HB3314 amends Section 9-145 of the Illinois Property Tax Code to cap the assessed value of residential property in each general assessment year. Under the bill, a home’s assessed value could not increase by more than the percentage change in the Consumer Price Index from the prior calendar year, unless the higher assessment is caused by an addition, improvement, or other modification to the property. The bill applies beginning with the 2026 assessment year and expressly excludes properties that are sold from the limitation.
The measure also states that this assessment cap applies in all counties and is a limitation on the taxing power of home rule units. In practical terms, it would create a statewide assessment-growth limit for owner-occupied and other residential property, tying reassessments to inflation rather than allowing larger year-to-year jumps based solely on market changes. The bill does not change the general 33 1/3% assessment ratio in the Property Tax Code; it narrows how much residential assessments may rise in a general reassessment year.
Impact
HB3314 would alter Illinois property tax administration by imposing a statewide cap on increases in the assessed value of residential property during general reassessment years. It would amend the Property Tax Code to constrain assessors and county taxing authorities, while preserving existing rules for improvements, additions, and property transfers. Because the bill declares the provision a denial and limitation on home rule taxing authority, it would preempt local home rule units from adopting contrary rules on this issue.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition from legislative debate. Based on the bill’s structure and caption, the measure appears designed to provide taxpayer relief and predictability by limiting assessment spikes. The absence of recorded discussion means the overall sentiment cannot be measured from the available materials, but the bill’s framing suggests a pro-homeowner, anti-tax-increase policy approach.
Contention
The main likely point of contention is whether tying residential assessments to CPI is an appropriate substitute for market-based valuation. Supporters would likely argue that it protects homeowners from sharp assessment increases and makes property taxes more predictable, while opponents may argue it could reduce fairness across taxpayers, distort assessments relative to current market value, and shift tax burdens to other property classes or jurisdictions. The bill’s explicit preemption of home rule taxing authority may also be controversial because it limits local control.