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Public Act 103-0793
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| HB1377 Enrolled | LRB103 04775 HLH 49784 b |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Property Tax Code is amended by adding |
Section 15-174.5 as follows:
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(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. |
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(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 |
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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 |