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HB 3314

PROP TX-ASSESSMENT LIMIT

104th Regular Session Introduced by Rick Ryan

HB 3314 caps annual residential assessed-value growth in general assessment years to CPI change (starting 2026), unless due to improvements or sale; preempts home-rule limits.

House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
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Bill Summary · HB 3314

Bill Summary — HB 3314 (PROP TX‑ASSESSMENT LIMIT)

Overview / Purpose

HB 3314 would amend Section 9‑145 of the Illinois Property Tax Code to cap year‑to‑year increases in the assessed value of residential property in general assessment years. The cap ties maximum assessment growth to the annual change in the Consumer Price Index (CPI), beginning with the 2026 assessment year. The bill also expressly preempts home‑rule units from overriding this limitation. The Act would take effect upon becoming law.

Key provisions

  • Retains the statutory level of assessment (generally 33 1/3% of fair cash value for most property).
  • Adds a new limit (subsection (b)): beginning with the 2026 assessment year, in all counties the assessed value of residential property in any general assessment year cannot exceed the prior general assessment year’s assessed value multiplied by (1 + percentage change in the Consumer Price Index).
    • CPI defined as the BLS index: U.S. city average, all items, 1982–84 = 100.
    • The House amendment clarifies the CPI measurement period as the time from the first day of the immediately preceding general assessment year through the last day of the calendar year immediately preceding the reassessment year.
  • Exceptions: the limitation does not apply when the assessment increase is attributable to an addition, improvement, or modification to the property, or when the property is sold.
  • Declares the subsection a denial/limitation under Article VII, Section 6(g) of the Illinois Constitution on the taxing power of home‑rule units (i.e., preempts local authority to tax contrary to this limitation).
  • Maintains earlier provisions (e.g., special $1/acre valuation for certain nature preserve easements) and remains subject to Sections 10‑110 through 10‑140 and 11‑5 through 11‑65 of the Code.

Who would be affected

  • Residential property owners statewide (in all counties) — assessment increases in general assessment years would be capped to CPI growth unless property is improved or sold.
  • Local taxing bodies (counties, municipalities, school districts, special districts) — slower assessed value growth could constrain property tax base growth; jurisdictions could offset via higher tax rates but overall taxable base growth would be limited.
  • Home‑rule units — prevented from enacting local rules that would produce higher assessment increases inconsistent with this cap.

Example

If a home’s assessed value in the prior general assessment year was $100,000 and the applicable CPI change is 3%, the maximum assessed value for the next general assessment year would be $103,000 (absent improvements or sale).

Procedural status & timeline

  • Introduced by Rep. Rick Ryan: filed 2/18/2025 (first reading 2/18/25; filed 2/25/25 in some records).
  • House Committee Amendment No. 1 filed 3/12/2025 and incorporated changes to CPI measurement timing.
  • Referred to Rules, Revenue & Finance (Tax Policy subcommittee), State Affairs; public hearing and testimony recorded 4/14/2025; left pending in committee as of 4/14/2025.
  • Companion bill: SB 2102.
  • Effective date: upon becoming law.

Notes / Technical points

  • The bill applies to “general assessment years” (periodic county reassessments) rather than to every tax year; how this interacts with counties that reassess on different schedules may affect its practical application.
  • The bill does not change the assessment rate (33 1/3%); it limits assessed value growth, not the underlying statutory ratio.

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

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