(ILLINOIS) — The first hard deadline in Illinois’ fast-moving education funding debate is March 1, 2026, when a property tax relief review report is due as lawmakers weigh Gov. JB Pritzker’s proposed new statewide fee on certain social media firms.
The fee is not law yet. It was introduced in Pritzker’s FY 2027 budget framework on February 18, 2026, and would require Illinois General Assembly approval before any company owes a dollar. Still, immigrants, visa holders, and internationally mobile families should track the dates now. State and local tax changes can affect take-home pay, business costs, and estimated tax planning.
Information is current as of February 20, 2026.
📅 Deadline Alert: March 1, 2026 is the due date for Illinois’ property tax relief review report. It can shape later education funding decisions tied to the proposal.
Deadline summary: what’s coming up (and what it could affect)
| Event | Date | Who it affects | Consequence of missing it |
|---|---|---|---|
| IL property tax relief review report due | March 1, 2026 | Districts, policymakers, taxpayers | Can delay or redirect future relief policy debates |
| Chicago social media tax effective date | January 1, 2026 | Covered platforms with Chicago users | Ongoing compliance and monthly liability under city rules |
| Illinois FY 2027 begins | July 1, 2026 | State agencies, school funding | Budget items take effect for the new fiscal year |
| Tax year 2026 federal return due (filed in 2027) | April 15, 2027 | Most individuals, including many immigrants | Late filing penalty generally 5% per month up to 25% (IRS rules) |
| Federal extension deadline (Form 4868) | October 15, 2027 | Taxpayers needing extra time | Avoids late filing penalty, but does not extend time to pay |
| FBAR (FinCEN 114) due | April 15, 2027 (auto-extends to Oct. 15) | Anyone with $10,000 aggregate foreign accounts | Non-willful penalty can reach $10,000 per violation |
1) What Illinois is proposing and why it matters
Pritzker is proposing a statewide monthly fee on certain large social media companies. His office projects it would raise $200 million per year. The stated purpose is dedicated funding for K–12 education, as part of Illinois’ $56 billion FY 2027 budget. The budget also addresses a projected $2.0 to $2.2 billion shortfall.
This is a policy proposal, not an enacted tax. The fee’s details, definitions, and enforcement would be set in bill text. Amendments are likely during committee review.
The fee is designed as a tiered structure. The per-user charge increases with scale. The exact tier thresholds and base amounts are best read as a bracketed schedule.
2) Who would be covered and how the fee is calculated
The proposal targets platforms with large numbers of active Illinois users. It also focuses on platforms that collect consumer data and sell it to third parties.
Mechanically, it is described as a tiered monthly per-user fee. Companies above a user threshold would pay a monthly amount tied to Illinois user counts. The schedule includes base charges at higher tiers plus per-user amounts above each tier’s floor.
“Active users” is where compliance fights usually start. In practice, companies may measure activity by logins, unique devices, or monthly active accounts. Illinois would need definitions, recordkeeping rules, and audit authority. Those details matter for any company trying to prove the count.
The proposal also includes a no-pass-through provision, meaning the company could be barred from charging the fee “directly” to users as a line item. It does not guarantee that businesses cannot recover costs indirectly. Businesses can adjust prices, ad rates, or product features in ways regulators may find hard to trace.
⚠️ Warning: “No pass-through” language can limit direct surcharges. It does not prevent indirect cost recovery through ads, subscriptions, or service changes.
3) Where the money goes: projected revenue and K-12 funding
Pritzker’s office projects $200 million annually dedicated to K–12 education funding. In budgeting, “dedicated” typically means lawmakers create an earmark, a special fund, or a statutory direction for how receipts must be used.
Illinois’ K–12 formula is the Evidence-Based Funding (EBF) approach. EBF is built around adequacy targets and equity adjustments across districts. The key thing to watch in bill text is whether the fee receipts must flow into an EBF-related fund. Also watch for public reporting requirements. Those reports can show who paid and where money went.
4) How it fits into the broader FY 2027 budget and education package
The FY 2027 proposal includes $10.7 billion for K–12, including a $305 million increase for the EBF formula.
Special education and transportation would rise by $51 million. Districts had requested $151 million, leaving a $100 million gap. That gap can force districts to use local dollars or reallocate from other services.
Property tax relief grants are not included. They were paused last year. A review report is due March 1, 2026, which is why that date matters.
Critics argue the plan still falls short of adequacy goals. Others argue costs may still reach consumers indirectly. The proof will be in statutory definitions, enforcement design, and later revenue reports.
5) Comparison point: Chicago’s per-user tax and what statewide action could change
Chicago already has a social media tax effective January 1, 2026. It is structured as a per-active-user charge above a threshold and is intended to support mental health programs.
A statewide program could differ in key ways:
- Scope: Illinois-wide, not city-only
- Eligibility: Includes a data-selling condition
- Compliance: State reporting, state audits, and state penalty rules
- Status: Chicago’s is effective; the statewide proposal needs committee action, votes in both chambers, and the governor’s signature
Examples of monthly liabilities will depend on user counts and how “active users” are defined.
6) Policy arguments, compliance questions, and potential ripple effects
Pritzker ties the proposal to youth mental health, misinformation, and polarization. The policy theory is that platforms profiting from engagement should help pay for mitigation through education funding.
For compliance, readers should watch for:
- The legal definition of active Illinois users
- What counts as selling data to third parties
- Reporting cadence (monthly vs. quarterly)
- Audit powers and penalty schedules
For economic incidence, the legal rule is about who may be charged directly. The economic reality can look different if ad pricing or subscription terms change.
7) Key dates and what to watch next
Track three milestones:
- FY 2027 budget process timing after the February 18, 2026 address
- Chicago’s January 1, 2026 tax as a near-term comparator
- The March 1, 2026 property tax relief review report, which can influence later school funding debates
For federal planning tied to tax year 2026 (returns filed in 2027), keep your baseline deadlines in mind. File Forms 1040 or 1040-NR correctly based on residency rules in IRS Publication 519 (available at irs.gov/pub/irs-pdf/p519.pdf). If you need more time, use Form 4868 and pay what you expect to owe by April 15, 2027. For foreign accounts, check FBAR rules and deadlines and use the IRS international portal (irs.gov/individuals/international-taxpayers) and forms page (irs.gov/forms-pubs).
Action items:
- Mark March 1, 2026 and follow the report’s recommendations.
- If you run a business that advertises on social platforms, watch for indirect price changes.
- For tax year 2026, confirm your U.S. tax residency status early and plan for April 15, 2027 filing.
- If you have foreign accounts, track the $10,000 FBAR threshold and the April/October FBAR due dates.
⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.
