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| | HB1377 Engrossed | | LRB103 04775 HLH 49784 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by adding |
| 5 | | Section 15-174.5 as follows:
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| 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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| | HB1377 Engrossed | - 2 - | LRB103 04775 HLH 49784 b |
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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 |