Bill > SB3872

This bill establishes a new "free and clear senior homestead exemption" within the Property Tax Code, effective for taxable year 2027, which exempts qualified senior homestead property from taxation. To qualify, the property must be owned and used as a primary residence by a senior citizen who is at least 75 years old and whose household income does not exceed a specified limit, which starts at $100,000 for 2027 and will be adjusted annually based on the Consumer Price Index (CPI), a measure of inflation published by the U.S. Bureau of Labor Statistics. Importantly, the property must not have any outstanding liens, such as a mortgage or home equity line of credit, hence the "free and clear" designation. The bill also includes provisions for cooperative apartments and life care facilities, ensuring that tax savings from this exemption are directly credited to the qualifying resident, with penalties for non-compliance. Furthermore, the exemption can continue under certain circumstances if the qualifying senior moves to a licensed care facility or if their spouse, who is also 75 or older, continues to reside in the home.

https://www.ilga.gov/Legislation/BillStatus?DocNum=3872&GAID=18&DocTypeID=SB&SessionID=114&GA=104