HB1377 EnrolledLRB103 04775 HLH 49784 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by adding
5Section 15-174.5 as follows:
 
6    (35 ILCS 200/15-174.5 new)
7    Sec. 15-174.5. Special homestead exemption for certain
8municipality-built homes.
9    (a) This Section applies to property located in a county
10with 3,000,000 or more inhabitants. This Section also applies
11to property located in a county with fewer than 3,000,000
12inhabitants if the county board of that county has so provided
13by ordinance or resolution.
14    (b) For tax year 2024 and thereafter, eligible property
15qualifies for a homestead exemption under this Section for a
1610-year period beginning with the tax year following the year
17in which the property is first sold by the municipality to a
18private homeowner. Eligible property is not eligible for a
19refund of taxes paid for tax years prior to the year in which
20this amendatory Act of the 103rd General Assembly takes
21effect. In the case of mixed-use property, the exemption under
22this Section applies only to the residential portion of the
23property 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
2in 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
10shall file an application with the chief county assessment
11officer. Once approved by the assessor, the exemption shall
12renew annually and automatically without another application,
13unless the exemption is waived by the current homeowner as
14provided in this subsection. The exemption under this Section
15is transferable to new owners of the home, provided that (i)
16the exemption runs from the sale of the property by a
17municipality to the first private owner, (ii) the new owner
18notifies the assessor that they have taken possession of the
19property, and (iii) the property is used by the owner as their
20principal residence. A property owner who has received a
21reduction under this Section may waive the exemption at any
22time prior to the expiration of the 10-year exemption period
23and begin to receive the benefits of other exemptions at their
24sole and irrevocable discretion. Owners who decide to waive
25the exemption shall notify the assessor on a form provided by
26the assessor. The current property owner shall notify the

 

 

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1assessor and waive the exemption if the property ceases to be
2their primary residence.
3    (e) Notwithstanding any other provision of law, no
4property that receives an exemption under this Section may
5simultaneously receive a reduction or exemption under Section
615-168 (persons with disabilities), Section 15-169 (standard
7homestead for veterans with disabilities); Section 15-170
8(senior citizens), Section 15-172 (low-income senior
9citizens), or Section 15-175 (general homestead). In the first
10year following the expiration or waiver of the exemption under
11this Section, a property owner that is eligible for the
12Low-Income Senior Citizen Assessment Freeze exemption in that
13year may establish a base amount under Section 15-172 at the
14value of their home in their first year of eligibility for that
15exemption during the time when they were receiving this
16exemption, provided that they demonstrate retrospectively that
17they were eligible for that exemption at that point in time
18while 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
6becoming law.