Illinois Senate Bill SB2845

Illinois 2023-2024 Regular Session

• Introduced: 1/19/24
• Refer: 1/19/24
• Refer: 1/31/24
• Refer: 5/3/24

Caption

PROP TX-LONG-TIME OCCUPANT

Impact

The immediate effect of SB2845 is to alter the way long-time occupants benefit from property tax exemptions in Illinois. By lowering the rate of increase on homestead values, the bill is positioned to offer more stable and predictably lower increases in property taxes for eligible homeowners, particularly those on fixed incomes. This could ease the financial burden for many long-time residents, allowing for better financial planning and stability in housing costs, particularly for those with more modest means.

Summary

SB2845 proposes amendments to the Property Tax Code concerning the long-time occupant homestead exemption. The bill stipulates new formulas for calculating the adjusted homestead value, which will now increase by a maximum of 5% for qualified taxpayers with an income over $75,000 but not exceeding $100,000, and 3% for those earning $75,000 or less. This marks a significant reduction from the previous increments of 10% and 7%, respectively. The changes aim to adjust property tax relief for qualified homeowners based on their income levels, thereby providing targeted support.

Contention

While the bill presents potential benefits, it also raises points of contention. Critics argue that adjusting the exemption formulas may limit the long-term benefits initially intended for long-time residents, effectively continuing the trend of rising property taxes in a state where housing affordability is an ongoing concern. Additionally, stakeholders may contest whether the new income thresholds adequately reflect the ever-changing economic landscape, which could leave lower-income families without sufficient relief.