PROP TX-ABATEMENT

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2862

Introduced 1/16/2026, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

35 ILCS 200/18-167 new
35 ILCS 200/20-15

Amends the Property Tax Code. Provides that a municipality may, by
ordinance, designate an area within its jurisdiction as a retail
improvement abatement area if the area (i) is a contiguous area, (ii)
consists of at least one-half square mile and not more than 12 square
miles, exclusive of lakes and waterways, and (iii) has a vacancy rate for
retail properties that exceeds 40% at the time the ordinance is adopted.
Provides that owners of retail property that is in a retail improvement
abatement area may enter into one or more agreements with any of the taxing
districts in which the property is located to abate all or a portion of the
taxes levied by the taxing district on the subject property. Provides that
the agreement shall require the property owner to make a special payment to
the taxing district in lieu of the property taxes that would otherwise be
imposed on the property.
LRB104 16653 HLH 30057 b

A BILL FOR

SB2862
LRB104 16653 HLH 30057 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 adding
5
Sections 18-167 and 20-15 as follows:

6

(35 ILCS 200/18-167 new)
7

Sec. 18-167.
Retail improvement abatement area.

8

(a) On and after January 1, 2027, a municipality may, by
9
ordinance, designate an area within its jurisdiction as a
10
retail improvement abatement area if the area (i) is a
11
contiguous area, (ii) consists of at least one-half square
12
mile and not more than 12 square miles, exclusive of lakes and
13
waterways, and (iii) has a vacancy rate for retail properties
14
that exceeds 40% at the time the ordinance is adopted.
15

(b) After the designation of a retail improvement
16
abatement area under this Section, the owner of property that
17
is located in the retail improvement abatement area and that
18
is used primarily for retail purposes may enter into one or
19
more agreements with any of the taxing districts in which the
20
property is located to abate all or a portion of the taxes
21
levied by the taxing district on the subject property. An
22
agreement entered into under this subsection (b) shall require
23
the property owner to make a special payment to the taxing

SB2862
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LRB104 16653 HLH 30057 b
1
district in lieu of the property taxes that would otherwise be
2
imposed on the property. The special payment shall be
3
calculated as a percentage of the retail sales that occur at
4
the property during the taxable year. If the retail business
5
is a tenant, then the owners of the retail business may enter
6
into an agreement under this Section if the owners of the
7
retail business enter into a triple net lease with the
8
property owner pursuant to which the owners of the retail
9
business are liable for the payment of property taxes under
10
this Code.

11

(c) Special payments required under this Section shall be
12
collected and are subject to the same enforcement procedures
13
as provided in Article 21 of this Code with respect to the
14
payment of property taxes under this Code.

15

(35 ILCS 200/20-15)
16

Sec. 20-15.
Information on bill or separate statement.
17
There shall be printed on each bill, or on a separate slip
18
which shall be mailed with the bill:
19

(a) a statement itemizing the rate at which taxes have
20

been extended for each of the taxing districts in the
21

county in whose district the property is located, and in
22

those counties utilizing electronic data processing
23

equipment the dollar amount of tax due from the person
24

assessed allocable to each of those taxing districts,
25

including a separate statement of the dollar amount of tax

SB2862
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LRB104 16653 HLH 30057 b
1

due which is allocable to a tax levied under the Illinois
2

Local Library Act or to any other tax levied by a
3

municipality or township for public library purposes,
4

(b) a separate statement for each of the taxing
5

districts of the dollar amount of tax due which is
6

allocable to a tax levied under the Illinois Pension Code
7

or to any other tax levied by a municipality or township
8

for public pension or retirement purposes,
9

(b-5) a list of each tax increment financing (TIF)
10

district in which the property is located, the dollar
11

amount of tax due that is allocable to the TIF district,
12

and each redevelopment project that (i) is associated with
13

the TIF district and (ii) has been completed during or
14

before the taxable year for which the bill is prepared or
15

is in the process of being completed during that taxable
16

year,
17

(c) the total tax rate,
18

(d) the total amount of tax due,
and
19

(e) the amount by which the total tax and the tax
20

allocable to each taxing district differs from the
21

taxpayer's last prior tax bill
, and

.
22

(f) the amount of any special payment required under
23

Section with respect to the property under Section 18-167.

24

The county treasurer shall ensure that only those taxing
25
districts in which a parcel of property is located shall be
26
listed on the bill for that property.

SB2862
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LRB104 16653 HLH 30057 b
1

In all counties the statement shall also provide:
2

(1) the property index number or other suitable
3

description,
4

(2) the assessment of the property,
5

(3) the statutory amount of each homestead exemption
6

applied to the property,
7

(4) the assessed value of the property after
8

application of all homestead exemptions,
9

(5) the equalization factors imposed by the county and
10

by the Department, and
11

(6) the equalized assessment resulting from the
12

application of the equalization factors to the basic
13

assessment.
14

In all counties which do not classify property for
15
purposes of taxation, for property on which a single family
16
residence is situated the statement shall also include a
17
statement to reflect the fair cash value determined for the
18
property. In all counties which classify property for purposes
19
of taxation in accordance with Section 4 of Article IX of the
20
Illinois Constitution, for parcels of residential property in
21
the lowest assessment classification the statement shall also
22
include a statement to reflect the fair cash value determined
23
for the property.
24

In all counties, the statement must include information
25
that certain taxpayers may be eligible for tax exemptions,
26
abatements, and other assistance programs and that, for more

SB2862
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LRB104 16653 HLH 30057 b
1
information, taxpayers should consult with the office of their
2
township or county assessor and with the Department of
3
Revenue. For bills mailed on or after January 1, 2026, the
4
statement must include, in bold face type, a list of
5
exemptions available to taxpayers and contact information for
6
the chief county assessment officer.
7

In counties which use the estimated or accelerated billing
8
methods, these statements shall only be provided with the
9
final installment of taxes due. The provisions of this Section
10
create a mandatory statutory duty. They are not merely
11
directory or discretionary. The failure or neglect of the
12
collector to mail the bill, or the failure of the taxpayer to
13
receive the bill, shall not affect the validity of any tax, or
14
the liability for the payment of any tax.
15
(Source: P.A. 103-592, eff. 1-1-25; 104-6, eff. 6-16-25.)

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