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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

SB2095
LRB104 06186 HLH 16221 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Property Tax Code is amended by changing
5
Section 15-175 as follows:

6

(35 ILCS 200/15-175)
7

Sec. 15-175.
General homestead exemption.

8

(a) Except as provided in Sections 15-176 and 15-177,
9
homestead property is entitled to an annual homestead
10
exemption limited, except as described here with relation to
11
cooperatives or life care facilities, to a reduction in the
12
equalized assessed value of homestead property equal to the
13
increase in equalized assessed value for the current
14
assessment year above the equalized assessed value of the
15
property for 1977, up to the maximum reduction set forth
16
below. If however, the 1977 equalized assessed value upon
17
which taxes were paid is subsequently determined by local
18
assessing officials, the Property Tax Appeal Board, or a court
19
to have been excessive, the equalized assessed value which
20
should have been placed on the property for 1977 shall be used
21
to determine the amount of the exemption.
22

(b) Except as provided in Section 15-176, the maximum
23
reduction before taxable year 2004 shall be $4,500 in counties

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LRB104 06186 HLH 16221 b
1
with 3,000,000 or more inhabitants and $3,500 in all other
2
counties. Except as provided in Sections 15-176 and 15-177,
3
for taxable years 2004 through 2007, the maximum reduction
4
shall be $5,000, for taxable year 2008, the maximum reduction
5
is $5,500, and, for taxable years 2009 through 2011, the
6
maximum reduction is $6,000 in all counties. For taxable years
7
2012 through 2016, the maximum reduction is $7,000 in counties
8
with 3,000,000 or more inhabitants and $6,000 in all other
9
counties. For taxable years 2017 through 2022, the maximum
10
reduction is $10,000 in counties with 3,000,000 or more
11
inhabitants and $6,000 in all other counties. For taxable
12
years 2023 and
2024

thereafter
, the maximum reduction is
13
$10,000 in counties with 3,000,000 or more inhabitants, $8,000
14
in counties that are contiguous to a county of 3,000,000 or
15
more inhabitants, and $6,000 in all other counties.
For
16
taxable year 2025, the maximum reduction shall be $10,000 in
17
all counties. For taxable years 2026 and thereafter, the
18
maximum reduction in all counties shall be the maximum
19
reduction for the immediately preceding taxable year,
20
increased by the lesser of (i) 5% or (ii) the percentage
21
increase in the Consumer Price Index during the 12-month
22
period ending on September 30 of the immediately preceding
23
taxable year.
If a county has elected to subject itself to the
24
provisions of Section 15-176 as provided in subsection (k) of
25
that Section, then, for the first taxable year only after the
26
provisions of Section 15-176 no longer apply, for owners who,

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LRB104 06186 HLH 16221 b
1
for the taxable year, have not been granted a senior citizens
2
assessment freeze homestead exemption under Section 15-172 or
3
a long-time occupant homestead exemption under Section 15-177,
4
there shall be an additional exemption of $5,000 for owners
5
with a household income of $30,000 or less.
6

(c) In counties with fewer than 3,000,000 inhabitants, if,
7
based on the most recent assessment, the equalized assessed
8
value of the homestead property for the current assessment
9
year is greater than the equalized assessed value of the
10
property for 1977, the owner of the property shall
11
automatically receive the exemption granted under this Section
12
in an amount equal to the increase over the 1977 assessment up
13
to the maximum reduction set forth in this Section.
14

(d) If in any assessment year beginning with the 2000
15
assessment year, homestead property has a pro-rata valuation
16
under Section 9-180 resulting in an increase in the assessed
17
valuation, a reduction in equalized assessed valuation equal
18
to the increase in equalized assessed value of the property
19
for the year of the pro-rata valuation above the equalized
20
assessed value of the property for 1977 shall be applied to the
21
property on a proportionate basis for the period the property
22
qualified as homestead property during the assessment year.
23
The maximum proportionate homestead exemption shall not exceed
24
the maximum homestead exemption allowed in the county under
25
this Section divided by 365 and multiplied by the number of
26
days the property qualified as homestead property.

SB2095
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LRB104 06186 HLH 16221 b
1

(d-1) In counties with 3,000,000 or more inhabitants,
2
where the chief county assessment officer provides a notice of
3
discovery, if a property is not occupied by its owner as a
4
principal residence as of January 1 of the current tax year,
5
then the property owner shall notify the chief county
6
assessment officer of that fact on a form prescribed by the
7
chief county assessment officer. That notice must be received
8
by the chief county assessment officer on or before March 1 of
9
the collection year. If mailed, the form shall be sent by
10
certified mail, return receipt requested. If the form is
11
provided in person, the chief county assessment officer shall
12
provide a date stamped copy of the notice. Failure to provide
13
timely notice pursuant to this subsection (d-1) shall result
14
in the exemption being treated as an erroneous exemption. Upon
15
timely receipt of the notice for the current tax year, no
16
exemption shall be applied to the property for the current tax
17
year. If the exemption is not removed upon timely receipt of
18
the notice by the chief assessment officer, then the error is
19
considered granted as a result of a clerical error or omission
20
on the part of the chief county assessment officer as
21
described in subsection (h) of Section 9-275, and the property
22
owner shall not be liable for the payment of interest and
23
penalties due to the erroneous exemption for the current tax
24
year for which the notice was filed after the date that notice
25
was timely received pursuant to this subsection. Notice
26
provided under this subsection shall not constitute a defense

SB2095
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LRB104 06186 HLH 16221 b
1
or amnesty for prior year erroneous exemptions.
2

For the purposes of this subsection (d-1):
3

"Collection year" means the year in which the first and
4
second installment of the current tax year is billed.
5

"Current tax year" means the year prior to the collection
6
year.
7

(e) The chief county assessment officer may, when
8
considering whether to grant a leasehold exemption under this
9
Section, require the following conditions to be met:
10

(1) that a notarized application for the exemption,
11

signed by both the owner and the lessee of the property,
12

must be submitted each year during the application period
13

in effect for the county in which the property is located;
14

(2) that a copy of the lease must be filed with the
15

chief county assessment officer by the owner of the
16

property at the time the notarized application is
17

submitted;
18

(3) that the lease must expressly state that the
19

lessee is liable for the payment of property taxes; and
20

(4) that the lease must include the following language
21

in substantially the following form:
22

"Lessee shall be liable for the payment of real
23

estate taxes with respect to the residence in
24

accordance with the terms and conditions of Section
25

15-175 of the Property Tax Code (35 ILCS 200/15-175).
26

The permanent real estate index number for the

SB2095
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LRB104 06186 HLH 16221 b
1

premises is (insert number), and, according to the
2

most recent property tax bill, the current amount of
3

real estate taxes associated with the premises is
4

(insert amount) per year. The parties agree that the
5

monthly rent set forth above shall be increased or
6

decreased pro rata (effective January 1 of each
7

calendar year) to reflect any increase or decrease in
8

real estate taxes. Lessee shall be deemed to be
9

satisfying Lessee's liability for the above mentioned
10

real estate taxes with the monthly rent payments as
11

set forth above (or increased or decreased as set
12

forth herein).".
13

In addition, if there is a change in lessee, or if the
14
lessee vacates the property, then the chief county assessment
15
officer may require the owner of the property to notify the
16
chief county assessment officer of that change.
17

This subsection (e) does not apply to leasehold interests
18
in property owned by a municipality.
19

(f) "Homestead property" under this Section includes
20
residential property that is occupied by its owner or owners
21
as his or their principal dwelling place, or that is a
22
leasehold interest on which a single family residence is
23
situated, which is occupied as a residence by a person who has
24
an ownership interest therein, legal or equitable or as a
25
lessee, and on which the person is liable for the payment of
26
property taxes. For land improved with an apartment building

SB2095
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LRB104 06186 HLH 16221 b
1
owned and operated as a cooperative, the maximum reduction
2
from the equalized assessed value shall be limited to the
3
increase in the value above the equalized assessed value of
4
the property for 1977, up to the maximum reduction set forth
5
above, multiplied by the number of apartments or units
6
occupied by a person or persons who is liable, by contract with
7
the owner or owners of record, for paying property taxes on the
8
property and is an owner of record of a legal or equitable
9
interest in the cooperative apartment building, other than a
10
leasehold interest. For land improved with a life care
11
facility, the maximum reduction from the value of the
12
property, as equalized by the Department, shall be multiplied
13
by the number of apartments or units occupied by a person or
14
persons, irrespective of any legal, equitable, or leasehold
15
interest in the facility, who are liable, under a life care
16
contract with the owner or owners of record of the facility,
17
for paying property taxes on the property. For purposes of
18
this Section, the term "life care facility" has the meaning
19
stated in Section 15-170.
20

(f-1) As used in this Section:

21

"Consumer Price Index" means the index published by the
22
Bureau of Labor Statistics of the United States Department of
23
Labor that measures the average change in prices of goods and
24
services purchased by all urban consumers, United States city
25
average, all items, 1982-84 = 100.

26

"Household"
, as used in this Section,
means the owner, the

SB2095
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LRB104 06186 HLH 16221 b
1
spouse of the owner, and all persons using the residence of the
2
owner as their principal place of residence.
3

"Household income"
, as used in this Section,
means the
4
combined income of the members of a household for the calendar
5
year preceding the taxable year.
6

"Income"
, as used in this Section,
has the same meaning as
7
provided in Section 3.07 of the Senior Citizens and Persons
8
with Disabilities Property Tax Relief Act, except that
9
"income" does not include veteran's benefits.
10

(g) In a cooperative or life care facility where a
11
homestead exemption has been granted, the cooperative
12
association or the management of the cooperative or life care
13
facility shall credit the savings resulting from that
14
exemption only to the apportioned tax liability of the owner
15
or resident who qualified for the exemption. Any person who
16
willfully refuses to so credit the savings shall be guilty of a
17
Class B misdemeanor.
18

(h) Where married persons maintain and reside in separate
19
residences qualifying as homestead property, each residence
20
shall receive 50% of the total reduction in equalized assessed
21
valuation provided by this Section.
22

(i) In all counties, the assessor or chief county
23
assessment officer may determine the eligibility of
24
residential property to receive the homestead exemption and
25
the amount of the exemption by application, visual inspection,
26
questionnaire or other reasonable methods. The determination

SB2095
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LRB104 06186 HLH 16221 b
1
shall be made in accordance with guidelines established by the
2
Department, provided that the taxpayer applying for an
3
additional general exemption under this Section shall submit
4
to the chief county assessment officer an application with an
5
affidavit of the applicant's total household income, age,
6
marital status (and, if married, the name and address of the
7
applicant's spouse, if known), and principal dwelling place of
8
members of the household on January 1 of the taxable year. The
9
Department shall issue guidelines establishing a method for
10
verifying the accuracy of the affidavits filed by applicants
11
under this paragraph. The applications shall be clearly marked
12
as applications for the Additional General Homestead
13
Exemption.
14

(i-5) This subsection (i-5) applies to counties with
15
3,000,000 or more inhabitants. In the event of a sale of
16
homestead property, the homestead exemption shall remain in
17
effect for the remainder of the assessment year of the sale.
18
Upon receipt of a transfer declaration transmitted by the
19
recorder pursuant to Section 31-30 of the Real Estate Transfer
20
Tax Law for property receiving an exemption under this
21
Section, the assessor shall mail a notice and forms to the new
22
owner of the property providing information pertaining to the
23
rules and applicable filing periods for applying or reapplying
24
for homestead exemptions under this Code for which the
25
property may be eligible. If the new owner fails to apply or
26
reapply for a homestead exemption during the applicable filing

SB2095
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LRB104 06186 HLH 16221 b
1
period or the property no longer qualifies for an existing
2
homestead exemption, the assessor shall cancel such exemption
3
for any ensuing assessment year.
4

(j) In counties with fewer than 3,000,000 inhabitants, in
5
the event of a sale of homestead property the homestead
6
exemption shall remain in effect for the remainder of the
7
assessment year of the sale. The assessor or chief county
8
assessment officer may require the new owner of the property
9
to apply for the homestead exemption for the following
10
assessment year.
11

(k) Notwithstanding Sections 6 and 8 of the State Mandates
12
Act, no reimbursement by the State is required for the
13
implementation of any mandate created by this Section.
14

(l) The changes made to this Section by this amendatory
15
Act of the 100th General Assembly are effective for the 2018
16
tax year and thereafter.
17
(Source: P.A. 102-895, eff. 5-23-22.)

18

Section 99.
Effective date.
This Act takes effect upon
19
becoming law.

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