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HB 1142

TIF DISTRICTS-REFERENDUM

104th Regular Session Introduced by Maura Hirschauer and 1 co-sponsor

Illinois bill requiring voter referendum approval before creating or extending Tax Increment Financing districts that redirect property tax growth to development projects.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 1142

Legislative bill overview

HB 1142 would require Tax Increment Financing (TIF) districts in Illinois to undergo voter referendum approval before creation or extension. Currently, TIF districts can be established by municipal decision-making bodies without direct voter consent. This bill shifts that authority to require explicit public approval through the referendum process.

Why is this important

TIF districts redirect property tax revenue growth to finance development projects, which reduces funding available to schools, counties, and other taxing bodies. This mechanism affects billions in Illinois public finances annually. Requiring referendums would give taxpayers direct voice in whether their future tax revenue growth gets diverted to development incentives.

Potential points of contention

  • School funding impact: School districts argue TIF districts significantly reduce their revenue; supporters counter that TIFs drive economic development that benefits communities long-term
  • Municipal autonomy vs. voter control: Cities claim they need flexibility to compete for development; reform advocates argue major fiscal commitments warrant public approval
  • Implementation complexity: Determining which existing TIFs would need retroactive referendum approval and establishing clear timelines could create legal and administrative challenges

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

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