Bill
HB 3747
HB 3747 caps annual assessed-value increases for qualifying wooded acreage at 4% per year from 2025 through 2039 (or until disqualification), easing taxes for farmland-2006 owners.
Status and procedural history
- Bill: HB 3747 (companion: SB 963). Primary sponsor: Rep. Ryan Spain.
- Statute amended: 35 ILCS 200/10-510 (Property Tax Code — assessment of wooded acreage).
- Introduced in the 104th General Assembly (first reading Feb. 18, 2025; filed March 4, 2025). Committee hearings and substitute reported favorably in April 2025. Placed on the General State Calendar (Apr. 28, 2025) and laid on the table subject to call. Current docket entries also show Rule 19(a) / re-referred to Rules Committee.
- Effective date: upon becoming law (effective immediately).
Purpose / intent
- To cap year-to-year increases in the assessed value for properties subject to the "wooded acreage" preferential assessment rule (Section 10-510), thereby limiting assessment growth for qualifying parcels that were classified as farmland in 2006.
Key provisions
- Adds an annual cap on assessed-value increases for eligible wooded acreage: beginning with the 2025 assessment year and continuing through the earlier of the 2039 assessment year or the first year the property no longer qualifies under Section 10-510, the assessed value for such property "may not exceed the product of the assessed value of the property for the immediately preceding assessment year multiplied by 104%."
- In plain terms: assessed value increases for these parcels are limited to 4% per year during the covered period.
- Retains existing transition-percentage assessment method for properties that were classified as farmland in 2006 (the chief county assessment officer uses the property's 2006 equalized assessed value as farmland divided by the 2006 fair cash value).
- Continues assessment under the wooded-acreage provisions through any assessment year in which the property is transferred or no longer qualifies; normal assessment rules apply beginning the following assessment year.
- Explicit provision that transfers between spouses do not disqualify property from preferential wooded-acreage assessment treatment.
Who is affected
- Primary: Landowners of wooded acreage who were classified as farmland in 2006 and who currently qualify for assessment under Section 10-510. These owners would see limits on assessed-value increases (max 4% per year) for the covered period.
- Secondary: County assessment officers (implementation and record-keeping), local taxing districts (school districts, municipalities, counties) — potential revenue impacts — and taxpayers generally (possible shift in tax distribution if revenue growth from these parcels is constrained).
Potential impacts
- Reduces the pace at which assessed values (and thus property tax bases) for qualifying wooded acreage can grow — likely limiting property tax increases paid by those landowners over the 2025–2039 window (or until disqualification).
- Could depress local property tax revenue growth from this class of property, potentially increasing pressure on other property classes or requiring taxing districts to adjust rates to meet revenue needs.
- Administrative: counties must apply the 4% cap annually for qualifying parcels and continue to track qualification status.
Duration
- The 4% annual cap applies beginning with the 2025 assessment year through the earlier of the 2039 assessment year or the first year the property no longer qualifies under Section 10-510.
For more detail
- Full statutory reference: 35 ILCS 200/10-510 (as amended by HB 3747).
Compiled from official sources — confirm details with the bill’s official record.
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