Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1978 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1978 Introduced 2/6/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/5.1030 new Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately. LRB104 11443 HLH 21531 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1978 Introduced 2/6/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/5.1030 new New Act 30 ILCS 105/5.1030 new Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately. LRB104 11443 HLH 21531 b LRB104 11443 HLH 21531 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1978 Introduced 2/6/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
3	3	New Act30 ILCS 105/5.1030 new New Act 30 ILCS 105/5.1030 new
4	4	New Act
5	5	30 ILCS 105/5.1030 new
6	6	Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately.
7	7	LRB104 11443 HLH 21531 b LRB104 11443 HLH 21531 b
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9	9	A BILL FOR
10	10	SB1978LRB104 11443 HLH 21531 b SB1978 LRB104 11443 HLH 21531 b
11	11	SB1978 LRB104 11443 HLH 21531 b
12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the
16	16	5 Circuit Breaker Property Tax Relief Act.
17	17	6 Section 5. Purpose. The purpose of this Act is to assist
18	18	7 homeowners in this State to retain private housing of their
19	19	8 choice, to relieve those residents from the burdens of
20	20	9 extraordinary property tax spikes, and to preserve the
21	21	10 character and unique qualities of the neighborhoods in which
22	22	11 they live.
23	23	12 Section 10. Definitions. As used in this Act, unless the
24	24	13 context otherwise requires, words and phrases have the
25	25	14 following meanings.
26	26	15 "Claimant" means a homeowner who has filed a claim for a
27	27	16 circuit breaker property tax relief grant under this Act.
28	28	17 "Claim year" means the calendar year prior to the period
29	29	18 of time during which a claimant may file an application for
30	30	19 benefits under this Act.
31	31	20 "Department" means the Department of Revenue.
32	32	21 "Federal poverty level" means the federal poverty income
33	33	22 guidelines as determined annually by the United States
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1978 Introduced 2/6/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
38	38	New Act30 ILCS 105/5.1030 new New Act 30 ILCS 105/5.1030 new
39	39	New Act
40	40	30 ILCS 105/5.1030 new
41	41	Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately.
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43	43	LRB104 11443 HLH 21531 b
44	44	A BILL FOR
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70	70	1 Department of Health and Human Services and updated
71	71	2 periodically in the Federal Register by that Department under
72	72	3 the authority of 42 U.S.C. 9902(2).
73	73	4 "Household" means a claimant or a claimant and his or her
74	74	5 spouse, if any, living together in the same residence. An
75	75	6 additional resident may be counted in determining household
76	76	7 size.
77	77	8 "Household income" means the combined income of the
78	78	9 members of a household.
79	79	10 "Income" means adjusted gross income, properly reportable
80	80	11 for federal income tax purposes under the provisions of the
81	81	12 Internal Revenue Code, modified by adding thereto the sum of
82	82	13 the following amounts to the extent deducted or excluded from
83	83	14 gross income in the computation of adjusted gross income:
84	84	15 (1) An amount equal to all amounts paid or accrued as
85	85	16 interest or dividends during the taxable year;
86	86	17 (2) An amount equal to the amount of tax imposed by the
87	87	18 Illinois Income Tax Act paid for the taxable year;
88	88	19 (3) An amount equal to all amounts received during the
89	89	20 taxable year as an annuity under an annuity, endowment or
90	90	21 life insurance contract or under any other contract or
91	91	22 agreement;
92	92	23 (4) An amount equal to the amount of benefits paid
93	93	24 under the Federal Social Security Act during the taxable
94	94	25 year;
95	95	26 (5) An amount equal to the amount of benefits paid
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106	106	1 under the Railroad Retirement Act during the taxable year;
107	107	2 (6) An amount equal to the total amount of cash public
108	108	3 assistance payments received from any governmental agency
109	109	4 during the taxable year other than benefits received
110	110	5 pursuant to this Act;
111	111	6 (7) An amount equal to any net operating loss
112	112	7 carryover deduction or capital loss carryover deduction
113	113	8 during the taxable year; and
114	114	9 (8) An amount equal to any benefits received under the
115	115	10 Workers' Compensation Act or the Workers' Occupational
116	116	11 Diseases Act during the taxable year.
117	117	12 "Income" does not include any distributions or items of
118	118	13 income described under subparagraph (X) of paragraph (2) of
119	119	14 subsection (a) of Section 203 of the Illinois Income Tax Act.
120	120	15 "Income eligibility limitation" means a household income
121	121	16 not to exceed 4 times the federal poverty level for the
122	122	17 household size. As an alternative income valuation, a
123	123	18 homeowner who is enrolled in any of the following programs may
124	124	19 be presumed to have household income that does not exceed the
125	125	20 maximum income limitation for that tax year as required by
126	126	21 this Section: Aid to the Aged, Blind or Disabled (AABD)
127	127	22 Program or the Supplemental Nutrition Assistance Program
128	128	23 (SNAP), both of which are administered by the Department of
129	129	24 Human Services; the Low Income Home Energy Assistance Program
130	130	25 (LIHEAP), which is administered by the Department of Commerce
131	131	26 and Economic Opportunity; The Benefit Access program, which is
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142	142	1 administered by the Department on Aging; and the Senior
143	143	2 Citizens Real Estate Tax Deferral Program.
144	144	3 "Internal Revenue Code" means the United States Internal
145	145	4 Revenue Code of 1986 or any successor law or laws relating to
146	146	5 federal income taxes in effect for the year.
147	147	6 "Property taxes accrued" means the ad valorem property
148	148	7 taxes levied against a residence, but does not include special
149	149	8 assessments, interest, or charges for service. In the case of
150	150	9 real estate improved with a multi-dwelling or multipurpose
151	151	10 building, "property taxes accrued" means property taxes levied
152	152	11 against a residence within such a building in an amount equal
153	153	12 to the same percentage of the total property taxes levied
154	154	13 against that real estate as improved as the value of the
155	155	14 residence is to the total value of the building. If the
156	156	15 building is a condominium, the percentage shall be that set
157	157	16 forth for each residence in the condominium declaration. If
158	158	17 the multi-dwelling building is owned and operated as a
159	159	18 cooperative, the value of an individual residence is the value
160	160	19 of the interest in the cooperative held by the owner of record
161	161	20 of the legal or equitable interest, other than a leasehold
162	162	21 interest, in the cooperative which confers the right to occupy
163	163	22 that residence. In determining the amount of grant under
164	164	23 Section 20, the applicable "property taxes accrued", as
165	165	24 determined under this Section, are those due and owing for the
166	166	25 last preceding taxable year.
167	167	26 In addition, if the residence is a mobile home as defined
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178	178	1 in and subject to the tax imposed by the Mobile Home Local
179	179	2 Services Tax Act, "property taxes accrued" includes the amount
180	180	3 of privilege tax paid during the calendar year for which
181	181	4 benefits are claimed under that Act on that mobile home. If (i)
182	182	5 the residence is a mobile home, (ii) the resident is the record
183	183	6 owner of the property upon which the mobile home is located,
184	184	7 and (iii) the resident is liable for the taxes imposed under
185	185	8 the Property Tax Code for both the mobile home and the
186	186	9 property, then "property taxes accrued" includes the amount of
187	187	10 property taxes paid on both the mobile home and the property
188	188	11 upon which the mobile home is located.
189	189	12 "Property tax bill spike" means that the home has not been
190	190	13 improved other than by routine maintenance, has been classed
191	191	14 the same way since the year prior to the last reassessment
192	192	15 prior to 2022, has had the same owner since the year prior to
193	193	16 the last reassessment prior to 2022 or was inherited from the
194	194	17 same owner, and that the property taxes accrued for the
195	195	18 property have grown at least 25% year over year in any single
196	196	19 year since the year prior to the last reassessment prior to
197	197	20 2022, provided that a tax bill increase of $500 or less shall
198	198	21 not constitute a bill spike.
199	199	22 "Residence" means the principal dwelling place occupied in
200	200	23 this State by a household and so much of the surrounding land
201	201	24 as is reasonably necessary for use of the dwelling as a home,
202	202	25 and includes rental residential property owned by the occupant
203	203	26 within a multipurpose building. If the assessor has
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214	214	1 established a specific legal description for a portion of
215	215	2 property constituting the residence, then that portion of
216	216	3 property shall be deemed "residence" for the purposes of this
217	217	4 Act.
218	218	5 "Taxable year" means the calendar year during which ad
219	219	6 valorem property taxes payable in the next succeeding calendar
220	220	7 year were levied.
221	221	8 Section 15. Circuit Breaker Property Tax Relief Fund.
222	222	9 (a) There is created in the State treasury a Circuit
223	223	10 Breaker Property Tax Relief Fund.
224	224	11 (b) The Circuit Breaker Property Tax Relief Fund may
225	225	12 accept funds from the State and from other entities. Once
226	226	13 grants have been paid, any remaining funds shall be returned
227	227	14 first to the State and then to other entities that may have
228	228	15 contributed funds. Other entities that contribute funds may
229	229	16 elect to leave funds in the Circuit Breaker Property Tax
230	230	17 Relief Fund for payments related to subsequent tax years.
231	231	18 (c) Payments from the Circuit Breaker Property Tax Relief
232	232	19 Fund on behalf of or for the benefit of claimants shall be made
233	233	20 to coincide as closely as possible with the final installment
234	234	21 of property tax bills and may be issued directly to local
235	235	22 taxing bodies on behalf of the claimant, provided that the
236	236	23 property tax bill for claimants is reduced by the amount of
237	237	24 their claim, whether through an abatement or other means.
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248	248	1 Section 20. Amount of grant.
249	249	2 (a) Any individual who: (i) is domiciled in this State;
250	250	3 (ii) is eligible for and receives either a general homestead
251	251	4 exemption under Section 15-175 of the Property Tax Code or a
252	252	5 general alternative homestead exemption under Section 15-176
253	253	6 of the Property Tax Code; (iii) has experienced property tax
254	254	7 bill spikes; and (iv) has an income that meets the income
255	255	8 eligibility limitation is eligible for a grant of a portion of
256	256	9 their bill spike.
257	257	10 (b) Except as otherwise provided in this Act, the maximum
258	258	11 amount of grant to which a claimant is entitled is the one-half
259	259	12 of the claimant's tax bill spike.
260	260	13 (c) If title to the residence is held jointly by the
261	261	14 claimant with a person who is not a member of his or her
262	262	15 household, the amount of property taxes accrued used in
263	263	16 computing the amount of grant to which he or she is entitled
264	264	17 shall be the same percentage of property taxes accrued as is
265	265	18 the percentage of ownership held by the claimant in the
266	266	19 residence.
267	267	20 Section 25. Application.
268	268	21 (a) The Chief County Assessment Officer shall establish
269	269	22 the content, required eligibility and identification
270	270	23 information, use of social security numbers, and manner of
271	271	24 applying for benefits in a simplified format under this Act.
272	272	25 (b) Applications for grants under this Act shall be filed
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283	283	1 online.
284	284	2 (c) Applications must be filed during the time period
285	285	3 prescribed by the Chief County Assessment Officer.
286	286	4 Section 30. Procedure.
287	287	5 (a) Claims must be filed after January 1 on forms
288	288	6 prescribed by the Chief County Assessment Officer. No claim
289	289	7 may be filed more than one year after December 31 of the tax
290	290	8 year for which the claim is filed.
291	291	9 (b) The right to file a claim under this Act shall be
292	292	10 personal to the claimant and shall not survive his death, but
293	293	11 such right may be exercised on behalf of a claimant by his
294	294	12 legal guardian or attorney-in-fact. If a claimant dies after
295	295	13 having filed a timely claim, the amount thereof shall be
296	296	14 disbursed on behalf of a person who inherited title to the
297	297	15 house, provided that such person resided with the claimant at
298	298	16 the time he or she filed the claim.
299	299	17 (c) Only one member of a household may file a claim under
300	300	18 this Act in any calendar year. If both members of a household
301	301	19 are otherwise entitled to claim a grant under this Act, they
302	302	20 must agree as to which of them will file a claim for that year.
303	303	21 (d) A person may not under any circumstances charge a fee
304	304	22 to a claimant under this Act for assistance in completing an
305	305	23 application form for a property tax relief grant under this
306	306	24 Act.
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317	317	1 Section 35. Administration.
318	318	2 (a) Upon receipt of a timely filed claim, the Chief County
319	319	3 Assessment Officer shall determine whether the claimant is a
320	320	4 person entitled to a grant under this Act and the amount of
321	321	5 grant to which he is entitled under this Act. The Chief County
322	322	6 Assessment Officer may require the claimant to furnish
323	323	7 reasonable proof of the statements of domicile, household
324	324	8 income, property taxes accrued and other matters on which
325	325	9 entitlement is based, and may withhold approval of a grant
326	326	10 until such additional proof is furnished. If the Chief County
327	327	11 Assessment Officer provides such information from other
328	328	12 records available to them, the claimant may rebut or augment
329	329	13 such information.
330	330	14 (b) The Chief County Assessment Officer shall deny claims
331	331	15 which have been fraudulently prepared or when he or she finds
332	332	16 that the claimant has acquired title to his residence or has
333	333	17 paid rent for his residence primarily for the purpose of
334	334	18 receiving a grant under this Act.
335	335	19 Section 40. Payment and denial of claims.
336	336	20 (a) In general. The Fund shall make payments, from
337	337	21 appropriations made for that purpose of grants to claimants
338	338	22 under this Act and from other entities, in the amounts to which
339	339	23 the Chief County Assessment Officer has determined they are
340	340	24 entitled, respectively. If a claim is denied, the Chief County
341	341	25 Assessment Officer shall cause written notice of that denial
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352	352	1 and the reasons for that denial to be sent to the claimant.
353	353	2 (b) Payment of claims one dollar and under. Where the
354	354	3 amount of the grant computed under Section 20 is less than one
355	355	4 dollar, the claimant shall receive one dollar.
356	356	5 (c) Right to appeal. Any person aggrieved by an action or
357	357	6 determination arising under this Act may request in writing
358	358	7 reconsideration of that action or determination, setting out
359	359	8 the facts upon which the request is based.
360	360	9 Section 45. Fraud; error.
361	361	10 (a) Any person who files a fraudulent claim for a grant
362	362	11 under this Act, or who for compensation prepares a claim for a
363	363	12 grant and knowingly enters false information on an application
364	364	13 for any claimant under this Act, or who fraudulently files
365	365	14 multiple applications, files a fraudulent request for payment,
366	366	15 is guilty of a Class 4 felony for the first offense and is
367	367	16 guilty of a Class 3 felony for each subsequent offense.
368	368	17 (b) The Department may recover from a claimant any amount
369	369	18 paid to that claimant under this Act on account of an erroneous
370	370	19 or fraudulent claim, together with 6% interest per year.
371	371	20 Amounts recoverable from a claimant by the Department under
372	372	21 this Act may, but need not, be recovered by offsetting the
373	373	22 amount owed against any future grant payable to the person
374	374	23 under this Act.
375	375	24 (c) A prosecution for a violation of this Section may be
376	376	25 commenced at any time within 3 years of the commission of that
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387	387	1 violation.
388	388	2 Section 50. Arrangements. No inference, implication, or
389	389	3 presumption of legislative construction shall be drawn or made
390	390	4 by reason of the location or grouping of any particular
391	391	5 Section or provision of this Act.
392	392	6 Section 55. Severability. If any clause, sentence,
393	393	7 Section, provision or part of this Act or the application
394	394	8 thereof to any person or circumstance shall be adjudged to be
395	395	9 unconstitutional, the remainder of this Act or its application
396	396	10 to persons or circumstances other than those to which it is
397	397	11 held invalid, shall not be affected thereby.
398	398	12 Section 60. Rules.
399	399	13 (a) Notwithstanding any other provision to the contrary,
400	400	14 the Chief County Assessment Officer may adopt rules regarding
401	401	15 applications, proof of eligibility, required identification
402	402	16 information, use of social security numbers, and counting of
403	403	17 income.
404	404	18 (b) The Chief County Assessment Officer may, subject to
405	405	19 appropriations made for that purpose:
406	406	20 (1) attempt to secure the cooperation of appropriate
407	407	21 federal, State and local agencies in securing the names
408	408	22 and addresses of persons to whom this Act pertains;
409	409	23 (2) prepare a mailing list of persons eligible for
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420	420	1 grants under this Act; and
421	421	2 (3) secure the cooperation of the Department of
422	422	3 Revenue, other State agencies, local business
423	423	4 establishments, and interest groups to educate the public
424	424	5 about the application process under this Act to those
425	425	6 eligible to file claims.
426	426	7 Section 900. The State Finance Act is amended by adding
427	427	8 Section 5.1030 as follows:
428	428	9 (30 ILCS 105/5.1030 new)
429	429	10 Sec. 5.1030. The Circuit Breaker Property Tax Relief Fund.
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