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HB 5773

PROP TX-FARMLAND

104th Regular Session Introduced by Jay Hoffman and 2 co-sponsors

HB5773 creates a state-guided, data-driven framework for farmland valuations in Illinois, with per-acre figures set annually by IDOR using new advisory and soil-based methods.

Added Chief Co-Sponsor Rep. Jay Hoffman
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Bill Summary · HB 5773

Summary of HB5773 (104th General Assembly, Illinois)

Main purpose

HB5773 aims to reform how farmland is defined, valued, and assessed for property tax purposes in Illinois. It shifts some guidelines away from relying solely on U.S. Census Bureau definitions and directs the Department of Revenue (IDOR) to establish its own farmland valuation guidelines and calculations. The bill also modifies notification responsibilities related to forestry management plans and includes an explicit effective date “effective immediately.”

Key provisions and changes

  • Department guidelines and farmland valuations ( Sections 10-115, 10-125, 10-135, 10-145, 10-150, 10-152 )

    • The IDOR must issue guidelines and recommendations to achieve equitable farmland assessments across counties.
    • A new Farmland Assessment Technical Advisory Board (five members) will be appointed by the IDOR. The board will comprise technical agriculture experts from state universities and agricultural agencies to provide data and technical input.
    • By May 1 each year, the IDOR must certify to chief county assessment officers per-acre figures for harvested cropland, calculated from soil productivity indices and a five-year moving average. These figures include:
    • Estimated gross income (based on yields, crop mix, prices)
    • Non-land production costs (excluding land costs)
    • Net return to land (gross income minus non-land costs)
    • Agricultural Economic Value (AEV) derived from net return to land divided by an capitalized-rate, with specific rate rules aligned to federal tax rates and Farm Credit Bank data, with 8%–10% floors/ceilings as applicable
    • Equalized assessed value per acre for each soil productivity index (set at 33-1/3% of AEV, with annual adjustment limits)
    • County-level and statewide average equalized values weighted by soil distribution and land type (cropland, permanent pasture, other farmland); includes adjustments for slope and erosion consistent with Section 10-125

  • Assessment level by type of farmland ( Section 10-125 )

    • Definitions for cropland, permanent pasture, and other farmland would be based on IDOR guidelines (replacing prior reliance on U.S. Census Bureau definitions).
    • Specific assessment multipliers: cropland at full equalized assessed value per its soil index; permanent pasture at 1/3 of cropland value; other farmland at 1/6 of cropland value.
    • Wasteland is assessed based on contributory value.
    • Minimums apply to permanent pasture (not below 1/3) and other farmland (not below 1/6 of cropland value).

  • Farmland not subject to equalization ( Section 10-135 )

    • Farmland valuations under existing sections will not be subject to state-wide equalization factors, though local equalization can be applied to meet statutory requirements.

  • Farm dwellings ( Section 10-145 )

    • Farm dwellings and related structures continue to be assessed at 33 1/3% of fair cash value, subject to local and state equalization rules.

  • Forestry management plans ( Section 10-150 )

    • In certain counties, land under a DNR-approved forestry management plan would be treated as “other farmland” (or 15 acres or less in larger counties) and valued accordingly, with DNR notifying the IDOR and chief county assessment officers of parcels covered by such plans.

  • Vegetative filter strips ( Section 10-152 )

    • A temporary (repealed Dec 31, 2026) provision would have valued certain vegetative filter strips at 1/6 of cropland productivity value in smaller counties, or using alternative valuation methods in larger counties.

Who and what is affected

  • Property owners with farmland in Illinois, including cropland, permanent pasture, and other farmland, will see new guidelines and per-acre valuation calculations.
  • Chief county assessment officers receive annual per-acre valuation data from IDOR for implementation in local assessments.
  • Forestry management plan parcels overseen by the Department of Natural Resources (DNR) would be subject to updated notification and valuation processes.
  • Farm dwellings and appurtenant structures remain under current assessment rules with potential alignment to new methodology.

Procedural and timeline aspects

  • Effective date: immediate upon enactment.
  • Annual milestones: IDOR must certify per-acre farmland data to county assessors by May 1 each year, using data from the advisory board.
  • Establishment of the Farmland Assessment Technical Advisory Board and ongoing advisory process to inform valuations.

Overall, HB5773 seeks to formalize a more data-driven, state-guided framework for farmland valuation and equitable assessment across Illinois counties, with explicit roles for the IDOR and a new technical advisory board.

Compiled from official sources — confirm details with the bill’s official record.

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