Bill > SB2798

This bill makes changes to property tax laws, primarily by adjusting the maximum reduction available through the general homestead exemption, which is a property tax relief for homeowners. For the 2026 tax year, the maximum reduction will be $10,000 in all counties. For 2027 and subsequent years, this maximum reduction will increase annually by either 5% or the percentage increase in the Consumer Price Index (CPI), whichever is less, with the CPI being a measure of inflation. Additionally, the bill introduces a new provision that, for assessment years 2025 through 2027, property tax assessments cannot increase by more than 20% per year, unless specific exceptions apply, such as the property being sold, significant improvements being made, a homestead exemption being removed, or the increase being due to an equalization factor imposed by local or state authorities. The bill also modifies the Tax Increment Allocation Redevelopment Act by requiring that any surplus funds in a special tax allocation fund be distributed as soon as possible after they are calculated, rather than on an annual basis. This bill takes effect immediately upon becoming law.

Budget and Finance

https://www.ilga.gov/Legislation/BillStatus?DocNum=2798&GAID=18&DocTypeID=SB&SessionID=114&GA=104