Bill > HB4134

This bill amends the Property Tax Code to modify the homestead exemption for persons with disabilities, introducing a more complex calculation method beginning in taxable year 2026. Currently, the exemption is a flat $2,000, but starting in 2026, the exemption amount will depend on the property's ownership history. For property owners who have owned their property in the year prior to the base year, the exemption will be the greater of $2,000 or an amount that reduces the property's value so that the total property tax liability equals the previous year's tax liability. For new property owners, the first year's exemption will be $2,000, and subsequent years will follow a similar calculation method based on the base year's tax liability. The bill defines the "base year" as either 2026 or the first year the person qualifies for the exemption. A "person with a disability" is defined as someone unable to engage in substantial gainful activity due to a medically determinable physical or mental impairment expected to last at least 12 months, with proof of disability obtainable through Social Security benefits, a state disability identification card, or a medical examination. The bill aims to provide more flexible and potentially more beneficial property tax relief for persons with disabilities while maintaining existing eligibility requirements.

https://www.ilga.gov/Legislation/BillStatus?DocNum=4134&GAID=18&DocTypeID=HB&SessionID=114&GA=104