IL SB2845

Reduces annual increase rates for the long-time occupant homestead exemption beginning in taxable year 2024: from 10% to 5% for taxpayers with household income between $75,000 and $100,000, and from 7% to 3% for taxpayers with household income of $75,000 or less.

Applies the reduced increase rates to the calculation of adjusted homestead value, which determines the exemption amount for qualifying long-time occupants.

Maintains existing eligibility requirements: taxpayers must have occupied the same homestead property as a principal residence for at least 10 continuous years (or 5 years if receiving government or nonprofit housing assistance) and have household income of $100,000 or less.

Exemption remains available to spouses and parent-child transfers if the new owner meets income requirements, but terminates upon other transfers of property ownership.

Becomes effective immediately upon enactment.