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Illinois House Bill HB2639

Illinois 2025-2026 Regular Session

Illinois House Bill HB2639 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2639 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-175 Amends the Property Tax Code. Provides that, for taxable years 2026 and thereafter, the maximum reduction for the general homestead exemption is $10,000 in all counties. Effective immediately. LRB104 09751 HLH 19817 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2639 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-175 35 ILCS 200/15-175 Amends the Property Tax Code. Provides that, for taxable years 2026 and thereafter, the maximum reduction for the general homestead exemption is $10,000 in all counties. Effective immediately. LRB104 09751 HLH 19817 b LRB104 09751 HLH 19817 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2639 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED:
33 35 ILCS 200/15-175 35 ILCS 200/15-175
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55 Amends the Property Tax Code. Provides that, for taxable years 2026 and thereafter, the maximum reduction for the general homestead exemption is $10,000 in all counties. Effective immediately.
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1111 1 AN ACT concerning revenue.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Property Tax Code is amended by changing
1515 5 Section 15-175 as follows:
1616 6 (35 ILCS 200/15-175)
1717 7 Sec. 15-175. General homestead exemption.
1818 8 (a) Except as provided in Sections 15-176 and 15-177,
1919 9 homestead property is entitled to an annual homestead
2020 10 exemption limited, except as described here with relation to
2121 11 cooperatives or life care facilities, to a reduction in the
2222 12 equalized assessed value of homestead property equal to the
2323 13 increase in equalized assessed value for the current
2424 14 assessment year above the equalized assessed value of the
2525 15 property for 1977, up to the maximum reduction set forth
2626 16 below. If however, the 1977 equalized assessed value upon
2727 17 which taxes were paid is subsequently determined by local
2828 18 assessing officials, the Property Tax Appeal Board, or a court
2929 19 to have been excessive, the equalized assessed value which
3030 20 should have been placed on the property for 1977 shall be used
3131 21 to determine the amount of the exemption.
3232 22 (b) Except as provided in Section 15-176, the maximum
3333 23 reduction before taxable year 2004 shall be $4,500 in counties
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3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2639 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED:
3838 35 ILCS 200/15-175 35 ILCS 200/15-175
3939 35 ILCS 200/15-175
4040 Amends the Property Tax Code. Provides that, for taxable years 2026 and thereafter, the maximum reduction for the general homestead exemption is $10,000 in all counties. Effective immediately.
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6868 1 with 3,000,000 or more inhabitants and $3,500 in all other
6969 2 counties. Except as provided in Sections 15-176 and 15-177,
7070 3 for taxable years 2004 through 2007, the maximum reduction
7171 4 shall be $5,000, for taxable year 2008, the maximum reduction
7272 5 is $5,500, and, for taxable years 2009 through 2011, the
7373 6 maximum reduction is $6,000 in all counties. For taxable years
7474 7 2012 through 2016, the maximum reduction is $7,000 in counties
7575 8 with 3,000,000 or more inhabitants and $6,000 in all other
7676 9 counties. For taxable years 2017 through 2022, the maximum
7777 10 reduction is $10,000 in counties with 3,000,000 or more
7878 11 inhabitants and $6,000 in all other counties. For taxable
7979 12 years 2023 through 2025 and thereafter, the maximum reduction
8080 13 is $10,000 in counties with 3,000,000 or more inhabitants,
8181 14 $8,000 in counties that are contiguous to a county of
8282 15 3,000,000 or more inhabitants, and $6,000 in all other
8383 16 counties. For taxable years 2026 and thereafter, the maximum
8484 17 reduction is $10,000 in all counties. If a county has elected
8585 18 to subject itself to the provisions of Section 15-176 as
8686 19 provided in subsection (k) of that Section, then, for the
8787 20 first taxable year only after the provisions of Section 15-176
8888 21 no longer apply, for owners who, for the taxable year, have not
8989 22 been granted a senior citizens assessment freeze homestead
9090 23 exemption under Section 15-172 or a long-time occupant
9191 24 homestead exemption under Section 15-177, there shall be an
9292 25 additional exemption of $5,000 for owners with a household
9393 26 income of $30,000 or less.
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104104 1 (c) In counties with fewer than 3,000,000 inhabitants, if,
105105 2 based on the most recent assessment, the equalized assessed
106106 3 value of the homestead property for the current assessment
107107 4 year is greater than the equalized assessed value of the
108108 5 property for 1977, the owner of the property shall
109109 6 automatically receive the exemption granted under this Section
110110 7 in an amount equal to the increase over the 1977 assessment up
111111 8 to the maximum reduction set forth in this Section.
112112 9 (d) If in any assessment year beginning with the 2000
113113 10 assessment year, homestead property has a pro-rata valuation
114114 11 under Section 9-180 resulting in an increase in the assessed
115115 12 valuation, a reduction in equalized assessed valuation equal
116116 13 to the increase in equalized assessed value of the property
117117 14 for the year of the pro-rata valuation above the equalized
118118 15 assessed value of the property for 1977 shall be applied to the
119119 16 property on a proportionate basis for the period the property
120120 17 qualified as homestead property during the assessment year.
121121 18 The maximum proportionate homestead exemption shall not exceed
122122 19 the maximum homestead exemption allowed in the county under
123123 20 this Section divided by 365 and multiplied by the number of
124124 21 days the property qualified as homestead property.
125125 22 (d-1) In counties with 3,000,000 or more inhabitants,
126126 23 where the chief county assessment officer provides a notice of
127127 24 discovery, if a property is not occupied by its owner as a
128128 25 principal residence as of January 1 of the current tax year,
129129 26 then the property owner shall notify the chief county
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140140 1 assessment officer of that fact on a form prescribed by the
141141 2 chief county assessment officer. That notice must be received
142142 3 by the chief county assessment officer on or before March 1 of
143143 4 the collection year. If mailed, the form shall be sent by
144144 5 certified mail, return receipt requested. If the form is
145145 6 provided in person, the chief county assessment officer shall
146146 7 provide a date stamped copy of the notice. Failure to provide
147147 8 timely notice pursuant to this subsection (d-1) shall result
148148 9 in the exemption being treated as an erroneous exemption. Upon
149149 10 timely receipt of the notice for the current tax year, no
150150 11 exemption shall be applied to the property for the current tax
151151 12 year. If the exemption is not removed upon timely receipt of
152152 13 the notice by the chief assessment officer, then the error is
153153 14 considered granted as a result of a clerical error or omission
154154 15 on the part of the chief county assessment officer as
155155 16 described in subsection (h) of Section 9-275, and the property
156156 17 owner shall not be liable for the payment of interest and
157157 18 penalties due to the erroneous exemption for the current tax
158158 19 year for which the notice was filed after the date that notice
159159 20 was timely received pursuant to this subsection. Notice
160160 21 provided under this subsection shall not constitute a defense
161161 22 or amnesty for prior year erroneous exemptions.
162162 23 For the purposes of this subsection (d-1):
163163 24 "Collection year" means the year in which the first and
164164 25 second installment of the current tax year is billed.
165165 26 "Current tax year" means the year prior to the collection
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176176 1 year.
177177 2 (e) The chief county assessment officer may, when
178178 3 considering whether to grant a leasehold exemption under this
179179 4 Section, require the following conditions to be met:
180180 5 (1) that a notarized application for the exemption,
181181 6 signed by both the owner and the lessee of the property,
182182 7 must be submitted each year during the application period
183183 8 in effect for the county in which the property is located;
184184 9 (2) that a copy of the lease must be filed with the
185185 10 chief county assessment officer by the owner of the
186186 11 property at the time the notarized application is
187187 12 submitted;
188188 13 (3) that the lease must expressly state that the
189189 14 lessee is liable for the payment of property taxes; and
190190 15 (4) that the lease must include the following language
191191 16 in substantially the following form:
192192 17 "Lessee shall be liable for the payment of real
193193 18 estate taxes with respect to the residence in
194194 19 accordance with the terms and conditions of Section
195195 20 15-175 of the Property Tax Code (35 ILCS 200/15-175).
196196 21 The permanent real estate index number for the
197197 22 premises is (insert number), and, according to the
198198 23 most recent property tax bill, the current amount of
199199 24 real estate taxes associated with the premises is
200200 25 (insert amount) per year. The parties agree that the
201201 26 monthly rent set forth above shall be increased or
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212212 1 decreased pro rata (effective January 1 of each
213213 2 calendar year) to reflect any increase or decrease in
214214 3 real estate taxes. Lessee shall be deemed to be
215215 4 satisfying Lessee's liability for the above mentioned
216216 5 real estate taxes with the monthly rent payments as
217217 6 set forth above (or increased or decreased as set
218218 7 forth herein).".
219219 8 In addition, if there is a change in lessee, or if the
220220 9 lessee vacates the property, then the chief county assessment
221221 10 officer may require the owner of the property to notify the
222222 11 chief county assessment officer of that change.
223223 12 This subsection (e) does not apply to leasehold interests
224224 13 in property owned by a municipality.
225225 14 (f) "Homestead property" under this Section includes
226226 15 residential property that is occupied by its owner or owners
227227 16 as his or their principal dwelling place, or that is a
228228 17 leasehold interest on which a single family residence is
229229 18 situated, which is occupied as a residence by a person who has
230230 19 an ownership interest therein, legal or equitable or as a
231231 20 lessee, and on which the person is liable for the payment of
232232 21 property taxes. For land improved with an apartment building
233233 22 owned and operated as a cooperative, the maximum reduction
234234 23 from the equalized assessed value shall be limited to the
235235 24 increase in the value above the equalized assessed value of
236236 25 the property for 1977, up to the maximum reduction set forth
237237 26 above, multiplied by the number of apartments or units
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248248 1 occupied by a person or persons who is liable, by contract with
249249 2 the owner or owners of record, for paying property taxes on the
250250 3 property and is an owner of record of a legal or equitable
251251 4 interest in the cooperative apartment building, other than a
252252 5 leasehold interest. For land improved with a life care
253253 6 facility, the maximum reduction from the value of the
254254 7 property, as equalized by the Department, shall be multiplied
255255 8 by the number of apartments or units occupied by a person or
256256 9 persons, irrespective of any legal, equitable, or leasehold
257257 10 interest in the facility, who are liable, under a life care
258258 11 contract with the owner or owners of record of the facility,
259259 12 for paying property taxes on the property. For purposes of
260260 13 this Section, the term "life care facility" has the meaning
261261 14 stated in Section 15-170.
262262 15 "Household", as used in this Section, means the owner, the
263263 16 spouse of the owner, and all persons using the residence of the
264264 17 owner as their principal place of residence.
265265 18 "Household income", as used in this Section, means the
266266 19 combined income of the members of a household for the calendar
267267 20 year preceding the taxable year.
268268 21 "Income", as used in this Section, has the same meaning as
269269 22 provided in Section 3.07 of the Senior Citizens and Persons
270270 23 with Disabilities Property Tax Relief Act, except that
271271 24 "income" does not include veteran's benefits.
272272 25 (g) In a cooperative or life care facility where a
273273 26 homestead exemption has been granted, the cooperative
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284284 1 association or the management of the cooperative or life care
285285 2 facility shall credit the savings resulting from that
286286 3 exemption only to the apportioned tax liability of the owner
287287 4 or resident who qualified for the exemption. Any person who
288288 5 willfully refuses to so credit the savings shall be guilty of a
289289 6 Class B misdemeanor.
290290 7 (h) Where married persons maintain and reside in separate
291291 8 residences qualifying as homestead property, each residence
292292 9 shall receive 50% of the total reduction in equalized assessed
293293 10 valuation provided by this Section.
294294 11 (i) In all counties, the assessor or chief county
295295 12 assessment officer may determine the eligibility of
296296 13 residential property to receive the homestead exemption and
297297 14 the amount of the exemption by application, visual inspection,
298298 15 questionnaire or other reasonable methods. The determination
299299 16 shall be made in accordance with guidelines established by the
300300 17 Department, provided that the taxpayer applying for an
301301 18 additional general exemption under this Section shall submit
302302 19 to the chief county assessment officer an application with an
303303 20 affidavit of the applicant's total household income, age,
304304 21 marital status (and, if married, the name and address of the
305305 22 applicant's spouse, if known), and principal dwelling place of
306306 23 members of the household on January 1 of the taxable year. The
307307 24 Department shall issue guidelines establishing a method for
308308 25 verifying the accuracy of the affidavits filed by applicants
309309 26 under this paragraph. The applications shall be clearly marked
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320320 1 as applications for the Additional General Homestead
321321 2 Exemption.
322322 3 (i-5) This subsection (i-5) applies to counties with
323323 4 3,000,000 or more inhabitants. In the event of a sale of
324324 5 homestead property, the homestead exemption shall remain in
325325 6 effect for the remainder of the assessment year of the sale.
326326 7 Upon receipt of a transfer declaration transmitted by the
327327 8 recorder pursuant to Section 31-30 of the Real Estate Transfer
328328 9 Tax Law for property receiving an exemption under this
329329 10 Section, the assessor shall mail a notice and forms to the new
330330 11 owner of the property providing information pertaining to the
331331 12 rules and applicable filing periods for applying or reapplying
332332 13 for homestead exemptions under this Code for which the
333333 14 property may be eligible. If the new owner fails to apply or
334334 15 reapply for a homestead exemption during the applicable filing
335335 16 period or the property no longer qualifies for an existing
336336 17 homestead exemption, the assessor shall cancel such exemption
337337 18 for any ensuing assessment year.
338338 19 (j) In counties with fewer than 3,000,000 inhabitants, in
339339 20 the event of a sale of homestead property the homestead
340340 21 exemption shall remain in effect for the remainder of the
341341 22 assessment year of the sale. The assessor or chief county
342342 23 assessment officer may require the new owner of the property
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344344 25 assessment year.
345345 26 (k) Notwithstanding Sections 6 and 8 of the State Mandates
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356356 1 Act, no reimbursement by the State is required for the
357357 2 implementation of any mandate created by this Section.
358358 3 (l) The changes made to this Section by this amendatory
359359 4 Act of the 100th General Assembly are effective for the 2018
360360 5 tax year and thereafter.
361361 6 (Source: P.A. 102-895, eff. 5-23-22.)
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