Bill
HB 2660
Limits year-to-year assessed value increases from general reassessments to the lesser of 3% or CPI-U change, with exemptions for improvements or sales.
Note on source materials
- The documents you provided include two different bills labeled HB 2660: an Illinois measure that amends the Property Tax Code (title: “PROP TX‑ASSESSMENT LIMIT”) and an Arizona bill concerning affordable housing tax credits. This summary focuses on the Illinois property‑tax measure (the bill text under 35 ILCS 200/9‑145). If you want a separate summary of the Arizona affordable‑housing bill, tell me and I will prepare that.
Purpose and intent
- To limit year‑to‑year increases in a property’s assessed value resulting from a general reassessment, protecting property owners from large assessment jumps by capping increases at the lesser of a fixed percentage or the prior year’s inflation change.
Key provisions
- Adds subsection (b) to Section 9‑145 of the Illinois Property Tax Code, effective beginning with the 2026 assessment year:
- Any change in assessed value resulting from reassessment in a general assessment year may not exceed the lesser of:
1. 3% of the property’s prior‑year assessed value; or
2. The percentage change in the Consumer Price Index (CPI‑U, U.S. city average, all items) during the 12‑month calendar year preceding the assessment year.
- Exceptions: the limitation does not apply if the increased assessment is attributable to an addition, improvement, modification to the property, or if the property is sold.
- The bill defines “Consumer Price Index” by reference to the U.S. Bureau of Labor Statistics index (1982–84 = 100).
- Constitutional/municipal effect:
- States explicitly that this limitation is a denial and limitation under the Illinois Constitution (Article VII, Sec. 6(g)) of the power of home‑rule units to tax—i.e., it preempts home‑rule authority on this matter.
- Other statutory cross‑references:
- The amendment is subject to and modified by existing Sections 10‑110 through 10‑140 and 11‑5 through 11‑65 (assessment and township/county rules).
- Effective date: the act takes effect upon becoming law, but the assessment cap applies beginning with the 2026 assessment year.
Who is affected
- Residential, commercial and other property owners statewide in Illinois subject to general reassessments.
- County assessors and other local assessment officials (must apply the cap when calculating reassessments).
- Local taxing districts and municipalities: limits on assessed value growth can reduce or alter the growth of local property tax bases, potentially affecting revenues.
- Home‑rule units: the bill limits their authority regarding assessment‑driven tax base changes.
Potential impacts and considerations
- For property owners: reduces the risk of steep assessment increases in reassessment years, providing predictability and potential tax relief relative to uncapped reassessments.
- For local governments and taxing bodies: constrained assessed‑value growth may require higher levy rates or other revenue adjustments to maintain revenues if assessed values would otherwise have risen more than the cap permits.
- The CPI option ties the cap to inflation; when inflation exceeds 3%, the cap tracks CPI, otherwise the 3% floor applies (because the lesser of CPI or 3% is used).
- Exemptions for improvements and sales preserve reassessments reflecting real changes in property value from new construction or transfers.
Legislative status (from provided record)
- Introduced in Illinois House: Feb. 6, 2025 (Rep. Patrick Sheehan authored the Illinois text).
- Text states: effective upon becoming law; applies starting with 2026 assessment year.
- If you want, I can track current committee referrals or any amendments.
Compiled from official sources — confirm details with the bill’s official record.
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