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Public Act 103-0793


 

Public Act 0793 103RD GENERAL ASSEMBLY

 


 
Public Act 103-0793
 
HB1377 EnrolledLRB103 04775 HLH 49784 b

    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.

Effective Date: 8/9/2024