103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4329

 

Introduced 1/16/2024, by Rep. John M. Cabello

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Prohibition of Closed-Door Tax Increases Act. Provides that a unit of local government may not increase a levied tax without authorization by referendum of the electors of the unit of local government. Provides that a referendum to increase a levied tax must include a sunset clause on which the tax increase authorized by the referendum measure shall expire. Provides that, if an increase in a levied tax is intended to generate a cash flow to service a debt, the increase must sunset no later than the date that the debt is scheduled to be paid off, and, if an increase in a levied tax is intended to generate a cash flow that will be spent for purposes other than debt service, the increase must sunset no later than 10 years after the date on which the tax increase begins. Provides that, to the extent the Act conflicts with any other provision of law, the Act controls. Provides that nothing in the Act infringes upon the right of a unit of local government to impose or increase nontax fines or fees. Provides that the Department of Revenue shall adopt rules to enforce the Act. Limits concurrent exercise of home rule taxing powers.


LRB103 35085 AWJ 65039 b

 

 

A BILL FOR

 

HB4329LRB103 35085 AWJ 65039 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Prohibition of Closed-Door Tax Increases Act.
 
6    Section 5. Referendums required. A unit of local
7government may not increase a levied tax as otherwise provided
8by law without authorization by referendum of the electors of
9the unit of local government as provided in this Act.
 
10    Section 10. Sunset of increased taxes. A referendum to
11increase a levied tax must include a sunset clause on which the
12tax increase authorized by the referendum measure shall
13expire. If an increase in a levied tax is intended to generate
14a cash flow to service a debt, the increase must sunset no
15later than the date that the debt is scheduled to be paid off.
16If an increase in a levied tax is intended to generate a cash
17flow that will be spent for purposes other than debt service,
18the increase must sunset no later than 10 years after the date
19on which the tax increase begins.
 
20    Section 15. Referendum language.
21    (a) The governing body of a unit of local government that

 

 

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1wishes to submit a tax increase to the electors of the unit of
2local government shall submit to the proper election
3authorities referendum language substantially in the form
4required under this Section.
5    (b) For a referendum to increase a levied tax to generate a
6cash flow to service a debt, the referendum must be
7substantially in the following form: "Shall the (name of the
8tax) authorized under (statutory or ordinance authority) be
9increased to (new tax rate) from (old tax rate) on (date of
10increase) to pay the (description of debt), with the increased
11rate ending on (the date that the debt is scheduled to be paid
12off)?"
13    (c) For a referendum to increase a levied tax to generate a
14cash flow that will be spent for purposes other than debt
15service, the referendum must be substantially in the following
16form: "Shall the (name of the tax) authorized under (statutory
17or ordinance authority) be increased to (new tax rate) from
18(old tax rate) on (date of increase) for (description of the
19purpose for the tax increase), with the increased rate ending
20on (a date no later than 10 years after the date on which the
21tax increase begins)?"
 
22    Section 85. Conflict with other laws; exclusions.
23    (a) To the extent this Act conflicts with any other
24provision of law, this Act controls.
25    (b) Nothing in this Act infringes upon the right of a unit

 

 

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1of local government to impose or increase nontax fines or
2fees.
 
3    Section 90. Rules. The Department of Revenue shall adopt
4rules to enforce this Act.
 
5    Section 95. Home rule. A home rule unit may not regulate
6the levy of taxes in a manner inconsistent with this Act. This
7Act is a limitation under subsections (i) and (g) of Section 6
8of Article VII of the Illinois Constitution on the concurrent
9exercise by home rule units of powers and functions exercised
10by the State.