104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB1837 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-175 Amends the Property Tax Code. Increases the maximum reduction for the general homestead exemption to $50,000 in counties with 3,000,000 or more inhabitants. Provides that for taxable years 2025 through 2027, the property tax liability for homestead property in Cook County that contains a single-family home or a multi-unit residential dwelling with fewer than 3 units shall not exceed the adjusted property tax liability for the property for the applicable tax year. Effective immediately. LRB104 08909 HLH 18964 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB1837 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-175 35 ILCS 200/15-175 Amends the Property Tax Code. Increases the maximum reduction for the general homestead exemption to $50,000 in counties with 3,000,000 or more inhabitants. Provides that for taxable years 2025 through 2027, the property tax liability for homestead property in Cook County that contains a single-family home or a multi-unit residential dwelling with fewer than 3 units shall not exceed the adjusted property tax liability for the property for the applicable tax year. Effective immediately. LRB104 08909 HLH 18964 b LRB104 08909 HLH 18964 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB1837 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-175 35 ILCS 200/15-175
35 ILCS 200/15-175
Amends the Property Tax Code. Increases the maximum reduction for the general homestead exemption to $50,000 in counties with 3,000,000 or more inhabitants. Provides that for taxable years 2025 through 2027, the property tax liability for homestead property in Cook County that contains a single-family home or a multi-unit residential dwelling with fewer than 3 units shall not exceed the adjusted property tax liability for the property for the applicable tax year. Effective immediately.
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A BILL FOR
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HB1837 LRB104 08909 HLH 18964 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 15-175 as follows:
6 (35 ILCS 200/15-175)
7 Sec. 15-175. General homestead exemption.
8 (a) Except as provided in Sections 15-176 and 15-177,
9 homestead property is entitled to an annual homestead
10 exemption limited, except as described here with relation to
11 cooperatives or life care facilities, to a reduction in the
12 equalized assessed value of homestead property equal to the
13 increase in equalized assessed value for the current
14 assessment year above the equalized assessed value of the
15 property for 1977, up to the maximum reduction set forth
16 below. If however, the 1977 equalized assessed value upon
17 which taxes were paid is subsequently determined by local
18 assessing officials, the Property Tax Appeal Board, or a court
19 to have been excessive, the equalized assessed value which
20 should have been placed on the property for 1977 shall be used
21 to determine the amount of the exemption.
22 (b) Except as provided in Section 15-176, the maximum
23 reduction before taxable year 2004 shall be $4,500 in counties
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB1837 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-175 35 ILCS 200/15-175
35 ILCS 200/15-175
Amends the Property Tax Code. Increases the maximum reduction for the general homestead exemption to $50,000 in counties with 3,000,000 or more inhabitants. Provides that for taxable years 2025 through 2027, the property tax liability for homestead property in Cook County that contains a single-family home or a multi-unit residential dwelling with fewer than 3 units shall not exceed the adjusted property tax liability for the property for the applicable tax year. Effective immediately.
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LRB104 08909 HLH 18964 b
A BILL FOR
35 ILCS 200/15-175
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1 with 3,000,000 or more inhabitants and $3,500 in all other
2 counties. Except as provided in Sections 15-176 and 15-177,
3 for taxable years 2004 through 2007, the maximum reduction
4 shall be $5,000, for taxable year 2008, the maximum reduction
5 is $5,500, and, for taxable years 2009 through 2011, the
6 maximum reduction is $6,000 in all counties. For taxable years
7 2012 through 2016, the maximum reduction is $7,000 in counties
8 with 3,000,000 or more inhabitants and $6,000 in all other
9 counties. For taxable years 2017 through 2022, the maximum
10 reduction is $10,000 in counties with 3,000,000 or more
11 inhabitants and $6,000 in all other counties. For taxable
12 years 2023 and 2024 thereafter, the maximum reduction is
13 $10,000 in counties with 3,000,000 or more inhabitants, $8,000
14 in counties that are contiguous to a county of 3,000,000 or
15 more inhabitants, and $6,000 in all other counties. For
16 taxable years 2025 and thereafter, the maximum reduction is
17 $50,000 in counties with 3,000,000 or more inhabitants, $8,000
18 in counties that are contiguous to a county of 3,000,000 or
19 more inhabitants, and $6,000 in all other counties. If a
20 county has elected to subject itself to the provisions of
21 Section 15-176 as provided in subsection (k) of that Section,
22 then, for the first taxable year only after the provisions of
23 Section 15-176 no longer apply, for owners who, for the
24 taxable year, have not been granted a senior citizens
25 assessment freeze homestead exemption under Section 15-172 or
26 a long-time occupant homestead exemption under Section 15-177,
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1 there shall be an additional exemption of $5,000 for owners
2 with a household income of $30,000 or less.
3 (c) In counties with fewer than 3,000,000 inhabitants, if,
4 based on the most recent assessment, the equalized assessed
5 value of the homestead property for the current assessment
6 year is greater than the equalized assessed value of the
7 property for 1977, the owner of the property shall
8 automatically receive the exemption granted under this Section
9 in an amount equal to the increase over the 1977 assessment up
10 to the maximum reduction set forth in this Section.
11 Notwithstanding any other provision of law, for taxable
12 years 2025 through 2027, the property tax liability for
13 homestead property in Cook County that contains a
14 single-family home or a multi-unit residential dwelling with
15 fewer than 3 units shall not exceed the adjusted property tax
16 liability for the property for the applicable tax year.
17 (d) If in any assessment year beginning with the 2000
18 assessment year, homestead property has a pro-rata valuation
19 under Section 9-180 resulting in an increase in the assessed
20 valuation, a reduction in equalized assessed valuation equal
21 to the increase in equalized assessed value of the property
22 for the year of the pro-rata valuation above the equalized
23 assessed value of the property for 1977 shall be applied to the
24 property on a proportionate basis for the period the property
25 qualified as homestead property during the assessment year.
26 The maximum proportionate homestead exemption shall not exceed
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1 the maximum homestead exemption allowed in the county under
2 this Section divided by 365 and multiplied by the number of
3 days the property qualified as homestead property.
4 (d-1) In counties with 3,000,000 or more inhabitants,
5 where the chief county assessment officer provides a notice of
6 discovery, if a property is not occupied by its owner as a
7 principal residence as of January 1 of the current tax year,
8 then the property owner shall notify the chief county
9 assessment officer of that fact on a form prescribed by the
10 chief county assessment officer. That notice must be received
11 by the chief county assessment officer on or before March 1 of
12 the collection year. If mailed, the form shall be sent by
13 certified mail, return receipt requested. If the form is
14 provided in person, the chief county assessment officer shall
15 provide a date stamped copy of the notice. Failure to provide
16 timely notice pursuant to this subsection (d-1) shall result
17 in the exemption being treated as an erroneous exemption. Upon
18 timely receipt of the notice for the current tax year, no
19 exemption shall be applied to the property for the current tax
20 year. If the exemption is not removed upon timely receipt of
21 the notice by the chief assessment officer, then the error is
22 considered granted as a result of a clerical error or omission
23 on the part of the chief county assessment officer as
24 described in subsection (h) of Section 9-275, and the property
25 owner shall not be liable for the payment of interest and
26 penalties due to the erroneous exemption for the current tax
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1 year for which the notice was filed after the date that notice
2 was timely received pursuant to this subsection. Notice
3 provided under this subsection shall not constitute a defense
4 or amnesty for prior year erroneous exemptions.
5 For the purposes of this subsection (d-1):
6 "Collection year" means the year in which the first and
7 second installment of the current tax year is billed.
8 "Current tax year" means the year prior to the collection
9 year.
10 (e) The chief county assessment officer may, when
11 considering whether to grant a leasehold exemption under this
12 Section, require the following conditions to be met:
13 (1) that a notarized application for the exemption,
14 signed by both the owner and the lessee of the property,
15 must be submitted each year during the application period
16 in effect for the county in which the property is located;
17 (2) that a copy of the lease must be filed with the
18 chief county assessment officer by the owner of the
19 property at the time the notarized application is
20 submitted;
21 (3) that the lease must expressly state that the
22 lessee is liable for the payment of property taxes; and
23 (4) that the lease must include the following language
24 in substantially the following form:
25 "Lessee shall be liable for the payment of real
26 estate taxes with respect to the residence in
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1 accordance with the terms and conditions of Section
2 15-175 of the Property Tax Code (35 ILCS 200/15-175).
3 The permanent real estate index number for the
4 premises is (insert number), and, according to the
5 most recent property tax bill, the current amount of
6 real estate taxes associated with the premises is
7 (insert amount) per year. The parties agree that the
8 monthly rent set forth above shall be increased or
9 decreased pro rata (effective January 1 of each
10 calendar year) to reflect any increase or decrease in
11 real estate taxes. Lessee shall be deemed to be
12 satisfying Lessee's liability for the above mentioned
13 real estate taxes with the monthly rent payments as
14 set forth above (or increased or decreased as set
15 forth herein).".
16 In addition, if there is a change in lessee, or if the
17 lessee vacates the property, then the chief county assessment
18 officer may require the owner of the property to notify the
19 chief county assessment officer of that change.
20 This subsection (e) does not apply to leasehold interests
21 in property owned by a municipality.
22 (f) As used in this Section:
23 "Adjusted property tax liability" means the property tax
24 liability for the property in the base year, increased by 5%
25 for each tax year after the base year through and including the
26 current tax year. The increase by 5% each year is an increase
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1 by 5% over the prior year. If the property did not have a
2 residential equalized assessed value for the base year, then
3 the assessor shall first determine an initial property tax
4 liability for the property by comparison with other properties
5 having physical and economic characteristics similar to those
6 of the subject property.
7 "Base year" means the 2018 tax year, or, if the property is
8 sold or ownership is otherwise transferred in tax year 2025,
9 2026, or 2027, then the year of the sale or transfer
10 "Homestead property" under this Section includes
11 residential property that is occupied by its owner or owners
12 as his or their principal dwelling place, or that is a
13 leasehold interest on which a single family residence is
14 situated, which is occupied as a residence by a person who has
15 an ownership interest therein, legal or equitable or as a
16 lessee, and on which the person is liable for the payment of
17 property taxes. For land improved with an apartment building
18 owned and operated as a cooperative, the maximum reduction
19 from the equalized assessed value shall be limited to the
20 increase in the value above the equalized assessed value of
21 the property for 1977, up to the maximum reduction set forth
22 above, multiplied by the number of apartments or units
23 occupied by a person or persons who is liable, by contract with
24 the owner or owners of record, for paying property taxes on the
25 property and is an owner of record of a legal or equitable
26 interest in the cooperative apartment building, other than a
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1 leasehold interest. For land improved with a life care
2 facility, the maximum reduction from the value of the
3 property, as equalized by the Department, shall be multiplied
4 by the number of apartments or units occupied by a person or
5 persons, irrespective of any legal, equitable, or leasehold
6 interest in the facility, who are liable, under a life care
7 contract with the owner or owners of record of the facility,
8 for paying property taxes on the property. For purposes of
9 this Section, the term "life care facility" has the meaning
10 stated in Section 15-170.
11 "Household", as used in this Section, means the owner, the
12 spouse of the owner, and all persons using the residence of the
13 owner as their principal place of residence.
14 "Household income", as used in this Section, means the
15 combined income of the members of a household for the calendar
16 year preceding the taxable year.
17 "Income", as used in this Section, has the same meaning as
18 provided in Section 3.07 of the Senior Citizens and Persons
19 with Disabilities Property Tax Relief Act, except that
20 "income" does not include veteran's benefits.
21 (g) In a cooperative or life care facility where a
22 homestead exemption has been granted, the cooperative
23 association or the management of the cooperative or life care
24 facility shall credit the savings resulting from that
25 exemption only to the apportioned tax liability of the owner
26 or resident who qualified for the exemption. Any person who
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1 willfully refuses to so credit the savings shall be guilty of a
2 Class B misdemeanor.
3 (h) Where married persons maintain and reside in separate
4 residences qualifying as homestead property, each residence
5 shall receive 50% of the total reduction in equalized assessed
6 valuation provided by this Section.
7 (i) In all counties, the assessor or chief county
8 assessment officer may determine the eligibility of
9 residential property to receive the homestead exemption and
10 the amount of the exemption by application, visual inspection,
11 questionnaire or other reasonable methods. The determination
12 shall be made in accordance with guidelines established by the
13 Department, provided that the taxpayer applying for an
14 additional general exemption under this Section shall submit
15 to the chief county assessment officer an application with an
16 affidavit of the applicant's total household income, age,
17 marital status (and, if married, the name and address of the
18 applicant's spouse, if known), and principal dwelling place of
19 members of the household on January 1 of the taxable year. The
20 Department shall issue guidelines establishing a method for
21 verifying the accuracy of the affidavits filed by applicants
22 under this paragraph. The applications shall be clearly marked
23 as applications for the Additional General Homestead
24 Exemption.
25 (i-5) This subsection (i-5) applies to counties with
26 3,000,000 or more inhabitants. In the event of a sale of
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1 homestead property, the homestead exemption shall remain in
2 effect for the remainder of the assessment year of the sale.
3 Upon receipt of a transfer declaration transmitted by the
4 recorder pursuant to Section 31-30 of the Real Estate Transfer
5 Tax Law for property receiving an exemption under this
6 Section, the assessor shall mail a notice and forms to the new
7 owner of the property providing information pertaining to the
8 rules and applicable filing periods for applying or reapplying
9 for homestead exemptions under this Code for which the
10 property may be eligible. If the new owner fails to apply or
11 reapply for a homestead exemption during the applicable filing
12 period or the property no longer qualifies for an existing
13 homestead exemption, the assessor shall cancel such exemption
14 for any ensuing assessment year.
15 (j) In counties with fewer than 3,000,000 inhabitants, in
16 the event of a sale of homestead property the homestead
17 exemption shall remain in effect for the remainder of the
18 assessment year of the sale. The assessor or chief county
19 assessment officer may require the new owner of the property
20 to apply for the homestead exemption for the following
21 assessment year.
22 (k) Notwithstanding Sections 6 and 8 of the State Mandates
23 Act, no reimbursement by the State is required for the
24 implementation of any mandate created by this Section.
25 (l) The changes made to this Section by this amendatory
26 Act of the 100th General Assembly are effective for the 2018
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1 tax year and thereafter.
2 (Source: P.A. 102-895, eff. 5-23-22.)
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