35 ILCS 200/15-175
2021 Illinois Compiled Statutes|Chapter 35 - REVENUE|35 ILCS 200/ - Property Tax Code.|Title 4 - Exemptions

Sec. 15-175. General homestead exemption.(a) Except as provided in Sections 15-176 and  15-177, homestead  property is  entitled to an annual homestead exemption limited, except as described here  with relation to cooperatives or life care facilities, to a reduction in the equalized assessed value  of homestead property equal to the increase in equalized assessed value for the  current assessment year above the equalized assessed value of the property for  1977, up to the maximum reduction set forth below. If however, the 1977  equalized assessed value upon which taxes were paid is subsequently determined  by local assessing officials, the Property Tax Appeal Board, or a court to have  been excessive, the equalized assessed value which should have been placed on  the property for 1977 shall be used to determine the amount of the exemption.(b) Except as provided in Section 15-176, the maximum reduction before taxable year 2004 shall be  $4,500 in counties with 3,000,000 or more  inhabitants  and $3,500 in all other counties. Except as provided in Sections 15-176 and  15-177, for taxable years 2004 through 2007, the maximum reduction shall be $5,000, for taxable year 2008, the maximum reduction is $5,500, and, for taxable years 2009 through 2011, the maximum reduction is $6,000 in all counties.  For taxable years 2012 through 2016, the maximum reduction is $7,000 in counties with 3,000,000 or more  inhabitants  and $6,000 in all other counties. For taxable years 2017 and thereafter, the maximum reduction is $10,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties. If a county has elected to subject itself to the provisions of Section 15-176 as provided in subsection (k) of that Section, then, for the first taxable year only after the provisions of Section 15-176 no longer apply, for owners who, for the taxable year, have not been granted a senior citizens assessment freeze homestead exemption under Section 15-172 or a long-time occupant homestead exemption under Section 15-177, there shall be an additional exemption of $5,000 for owners with a household income of $30,000 or less.(c) In counties with fewer than 3,000,000 inhabitants, if, based on the most  recent assessment, the equalized assessed value of  the homestead property for the current assessment year is greater than the  equalized assessed value of the property for 1977, the owner of the property  shall automatically receive the exemption granted under this Section in an  amount equal to the increase over the 1977 assessment up to the maximum  reduction set forth in this Section.(d) If in any assessment year beginning with the 2000 assessment year,  homestead property has a pro-rata valuation under  Section 9-180 resulting in an increase in the assessed valuation, a reduction  in equalized assessed valuation equal to the increase in equalized assessed  value of the property for the year of the pro-rata valuation above the  equalized assessed value of the property for 1977 shall be applied to the  property on a proportionate basis for the period the property qualified as  homestead property during the assessment year.  The maximum proportionate  homestead exemption shall not exceed the maximum homestead exemption allowed in  the county under this Section divided by 365 and multiplied by the number of  days the property qualified as homestead property.(d-1) In counties with 3,000,000 or more inhabitants, where the chief county assessment officer provides a notice of discovery, if a property is not  occupied by its owner as a principal residence as of January 1 of the current tax year, then the property owner shall notify the chief county assessment officer of that fact on a form prescribed by the chief county assessment officer. That notice must be received by the chief county assessment officer on or before March 1 of the collection year. If mailed, the form shall be sent by certified mail, return receipt requested.  If the form is provided in person, the chief county assessment officer shall provide a date stamped copy of the notice.  Failure to provide timely notice pursuant to this subsection (d-1) shall result in the exemption being treated as an erroneous exemption.  Upon timely receipt of the notice for the current tax year, no exemption shall be applied to the property for the current tax year. If the exemption is not removed upon timely receipt of the notice by the chief assessment officer, then the error is considered granted as a result of a clerical error or omission on the part of the chief county assessment officer as described in subsection (h) of Section 9-275, and the property owner shall not be liable for the payment of interest and penalties due to the erroneous exemption for the current tax year for which the notice was filed after the date that notice was timely received pursuant to this subsection. Notice provided under this subsection shall not constitute a defense or amnesty for prior year erroneous exemptions.For the purposes of this subsection (d-1):"Collection year" means the year in which the first and second installment of the current tax year is billed."Current tax year" means the year prior to the collection year.(e)  The chief county assessment officer may, when considering whether to grant a leasehold exemption under this Section, require the following conditions to be met:(1)  that a notarized application for the exemption,     signed by both the owner and the lessee of the property, must be submitted each year during the application period in effect for the county in which the property is located;(2)  that a copy of the lease must  be filed with the     chief county assessment officer by the owner of the property at the time the notarized application is submitted;(3)  that the lease must expressly state that the     lessee is liable for the payment of property taxes; and(4)   that the lease must include the following     language in substantially the following form:"Lessee shall be liable for the payment of real         estate taxes with respect to the residence in accordance with the terms and conditions of Section 15-175 of the Property Tax Code