HB2583 Summary

• Expands the long-time occupant homestead exemption to apply in all Illinois counties beginning with taxable year 2023 (previously only available in counties that elected the alternative general homestead exemption).

• Qualifies individuals who have occupied the same homestead property as a principal residence for at least 10 continuous years (or 5 years if they received government or nonprofit housing assistance) and have household income of $100,000 or less.

• Exemption amount is calculated as the greater of: (i) the difference between current equalized assessed value minus adjusted homestead value, or (ii) the general homestead deduction.

• Adjusted homestead value increases annually by 10% (for households earning $75,001-$100,000) or 7% (for households earning $75,000 or less) from a base year value, capped at the current equalized assessed value minus the general homestead deduction.

• Effective immediately upon becoming law with no state reimbursement required for implementation costs.