Bill
HB 5550
Illinois bill requires public notice, hearings, and certification when a district’s levy exceeds the revenue neutral rate by more than 5%, boosting tax increase transparency.
Title: TRUTH IN TAX-REVENUE RATE
Jurisdiction: Illinois
Sponsored by: Rep. Bradley Fritts (Co-sponsors: Rep. Ryan Spain)
First Introduced: February 13, 2026
Session: 104th General Assembly
Status notes: Referred to Rules Committee (initial), later assigned to Revenue & Finance Committee; added Co-Sponsor in April 2026.
Purpose of the bill
- To modify the Truth in Taxation Law by tightening the process for any proposed property tax levy that would exceed the district’s revenue neutral rate.
- The bill requires greater notice, public hearings, and formal certification when a taxing district seeks to extend a tax rate that would exceed the revenue neutral rate (RNR) by more than 5 percent (i.e., more than 105% of the prior year’s extension/estimated extension).
Key provisions and changes
- Definitions and target scope:
- Maintains the core Truth in Taxation framework (35 ILCS 200/11 et seq.); updates multiple sections to apply the notice/hearing requirements when an aggregate levy would exceed the revenue neutral rate.
- Revenue neutral rate (RNR): The rate that would generate the same property tax revenue as the prior year, using the current year total assessed value.
- Notice and hearing requirements (Sections 18-56, 18-65, 18-70, 18-80, 18-85, 18-90):
- If a district’s proposed aggregate levy would exceed the RNR by more than 5% (i.e., more than 105% of the prior year’s final aggregate levy, excluding election costs and net of any abatement), the district must:
- Publish notice and hold a public hearing on the intent to exceed the RNR.
- Ensure the hearing is separate from the district’s budget hearing.
- Beginning levy year 2027, districts planning to exceed the RNR must:
- Notify the county clerk with details (date, time, location, proposed rate).
- The county clerk must notify property taxpayers by mail (at least 10 days before the hearing) or electronically (with consent), listing the designated notices. A single notice may cover all relevant taxing districts for the taxpayer.
- The notice format must follow prescribed language outlining the estimated taxes, prior year figures, and the intent to exceed the RNR. The notice may include information about PTELL (Property Tax Extension Limitation Law) limitations if applicable.
- Notice content requirements (Section 18-80 form) include:
- Public hearing details, prior and current year levy figures, and percentage change.
- Information about debt service/public building leases, and total levy increases.
- Adopted levy notices (Section 18-85):
- If the final adopted levy exceeds the RNR by more than 5% and there was no prior required notice under Section 18-70, districts must publish a public notice within 15 days detailing the adopted figures and changes, including debt service and total levy information.
- Certification and filing (Section 18-90):
- Any levy resolution/ordinance extended beyond the RNR by more than 5% requires certification by the presiding officer that the district is in compliance with the Truth in Taxation provisions.
- Special provisions apply to a limited historical case (multi-township districts) regarding caps from prior years.
Who is affected
- Local taxing districts in Illinois (including home-rule units) that propose to extend a rate above the revenue neutral rate by more than 5%.
- County clerks who administer and disseminate notice to taxpayers.
- Property owners within the taxing districts who receive enhanced notice (mail or electronic) of proposed tax increases.
- Taxpayers seeking transparency around property tax increases and the underlying values affecting assessments (PTELL considerations may apply).
Procedural/timeline aspects
- Effective notice trigger: 5% threshold above the revenue neutral rate (RNR).
- Mandatory public notice and hearing for exceedances above 105% of prior year’s levy.
- Post-2027 requirement for county clerk involvement to notify property taxpayers at least 10 days before hearings.
- Notices must include standardized language and be published in a specified format, ensuring taxpayers understand estimated taxes, prior year levies, and proposed changes.
- Certifications are required at the time the levy is filed with the county clerk to verify compliance with the Truth in Taxation provisions.
Overall impact
- The bill enhances taxpayer transparency and public participation for property tax increases that exceed the revenue neutral rate by a threshold.
- It expands notice requirements to inform taxpayers in a timely manner and creates formal steps (hearings, notices, and certifications) to ensure accountability in district levy decisions.
Compiled from official sources — confirm details with the bill’s official record.
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