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.



LRB103 28409 HLH 54789 b


 
 
A BILL FOR
 


SB1725LRB103 28409 HLH 54789 b



1 AN ACT concerning revenue.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Property Tax Code is amended by adding 
5Section 15-179 as follows:

6 (35 ILCS 200/15-179 new)
7 Sec. 15-179. Middle class property tax credit.
8 (a) For purposes of this Section: 
9 "Current tax year" means the year prior to the collection 
10year. 
11 "Homestead property" has the meaning provided in Section 
1215-175. 
13 "Household" means the owner, the spouse of the owner, and 
14all persons using the residence of the owner as their 
15principal place of residence. 
16 "Household income" means the combined income of a 
17household for the calendar year preceding the taxable year. 
18 "Income" has the same meaning as provided in Section 3.07 
19of the Senior Citizens and Persons with Disabilities Property 
20Tax Relief Act, except that "income" does not include 
21veteran's benefits. 
22 "Middle-class taxpayer" means a taxpayer whose household 
23income is less than or equal to 200% of the median household 
 
 
SB1725- 2 -LRB103 28409 HLH 54789 b


1income for residents of the State of Illinois, as determined 
2by the most recent available United States Census Bureau data. 
3 (b) Beginning in taxable year 2024, homestead property 
4owned by a middle-class taxpayer is entitled to an annual 
5homestead exemption limited to a 5% reduction in the equalized 
6assessed value of the homestead property for the current 
7assessment year. The maximum exemption that may be claimed by 
8a taxpayer under this Section for a taxable year is $5,000. 
9 (c) In a cooperative or life care facility where a 
10homestead exemption has been granted under this Section, the 
11cooperative association or the management of the cooperative 
12or life care facility shall credit the savings resulting from 
13that exemption only to the apportioned tax liability of the 
14owner or resident who qualified for the exemption. Any person 
15who willfully refuses to so credit the savings shall be guilty 
16of a Class B misdemeanor. 
17 (d) If married persons maintain and reside in separate 
18residences qualifying as homestead property, each residence 
19shall receive 50% of the total reduction in equalized assessed 
20valuation provided by this Section. 

21 Section 90. The State Mandates Act is amended by adding 
22Section 8.47 as follows:

23 (30 ILCS 805/8.47 new)
24 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and 
 
 
SB1725- 3 -LRB103 28409 HLH 54789 b


18 of this Act, no reimbursement by the State is required for 
2the implementation of any mandate created by this amendatory 
3Act of the 103rd General Assembly.


4 Section 99. Effective date. This Act takes effect upon 
5becoming law.