Agencies
Services
This newsletter is written to inform you of recent updates or news provided by the Local Tax Allocation Division.
For information:
Visit our website at:
tax.illinois.gov
Contact us at:
Local Tax Allocation Division 3-500
Illinois Department of Revenue
101 W. Jefferson Street
Springfield, IL 62702
Phone: 217 785-6518
Email: Rev.LocalTax@illinois.gov
Don’t Miss Out on Tax Dollars Due to Inaccurate Jurisdictional Boundaries!
On January 30, 2026, the Local Tax Allocation Division (LTAD) will release local taxing jurisdiction boundaries via a MyLocalTax (MLT) message. These boundaries will also be available under the Resources heading on the LTAD webpage.
What Local Governments Must Do
- Review boundaries carefully: Check the files sent through MLT or posted online under LTAD’s Resources. Compare with your own maps: Overlay IDOR’s boundaries with your jurisdiction’s official boundary files to spot discrepancies.
- Submit corrections promptly: Email REV.GIS.Tech@illinois.gov with corrections or updated boundary files before April 1, 2026. Note: Corrections submitted after April 1, 2026, and on or before April 1, 2027, will not be implemented until July 1, 2027. Boundary changes made through local ordinances (e.g., annexations or disconnections), can still be processed as they are submitted.
- Request shape files if needed: IDOR can provide shape files to help identify boundary issues by emailing REV.GIS.Tech@illinois.gov.
- Document changes internally: Keep records of what was submitted and when, in case of future audits or disputes.
Why This Matters
- Ensures accurate sales tax rates in IDOR’s database.
- Prevents loss of tax revenue due to misallocated funds.
- Helps to identify the correct rates and allocate funds properly.
- Complies with the Leveling the Playing Field for Illinois Retail Act (35 ILCS 185/5-30).
Grocery Tax
Submission Status
The Illinois Department of Revenue (IDOR) received 659 grocery tax ordinances before the October 1, 2025, filing deadline. While our Legal Division was unable to review all submissions by that date, any ordinance postmarked or submitted through MyLocalTax (MLT) by October 1 meets the filing deadline. If your ordinance needs correction, you will be given additional time to make those changes.
Track Your Ordinance
To check the status of your grocery tax ordinance, visit the Local Government Grocery Tax Ordinance Information webpage. This page also includes informational or rate change bulletins as they are published.
Disbursement Details
For jurisdictions imposing a grocery tax effective January 1, 2026:
- The first disbursement will occur in April 2026.
- Disbursement will be separate from other sales tax allocations but sent at the same time.
- Payments will be made using your existing method (paper check or direct deposit).
Remittance Reports
When ordering remittance reports through MLT:
- You will receive a separate report for Municipal Grocery Tax (MGT) or County Grocery Tax (CGT).
- For confidentiality, these amounts will be combined with the Municipal Tax (MT) or County Tax (CT) portions of IDOR’s web reports.
Senior Citizens Real Estate Tax Deferral Program Update
Program Changes Public Act 104-0452
New legislation signed into law on December 12, 2025, updates eligibility criteria for the Senior Citizens Real Estate Tax Deferral Program (SCD):
Updated Maximum Household Income:
- $75,000 for tax year 2025 (increased from $65,000)
- $77,000 for tax year 2026
- $79,000 for tax years 2027 and beyond
Loan Cap Extension:
The temporary increase in the maximum loan amount to $7,500, originally set to expire after tax year 2025, is now permanent. The cap remains at $7,500 moving forward.
Communications sent in December 2025:
- December 12, 2025: Updated forms and instructions were emailed to all counties. If you administer the SCD program and did not receive this email, please contact LTAD.
- December 12, 2025: The PTAX-1035, Senior Citizens Real Estate Tax Deferral Annual Participant List, was mailed to counties with active participants.
- December 16, 2025: The PTAX-1135, Senior Citizens Real Estate Tax Deferral Program Statement, was mailed to each participant. The statement provides the current total amount of liens for amounts deferred under the program.
Application Reminder:
Applications must be completed in full. Incomplete applications will be returned to the Collector’s Office for corrective action.
Annual Recertification of Reciprocal Agreements
Recertification Timeline:
If you have an active MyLocalTax (MLT) account, you will receive a reminder message 30 days before your recertification date. This date is based on the last time your agreement was updated or recertified. For many accounts, recertification occurs in January each year.
Timely Recertification is Required:
To avoid account disruptions, recertify your agreement on time. If your certification lapses, all users with confidential MLT access will have their accounts locked until recertification is complete.
To recertify:
- Submit a letter on your local government’s letterhead using the LGT-36 Reciprocal Agreement Template
- The letter does not require an original signature
- You may submit it via email or through MLT
Note: The LGT-36 has been updated. Please use the current version available on the Forms and Agreements webpage.
Submitting Documents:
- Existing Agreements (No New Individuals):
If you are not adding new authorized individuals, you only need to submit the letter. Attachments A and B are not required.
- Adding New Authorized Individuals:
Submit Attachment B for each new person being added.
- Submitting via MLT:
If you have a confidential MLT account, use the “Submit Reciprocal Agreement” task in your allocation account to send documents.
- No Existing Agreement or Confidential Account:
If no one in your office has a confidential MLT account or an existing agreement, you must mail original signed copies of Attachments A and B to IDOR.
Both forms are available on the Forms and Agreements webpage.
- New MLT Accounts
Newly elected officials or staff must register for their own MLT account. Do not share existing logins. To register, visit MyLocalTax and select: “Don’t have a logon? Register here.”
- Removing Former Employees
Local governments must notify LTAD when an employee with MLT access or listed on the reciprocal agreement leaves their position. This ensures proper account closure and removal from the agreement.
Tax Rate Changes
IDOR has issued multiple tax rate change Informational Bulletins effective January 1, 2026, to affected businesses and local governments.
Important Dates
| Date | Description |
|---|---|
| March 20, 2026 | Deadline to file ordinances for Simplified Municipal Telecommunication Tax rate changes. |
| April 1, 2026 | Deadline to file ordinances for tax rate changes that do not require voter approval (e.g., Business District, Cannabis, Home Rule and Non-Home Rule sales taxes, and Motor Fuel taxes) effective July 1, 2026. |
| May 1, 2026 | Deadline to file ordinances for tax rate changes that require voter approval (i.e., County Public Safety and County School Facility sales taxes) effective July 1, 2026. |
IDOR News & Updates
IDOR offers an email and SMS text subscription service to keep local governments informed of the latest news, updates, and important deadlines. Sign up by visiting tax.illinois.gov. LTAD Newsletters will only be sent through MLT messages and IDOR’s News & Updates.
LGT-37 Printed by authority of the State of Illinois - Electronic only, One copy