TRUTH IN TAX-REVENUE RATE

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5550

Introduced 2/13/2026, by Rep. Bradley Fritts

SYNOPSIS AS INTRODUCED:

35 ILCS 200/18-55
35 ILCS 200/18-56
35 ILCS 200/18-65
35 ILCS 200/18-70
35 ILCS 200/18-80
35 ILCS 200/18-85
35 ILCS 200/18-90

Amends the Truth in Taxation Law in the Property Tax Code. Provides
that the notice and hearing requirements apply if the taxing district
proposes to extend a tax rate against all taxable property in the district
that exceeds the revenue neutral rate. Provides that the term "revenue
neutral rate" means an aggregate tax rate for the taxing district that
would generate the same amount of property tax revenue as was levied by the
taxing district in the previous tax year using the current tax year's total
assessed valuation of all property in the taxing district. Makes changes
concerning notice provisions.
LRB104 19230 HLH 32676 b

A BILL FOR

HB5550
LRB104 19230 HLH 32676 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 Property Tax Code is amended by changing
5
Sections 18-55, 18-56, 18-65, 18-70, 18-80, 18-85, and 18-90
6
as follows:

7

(35 ILCS 200/18-55)
8

Sec. 18-55.
Short title and definitions.
This Division 2
9
may be cited as the Truth in Taxation Law. As used in this
10
Division 2:
11

(a) "Taxing district" has the meaning specified in Section
12
1-150 and includes home rule units, but from January 1, 2000
13
through December 31, 2002 does not include taxing districts
14
that have territory in Cook County.
15

(b) "Aggregate levy" means the annual corporate levy of
16
the taxing district and those special purpose levies which are
17
made annually (other than debt service levies and levies made
18
for the purpose of paying amounts due under public building
19
commission leases).
20

(c) "Special purpose levies" include, but are not limited
21
to, levies made on an annual basis for contributions to
22
pension plans, unemployment and worker's compensation, or
23
self-insurance.

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LRB104 19230 HLH 32676 b
1

(d) "Debt service" means levies made by any taxing
2
district pursuant to home rule authority, statute, referendum,
3
ordinance, resolution, indenture, agreement, or contract to
4
retire the principal or pay interest on bonds, notes,
5
debentures or other financial instruments which evidence
6
indebtedness.
7

(e) "Revenue neutral rate" means an aggregate tax rate for
8
the taxing district for the current taxable year that, when
9
extended against all of the taxable property in the district
10
for the current tax year, would generate the same amount of
11
property tax revenue as was levied by the taxing district in
12
the previous tax year, using the current tax year's total
13
assessed valuation of all property in the taxing district.

14
(Source: P.A. 91-357, eff. 7-29-99; 91-523, eff. 1-1-00.)

15

(35 ILCS 200/18-56)
16

Sec. 18-56.
Legislative purpose.
The purpose of this Law
17
is to require taxing districts to disclose by publication and
18
to hold
a
public
hearings

hearing
on their intention to adopt
19
an aggregate levy
that would cause to be extended against the
20
taxable property in the district an aggregate tax rate that
21
exceeds the revenue neutral rate.

in amounts more than 105% of
22
the amount of property taxes extended or estimated to be
23
extended, including any amount abated by the taxing district
24
prior to such extension, upon the final aggregate levy of the
25
preceding year.

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LRB104 19230 HLH 32676 b
1
(Source: P.A. 88-660, eff. 9-16-94.)

2

(35 ILCS 200/18-65)
3

Sec. 18-65.
Restriction on extension.
Until it has
4
complied with the notice and hearing provisions of this
5
Article, no taxing district shall levy an amount of ad valorem
6
tax
that would cause to be extended against the taxable
7
property in the district an aggregate tax rate that exceeds
8
the revenue neutral rate.

which is more than 105% of the
9
amount, exclusive of election costs, which has been extended
10
or is estimated will be extended, plus any amount abated by the
11
taxing district before extension, upon the final aggregate
12
levy of the preceding year.
13
(Source: P.A. 86-957; 88-455.)

14

(35 ILCS 200/18-70)
15

Sec. 18-70.
Notice

More than 5% increase; notice
and
16
hearing required.

17

(a)
If the estimate of the corporate authority made as
18
provided in Section 18-60
shows that the aggregate levy
19
proposed by the district would cause to be extended against
20
the taxable property in the district an aggregate tax rate
21
that exceeds the revenue neutral rate

is more than 105% of the
22
amount extended or estimated to be extended, plus any amount
23
abated by the corporate authority prior to extension, upon the
24
final aggregate levy of the preceding year, exclusive of

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LRB104 19230 HLH 32676 b
1
election costs
, the corporate authority shall give public
2
notice of and hold a public hearing on its intent to adopt an
3
aggregate levy
would cause to be extended against the taxable
4
property in the district an aggregate tax rate that exceeds
5
the revenue neutral rate.

in an amount which is more than 105%
6
of the amount extended or estimated to be extended upon the
7
final aggregate levy extensions, plus any amount abated,
8
exclusive of election costs, for the preceding year. The
9
hearing shall not coincide with the hearing on the proposed
10
budget of the taxing district.
11

(b) Beginning in levy year 2027, if a taxing district
12
intends to extend a rate against the taxable property in the
13
district that exceeds the revenue neutral rate, the governing
14
body shall notify the county clerk of this intent. This
15
notification must include the date, time, and location of the
16
public hearing, as well as the proposed tax rate. After levy
17
year 2027, the county clerk shall notify each taxpayer with
18
property within the taxing subdivision by mail, directed to
19
the taxpayer's last known address, if a taxing district
20
proposes to exceed the revenue neutral rate. The notification
21
shall be mailed at least 10 days prior to the public hearing.
22
Alternatively, the county clerk may transmit the notice
23
electronically, provided that both the taxpayer and the county
24
clerk have given written consent to electronic communication
25
and that the notice is sent at least 10 days before the public
26
hearing. The county clerk is not required to send a notice to a

HB5550
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LRB104 19230 HLH 32676 b
1
property owner of property that is exempt from ad valorem
2
taxation. The county clerk shall compile the necessary
3
information for all relevant taxing districts concerning the
4
taxpayer's property into a single notice. This notice shall be
5
formatted as prescribed by this Section. In no event shall
6
this notice replace the notice required under Sec. 18-75.

7

(c) The notice shall be in the following form:

8

"Notice of Proposed Property Tax Increase for ...
9
(commonly known name of taxing district).

10

This notice contains estimates of the tax on your property
11
and proposed property tax increases. THE ACTUAL TAX ON YOUR
12
PROPERTY MAY INCREASE OR DECREASE FROM THESE ESTIMATES.
13
Governing bodies of taxing subdivisions must vote in order to
14
exceed the Revenue Neutral Rate to increase the total property
15
taxes collected. Governing bodies will vote at public hearings
16
at the dates, times and locations listed. Taxpayers may attend
17
and comment at the hearings. Property tax statements will be
18
issued after rates are finalized and taxes are calculated.

19

Any person desiring to appear at the public hearing and
20
present testimony to the taxing district may contact ...
21
(name, title, address and telephone number of an appropriate
22
official).

23

The total property taxes extended or abated for ...
24
(preceding year) ... were ... (dollar amount).

25

The estimated total property taxes to be levied for ...
26
(current year) ... are ... (dollar amount). This represents a

HB5550
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LRB104 19230 HLH 32676 b
1
... (percentage increase or decrease) ... over the previous
2
year.

3

The public hearing shall take place (Date, time,
4
location).".

5
(Source: P.A. 86-957; 88-455.)

6

(35 ILCS 200/18-80)
7

Sec. 18-80.
Time and form of notice.
The notice shall
8
appear not more than 14 days nor less than 7 days prior to the
9
date of the public hearing. The notice shall be no less than
10
1/8 page in size, and the smallest type used shall be 12 point
11
and shall be enclosed in a black border no less than 1/4 inch
12
wide. The notice shall not be placed in that portion of the
13
newspaper where legal notices and classified advertisements
14
appear. The notice shall be published in substantially the
15
following form:
16

Notice of Proposed Property Tax Increase for ... (commonly
17
known name of taxing district).
18

I. A public hearing to approve a proposed property tax
19
levy increase for ... (legal name of the taxing district)...
20
for ... (year) ... will be held on ... (date) ... at ... (time)
21
... at ... (location).
22

Any person desiring to appear at the public hearing and
23
present testimony to the taxing district may contact ...
24
(name, title, address and telephone number of an appropriate
25
official).

HB5550
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LRB104 19230 HLH 32676 b
1

II. The corporate and special purpose property taxes
2
extended or abated for ... (preceding year) ... were ...
3
(dollar amount of the final aggregate levy as extended, plus
4
the amount abated by the taxing district prior to extension).
5

The proposed corporate and special purpose property taxes
6
to be levied for ... (current year) ... are ... (dollar amount
7
of the proposed aggregate levy). This represents a ...
8
(percentage) ... increase over the previous year.
9

III. The property taxes extended for debt service and
10
public building commission leases for ... (preceding year) ...
11
were ... (dollar amount).
12

The estimated property taxes to be levied for debt service
13
and public building commission leases for ... (current year)
14
... are ... (dollar amount). This represents a ... (percentage
15
increase or decrease) ... over the previous year.
16

IV. The total property taxes extended or abated for ...
17
(preceding year) ... were ... (dollar amount).
18

The estimated total property taxes to be levied for ...
19
(current year) ... are ... (dollar amount). This represents a
20
... (percentage increase or decrease) ... over the previous
21
year.
22

Any notice which includes any information not specified
23
and required by this Article shall be an invalid notice.
24

All hearings shall be open to the public. The corporate
25
authority of the taxing district shall explain the reasons for
26
the proposed increase and shall permit persons desiring to be

HB5550
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LRB104 19230 HLH 32676 b
1
heard an opportunity to present testimony within reasonable
2
time limits as it determines.
3
(Source: P.A. 92-382, eff. 8-16-01.)

4

(35 ILCS 200/18-85)
5

Sec. 18-85.
Notice if adopted levy exceeds proposed levy.
6
If the final aggregate tax levy resolution or ordinance
7
adopted
would cause to be extended against the taxable
8
property in the district an aggregate tax rate that exceeds
9
the revenue neutral rate,

is more than 105% of the amount,
10
exclusive of election costs, which was extended or is
11
estimated to be extended, plus any amount abated by the taxing
12
district prior to extension, upon the final aggregate levy of
13
the preceding year and is in excess of the amount of the
14
proposed levy stated in the notice published under Section
15
18-70, or is more than 105% of that amount and no notice was
16
required under Section 18-70,
the corporate authority shall
17
give public notice of its action within 15 days of the adoption
18
of the levy in the following form:
19

Notice of Adopted Property Tax Increase for ... (commonly
20
known name of taxing district).
21

I. The corporate and special purpose property taxes
22
extended or abated for ... (preceding year) ... were ...
23
(dollar amount of the final aggregate levy as extended).
24

The adopted corporate and special purpose property taxes
25
to be levied for ... (current year) ... are ... (dollar amount

HB5550
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LRB104 19230 HLH 32676 b
1
of the proposed aggregate levy). This represents a ...
2
(percentage) ... increase over the previous year.
3

II. The property taxes extended for debt service and
4
public building commission leases for ... (preceding year) ...
5
were ... (dollar amount).
6

The estimated property taxes to be levied for debt service
7
and public building commission leases for ... (current year)
8
... are ... (dollar amount). This represents a ... (percentage
9
increase or decrease) ... over the previous year.
10

III. The total property taxes extended or abated for ...
11
(preceding year) ... were ... (dollar amount).
12

IV. The estimated total property taxes to be levied for
13
... (current year) ... are ... (dollar amount). This
14
represents a ... (percentage increase or decrease) ... over
15
the previous year.
16

A taxing district may, in its discretion and if
17
applicable, include the following in the notice:
18

V. The taxing district has estimated its equalized
19
assessed valuation to secure new growth revenue and must
20
adhere to the Property Tax Extension Limitation Law (PTELL or
21
"tax cap" law). PTELL limits the increase over the prior year
22
in the property tax extension of this taxing district to the
23
lesser of 5% or the percentage increase in the Consumer Price
24
Index (CPI), which is (insert applicable CPI percentage
25
increase).
26
(Source: P.A. 96-504, eff. 8-14-09.)

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LRB104 19230 HLH 32676 b
1

(35 ILCS 200/18-90)
2

Sec. 18-90.
Limitation on extension of county clerk.
The
3
tax levy resolution or ordinance approved in the manner
4
provided for in this Article shall be filed with the county
5
clerk in the manner and at the time otherwise provided by law.
6
No amount more than
the revenue neutral rate

105% of the
7
amount, exclusive of election costs, which has been extended
8
or is estimated to be extended, plus any amount abated by the
9
taxing district prior to extension, upon the final aggregate
10
levy of the preceding year
shall be extended unless the tax
11
levy ordinance or resolution is accompanied by a certification
12
by the presiding officer of the corporate authority certifying
13
compliance with or inapplicability of the provisions of
14
Sections 18-60 through 18-85. An amount extended under Section
15
18-107 in 1994 for a multi-township assessment district that
16
did not file a certification of compliance with the Truth in
17
Taxation Law may not exceed 105% of the amount, exclusive of
18
election costs, that was extended in 1993, plus a proportional
19
amount abated before extension, upon the levy or portion of a
20
levy that is allocable to assessment purposes in each township
21
that is a member of that multi-township assessment district.
22
(Source: P.A. 88-455; 88-660, eff. 9-16-94.)

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