Bill Text: IL SB1725 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Creates a middle-class tax credit limited to a reduction in the equalized assessed value of homestead property owned by a middle-class taxpayer of 5% of the equalized assessed value of the property for the current assessment year. Provides that the maximum exemption is limited to $5,000. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-03-10 - Rule 3-9(a) / Re-referred to Assignments [SB1725 Detail]

Download: Illinois-2023-SB1725-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1725 Introduced 2/9/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-179 new
30 ILCS 805/8.47 new
Amends the Property Tax Code. Creates a middle-class tax credit limited to a reduction in the equalized assessed value of homestead property owned by a middle-class taxpayer of 5% of the equalized assessed value of the property for the current assessment year. Provides that the maximum exemption is limited to $5,000. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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A BILL FOR
SB1725 LRB103 28409 HLH 54789 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 adding
Section 15-179 as follows:
(35 ILCS 200/15-179 new)
Sec. 15-179. Middle class property tax credit.
(a) For purposes of this Section:
"Current tax year" means the year prior to the collection
year.
"Homestead property" has the meaning provided in Section
15-175.
"Household" means the owner, the spouse of the owner, and
all persons using the residence of the owner as their
principal place of residence.
"Household income" means the combined income of a
household for the calendar year preceding the taxable year.
"Income" has the same meaning as provided in Section 3.07
of the Senior Citizens and Persons with Disabilities Property
Tax Relief Act, except that "income" does not include
veteran's benefits.
"Middle-class taxpayer" means a taxpayer whose household
income is less than or equal to 200% of the median household

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income for residents of the State of Illinois, as determined
by the most recent available United States Census Bureau data.
(b) Beginning in taxable year 2024, homestead property
owned by a middle-class taxpayer is entitled to an annual
homestead exemption limited to a 5% reduction in the equalized
assessed value of the homestead property for the current
assessment year. The maximum exemption that may be claimed by
a taxpayer under this Section for a taxable year is $5,000.
(c) In a cooperative or life care facility where a
homestead exemption has been granted under this Section, the
cooperative association or the management of the cooperative
or life care facility shall credit the savings resulting from
that exemption only to the apportioned tax liability of the
owner or resident who qualified for the exemption. Any person
who willfully refuses to so credit the savings shall be guilty
of a Class B misdemeanor.
(d) If married persons maintain and reside in separate
residences qualifying as homestead property, each residence
shall receive 50% of the total reduction in equalized assessed
valuation provided by this Section.
Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:
(30 ILCS 805/8.47 new)
Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and

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8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.