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Illinois House Bill HB3724

Illinois 2025-2026 Regular Session

Illinois House Bill HB3724 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3724 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-175 Amends the Property Tax Code. Provides that, beginning with the 2026 tax year (to be collected in 2027), the total tax bill for property receiving the General Homestead Exemption may not exceed 103% of the total property tax bill for the property for the immediately preceding taxable year. Contains provisions concerning the reallocation of property tax liability. LRB104 03563 HLH 21339 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3724 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-175 35 ILCS 200/15-175 Amends the Property Tax Code. Provides that, beginning with the 2026 tax year (to be collected in 2027), the total tax bill for property receiving the General Homestead Exemption may not exceed 103% of the total property tax bill for the property for the immediately preceding taxable year. Contains provisions concerning the reallocation of property tax liability. LRB104 03563 HLH 21339 b LRB104 03563 HLH 21339 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3724 Introduced , by Rep. Joe C. Sosnowski 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, beginning with the 2026 tax year (to be collected in 2027), the total tax bill for property receiving the General Homestead Exemption may not exceed 103% of the total property tax bill for the property for the immediately preceding taxable year. Contains provisions concerning the reallocation of property tax liability.
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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 HB3724 Introduced , by Rep. Joe C. Sosnowski 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, beginning with the 2026 tax year (to be collected in 2027), the total tax bill for property receiving the General Homestead Exemption may not exceed 103% of the total property tax bill for the property for the immediately preceding taxable year. Contains provisions concerning the reallocation of property tax liability.
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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 and thereafter, the maximum reduction is $10,000 in
8080 13 counties with 3,000,000 or more inhabitants, $8,000 in
8181 14 counties that are contiguous to a county of 3,000,000 or more
8282 15 inhabitants, and $6,000 in all other counties. If a county has
8383 16 elected to subject itself to the provisions of Section 15-176
8484 17 as provided in subsection (k) of that Section, then, for the
8585 18 first taxable year only after the provisions of Section 15-176
8686 19 no longer apply, for owners who, for the taxable year, have not
8787 20 been granted a senior citizens assessment freeze homestead
8888 21 exemption under Section 15-172 or a long-time occupant
8989 22 homestead exemption under Section 15-177, there shall be an
9090 23 additional exemption of $5,000 for owners with a household
9191 24 income of $30,000 or less.
9292 25 (c) In counties with fewer than 3,000,000 inhabitants, if,
9393 26 based on the most recent assessment, the equalized assessed
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104104 1 value of the homestead property for the current assessment
105105 2 year is greater than the equalized assessed value of the
106106 3 property for 1977, the owner of the property shall
107107 4 automatically receive the exemption granted under this Section
108108 5 in an amount equal to the increase over the 1977 assessment up
109109 6 to the maximum reduction set forth in this Section.
110110 7 (d) If in any assessment year beginning with the 2000
111111 8 assessment year, homestead property has a pro-rata valuation
112112 9 under Section 9-180 resulting in an increase in the assessed
113113 10 valuation, a reduction in equalized assessed valuation equal
114114 11 to the increase in equalized assessed value of the property
115115 12 for the year of the pro-rata valuation above the equalized
116116 13 assessed value of the property for 1977 shall be applied to the
117117 14 property on a proportionate basis for the period the property
118118 15 qualified as homestead property during the assessment year.
119119 16 The maximum proportionate homestead exemption shall not exceed
120120 17 the maximum homestead exemption allowed in the county under
121121 18 this Section divided by 365 and multiplied by the number of
122122 19 days the property qualified as homestead property.
123123 20 (d-1) In counties with 3,000,000 or more inhabitants,
124124 21 where the chief county assessment officer provides a notice of
125125 22 discovery, if a property is not occupied by its owner as a
126126 23 principal residence as of January 1 of the current tax year,
127127 24 then the property owner shall notify the chief county
128128 25 assessment officer of that fact on a form prescribed by the
129129 26 chief county assessment officer. That notice must be received
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140140 1 by the chief county assessment officer on or before March 1 of
141141 2 the collection year. If mailed, the form shall be sent by
142142 3 certified mail, return receipt requested. If the form is
143143 4 provided in person, the chief county assessment officer shall
144144 5 provide a date stamped copy of the notice. Failure to provide
145145 6 timely notice pursuant to this subsection (d-1) shall result
146146 7 in the exemption being treated as an erroneous exemption. Upon
147147 8 timely receipt of the notice for the current tax year, no
148148 9 exemption shall be applied to the property for the current tax
149149 10 year. If the exemption is not removed upon timely receipt of
150150 11 the notice by the chief assessment officer, then the error is
151151 12 considered granted as a result of a clerical error or omission
152152 13 on the part of the chief county assessment officer as
153153 14 described in subsection (h) of Section 9-275, and the property
154154 15 owner shall not be liable for the payment of interest and
155155 16 penalties due to the erroneous exemption for the current tax
156156 17 year for which the notice was filed after the date that notice
157157 18 was timely received pursuant to this subsection. Notice
158158 19 provided under this subsection shall not constitute a defense
159159 20 or amnesty for prior year erroneous exemptions.
160160 21 For the purposes of this subsection (d-1):
161161 22 "Collection year" means the year in which the first and
162162 23 second installment of the current tax year is billed.
163163 24 "Current tax year" means the year prior to the collection
164164 25 year.
165165 26 (e) The chief county assessment officer may, when
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176176 1 considering whether to grant a leasehold exemption under this
177177 2 Section, require the following conditions to be met:
178178 3 (1) that a notarized application for the exemption,
179179 4 signed by both the owner and the lessee of the property,
180180 5 must be submitted each year during the application period
181181 6 in effect for the county in which the property is located;
182182 7 (2) that a copy of the lease must be filed with the
183183 8 chief county assessment officer by the owner of the
184184 9 property at the time the notarized application is
185185 10 submitted;
186186 11 (3) that the lease must expressly state that the
187187 12 lessee is liable for the payment of property taxes; and
188188 13 (4) that the lease must include the following language
189189 14 in substantially the following form:
190190 15 "Lessee shall be liable for the payment of real
191191 16 estate taxes with respect to the residence in
192192 17 accordance with the terms and conditions of Section
193193 18 15-175 of the Property Tax Code (35 ILCS 200/15-175).
194194 19 The permanent real estate index number for the
195195 20 premises is (insert number), and, according to the
196196 21 most recent property tax bill, the current amount of
197197 22 real estate taxes associated with the premises is
198198 23 (insert amount) per year. The parties agree that the
199199 24 monthly rent set forth above shall be increased or
200200 25 decreased pro rata (effective January 1 of each
201201 26 calendar year) to reflect any increase or decrease in
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212212 1 real estate taxes. Lessee shall be deemed to be
213213 2 satisfying Lessee's liability for the above mentioned
214214 3 real estate taxes with the monthly rent payments as
215215 4 set forth above (or increased or decreased as set
216216 5 forth herein).".
217217 6 In addition, if there is a change in lessee, or if the
218218 7 lessee vacates the property, then the chief county assessment
219219 8 officer may require the owner of the property to notify the
220220 9 chief county assessment officer of that change.
221221 10 This subsection (e) does not apply to leasehold interests
222222 11 in property owned by a municipality.
223223 12 (f) "Homestead property" under this Section includes
224224 13 residential property that is occupied by its owner or owners
225225 14 as his or their principal dwelling place, or that is a
226226 15 leasehold interest on which a single family residence is
227227 16 situated, which is occupied as a residence by a person who has
228228 17 an ownership interest therein, legal or equitable or as a
229229 18 lessee, and on which the person is liable for the payment of
230230 19 property taxes. For land improved with an apartment building
231231 20 owned and operated as a cooperative, the maximum reduction
232232 21 from the equalized assessed value shall be limited to the
233233 22 increase in the value above the equalized assessed value of
234234 23 the property for 1977, up to the maximum reduction set forth
235235 24 above, multiplied by the number of apartments or units
236236 25 occupied by a person or persons who is liable, by contract with
237237 26 the owner or owners of record, for paying property taxes on the
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248248 1 property and is an owner of record of a legal or equitable
249249 2 interest in the cooperative apartment building, other than a
250250 3 leasehold interest. For land improved with a life care
251251 4 facility, the maximum reduction from the value of the
252252 5 property, as equalized by the Department, shall be multiplied
253253 6 by the number of apartments or units occupied by a person or
254254 7 persons, irrespective of any legal, equitable, or leasehold
255255 8 interest in the facility, who are liable, under a life care
256256 9 contract with the owner or owners of record of the facility,
257257 10 for paying property taxes on the property. For purposes of
258258 11 this Section, the term "life care facility" has the meaning
259259 12 stated in Section 15-170.
260260 13 "Household", as used in this Section, means the owner, the
261261 14 spouse of the owner, and all persons using the residence of the
262262 15 owner as their principal place of residence.
263263 16 "Household income", as used in this Section, means the
264264 17 combined income of the members of a household for the calendar
265265 18 year preceding the taxable year.
266266 19 "Income", as used in this Section, has the same meaning as
267267 20 provided in Section 3.07 of the Senior Citizens and Persons
268268 21 with Disabilities Property Tax Relief Act, except that
269269 22 "income" does not include veteran's benefits.
270270 23 (g) In a cooperative or life care facility where a
271271 24 homestead exemption has been granted, the cooperative
272272 25 association or the management of the cooperative or life care
273273 26 facility shall credit the savings resulting from that
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284284 1 exemption only to the apportioned tax liability of the owner
285285 2 or resident who qualified for the exemption. Any person who
286286 3 willfully refuses to so credit the savings shall be guilty of a
287287 4 Class B misdemeanor.
288288 5 (h) Where married persons maintain and reside in separate
289289 6 residences qualifying as homestead property, each residence
290290 7 shall receive 50% of the total reduction in equalized assessed
291291 8 valuation provided by this Section.
292292 9 (i) In all counties, the assessor or chief county
293293 10 assessment officer may determine the eligibility of
294294 11 residential property to receive the homestead exemption and
295295 12 the amount of the exemption by application, visual inspection,
296296 13 questionnaire or other reasonable methods. The determination
297297 14 shall be made in accordance with guidelines established by the
298298 15 Department, provided that the taxpayer applying for an
299299 16 additional general exemption under this Section shall submit
300300 17 to the chief county assessment officer an application with an
301301 18 affidavit of the applicant's total household income, age,
302302 19 marital status (and, if married, the name and address of the
303303 20 applicant's spouse, if known), and principal dwelling place of
304304 21 members of the household on January 1 of the taxable year. The
305305 22 Department shall issue guidelines establishing a method for
306306 23 verifying the accuracy of the affidavits filed by applicants
307307 24 under this paragraph. The applications shall be clearly marked
308308 25 as applications for the Additional General Homestead
309309 26 Exemption.
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320320 1 (i-5) This subsection (i-5) applies to counties with
321321 2 3,000,000 or more inhabitants. In the event of a sale of
322322 3 homestead property, the homestead exemption shall remain in
323323 4 effect for the remainder of the assessment year of the sale.
324324 5 Upon receipt of a transfer declaration transmitted by the
325325 6 recorder pursuant to Section 31-30 of the Real Estate Transfer
326326 7 Tax Law for property receiving an exemption under this
327327 8 Section, the assessor shall mail a notice and forms to the new
328328 9 owner of the property providing information pertaining to the
329329 10 rules and applicable filing periods for applying or reapplying
330330 11 for homestead exemptions under this Code for which the
331331 12 property may be eligible. If the new owner fails to apply or
332332 13 reapply for a homestead exemption during the applicable filing
333333 14 period or the property no longer qualifies for an existing
334334 15 homestead exemption, the assessor shall cancel such exemption
335335 16 for any ensuing assessment year.
336336 17 (j) In counties with fewer than 3,000,000 inhabitants, in
337337 18 the event of a sale of homestead property the homestead
338338 19 exemption shall remain in effect for the remainder of the
339339 20 assessment year of the sale. The assessor or chief county
340340 21 assessment officer may require the new owner of the property
341341 22 to apply for the homestead exemption for the following
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343343 24 (k) Notwithstanding Sections 6 and 8 of the State Mandates
344344 25 Act, no reimbursement by the State is required for the
345345 26 implementation of any mandate created by this Section.
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