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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3849

Introduced 2/6/2026, by Sen. John F. Curran

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-175

Amends the Property Tax Code. Provides that, for taxable years 2027
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 percentage increase, if any, in
the Consumer Price Index during the 12-month period ending on September 30
of the immediately preceding taxable year. Effective immediately.
LRB104 17207 HLH 30627 b

A BILL FOR

SB3849
LRB104 17207 HLH 30627 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

SB3849
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LRB104 17207 HLH 30627 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
through 2026

and thereafter
, the maximum reduction
13
is $10,000 in counties with 3,000,000 or more inhabitants,
14
$8,000 in counties that are contiguous to a county of
15
3,000,000 or more inhabitants, and $6,000 in all other
16
counties.
For taxable year 2027 and thereafter, the maximum
17
reduction in all counties shall be the maximum reduction for
18
the immediately preceding taxable year, increased by the
19
percentage increase, if any, in the Consumer Price Index
20
during the 12-month period ending on September 30 of the
21
immediately preceding taxable year.
If a county has elected to
22
subject itself to the provisions of Section 15-176 as provided
23
in subsection (k) of that Section, then, for the first taxable
24
year only after the provisions of Section 15-176 no longer
25
apply, for owners who, for the taxable year, have not been
26
granted a senior citizens assessment freeze homestead

SB3849
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LRB104 17207 HLH 30627 b
1
exemption under Section 15-172 or a long-time occupant
2
homestead exemption under Section 15-177, there shall be an
3
additional exemption of $5,000 for owners with a household
4
income of $30,000 or less.
5

(c) In counties with fewer than 3,000,000 inhabitants, if,
6
based on the most recent assessment, the equalized assessed
7
value of the homestead property for the current assessment
8
year is greater than the equalized assessed value of the
9
property for 1977, the owner of the property shall
10
automatically receive the exemption granted under this Section
11
in an amount equal to the increase over the 1977 assessment up
12
to the maximum reduction set forth in this Section.
13

(d) If in any assessment year beginning with the 2000
14
assessment year, homestead property has a pro-rata valuation
15
under Section 9-180 resulting in an increase in the assessed
16
valuation, a reduction in equalized assessed valuation equal
17
to the increase in equalized assessed value of the property
18
for the year of the pro-rata valuation above the equalized
19
assessed value of the property for 1977 shall be applied to the
20
property on a proportionate basis for the period the property
21
qualified as homestead property during the assessment year.
22
The maximum proportionate homestead exemption shall not exceed
23
the maximum homestead exemption allowed in the county under
24
this Section divided by 365 and multiplied by the number of
25
days the property qualified as homestead property.
26

(d-1) In counties with 3,000,000 or more inhabitants,

SB3849
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1
where the chief county assessment officer provides a notice of
2
discovery, if a property is not occupied by its owner as a
3
principal residence as of January 1 of the current tax year,
4
then the property owner shall notify the chief county
5
assessment officer of that fact on a form prescribed by the
6
chief county assessment officer. That notice must be received
7
by the chief county assessment officer on or before March 1 of
8
the collection year. If mailed, the form shall be sent by
9
certified mail, return receipt requested. If the form is
10
provided in person, the chief county assessment officer shall
11
provide a date stamped copy of the notice. Failure to provide
12
timely notice pursuant to this subsection (d-1) shall result
13
in the exemption being treated as an erroneous exemption. Upon
14
timely receipt of the notice for the current tax year, no
15
exemption shall be applied to the property for the current tax
16
year. If the exemption is not removed upon timely receipt of
17
the notice by the chief assessment officer, then the error is
18
considered granted as a result of a clerical error or omission
19
on the part of the chief county assessment officer as
20
described in subsection (h) of Section 9-275, and the property
21
owner shall not be liable for the payment of interest and
22
penalties due to the erroneous exemption for the current tax
23
year for which the notice was filed after the date that notice
24
was timely received pursuant to this subsection. Notice
25
provided under this subsection shall not constitute a defense
26
or amnesty for prior year erroneous exemptions.

SB3849
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LRB104 17207 HLH 30627 b
1

For the purposes of this subsection (d-1):
2

"Collection year" means the year in which the first and
3
second installment of the current tax year is billed.
4

"Current tax year" means the year prior to the collection
5
year.
6

(e) The chief county assessment officer may, when
7
considering whether to grant a leasehold exemption under this
8
Section, require the following conditions to be met:
9

(1) that a notarized application for the exemption,
10

signed by both the owner and the lessee of the property,
11

must be submitted each year during the application period
12

in effect for the county in which the property is located;
13

(2) that a copy of the lease must be filed with the
14

chief county assessment officer by the owner of the
15

property at the time the notarized application is
16

submitted;
17

(3) that the lease must expressly state that the
18

lessee is liable for the payment of property taxes; and
19

(4) that the lease must include the following language
20

in substantially the following form:
21

"Lessee shall be liable for the payment of real
22

estate taxes with respect to the residence in
23

accordance with the terms and conditions of Section
24

15-175 of the Property Tax Code (35 ILCS 200/15-175).
25

The permanent real estate index number for the
26

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

SB3849
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LRB104 17207 HLH 30627 b
1

most recent property tax bill, the current amount of
2

real estate taxes associated with the premises is
3

(insert amount) per year. The parties agree that the
4

monthly rent set forth above shall be increased or
5

decreased pro rata (effective January 1 of each
6

calendar year) to reflect any increase or decrease in
7

real estate taxes. Lessee shall be deemed to be
8

satisfying Lessee's liability for the above mentioned
9

real estate taxes with the monthly rent payments as
10

set forth above (or increased or decreased as set
11

forth herein).".
12

In addition, if there is a change in lessee, or if the
13
lessee vacates the property, then the chief county assessment
14
officer may require the owner of the property to notify the
15
chief county assessment officer of that change.
16

This subsection (e) does not apply to leasehold interests
17
in property owned by a municipality.
18

(f)
As used in this Section:
19

"Consumer Price Index" means the index published by the
20
Bureau of Labor Statistics of the United States Department of
21
Labor that measures the average change in prices of goods and
22
services purchased by all urban consumers, United States city
23
average, all items, 1982-84 = 100.

24

"Homestead property"
means

under this Section includes

25
residential property that is occupied by its owner or owners
26
as his or their principal dwelling place, or that is a

SB3849
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LRB104 17207 HLH 30627 b
1
leasehold interest on which a single family residence is
2
situated, which is occupied as a residence by a person who has
3
an ownership interest therein, legal or equitable or as a
4
lessee, and on which the person is liable for the payment of
5
property taxes. For land improved with an apartment building
6
owned and operated as a cooperative, the maximum reduction
7
from the equalized assessed value shall be limited to the
8
increase in the value above the equalized assessed value of
9
the property for 1977, up to the maximum reduction set forth
10
above, multiplied by the number of apartments or units
11
occupied by a person or persons who is liable, by contract with
12
the owner or owners of record, for paying property taxes on the
13
property and is an owner of record of a legal or equitable
14
interest in the cooperative apartment building, other than a
15
leasehold interest. For land improved with a life care
16
facility, the maximum reduction from the value of the
17
property, as equalized by the Department, shall be multiplied
18
by the number of apartments or units occupied by a person or
19
persons, irrespective of any legal, equitable, or leasehold
20
interest in the facility, who are liable, under a life care
21
contract with the owner or owners of record of the facility,
22
for paying property taxes on the property.
For purposes of
23
this Section, the term "life care facility" has the meaning
24
stated in Section 15-170.
25

"Household"
, as used in this Section,
means the owner, the
26
spouse of the owner, and all persons using the residence of the

SB3849
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LRB104 17207 HLH 30627 b
1
owner as their principal place of residence.
2

"Household income"
, as used in this Section,
means the
3
combined income of the members of a household for the calendar
4
year preceding the taxable year.
5

"Income"
, as used in this Section,
has the same meaning as
6
provided in Section 3.07 of the Senior Citizens and Persons
7
with Disabilities Property Tax Relief Act, except that
8
"income" does not include veteran's benefits.
9

"Life care facility" has the meaning given to that term in
10
Section 15-170.

11

(g) In a cooperative or life care facility where a
12
homestead exemption has been granted, the cooperative
13
association or the management of the cooperative or life care
14
facility shall credit the savings resulting from that
15
exemption only to the apportioned tax liability of the owner
16
or resident who qualified for the exemption. Any person who
17
willfully refuses to so credit the savings shall be guilty of a
18
Class B misdemeanor.
19

(h) Where married persons maintain and reside in separate
20
residences qualifying as homestead property, each residence
21
shall receive 50% of the total reduction in equalized assessed
22
valuation provided by this Section.
23

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

SB3849
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LRB104 17207 HLH 30627 b
1
questionnaire or other reasonable methods. The determination
2
shall be made in accordance with guidelines established by the
3
Department, provided that the taxpayer applying for an
4
additional general exemption under this Section shall submit
5
to the chief county assessment officer an application with an
6
affidavit of the applicant's total household income, age,
7
marital status (and, if married, the name and address of the
8
applicant's spouse, if known), and principal dwelling place of
9
members of the household on January 1 of the taxable year. The
10
Department shall issue guidelines establishing a method for
11
verifying the accuracy of the affidavits filed by applicants
12
under this paragraph. The applications shall be clearly marked
13
as applications for the Additional General Homestead
14
Exemption.
15

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

SB3849
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LRB104 17207 HLH 30627 b
1
reapply for a homestead exemption during the applicable filing
2
period or the property no longer qualifies for an existing
3
homestead exemption, the assessor shall cancel such exemption
4
for any ensuing assessment year.
5

(j) In counties with fewer than 3,000,000 inhabitants, in
6
the event of a sale of homestead property the homestead
7
exemption shall remain in effect for the remainder of the
8
assessment year of the sale. The assessor or chief county
9
assessment officer may require the new owner of the property
10
to apply for the homestead exemption for the following
11
assessment year.
12

(k) Notwithstanding Sections 6 and 8 of the State Mandates
13
Act, no reimbursement by the State is required for the
14
implementation of any mandate created by this Section.
15

(l) The changes made to this Section by this amendatory
16
Act of the 100th General Assembly are effective for the 2018
17
tax year and thereafter.
18
(Source: P.A. 102-895, eff. 5-23-22.)

19

Section 99.
Effective date.
This Act takes effect upon
20
becoming law.

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