SB 642 (Senator Lakesia Collins, D-Chicago/Representative Tarver, D-Chicago) makes changes to property tax relief programs for senior citizens and provides new administrative authority to counties related to tax payment plans. The bill was approved by both the House and Senate and will next be considered by the Governor.
The bill increases the income eligibility limits for the Low-Income Senior Citizens Assessment Freeze Homestead Exemption, raising the threshold to $75,000 in tax year 2026, $77,000 in 2027, and $79,000 beginning in 2028. It also specifies that unpaid first-installment property taxes for tax year 2025 will be considered delinquent after April 1, 2026, and will accrue interest at 0.75 percent per month until paid or forfeited.
Separately, the legislation amends the Senior Citizens Real Estate Tax Deferral Act to allow county clerks to offer payment plans during the redemption period for tax certificates held by the county. Under these payment plans, the clerk may waive interest penalties as long as payments are made according to the plan. The amendment also adjusts the maximum household income level for participation in the tax deferral program.
Key Impacts
- Senior property tax relief expanded through higher income limits.
- Delinquency timing clarified for 2025 tax year first-installment bills with specified interest rate.
- Counties given new flexibility to offer payment plans and waive penalties for seniors participating in the tax deferral process.
- Supports struggling seniors by easing qualification and repayment conditions.
- Redistributes the tax burden across other property owners.
- Small potential reduction in interest/penalty revenue and delayed cash flow, not a permanent tax loss.