Bill
HB 4690
Allows municipalities to add sanitary sewer taxes to property tax bills for funded sewer projects, shown as a separate line item and excluded from PTEL aggregate extensions.
Title: PROP TAX-SANITARY SEWER FEES
Jurisdiction: Illinois
Sponsor: Rep. Tracy Katz Muhl (co-sponsor listed)
Bill Type: Revenue-related act; amends the Property Tax Code
Effective Date: Immediate upon enactment
Status: As introduced and through recent actions in 2026, the bill moved through committees and floor actions (House Revenue & Finance; amendments filed; floor consideration ongoing)
Key Purpose and Intent
- Allow municipalities that are constructing or replacing sanitary sewers to add the sanitary sewer tax to a taxpayer’s property tax bill, collected by the county collector as part of the property tax process.
- Explicitly provide that sanitary sewer taxes collected in this manner are not counted toward any taxing district’s aggregate extension under the Property Tax Extension Limitation Law (PTEL).
Main Provisions (substantive changes)
- New Section 20-17 (Sanitary sewer taxes):
- A municipality authorized to levy a tax for maintaining, constructing, or replacing sanitary sewers may enact an ordinance or resolution to have those sanitary sewer taxes collected on behalf of the municipality as part of the taxpayer’s property tax bill.
- A copy of the adopted ordinance/resolution must be transmitted to the county collector within 30 days of adoption.
- The sanitary sewer taxes must appear as a separate line item on the property tax bill.
- Sanitary sewer taxes collected under this provision shall not be considered part of any taxing district’s aggregate extension for PTEL purposes.
- Amendments to PTEL framework (Sections 18-185 and 20-17 references in 35 ILCS 200):
- The bill integrates sanitary sewer funding within the extended PTEL designations by explicitly adding sewer-related debt/levies to the PTEL analysis, while ensuring they do not count toward aggregate extensions for PTEL limits.
- Definitions and cross-references are updated to ensure consistency with the new sanitary sewer levy treatment.
- The bill preserves existing categories for aggregate extensions, debt service bases, and related exclusions, while adding subsection-specific language for sanitary sewers (pursuant to Section 20-17).
Who Is Affected
- Municipalities that are constructing or replacing sanitary sewers and desire to collect sewer-related taxes through the property tax system.
- Property taxpayers in those municipalities, who will see sanitary sewer taxes listed as a separate line item on their annual property tax bill.
- County collectors (taxing authorities) tasked with collecting the tax and transmitting a copy of the ordinance/resolution to the county clerk.
Procedural and Timeline Aspects
- Upon enactment, the sanitary sewer tax collection option becomes available to qualifying municipalities immediately.
- Municipalities adopting the option must notify the county collector within 30 days of adoption.
- The line item must appear on the property tax bill as a distinct entry, facilitating transparency for taxpayers.
- The sanitary sewer tax collected under this framework is exempt from inclusion in a taxing district’s PTEL aggregate extension, preserving the existing PTEL framework while enabling sewer-specific funding through property taxes.
Potential Implications and Considerations
- Fiscal: Creates an avenue for municipalities to fund sewer infrastructure (construction/replacement) via the property tax system, potentially broadening revenue stability for sewer projects.
- Administrative: Requires coordination between municipalities, county collectors, and county clerks to implement the new collection flow and maintain clear tax bill presentation.
- Tax Policy: Aligns with existing PTEL mechanics by isolating sewer taxes from aggregate extensions, avoiding distortions to PTEL calculations while enabling targeted sewer improvements.
Notes
- The text references ongoing updates to the Property Tax Code’s PTEL provisions, including multiple defined terms and transition rules over different levy years. The core addition is the ability to collect sanitary sewer taxes through the property tax bill and the separation of those taxes from PTEL aggregations.
- The act’s effective date is stated as immediate, suggesting rapid applicability once enacted.
Compiled from official sources — confirm details with the bill’s official record.
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