Illinois districts would use 10-year inflation averages for tax limits

For levy years 2026 and later, the extension limit would use the lesser of 5% or the average Consumer Price Index increase over the prior 10 years. This applies to taxing districts covered by the Property Tax Extension Limitation Law. Voters may approve a different rate for one or more levy years through the referendum process. The 10-year average would apply to levy years 2026 and later.

Voters could approve a reduction in a taxing district’s aggregate extension base, which is used to calculate its limiting rate. The petition would apply to the taxing district named in it. A petition must be signed by voters equal to at least 10% of the votes cast in the district at the previous gubernatorial election. The petition must state the reduction amount and the levy years it would cover. A majority of votes cast on the question must favor the reduction. After a qualifying petition is filed, the question would go to voters at the next general or consolidated election.