WeVote
Log In

Bill

Bill

HB 3245

Relating to coordinated care organization global budgets; declaring an emergency.

2025 Regular Session Introduced by Ed Diehl and 2 co-sponsors

HB 3245 creates a 20-year local property tax abatement for designated blighted areas to spur renovation, capping increases over base-year taxes and requiring district review.

In committee upon adjournment.
0
WeVote Research Nonpartisan
Bill Summary · HB 3245

HB 3245 — Revitalization abatement (35 ILCS 200/18‑184.25 new)

Status: In committee upon adjournment (last action 2025-06-28)
Introduced: 2025-02-24 (sponsor: Rep. Adam M. Niemerg)
Effective date: upon becoming law

Purpose / intent

HB 3245 creates a new, optional local tax abatement tool intended to encourage renovation, demolition, or improvement of properties in municipal “blighted” areas by limiting increases in property taxes for qualifying properties for up to 20 years.

Key provisions

  • Adds Section 18‑184.25 to the Property Tax Code (35 ILCS 200).
  • Municipality authority:
    • For assessment year 2025 and thereafter, municipal corporate authorities may designate one or more areas as blighted by ordinance.
    • The municipality may enter into an agreement with a property owner in a designated area for renovation, demolition, or improvement.
  • Abatement mechanics:
    • The municipality may order the county clerk to abate (reduce) a portion of property taxes levied by the municipality and other taxing districts on the eligible property.
    • The abatement amount may not exceed the difference between (i) the property taxes paid for the property in the “base year” and (ii) the property taxes that would otherwise be due in the assessment year for which the abatement is sought.
    • “Base year” is defined as the assessment year immediately prior to the assessment year in which the owner enters into the agreement.
    • The abatement applies for a period of 20 years and extends to subsequent owners during the abatement period.
  • Review process and notice:
    • Before final adoption of an abatement ordinance, the municipality must mail notice to each affected taxing district.
    • Each affected taxing district has 10 days after the ordinance is proposed to appoint one member to an Abatement Review Board to review the proposed terms.
    • The Board is to be convened by the mayor or village president; the ordinance may not be adopted fewer than 45 days after the Board is convened. The bill states that failure to appoint a member does not prevent the Board from proceeding.

Who is affected

  • Directly: property owners in municipally designated blighted areas who enter agreements with their municipality; subsequent purchasers of those properties while an abatement is in effect.
  • Indirectly: municipalities (which must adopt ordinances and manage agreements), county clerks (who process abatements), and other local taxing districts (e.g., school districts, special districts, counties) that may experience reduced tax receipts for eligible properties for up to 20 years.

Potential impacts

  • Encourages redevelopment or rehabilitation of blighted properties by reducing near‑term tax increases tied to improvements.
  • Reduces tax revenue collected by affected taxing districts for the duration of the abatement (subject to the abatement cap described).
  • Leaves adoption discretionary at the municipal level; program design and uptake will vary by locality.

Procedural notes

  • The bill was reported “do pass with amendments” (A‑Engrossed) and referred to Ways & Means on 2025‑04‑16. It remains in committee as of adjournment (2025‑06‑28).

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

Sign in to ask a question.