IL SB2798

Sets the general homestead exemption maximum reduction at $10,000 for all Illinois counties starting in taxable year 2026, eliminating the current tiered system based on county population

Beginning in taxable year 2027, the maximum homestead exemption will increase annually by the lesser of 5% or the Consumer Price Index increase for the 12-month period ending September 30 of the prior year

Caps property assessment increases at 20% per year for assessment years 2025-2027, with exceptions for property sales, significant improvements, removal of exemptions, or equalization factors

Requires Tax Increment Financing (TIF) surplus funds to be distributed "as soon as possible" after calculation rather than the current requirement of within 180 days after the municipality's fiscal year ends

Takes effect immediately upon becoming law