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| 1 | AN ACT concerning revenue. | ||||||
| 2 | Be it enacted by the People of the State of Illinois, | ||||||
| 3 | represented in the General Assembly: | ||||||
| 4 | Section 5. The Property Tax Code is amended by adding | ||||||
| 5 | Section 15-174.5 as follows: | ||||||
| 6 | (35 ILCS 200/15-174.5 new) | ||||||
| 7 | Sec. 15-174.5. Special homestead exemption for certain | ||||||
| 8 | municipality-built homes. | ||||||
| 9 | (a) This Section applies to property located in a county | ||||||
| 10 | with 3,000,000 or more inhabitants. This Section also applies | ||||||
| 11 | to property located in a county with fewer than 3,000,000 | ||||||
| 12 | inhabitants if the county board of that county has so provided | ||||||
| 13 | by ordinance or resolution. | ||||||
| 14 | (b) For tax year 2024 and thereafter, eligible property | ||||||
| 15 | qualifies for a homestead exemption under this Section for a | ||||||
| 16 | 10-year period beginning with the tax year following the year | ||||||
| 17 | in which the property is first sold by the municipality to a | ||||||
| 18 | private homeowner. Eligible property is not eligible for a | ||||||
| 19 | refund of taxes paid for tax years prior to the year in which | ||||||
| 20 | this amendatory Act of the 103rd General Assembly takes | ||||||
| 21 | effect. In the case of mixed-use property, the exemption under | ||||||
| 22 | this Section applies only to the residential portion of the | ||||||
| 23 | property that is used as a primary residence by the owner. | ||||||
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| 1 | (c) The exemption under this Section shall be a reduction | ||||||
| 2 | in the equalized assessed value of the property equal to: | ||||||
| 3 | (1) in the first 8 years of eligibility, 50% of the | ||||||
| 4 | equalized assessed value of the property in the year | ||||||
| 5 | following the initial sale by the municipality; and | ||||||
| 6 | (2) in the ninth and tenth years of eligibility, 33% | ||||||
| 7 | of the equalized assessed value of the property in the | ||||||
| 8 | year following the initial sale by the municipality. | ||||||
| 9 | (d) A homeowner seeking the exemption under this Section | ||||||
| 10 | shall file an application with the chief county assessment | ||||||
| 11 | officer. Once approved by the assessor, the exemption shall | ||||||
| 12 | renew annually and automatically without another application, | ||||||
| 13 | unless the exemption is waived by the current homeowner as | ||||||
| 14 | provided in this subsection. The exemption under this Section | ||||||
| 15 | is transferable to new owners of the home, provided that (i) | ||||||
| 16 | the exemption runs from the sale of the property by a | ||||||
| 17 | municipality to the first private owner, (ii) the new owner | ||||||
| 18 | notifies the assessor that they have taken possession of the | ||||||
| 19 | property, and (iii) the property is used by the owner as their | ||||||
| 20 | principal residence. A property owner who has received a | ||||||
| 21 | reduction under this Section may waive the exemption at any | ||||||
| 22 | time prior to the expiration of the 10-year exemption period | ||||||
| 23 | and begin to receive the benefits of other exemptions at their | ||||||
| 24 | sole and irrevocable discretion. Owners who decide to waive | ||||||
| 25 | the exemption shall notify the assessor on a form provided by | ||||||
| 26 | the assessor. The current property owner shall notify the | ||||||
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| 1 | assessor and waive the exemption if the property ceases to be | ||||||
| 2 | their primary residence. | ||||||
| 3 | (e) Notwithstanding any other provision of law, no | ||||||
| 4 | property that receives an exemption under this Section may | ||||||
| 5 | simultaneously receive a reduction or exemption under Section | ||||||
| 6 | 15-168 (persons with disabilities), Section 15-169 (standard | ||||||
| 7 | homestead for veterans with disabilities); Section 15-170 | ||||||
| 8 | (senior citizens), Section 15-172 (low-income senior | ||||||
| 9 | citizens), or Section 15-175 (general homestead). In the first | ||||||
| 10 | year following the expiration or waiver of the exemption under | ||||||
| 11 | this Section, a property owner that is eligible for the | ||||||
| 12 | Low-Income Senior Citizen Assessment Freeze exemption in that | ||||||
| 13 | year may establish a base amount under Section 15-172 at the | ||||||
| 14 | value of their home in their first year of eligibility for that | ||||||
| 15 | exemption during the time when they were receiving this | ||||||
| 16 | exemption, provided that they demonstrate retrospectively that | ||||||
| 17 | they were eligible for that exemption at that point in time | ||||||
| 18 | while receiving this exemption. | ||||||
| 19 | (f) As used in this Section: | ||||||
| 20 | "Eligible property" means property that: | ||||||
| 21 | (1) contains a single family residence that was built | ||||||
| 22 | no earlier than January 1, 2021 by a municipality and was | ||||||
| 23 | sold to a private homeowner before January 1, 2035; | ||||||
| 24 | (2) is zoned for residential or mixed use; and | ||||||
| 25 | (3) meets either or both of the following criteria: | ||||||
| 26 | (A) the property was exempt from property taxes | ||||||
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| 1 | prior to the construction of the home; or | ||||||
| 2 | (B) the municipality conducted environmental | ||||||
| 3 | remediation on the property pursuant to Title XVII of | ||||||
| 4 | the Environmental Protection Act. | ||||||
| 5 | Section 99. Effective date. This Act takes effect upon | ||||||
| 6 | becoming law. | ||||||