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HB 3338

Allow child witness testify remotely in situations deemed traumatic by judge

2025 Regular Session Introduced by Eric Brooks and 9 co-sponsors

HB 3338 tasks Illinois Dept. of Revenue (with the Governor’s OMB) to study eliminating property taxes by 2030 and replacing the revenue with state income tax receipts.

Chapter 52, Acts, Regular Session, 2025
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Bill Summary · HB 3338

Summary — HB 3338 (104th General Assembly, 2025–2026)

Title (as filed): Relating to gender-affirming treatment; declaring an emergency.
Text/Subject (actual bill language): Property tax replacement feasibility study (Department of Revenue Law).
Introduced by: Rep. Thaddeus Jones (bill text lists 2/18/2025; filing records show 2/25/2025)
Current status: In committee upon adjournment (last action 2025-06-28).

Note: The bill’s formal title as provided at the top does not match the text of the bill. The operative language in the bill text directs the Department of Revenue to study eliminating the State’s property tax system and replacing that revenue with income tax receipts.

Purpose / Intent

HB 3338 directs the Illinois Department of Revenue (in consultation with the Governor’s Office of Management and Budget) to study the feasibility of eliminating the State’s property tax system by no later than January 1, 2030 and replacing the resulting revenue with income tax receipts. The study is intended to assess whether and how such a fundamental tax shift could be accomplished.

Key provisions

  • Adds Section 2505-820 to the Department of Revenue Law (20 ILCS 2505).
  • Requires the Department of Revenue, with the Governor’s OMB, to conduct a feasibility study on eliminating the property tax system in Illinois by January 1, 2030.
  • Directs the study to:
    • Examine other states that do not allow imposition of taxes on real property.
    • Propose either spending cuts or an increase in the State income tax rate to replace the revenue now raised by property taxes.

Who would be affected

  • Homeowners, landlords, commercial property owners (directly, if property taxes were eliminated).
  • Renters and businesses (indirectly, through potential changes in income tax rates and state/local service levels).
  • Local governments, school districts, counties, municipalities, and other local taxing bodies that currently rely heavily on property tax revenue.
  • Illinois Department of Revenue and Governor’s OMB (responsible for completing the study).
  • State budget and fiscal planners (would need to design revenue replacement and transition plans).

Potential impacts and issues to consider

  • Revenue replacement: Property taxes fund local services (K–12 education, public safety, local infrastructure). Replacing that revenue with state income tax receipts would shift revenue-raising from local to state sources and require precise revenue estimates and distributional mechanisms.
  • Distributional effect: Income and property taxes have different incidence; shifting to income taxation could be more progressive but may increase volatility of revenues (income tax receipts are more cyclical).
  • Legal/constitutional hurdles: Eliminating property tax authority for local governments may require state statutory changes and potentially constitutional amendments, depending on current Illinois constitutional and statutory provisions governing local taxing power and school funding.
  • Practical feasibility: The bill’s directive to study “other states that do not allow for the imposition of taxes against real property” may be difficult to implement — most U.S. jurisdictions levy some form of property taxation; the study would need to identify and analyze comparable models (if any) and alternative local revenue systems.
  • Transition logistics: Assessment, collection, accountability, and local budget continuity would require detailed transition planning, appropriation transfers, and compensation mechanisms for local entities.

Timeline & next steps

  • The study is to address feasibility of eliminating property taxes by no later than January 1, 2030 (a statutory target date).
  • As of the last recorded action (2025-06-28) the bill remained in committee upon adjournment; further committee action, amendments, or reintroduction would be needed for legislative advance.

Legislative history (selected)

  • Introduced / First reading: Feb 18–25, 2025 (records vary).
  • Referred to Rules Committee, Revenue & Finance Committee, Tax Policy subcommittee, Environmental Regulation.
  • Read first time and re-referred; in committee upon adjournment (6/28/2025).

Questions & issues to watch

  • Whether the bill’s sponsors or subsequent amendments address constitutional or statutory obstacles to eliminating local property taxes.
  • Estimates of revenue equivalence, distributional analyses, and proposed mechanisms to allocate replacement income tax receipts to local governments.
  • Stakeholder responses from school districts, municipalities, counties, homeowner associations, and business groups.

If you want, I can produce a short briefing on likely constitutional and fiscal law barriers in Illinois or a list of the specific stakeholders who would be most affected.

Compiled from official sources — confirm details with the bill’s official record.

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