Bill Text: IL HB5773 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Makes changes concerning certifications by the Department of Revenue for the purpose of establishing guidelines and valuations for farmland. Provides that cropland, permanent pasture, and other farmland shall be defined according to guidelines issued by the Department of Revenue (currently, U.S. Census Bureau definitions). Makes changes concerning equalization factors applied to farmland property. In provisions concerning property under a forestry management plan, provides that the Department of Natural Resources shall inform the Department of Revenue of each parcel of land covered by an approved forestry management plan, and the Department of Revenue shall notify each chief county assessment officer of each parcel of land covered by an approved forestry management plan (currently, the Department Natural Resources notifies the Department of Revenue and each chief county assessment officer). Effective immediately.

Sponsorship: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2026-05-15 - Added Chief Co-Sponsor Rep. Jay Hoffman [HB5773 Detail]

Download: Illinois-2025-HB5773-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB5773 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED:
35 ILCS 200/10-115
35 ILCS 200/10-125
35 ILCS 200/10-135
35 ILCS 200/10-145
35 ILCS 200/10-150
35 ILCS 200/10-152
Amends the Property Tax Code. Makes changes concerning certifications by the Department of Revenue for the purpose of establishing guidelines and valuations for farmland. Provides that cropland, permanent pasture, and other farmland shall be defined according to guidelines issued by the Department of Revenue (currently, U.S. Census Bureau definitions). Makes changes concerning equalization factors applied to farmland property. In provisions concerning property under a forestry management plan, provides that the Department of Natural Resources shall inform the Department of Revenue of each parcel of land covered by an approved forestry management plan, and the Department of Revenue shall notify each chief county assessment officer of each parcel of land covered by an approved forestry management plan (currently, the Department Natural Resources notifies the Department of Revenue and each chief county assessment officer). Effective immediately.
LRB104 21898 HLH 37782 b
A BILL FOR
HB5773 LRB104 21898 HLH 37782 b
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 changing
Sections 10-115, 10-125, 10-135, 10-145, 10-150, and 10-152 as
follows:
(35 ILCS 200/10-115)
Sec. 10-115. Department guidelines and valuations for
farmland. The Department shall issue guidelines and
recommendations for the valuation of farmland to achieve
equitable assessment within and between counties.
The Director of Revenue shall appoint a five-person
Farmland Assessment Technical Advisory Board, consisting of
technical experts from the colleges or schools of agriculture
of the State universities and State and federal agricultural
agencies, to advise in and provide data and technical
information needed for implementation of this Section.
By May 1 of each year, the Department shall certify to each
chief county assessment officer the following, calculated from
data provided by the Farmland Assessment Technical Advisory
Board, on a per acre basis by soil productivity index for
harvested cropland, using moving averages based upon for the
most recent 5-year period for which data are available:

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(a) gross income, estimated by using annual yields per
acre, as assigned to soil productivity indices for the
major crops grown in this State, the crop mix for each soil
productivity index as determined by a Farmland Assessment
Technical Advisory Board representative from the
Department of Agricultural and Consumer Economics in the
College of Agricultural, Consumer, and Environmental
Sciences at the College of Agriculture of the University
of Illinois, and annual average prices received by farmers
for principal crops from associated publicly reported data
as published by the Illinois Crop Reporting Service;
(b) non-land production costs for each soil
productivity index as calculated by the Department of
Agricultural and Consumer Economics in , other than land
costs, provided by the College of Agricultural, Consumer,
and Environmental Sciences at Agriculture of the
University of Illinois;
(c) net return to land, for each soil productivity
index, which is calculated by subtracting non-land
production costs from estimated gross income; , which
shall be the difference between (a) and (b) above;
(d) a proposed agricultural economic value (AEV)
determined by dividing the net return to land by a
farmland income capitalization rate, which shall be
determined based on the calculation year rate under
Section 2032A of the Internal Revenue Code, or its analog

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in cases when the rate is not published by the Farm Credit
Bank district that contains Illinois, plus 3%; except
that, in cases when that calculated rate exceeds 10%, the
income capitalization rate will be 10%; and, in cases when
that calculated rate falls below 8%, the income
capitalization rate will equal 8% the moving average of
the Federal Land Bank farmland mortgage interest rate as
calculated by the Department;
(e) the equalized assessed value per acre of farmland
for each soil productivity index, which shall be 33-1/3%
of the agricultural economic value, or the percentage as
provided under Section 17-5; but any increase or decrease
in the equalized assessed value per acre by soil
productivity index shall not exceed 10% from the immediate
preceding year's soil productivity index certified
assessed value of the median cropped soil; in tax year
2015 only, that 10% limitation shall be reduced by $5 per
acre;
(f) a proposed average equalized assessed value per
acre of cropland for each individual county, weighted by
the distribution of soils by productivity index in the
county; and
(g) a proposed average equalized assessed value per
acre for all farmland in each county, weighted (i) to
consider the proportions of all farmland acres in the
county which are cropland, permanent pasture, and other

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farmland, and (ii) to reflect the valuations for those
types of land and debasements for slope and erosion as
required by Section 10-125.
(Source: P.A. 98-109, eff. 7-25-13.)
(35 ILCS 200/10-125)
Sec. 10-125. Assessment level by type of farmland.
Cropland, permanent pasture, and other farmland shall be
defined according to guidelines issued by the Department of
Revenue U.S. Census Bureau definitions in use during that
assessment year and assessed in the following way:
(a) Cropland shall be assessed in accordance with the
equalized assessed value of its soil productivity index as
certified by the Department and shall be debased to take
into account factors including, but not limited to, slope,
drainage, ponding, flooding, and field size and shape.
(b) Permanent pasture shall be assessed at 1/3 of its
debased productivity index equalized assessed value as
cropland.
(c) Other farmland shall be assessed at 1/6 of its
debased productivity index equalized assessed value as
cropland.
(d) Wasteland shall be assessed on its contributory
value to the farmland parcel.
In no case shall the equalized assessed value of permanent
pasture be below 1/3, nor the equalized assessed value of

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other farmland, except wasteland, be below 1/6, of the
equalized assessed value per acre of cropland of the lowest
productivity index certified under Section 10-115.
(Source: P.A. 86-954; 88-455.)
(35 ILCS 200/10-135)
Sec. 10-135. Farmland not subject to equalization. The
assessed valuation of farmland assessed under Sections 10-110
through 10-130 shall not be subject to equalization by means
of State equalization factors. Equalization factors applied by
a chief county assessment officer or a Board of Review under
Sections 9-205 and 16-60 shall be applied to assessments of
farmland only to achieve assessments as required by Sections
10-110 through 10-130.
(Source: P.A. 92-301, eff. 1-1-02.)
(35 ILCS 200/10-145)
Sec. 10-145. Farm dwellings. Each farm dwelling and
appurtenant structures and the tract upon which they are
immediately situated shall be assessed by the local assessing
officials at 33 1/3% of fair cash value except that in counties
that classify property for purposes of taxation in accordance
with Section 4 of Article IX of the Constitution they shall be
assessed at the percentage of fair cash value as required by
county ordinance. That assessment shall be subject to
equalization by the Department under Sections 17-5 through

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17-30 and local equalization applied under Sections 9-205 and
16-60.
(Source: P.A. 82-554; 88-455.)
(35 ILCS 200/10-150)
Sec. 10-150. Property under forestry management plan. In
counties with less than 3,000,000 inhabitants, any land being
managed under a forestry management plan accepted by the
Department of Natural Resources under the Illinois Forestry
Development Act shall be considered as "other farmland" and
shall be valued at 1/6 of its productivity index equalized
assessed value as cropland. In counties with more than
3,000,000 inhabitants, any land totaling totalling 15 acres or
less for which an approved forestry management plan was in
effect on or before December 31, 1985, shall be considered
"other farmland". The Department of Natural Resources shall
inform the Department and each chief county assessment officer
of each parcel of land covered by an approved forestry
management plan, and the Department shall notify each chief
county assessment officer of each parcel of land covered by an
approved forestry management plan.
(Source: P.A. 88-455; 89-445, eff. 2-7-96.)
(35 ILCS 200/10-152)
(Section scheduled to be repealed on December 31, 2026)
Sec. 10-152. Vegetative filter strip assessment.

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(a) In counties with less than 3,000,000 inhabitants, any
land (i) that is located between a farm field and an area to be
protected, including but not limited to surface water, a
stream, a river, or a sinkhole and (ii) that meets the
requirements of subsection (b) of this Section shall be
considered a "vegetative filter strip" and valued at 1/6th of
its productivity index equalized assessed value as cropland.
In counties with 3,000,000 or more inhabitants, the land shall
be valued at the lesser of either (i) 16% of the fair cash
value of the farmland estimated at the price it would bring at
a fair, voluntary sale for use by the buyer as a farm as
defined in Section 1-60 or (ii) 90% of the 1983 average
equalized assessed value per acre certified by the Department
of Revenue.
(b) Vegetative filter strips shall meet the standards and
specifications set forth in the Natural Resources Conservation
Service Technical Guide and shall contain vegetation that (i)
has a dense top growth; (ii) forms a uniform ground cover;
(iii) has a heavy fibrous root system; and (iv) tolerates
pesticides used in the farm field.
(c) The county's soil and water conservation district
shall assist the taxpayer in completing a uniform certified
document as prescribed by the Department of Revenue in
cooperation with the Association of Illinois Soil and Water
Conservation Districts that certifies (i) that the property
meets the requirements established under this Section for

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vegetative filter strips and (ii) the acreage or square
footage of property that qualifies for assessment as a
vegetative filter strip. The document shall be filed by the
applicant with the Chief County Assessment Officer. The Chief
County Assessment Officer shall promulgate rules concerning
the filing of the document. The soil and water conservation
district shall create a conservation plan for the creation of
the filter strip. The plan shall be kept on file in the soil
and water conservation district office. Nothing in this
Section shall be construed to require any taxpayer to have
vegetative filter strips.
(d) A joint report by the Department of Agriculture and
the Department of Natural Resources concerning the effect and
impact of vegetative filter strip assessment shall be
submitted to the General Assembly by March 1, 2006.
(e) (Blank). This Section is repealed on December 31,
2026.
(Source: P.A. 99-560, eff. 1-1-17; 99-916, eff. 12-30-16.)
Section 99. Effective date. This Act takes effect upon
becoming law.