IL HB3723

Caps annual property tax increases at 1% for homeowners receiving the senior citizens homestead exemption, effective levy year 2026

Limits total property tax bills for qualifying seniors to no more than 101% of the previous year's tax bill, regardless of assessed value increases or tax rate changes

Requires reduced tax revenue from the cap to be distributed proportionally among all taxing districts (schools, municipalities, etc.) based on their share of the property's total tax liability

Amends the existing senior citizens homestead exemption (available to homeowners age 65+) in the Property Tax Code, adding this new protection on top of current exemption amounts ($8,000 in Cook County and collar counties, $5,000 elsewhere)