SB2084 Summary: Property Tax - Homestead Exemptions

• Creates comprehensive restructuring of homestead exemption laws by reorganizing Article 15 into three divisions: Division 1 (non-homestead exemptions in all counties), Division 2 (homestead exemptions in counties with 3,000,000+ inhabitants), and Division 3 (homestead exemptions in counties with fewer than 3,000,000 inhabitants).

• Establishes procedures for erroneous homestead exemptions in counties with 3,000,000+ inhabitants, including notice requirements, 60-day grace periods, interest charges (10% per annum), and penalties (up to 50% for repeat offenders), with liens filed against properties.

• Moves the Community Stabilization Assessment Freeze Pilot Program (formerly Section 15-174) to Section 10-800, allowing county assessment officers to reduce assessed values of residential improvements by 90% for 7 years, then declining percentages for years 8-10, with eligibility through December 31, 2019.

• Consolidates and reorganizes existing homestead exemption provisions for veterans, persons with disabilities, senior citizens, and general homeowners, with consistent definitions, application procedures, and administrative requirements across all county types.

• Establishes exemptions for natural disasters and homestead improvements, with limits of $25,000-$75,000 in fair cash value depending on the disaster type and exemption duration of 4 years from completion of improvements.

• Effective date: January 1, 2018.