PROP TX-GENERAL HOMESTEAD

104th Regular Session Introduced by Mike Coffey and 3 co-sponsors

Caps year-to-year growth of total property tax bills for General Homestead parcels to 103% (max 3% increase) starting 2026 taxes.

Added Co-Sponsor Rep. Brad Stephens

Purpose

HB 3724 amends Section 15‑175 of the Illinois Property Tax Code to cap year‑to‑year growth in the total property tax bill for parcels receiving the General Homestead Exemption. The measure is intended to limit sudden increases in homeowners’ property tax bills and provide greater predictability for owner‑occupied residences that qualify for the exemption.

Key provisions

Adds a statutory cap that, beginning with the 2026 tax year (taxes to be collected in 2027), the total tax bill for any property that receives the General Homestead Exemption may not exceed 103% of that property’s total tax bill for the immediately preceding taxable year (i.e., a maximum 3% increase in the total tax bill year‑over‑year).

Amends 35 ILCS 200/15‑175 (the General Homestead Exemption provision) to incorporate the cap and includes provisions addressing the reallocation of property tax liability when the cap applies. (The bill text references reallocation but does not provide detailed reallocation mechanics in the excerpt.)

Retains the General Homestead Exemption structure (existing equalized assessed value reductions and county‑specific maximum exemption amounts) while adding the tax‑bill growth limitation.

Who is affected

Primary beneficiaries: owners of homestead (owner‑occupied) property that qualify for the General Homestead Exemption under current law. Those homeowners would face a capped annual increase in their total property tax bills.

Local taxing districts and municipalities: potentially affected by constrained revenue growth from homestead parcels; may see changes in tax rate setting or reallocation among taxpayers.

County assessors and treasurers: administrative responsibilities to apply the cap, determine when reallocation is needed, and implement any new reporting or billing adjustments.

Potential impacts and considerations

Homeowners gain predictability and protection against large year‑to‑year tax increases on homestead parcels.

Because the cap limits revenue growth from homestead properties, taxing districts could experience slower revenue increases and may adjust tax rates or shift burdens to non‑homestead properties unless other statutory provisions reallocate liability or provide compensating mechanisms.

Implementation will require administrative changes (calculating capped bills, reallocation rules, notices), and legal/technical guidance may be needed to reconcile the cap with assessment changes, exemptions, and proration rules.

Timeline and procedural status (selected)

Filed / First reading: February–March 2025 (bill filed by Rep. Sosnowski).

Referred to committees; public hearings and committee reports occurred in March–April 2025.

Placed on Local, Consent, and General State Calendars in April 2025; multiple committee actions and calendar movements through April 29, 2025.

Co‑sponsors added through June–August 2025.

For full legal effect, consult the bill text amending 35 ILCS 200/15‑175 and subsequent legislative history for any amendments or implementation language clarifying reallocation mechanics.

Bill