Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2095 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 SB2095 Introduced 2/6/2025, by Sen. Erica Harriss SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-175 Amends the Property Tax Code. Provides that, for taxable year 2025, the maximum reduction for the general homestead exemption shall be $10,000 in all counties. Provides that, for taxable years 2026 and thereafter, the maximum reduction for the general homestead exemption in all counties shall be the maximum reduction for the immediately preceding taxable year, increased by the lesser of (i) 5% or (ii) the percentage increase in the Consumer Price Index during the 12-month period ending on September 30 of the immediately preceding taxable year. Effective immediately. LRB104 06186 HLH 16221 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2095 Introduced 2/6/2025, by Sen. Erica Harriss SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-175 35 ILCS 200/15-175 Amends the Property Tax Code. Provides that, for taxable year 2025, the maximum reduction for the general homestead exemption shall be $10,000 in all counties. Provides that, for taxable years 2026 and thereafter, the maximum reduction for the general homestead exemption in all counties shall be the maximum reduction for the immediately preceding taxable year, increased by the lesser of (i) 5% or (ii) the percentage increase in the Consumer Price Index during the 12-month period ending on September 30 of the immediately preceding taxable year. Effective immediately. LRB104 06186 HLH 16221 b LRB104 06186 HLH 16221 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2095 Introduced 2/6/2025, by Sen. Erica Harriss SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 200/15-175 35 ILCS 200/15-175
4	4	35 ILCS 200/15-175
5	5	Amends the Property Tax Code. Provides that, for taxable year 2025, the maximum reduction for the general homestead exemption shall be $10,000 in all counties. Provides that, for taxable years 2026 and thereafter, the maximum reduction for the general homestead exemption in all counties shall be the maximum reduction for the immediately preceding taxable year, increased by the lesser of (i) 5% or (ii) the percentage increase in the Consumer Price Index during the 12-month period ending on September 30 of the immediately preceding taxable year. Effective immediately.
6	6	LRB104 06186 HLH 16221 b LRB104 06186 HLH 16221 b
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8	8	A BILL FOR
9	9	SB2095LRB104 06186 HLH 16221 b SB2095 LRB104 06186 HLH 16221 b
10	10	SB2095 LRB104 06186 HLH 16221 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Property Tax Code is amended by changing
15	15	5 Section 15-175 as follows:
16	16	6 (35 ILCS 200/15-175)
17	17	7 Sec. 15-175. General homestead exemption.
18	18	8 (a) Except as provided in Sections 15-176 and 15-177,
19	19	9 homestead property is entitled to an annual homestead
20	20	10 exemption limited, except as described here with relation to
21	21	11 cooperatives or life care facilities, to a reduction in the
22	22	12 equalized assessed value of homestead property equal to the
23	23	13 increase in equalized assessed value for the current
24	24	14 assessment year above the equalized assessed value of the
25	25	15 property for 1977, up to the maximum reduction set forth
26	26	16 below. If however, the 1977 equalized assessed value upon
27	27	17 which taxes were paid is subsequently determined by local
28	28	18 assessing officials, the Property Tax Appeal Board, or a court
29	29	19 to have been excessive, the equalized assessed value which
30	30	20 should have been placed on the property for 1977 shall be used
31	31	21 to determine the amount of the exemption.
32	32	22 (b) Except as provided in Section 15-176, the maximum
33	33	23 reduction before taxable year 2004 shall be $4,500 in counties
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2095 Introduced 2/6/2025, by Sen. Erica Harriss SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 200/15-175 35 ILCS 200/15-175
39	39	35 ILCS 200/15-175
40	40	Amends the Property Tax Code. Provides that, for taxable year 2025, the maximum reduction for the general homestead exemption shall be $10,000 in all counties. Provides that, for taxable years 2026 and thereafter, the maximum reduction for the general homestead exemption in all counties shall be the maximum reduction for the immediately preceding taxable year, increased by the lesser of (i) 5% or (ii) the percentage increase in the Consumer Price Index during the 12-month period ending on September 30 of the immediately preceding taxable year. Effective immediately.
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43	43	A BILL FOR
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49	49	35 ILCS 200/15-175
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68	68	1 with 3,000,000 or more inhabitants and $3,500 in all other
69	69	2 counties. Except as provided in Sections 15-176 and 15-177,
70	70	3 for taxable years 2004 through 2007, the maximum reduction
71	71	4 shall be $5,000, for taxable year 2008, the maximum reduction
72	72	5 is $5,500, and, for taxable years 2009 through 2011, the
73	73	6 maximum reduction is $6,000 in all counties. For taxable years
74	74	7 2012 through 2016, the maximum reduction is $7,000 in counties
75	75	8 with 3,000,000 or more inhabitants and $6,000 in all other
76	76	9 counties. For taxable years 2017 through 2022, the maximum
77	77	10 reduction is $10,000 in counties with 3,000,000 or more
78	78	11 inhabitants and $6,000 in all other counties. For taxable
79	79	12 years 2023 and 2024 thereafter, the maximum reduction is
80	80	13 $10,000 in counties with 3,000,000 or more inhabitants, $8,000
81	81	14 in counties that are contiguous to a county of 3,000,000 or
82	82	15 more inhabitants, and $6,000 in all other counties. For
83	83	16 taxable year 2025, the maximum reduction shall be $10,000 in
84	84	17 all counties. For taxable years 2026 and thereafter, the
85	85	18 maximum reduction in all counties shall be the maximum
86	86	19 reduction for the immediately preceding taxable year,
87	87	20 increased by the lesser of (i) 5% or (ii) the percentage
88	88	21 increase in the Consumer Price Index during the 12-month
89	89	22 period ending on September 30 of the immediately preceding
90	90	23 taxable year. If a county has elected to subject itself to the
91	91	24 provisions of Section 15-176 as provided in subsection (k) of
92	92	25 that Section, then, for the first taxable year only after the
93	93	26 provisions of Section 15-176 no longer apply, for owners who,
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104	104	1 for the taxable year, have not been granted a senior citizens
105	105	2 assessment freeze homestead exemption under Section 15-172 or
106	106	3 a long-time occupant homestead exemption under Section 15-177,
107	107	4 there shall be an additional exemption of $5,000 for owners
108	108	5 with a household income of $30,000 or less.
109	109	6 (c) In counties with fewer than 3,000,000 inhabitants, if,
110	110	7 based on the most recent assessment, the equalized assessed
111	111	8 value of the homestead property for the current assessment
112	112	9 year is greater than the equalized assessed value of the
113	113	10 property for 1977, the owner of the property shall
114	114	11 automatically receive the exemption granted under this Section
115	115	12 in an amount equal to the increase over the 1977 assessment up
116	116	13 to the maximum reduction set forth in this Section.
117	117	14 (d) If in any assessment year beginning with the 2000
118	118	15 assessment year, homestead property has a pro-rata valuation
119	119	16 under Section 9-180 resulting in an increase in the assessed
120	120	17 valuation, a reduction in equalized assessed valuation equal
121	121	18 to the increase in equalized assessed value of the property
122	122	19 for the year of the pro-rata valuation above the equalized
123	123	20 assessed value of the property for 1977 shall be applied to the
124	124	21 property on a proportionate basis for the period the property
125	125	22 qualified as homestead property during the assessment year.
126	126	23 The maximum proportionate homestead exemption shall not exceed
127	127	24 the maximum homestead exemption allowed in the county under
128	128	25 this Section divided by 365 and multiplied by the number of
129	129	26 days the property qualified as homestead property.
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140	140	1 (d-1) In counties with 3,000,000 or more inhabitants,
141	141	2 where the chief county assessment officer provides a notice of
142	142	3 discovery, if a property is not occupied by its owner as a
143	143	4 principal residence as of January 1 of the current tax year,
144	144	5 then the property owner shall notify the chief county
145	145	6 assessment officer of that fact on a form prescribed by the
146	146	7 chief county assessment officer. That notice must be received
147	147	8 by the chief county assessment officer on or before March 1 of
148	148	9 the collection year. If mailed, the form shall be sent by
149	149	10 certified mail, return receipt requested. If the form is
150	150	11 provided in person, the chief county assessment officer shall
151	151	12 provide a date stamped copy of the notice. Failure to provide
152	152	13 timely notice pursuant to this subsection (d-1) shall result
153	153	14 in the exemption being treated as an erroneous exemption. Upon
154	154	15 timely receipt of the notice for the current tax year, no
155	155	16 exemption shall be applied to the property for the current tax
156	156	17 year. If the exemption is not removed upon timely receipt of
157	157	18 the notice by the chief assessment officer, then the error is
158	158	19 considered granted as a result of a clerical error or omission
159	159	20 on the part of the chief county assessment officer as
160	160	21 described in subsection (h) of Section 9-275, and the property
161	161	22 owner shall not be liable for the payment of interest and
162	162	23 penalties due to the erroneous exemption for the current tax
163	163	24 year for which the notice was filed after the date that notice
164	164	25 was timely received pursuant to this subsection. Notice
165	165	26 provided under this subsection shall not constitute a defense
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176	176	1 or amnesty for prior year erroneous exemptions.
177	177	2 For the purposes of this subsection (d-1):
178	178	3 "Collection year" means the year in which the first and
179	179	4 second installment of the current tax year is billed.
180	180	5 "Current tax year" means the year prior to the collection
181	181	6 year.
182	182	7 (e) The chief county assessment officer may, when
183	183	8 considering whether to grant a leasehold exemption under this
184	184	9 Section, require the following conditions to be met:
185	185	10 (1) that a notarized application for the exemption,
186	186	11 signed by both the owner and the lessee of the property,
187	187	12 must be submitted each year during the application period
188	188	13 in effect for the county in which the property is located;
189	189	14 (2) that a copy of the lease must be filed with the
190	190	15 chief county assessment officer by the owner of the
191	191	16 property at the time the notarized application is
192	192	17 submitted;
193	193	18 (3) that the lease must expressly state that the
194	194	19 lessee is liable for the payment of property taxes; and
195	195	20 (4) that the lease must include the following language
196	196	21 in substantially the following form:
197	197	22 "Lessee shall be liable for the payment of real
198	198	23 estate taxes with respect to the residence in
199	199	24 accordance with the terms and conditions of Section
200	200	25 15-175 of the Property Tax Code (35 ILCS 200/15-175).
201	201	26 The permanent real estate index number for the
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212	212	1 premises is (insert number), and, according to the
213	213	2 most recent property tax bill, the current amount of
214	214	3 real estate taxes associated with the premises is
215	215	4 (insert amount) per year. The parties agree that the
216	216	5 monthly rent set forth above shall be increased or
217	217	6 decreased pro rata (effective January 1 of each
218	218	7 calendar year) to reflect any increase or decrease in
219	219	8 real estate taxes. Lessee shall be deemed to be
220	220	9 satisfying Lessee's liability for the above mentioned
221	221	10 real estate taxes with the monthly rent payments as
222	222	11 set forth above (or increased or decreased as set
223	223	12 forth herein).".
224	224	13 In addition, if there is a change in lessee, or if the
225	225	14 lessee vacates the property, then the chief county assessment
226	226	15 officer may require the owner of the property to notify the
227	227	16 chief county assessment officer of that change.
228	228	17 This subsection (e) does not apply to leasehold interests
229	229	18 in property owned by a municipality.
230	230	19 (f) "Homestead property" under this Section includes
231	231	20 residential property that is occupied by its owner or owners
232	232	21 as his or their principal dwelling place, or that is a
233	233	22 leasehold interest on which a single family residence is
234	234	23 situated, which is occupied as a residence by a person who has
235	235	24 an ownership interest therein, legal or equitable or as a
236	236	25 lessee, and on which the person is liable for the payment of
237	237	26 property taxes. For land improved with an apartment building
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248	248	1 owned and operated as a cooperative, the maximum reduction
249	249	2 from the equalized assessed value shall be limited to the
250	250	3 increase in the value above the equalized assessed value of
251	251	4 the property for 1977, up to the maximum reduction set forth
252	252	5 above, multiplied by the number of apartments or units
253	253	6 occupied by a person or persons who is liable, by contract with
254	254	7 the owner or owners of record, for paying property taxes on the
255	255	8 property and is an owner of record of a legal or equitable
256	256	9 interest in the cooperative apartment building, other than a
257	257	10 leasehold interest. For land improved with a life care
258	258	11 facility, the maximum reduction from the value of the
259	259	12 property, as equalized by the Department, shall be multiplied
260	260	13 by the number of apartments or units occupied by a person or
261	261	14 persons, irrespective of any legal, equitable, or leasehold
262	262	15 interest in the facility, who are liable, under a life care
263	263	16 contract with the owner or owners of record of the facility,
264	264	17 for paying property taxes on the property. For purposes of
265	265	18 this Section, the term "life care facility" has the meaning
266	266	19 stated in Section 15-170.
267	267	20 (f-1) As used in this Section:
268	268	21 "Consumer Price Index" means the index published by the
269	269	22 Bureau of Labor Statistics of the United States Department of
270	270	23 Labor that measures the average change in prices of goods and
271	271	24 services purchased by all urban consumers, United States city
272	272	25 average, all items, 1982-84 = 100.
273	273	26 "Household", as used in this Section, means the owner, the
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284	284	1 spouse of the owner, and all persons using the residence of the
285	285	2 owner as their principal place of residence.
286	286	3 "Household income", as used in this Section, means the
287	287	4 combined income of the members of a household for the calendar
288	288	5 year preceding the taxable year.
289	289	6 "Income", as used in this Section, has the same meaning as
290	290	7 provided in Section 3.07 of the Senior Citizens and Persons
291	291	8 with Disabilities Property Tax Relief Act, except that
292	292	9 "income" does not include veteran's benefits.
293	293	10 (g) In a cooperative or life care facility where a
294	294	11 homestead exemption has been granted, the cooperative
295	295	12 association or the management of the cooperative or life care
296	296	13 facility shall credit the savings resulting from that
297	297	14 exemption only to the apportioned tax liability of the owner
298	298	15 or resident who qualified for the exemption. Any person who
299	299	16 willfully refuses to so credit the savings shall be guilty of a
300	300	17 Class B misdemeanor.
301	301	18 (h) Where married persons maintain and reside in separate
302	302	19 residences qualifying as homestead property, each residence
303	303	20 shall receive 50% of the total reduction in equalized assessed
304	304	21 valuation provided by this Section.
305	305	22 (i) In all counties, the assessor or chief county
306	306	23 assessment officer may determine the eligibility of
307	307	24 residential property to receive the homestead exemption and
308	308	25 the amount of the exemption by application, visual inspection,
309	309	26 questionnaire or other reasonable methods. The determination
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320	320	1 shall be made in accordance with guidelines established by the
321	321	2 Department, provided that the taxpayer applying for an
322	322	3 additional general exemption under this Section shall submit
323	323	4 to the chief county assessment officer an application with an
324	324	5 affidavit of the applicant's total household income, age,
325	325	6 marital status (and, if married, the name and address of the
326	326	7 applicant's spouse, if known), and principal dwelling place of
327	327	8 members of the household on January 1 of the taxable year. The
328	328	9 Department shall issue guidelines establishing a method for
329	329	10 verifying the accuracy of the affidavits filed by applicants
330	330	11 under this paragraph. The applications shall be clearly marked
331	331	12 as applications for the Additional General Homestead
332	332	13 Exemption.
333	333	14 (i-5) This subsection (i-5) applies to counties with
334	334	15 3,000,000 or more inhabitants. In the event of a sale of
335	335	16 homestead property, the homestead exemption shall remain in
336	336	17 effect for the remainder of the assessment year of the sale.
337	337	18 Upon receipt of a transfer declaration transmitted by the
338	338	19 recorder pursuant to Section 31-30 of the Real Estate Transfer
339	339	20 Tax Law for property receiving an exemption under this
340	340	21 Section, the assessor shall mail a notice and forms to the new
341	341	22 owner of the property providing information pertaining to the
342	342	23 rules and applicable filing periods for applying or reapplying
343	343	24 for homestead exemptions under this Code for which the
344	344	25 property may be eligible. If the new owner fails to apply or
345	345	26 reapply for a homestead exemption during the applicable filing
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356	356	1 period or the property no longer qualifies for an existing
357	357	2 homestead exemption, the assessor shall cancel such exemption
358	358	3 for any ensuing assessment year.
359	359	4 (j) In counties with fewer than 3,000,000 inhabitants, in
360	360	5 the event of a sale of homestead property the homestead
361	361	6 exemption shall remain in effect for the remainder of the
362	362	7 assessment year of the sale. The assessor or chief county
363	363	8 assessment officer may require the new owner of the property
364	364	9 to apply for the homestead exemption for the following
365	365	10 assessment year.
366	366	11 (k) Notwithstanding Sections 6 and 8 of the State Mandates
367	367	12 Act, no reimbursement by the State is required for the
368	368	13 implementation of any mandate created by this Section.
369	369	14 (l) The changes made to this Section by this amendatory
370	370	15 Act of the 100th General Assembly are effective for the 2018
371	371	16 tax year and thereafter.
372	372	17 (Source: P.A. 102-895, eff. 5-23-22.)
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