Rep. Norma Hernandez

Filed: 3/27/2024

 

 


 

 


 
10300HB1377ham002LRB103 04775 HLH 71349 a

1
AMENDMENT TO HOUSE BILL 1377

2    AMENDMENT NO. ______. Amend House Bill 1377 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1in which the property is first sold by the municipality to a
2private homeowner. Eligible property is not eligible for a
3refund of taxes paid for tax years prior to the year in which
4this amendatory Act of the 103rd General Assembly takes
5effect. In the case of mixed-use property, the exemption under
6this Section applies only to the residential portion of the
7property that is used as a primary residence by the owner.
8    (c) The exemption under this Section shall be a reduction
9in the equalized assessed value of the property equal to:
10        (1) in the first 8 years of eligibility, 50% of the
11    equalized assessed value of the property in the year
12    following the initial sale by the municipality; and
13        (2) in the ninth and tenth years of eligibility, 33%
14    of the equalized assessed value of the property in the
15    year following the initial sale by the municipality.
16    (d) A homeowner seeking the exemption under this Section
17shall file an application with the chief county assessment
18officer. Once approved by the assessor, the exemption shall
19renew annually and automatically without another application,
20unless the exemption is waived by the current homeowner as
21provided in this subsection. The exemption under this Section
22is transferable to new owners of the home, provided that (i)
23the exemption runs from the sale of the property by a
24municipality to the first private owner, (ii) the new owner
25notifies the assessor that they have taken possession of the
26property, and (iii) the property is used by the owner as their

 

 

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1principal residence. A property owner who has received a
2reduction under this Section may waive the exemption at any
3time prior to the expiration of the 10-year exemption period
4and begin to receive the benefits of other exemptions at their
5sole and irrevocable discretion. Owners who decide to waive
6the exemption shall notify the assessor on a form provided by
7the assessor. The current property owner shall notify the
8assessor and waive the exemption if the property ceases to be
9their primary residence.
10    (e) Notwithstanding any other provision of law, no
11property that receives an exemption under this Section may
12simultaneously receive a reduction or exemption under Section
1315-168 (persons with disabilities), Section 15-169 (standard
14homestead for veterans with disabilities); Section 15-170
15(senior citizens), Section 15-172 (low-income senior
16citizens), or Section 15-175 (general homestead). In the first
17year following the expiration or waiver of the exemption under
18this Section, a property owner that is eligible for the
19Low-Income Senior Citizen Assessment Freeze exemption in that
20year may establish a base amount under Section 15-172 at the
21value of their home in their first year of eligibility for that
22exemption during the time when they were receiving this
23exemption, provided that they demonstrate retrospectively that
24they were eligible for that exemption at that point in time
25while receiving this exemption.
26    (f) As used in this Section:

 

 

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1    "Eligible property" means property that:
2        (1) contains a single family residence that was built
3    no earlier than January 1, 2021 by a municipality and was
4    sold to a private homeowner before January 1, 2035;
5        (2) is zoned for residential or mixed use; and
6        (3) meets either or both of the following criteria:
7            (A) the property was exempt from property taxes
8            prior to the construction of the home; or
9            (B) the municipality conducted environmental
10                    remediation on the property pursuant to
11                    Title XVII of the Environmental Protection
12                    Act.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".