06-02-2025
Bill in the Illinois capitol would create more guardrails for tax levies
SPRINGFIELD, Ill. (WCIA) — A new bill introduced into the Illinois General Assembly aims to give taxpayers a more transparent voice when local governments discuss tax increases.
A newly introduced bill aims to prevent local governments from raising levy taxes behind closed doors. The legislation requires local government to create a referendum where voters will have a say before any tax increase happens.
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The bill's sponsor, State Representative John M. Cabello, (R-Machesney Park), said this is something that should be in place.
'I see that our taxes are constantly going up and up and up and up and I firmly believe that the taxpayer should have a say if a government is going to raise their taxes,' Cabello said. ' If it's going to be good for the folks and the government wants to do it, let it go to a referendum.'
Levied taxes are taxes local government bodies, like school districts, municipalities and counties, collected from business and property owners to help pay for public services and programs such as infrastructure, police and education.
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The budget for the levy tax is based on the needs of the local government. There are laws that restrict how much the levy tax can be increased annually.
The bill comes with rules in place; for any referendum to hike levied taxes, it must include a sunset clause with the specific time when the tax increase will expire.
If the purpose is to bring in revenue to pay off debt, then the tax increase must end automatically when the debt is paid off. For any other reason, the tax raise must end no later than ten years unless the public vote to extend it by referendum.
This bill would empower Illinoisans' oversight while creating challenges for local government.
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A spokesperson for the Illinois Municipal League, which represents local government bodies in the statehouse, said the group opposes the bill as it could potentially reduce their revenue.
School districts and municipalities often rely on the levy tax for construction, renovation, urgent financial needs and to keep essential services running without the delay of voters' approval.
With this law, it could prevent them from adapting to economic and event shifts. In the current law, many tax increases do not have a time limit.
Cabello said tax increases shouldn't continue after the project it was requested for is complete.
'If they have a plan and they say, look, this the school building or the project is going to be completed by this date and we will have it fully paid off by 2048 then it should sunset in 2048,' Cabello said. 'It shouldn't just be a tax that continues on forever.'
If the bill becomes law, it will limit municipalities' home ruling power. The Illinois Department of Revenue will take charge to ensure the rules are implemented. The bill is now assigned to a committee.
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