anthony DeLuca
LOCAL GOV-PREEMPT TAX
Illinois General Assembly - Full Text of HB5237 Select Language × The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein. Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet. The English language version is always the official and authoritative version of this website. NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window. 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Full Text of HB5237 Home Legislation Full Text HB5237 - 104th General Assembly Bill Status Full Text Votes Witness Slips Select Menu Bill Status Full Text Votes Witness Slips Printer Friendly Version Introduced Printer Friendly Version Introduced Open PDF 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB5237 Introduced 2/10/2026, by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED: 55 ILCS 5/5-1009 from Ch. 34, par. 5-1009 65 ILCS 5/8-11-6a from Ch. 24, par. 8-11-6a Amends the Counties Code and the Illinois Municipal Code. Provides that neither a county nor a municipality may impose a tax on businesses calculated based on the number of employees of the business. Effective immediately. LRB104 17282 HLH 30704 b A BILL FOR HB5237 LRB104 17282 HLH 30704 b 1 AN ACT concerning revenue. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Counties Code is amended by changing 5 Section 5-1009 as follows: 6 (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009) 7 Sec. 5-1009. Limitation on home rule powers. Except as 8 provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1006.9, 9 5-1007, and 5-1008, on and after September 1, 1990, no home 10 rule county has the authority to impose, pursuant to its home 11 rule authority, a retailers' occupation tax, service 12 occupation tax, use tax, sales tax, or other tax on the use, 13 sale, or purchase of tangible personal property based on the 14 gross receipts from such sales or the selling or purchase 15 price of said tangible personal property. Notwithstanding the 16 foregoing, this Section does not preempt any home rule imposed 17 tax such as the following: (1) a tax on alcoholic beverages, 18 whether based on gross receipts, volume sold, or any other 19 measurement; (2) a tax based on the number of units of 20 cigarettes or tobacco products; (3) a tax, however measured, 21 based on the use of a hotel or motel room or similar facility; 22 (4) a tax, however measured, on the sale or transfer of real 23 property; (5) a tax, however measured, on lease receipts; (6) HB5237 - 2 - LRB104 17282 HLH 30704 b 1 a tax on food prepared for immediate consumption and on 2 alcoholic beverages sold by a business which provides for on 3 premise consumption of said food or alcoholic beverages; or 4 (7) other taxes not based on the selling or purchase price or 5 gross receipts from the use, sale, or purchase of tangible 6 personal property. Notwithstanding any other provision of law, 7 a home rule county may not impose a tax on businesses 8 calculated based on the number of employees of the business. 9 This Section does not preempt a home rule county from imposing 10 a tax, however measured, on the use, for consideration, of a 11 parking lot, garage, or other parking facility. 12 On and after December 1, 2019, no home rule county has the 13 authority to impose, pursuant to its home rule authority, a 14 tax, however measured, on sales of aviation fuel, as defined 15 in Section 3 of the Retailers' Occupation Tax Act, unless the 16 tax revenue is expended for airport-related purposes. For 17 purposes of this Section, "airport-related purposes" has the 18 meaning ascribed in Section 6z-20.2 of the State Finance Act. 19 Aviation fuel shall be excluded from tax only for so long as 20 the revenue use requirements of 49 U.S.C. 47017(b) and 49 21 U.S.C. 47133 are binding on the county. 22 This Section is a limitation, pursuant to subsection (g) 23 of Section 6 of Article VII of the Illinois Constitution, on 24 the power of home rule units to tax. The changes made to this 25 Section by Public Act 101-10 are a denial and limitation of 26 home rule powers and functions under subsection (g) of Section HB5237 - 3 - LRB104 17282 HLH 30704 b 1 6 of Article VII of the Illinois Constitution. 2 (Source: P.A. 103-781, eff. 8-5-24; 104-417, eff. 8-15-25.) 3 Section 10. The Illinois Municipal Code is amended by 4 changing Section 8-11-6a as follows: 5 (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a) 6 Sec. 8-11-6a. Home rule municipalities; preemption of 7 certain taxes. Except as provided in Sections 8-11-1, 8-11-5, 8 8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on 9 and after September 1, 1990, no home rule municipality has the 10 authority to impose, pursuant to its home rule authority, a 11 retailer's occupation tax, service occupation tax, use tax, 12 sales tax or other tax on the use, sale or purchase of tangible 13 personal property based on the gross receipts from such sales 14 or the selling or purchase price of said tangible personal 15 property. Notwithstanding the foregoing, this Section does not 16 preempt any home rule imposed tax such as the following: (1) a 17 tax on alcoholic beverages, whether based on gross receipts, 18 volume sold or any other measurement; (2) a tax based on the 19 number of units of cigarettes or tobacco products (provided, 20 however, that a home rule municipality that has not imposed a 21 tax based on the number of units of cigarettes or tobacco 22 products before July 1, 1993, shall not impose such a tax after 23 that date); (3) a tax, however measured, based on the use of a 24 hotel or motel room or similar facility; (4) a tax, however HB5237 - 4 - LRB104 17282 HLH 30704 b 1 measured, on the sale or transfer of real property; (5) a tax, 2 however measured, on lease receipts; (6) a tax on food 3 prepared for immediate consumption and on alcoholic beverages 4 sold by a business which provides for on premise consumption 5 of said food or alcoholic beverages; or (7) other taxes not 6 based on the selling or purchase price or gross receipts from 7 the use, sale or purchase of tangible personal property. 8 Notwithstanding any other provision of law, a home rule 9 municipality may not impose a tax on businesses calculated 10 based on the number of employees of the business. This Section 11 does not preempt a home rule municipality with a population of 12 more than 2,000,000 from imposing a tax, however measured, on 13 the use, for consideration, of a parking lot, garage, or other 14 parking facility. This Section is not intended to affect any 15 existing tax on food and beverages prepared for immediate 16 consumption on the premises where the sale occurs, or any 17 existing tax on alcoholic beverages, or any existing tax 18 imposed on the charge for renting a hotel or motel room, which 19 was in effect January 15, 1988, or any extension of the 20 effective date of such an existing tax by ordinance of the 21 municipality imposing the tax, which extension is hereby 22 authorized, in any non-home rule municipality in which the 23 imposition of such a tax has been upheld by judicial 24 determination, nor is this Section intended to preempt the 25 authority granted by Public Act 85-1006. On and after December 26 1, 2019, no home rule municipality has the authority to HB5237 - 5 - LRB104 17282 HLH 30704 b 1 impose, pursuant to its home rule authority, a tax, however 2 measured, on sales of aviation fuel, as defined in Section 3 of 3 the Retailers' Occupation Tax Act, unless the tax is not 4 subject to the revenue use requirements of 49 U.S.C. 47107(b) 5 and 49 U.S.C. 47133, or unless the tax revenue is expended for 6 airport-related purposes. For purposes of this Section, 7 "airport-related purposes" has the meaning ascribed in Section 8 6z-20.2 of the State Finance Act. Aviation fuel shall be 9 excluded from tax only if, and for so long as, the revenue use 10 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 11 binding on the municipality. This Section is a limitation, 12 pursuant to subsection (g) of Section 6 of Article VII of the 13 Illinois Constitution, on the power of home rule units to tax. 14 The changes made to this Section by Public Act 101-10 are a 15 denial and limitation of home rule powers and functions under 16 subsection (g) of Section 6 of Article VII of the Illinois 17 Constitution. 18 (Source: P.A. 103-781, eff. 8-5-24.) 19 Section 99. Effective date. This Act takes effect upon 20 becoming law. Footer Disclaimer This site is maintained for the Illinois General Assembly by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706. Contact ILGA Webmaster ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies. 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