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County assessor celebrates passage of new housing exemption

Cook County Assessor Fritz Kaegi on Monday, June 3, lauded the Illinois state legislature for passing House Bill 1377, which encourages development by creating a homestead exemption for new residential construction.

Under this legislation, homes built by municipalities on tax-exempt parcels will have their taxable value gradually phased in over 10 years. Homeowners who buy these properties will benefit from a reduction in their property taxes, while municipalities and other taxing districts will see an increase in the tax base that can lower tax rates for all residents.

“Getting new construction onto the tax rolls grows the base and shrinks the tax rate, helping everybody,” Kaegi said. “We want to help build strong communities that foster a sense of place and create support for local businesses and civic activities.”

Properties built under this law and eligible for the exemption will receive a reduction in equalized assessed value (EAV) equal to 50% of their EAV for the first eight years of eligibility, and 33% of their EAV in the final two years of eligibility.

The exemption will renew automatically, and it applies to properties that have undergone environmental remediation.

This legislation aimed at incentivizing municipal-led residential development complements the Southland Reactivation Act, which was enacted in 2022 and reduces property assessments for new commercial or industrial developments on tax-exempt land.

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