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HB 2424

PROP TX-HOMESTEAD

104th Regular Session Introduced by Rita Mayfield

The bill expands the general homestead exemption to include occupants in lease-to-purchase/lease-option agreements who use the property as their principal residence and are tax-lia

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 2424

Summary — HB 2424 (Illinois) — PROP TX — Homestead

Status: Introduced Feb 4, 2025 (Rep. Rita Mayfield). Current procedural status: Rule 19(a) / Re‑referred to Rules Committee. Legal reference amended: 35 ILCS 200/15‑175 (General homestead exemption).

Purpose / Intent

To expand eligibility for the Illinois general homestead property tax exemption so that persons who occupy a dwelling as their principal residence and who are contractually liable for property taxes under a lease‑to‑purchase or lease‑option agreement can qualify as "homestead property" for the exemption.

Key provisions

  • Amends Section 15‑175 of the Property Tax Code to explicitly include, for purposes of the general homestead exemption, property that is:
    • Used by a person as his or her principal dwelling, and
    • Subject to the occupant’s liability for property taxes under a lease‑to‑purchase or lease‑option contract.
  • Retains the general structure and maximum reduction amounts in existing law (the bill text retains the historical maximums by county size and pro‑rata rules for partial‑year qualification).
  • Establishes procedural/administrative conditions that counties may require when evaluating leasehold exemption claims, including:
    • Annual notarized application signed by both owner and lessee (submitted during the county application period).
    • A copy of the lease filed with the chief county assessment officer.
    • Lease must expressly state the lessee is liable for payment of property taxes.
    • Lease must contain specified language (substantially in the bill) disclosing current tax amount and providing for rent adjustments tied to tax changes.
  • Confirms existing provisions for counties with 3,000,000+ population regarding discovery notices when a property is not owner‑occupied (includes notice deadlines, certified mail requirement or date‑stamped in‑person delivery, and treatment of erroneous exemptions).

Who is affected

  • Lessees in lease‑to‑purchase and lease‑option contracts who occupy the property as their principal residence may become eligible for the general homestead exemption.
  • Property owners who enter lease‑purchase/option agreements will be affected administratively (must sign/submit documents and include required lease terms).
  • County assessment officers and recorders will see increased administrative responsibilities (processing notarized forms, verifying leases, enforcing notice deadlines).
  • Local taxing districts (municipalities, school districts, counties) could see reduced tax bases and corresponding revenue effects to the extent eligible occupants claim the exemption.

Administrative and fiscal considerations

  • Potential revenue impact: expanding eligibility may reduce taxable equalized assessed value for properties under qualifying leases, lowering property tax collections where exemptions are granted. Fiscal impact depends on uptake.
  • Administrative burden: counties may need to verify lease terms, process notarized annual applications, and handle notices and related appeals.
  • The bill builds on existing rules (maximum exemption amounts by county size, pro‑rata calculations for partial‑year qualification, and erroneous‑exemption procedures).

Procedural history (selected)

  • Filed: 2025‑02‑04 by Rep. Rita Mayfield
  • Referred to Rules Committee; assigned to Revenue & Finance; to Property Tax Subcommittee
  • Committee hearings and reports in March–April 2025; committee report sent to Calendars (04‑22‑2025)
  • Currently shown as Rule 19(a) / Re‑referred to Rules Committee (03‑21‑2025)

Note: The bill document includes an unrelated inserted Arizona draft concerning election plans and ballot printing deadlines. The summary above addresses the Illinois Property Tax Code amendment (35 ILCS 200/15‑175) introduced by Rep. Mayfield.

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

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