Illinois General Assembly - Full Text of SB3174

LRB104 19320 HLH 32766 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3174

Introduced 2/2/2026, by Sen. Neil Anderson

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-177.1 new
30 ILCS 805/8.50 new

Amends the Property Tax Code. Establishes a homestead exemption for qualified homestead property that has been continuously owned, used, and occupied as the primary residence by the qualified taxpayer for at least 30 years prior to January 1 of the taxable year for which the exemption would apply. Requires taxpayers who have been granted an exemption to reapply on an annual basis. Provides that the assessor or chief county assessment officer may determine the eligibility of residential property to receive the homestead exemption by application, visual inspection, questionnaire, or other reasonable methods. Sets forth provisions concerning the review of exemptions granted under the provisions. Defines "qualified homestead property" and "qualified taxpayer". Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Property Tax Code is amended by adding Section 15-177.1 as follows:

(35 ILCS 200/15-177.1 new)

Sec. 15-177.1. The 30-year property homestead exemption.

(a) Notwithstanding any other provision of law, in taxable year 2026 and each taxable year thereafter, qualified homestead property that has been continuously owned, used, and occupied as the primary residence by a qualified taxpayer for at least 30 years any time prior to January 1 of the taxable year for which the exemption would apply is exempt from taxation under this Code.

(b) Each taxpayer who has been granted an exemption under this Section must reapply on an annual basis. The applications shall be clearly marked as applications for the 30-year property homestead exemption. The assessor or chief county assessment officer shall annually give notice of the application period by mail or by publication. Application must be made during the application period in effect for the county in which the property is located. The assessor or chief county assessment officer may determine the eligibility of residential property to receive the homestead exemption provided by this Section by application, visual inspection, questionnaire, or other reasonable methods, including the requirement for additional documentation from the applicant. The assessor or chief county assessment officer may enter into intergovernmental agreements with other governmental entities to establish information sharing agreements for the purpose of verifying applications made under this Section. The chief county assessment official shall conduct, by no later than December 31 of the first year of each reassessment cycle, as determined by Section 9-215 or Section 9-220, whichever applies, a review of all exemptions granted under this Section for the preceding reassessment cycle. The review shall be designed to ascertain whether any 30-year property homestead exemptions have been granted erroneously.

(c) As used in this Section:

"Qualified homestead property" means real property located in the State that has been granted an exemption under this Section and that, as of January 1 of the taxable year:

(1) is residential property that is owned and occupied by a qualified taxpayer as the qualified taxpayer's principal residence and domicile; or

(2) contains a single-family residence that is occupied as a principal residence and domicile by a qualified taxpayer who has a legal or equitable interest in the property as a lessee, as evidenced by a written instrument, and on which the qualified taxpayer is liable for the payment of property taxes.

"Qualified taxpayer" means an individual who, for at least 30 continuous years as of January 1 of the taxable year, has occupied the same homestead property as a principal residence and domicile.

Section 90. The State Mandates Act is amended by adding Section 8.50 as follows:

(30 ILCS 805/8.50 new)

Sec. 8.50. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 104th General Assembly.

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