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| Public Act 103-0793 | ||||
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AN ACT concerning revenue. | ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly: | ||||
Section 5. The Property Tax Code is amended by adding | ||||
Section 15-174.5 as follows: | ||||
(35 ILCS 200/15-174.5 new) | ||||
Sec. 15-174.5. Special homestead exemption for certain | ||||
municipality-built homes. | ||||
(a) This Section applies to property located in a county | ||||
with 3,000,000 or more inhabitants. This Section also applies | ||||
to property located in a county with fewer than 3,000,000 | ||||
inhabitants if the county board of that county has so provided | ||||
by ordinance or resolution. | ||||
(b) For tax year 2024 and thereafter, eligible property | ||||
qualifies for a homestead exemption under this Section for a | ||||
10-year period beginning with the tax year following the year | ||||
in which the property is first sold by the municipality to a | ||||
private homeowner. Eligible property is not eligible for a | ||||
refund of taxes paid for tax years prior to the year in which | ||||
this amendatory Act of the 103rd General Assembly takes | ||||
effect. In the case of mixed-use property, the exemption under | ||||
this Section applies only to the residential portion of the | ||||
property that is used as a primary residence by the owner. | ||||
(c) The exemption under this Section shall be a reduction | ||
in the equalized assessed value of the property equal to: | ||
(1) in the first 8 years of eligibility, 50% of the | ||
equalized assessed value of the property in the year | ||
following the initial sale by the municipality; and | ||
(2) in the ninth and tenth years of eligibility, 33% | ||
of the equalized assessed value of the property in the | ||
year following the initial sale by the municipality. | ||
(d) A homeowner seeking the exemption under this Section | ||
shall file an application with the chief county assessment | ||
officer. Once approved by the assessor, the exemption shall | ||
renew annually and automatically without another application, | ||
unless the exemption is waived by the current homeowner as | ||
provided in this subsection. The exemption under this Section | ||
is transferable to new owners of the home, provided that (i) | ||
the exemption runs from the sale of the property by a | ||
municipality to the first private owner, (ii) the new owner | ||
notifies the assessor that they have taken possession of the | ||
property, and (iii) the property is used by the owner as their | ||
principal residence. A property owner who has received a | ||
reduction under this Section may waive the exemption at any | ||
time prior to the expiration of the 10-year exemption period | ||
and begin to receive the benefits of other exemptions at their | ||
sole and irrevocable discretion. Owners who decide to waive | ||
the exemption shall notify the assessor on a form provided by | ||
the assessor. The current property owner shall notify the | ||
assessor and waive the exemption if the property ceases to be | ||
their primary residence. | ||
(e) Notwithstanding any other provision of law, no | ||
property that receives an exemption under this Section may | ||
simultaneously receive a reduction or exemption under Section | ||
15-168 (persons with disabilities), Section 15-169 (standard | ||
homestead for veterans with disabilities); Section 15-170 | ||
(senior citizens), Section 15-172 (low-income senior | ||
citizens), or Section 15-175 (general homestead). In the first | ||
year following the expiration or waiver of the exemption under | ||
this Section, a property owner that is eligible for the | ||
Low-Income Senior Citizen Assessment Freeze exemption in that | ||
year may establish a base amount under Section 15-172 at the | ||
value of their home in their first year of eligibility for that | ||
exemption during the time when they were receiving this | ||
exemption, provided that they demonstrate retrospectively that | ||
they were eligible for that exemption at that point in time | ||
while receiving this exemption. | ||
(f) As used in this Section: | ||
"Eligible property" means property that: | ||
(1) contains a single family residence that was built | ||
no earlier than January 1, 2021 by a municipality and was | ||
sold to a private homeowner before January 1, 2035; | ||
(2) is zoned for residential or mixed use; and | ||
(3) meets either or both of the following criteria: | ||
(A) the property was exempt from property taxes | ||
prior to the construction of the home; or | ||
(B) the municipality conducted environmental | ||
remediation on the property pursuant to Title XVII of | ||
the Environmental Protection Act. | ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||