Aside from the homestead exemptions, the Illinois Property Tax Code provides for preferential treatment in the assessment process for property meeting certain criteria. The following is brief description of some of the common preferential assessment programs.
For Builders, Developers and Section 8 Rental Property Owners
Program Name: Demonstration/Model Home Preferential Assessment
Statutory Citation: 35 ILCS 200/10-25
Qualification Criteria:
- Property used as a model home, townhome, and /or condominium.
- Must not be occupied as a dwelling.
- Must not be sold or leased for use other than as a model home.
- Limit of three units held in same ownership the same time within a 3-mile radius.
- 10-Year maximum time limit on exemption.
Where Do I Apply? Supervisor of Assessment Office
Application Process:
- File PTAX-762 (PDF) by December 31 of each assessment year for which that assessment is desired.
- Failure to make a timely filing in any assessment year constitutes a waiver of the right to benefit for that assessment year.
- If the use of a model home changes, filing a PTAX-762-C (PDF) is required.
- If approved, assessment reduction is granted by Board of Review.
Renewal Process: Annual Application Required
Benefit: Abates the portion of assessment directly attributable the construction of the model home.
PROGRAM NAME: Housing Opportunity Area Tax Abatement
Statutory Citation: 35 ILCS 200/18-173
Qualification Criteria: See Housing Authority's website
Where Do I Apply? DuPage County Housing Authority
Application Process: See Housing Authority's website.
Renewal Process: See Housing Authority's website.
Benefit: Under the Housing Choice Voucher (HCV) Tax Abatement Saving Program, Landlord-Owners, who lease a unit to a HCV holder in a designated Housing Opportunity Area, are eligible to receive up to a 19% reduction in the Equalized Assessed Valuation (EAV) of their property for qualified leased unit.
Program Name: Subdividers' Preferential Assessment
Statutory Citation: 35 ILCS 200/10-30
Qualification Criteria:
- The property is platted and subdivided in accordance with the Plat Act;
- The platting occurs after January 1, 1978;
- At the time of platting the property is in excess of 5 acres; and
- At the time of platting the property is vacant or used as a farm.
Where Do I Apply? Township Assessors Office
Application Process: Contact Township Assessor
Renewal Process: Contact Township Assessor
Benefit: Abates portion of assessment directly attributable the plating, recording and construction of infrastructure relating to a new subdivision.
For Fraternal and Veterans' Organizations
PROGRAM NAME: Fraternal Organizations Assessment Freeze
Statutory Citation: 35 ILCS 200/10-360
Qualification Criteria:
- A property owned and used by a fraternal organization chartered by the State of Illinois prior to 1900, or its subordinate organization or entity that is an exempt entity under Section 501(c)(10) of the Internal Revenue Code. Typically, Masonic Lodges will qualify in this category.
- Or, a property owned and used by a fraternal organization that on December 31, 1926 had its national headquarters in Illinois or that was chartered in Illinois in February 1898, or its subordinate organization or entity, that is exempt under Section 501(c)(8) of the Internal Revenue Code. Typically, Elks and Moose Lodges will qualify in this category.
- Or property owned and used by a fraternal organization or its affiliated Illinois not for profit corporation chartered prior to 1920 that is an exempt entity under Section 501(c)(2), 501(c)(8) or 501(c)(10) of the Internal Revenue Code. Typically, Knights of Columbus Lodges will qualify in this category. File a PTAX-766 (PDF).
Where Do I Apply? Supervisor of Assessment Office
Application Process:
- The file PTAX-766 (PDF) by December 31 of each assessment year for which that assessment is desired.
- Failure to make a timely filing in any assessment year constitutes a waiver of the right to benefit for that assessment year.
- If approved, assessment reduction is grated by Board of Review.
Renewal Process: Annual Application Required
Benefit: The organization assessment freeze allows certain fraternal organizations to elect to freeze the assessed value of the real property it owns and on which is located the principle building of the organization. The assessed value is frozen at 15% of the assessed value of the property for the tax year that the property first qualifies.
Program Name: Veterans Organization Assessment Freeze
Statutory Citation: 35 ILCS 200/10-300
Qualification Criteria: Property owned and used by a veterans organization chartered under federal law.
Where Do I Apply? Supervisor of Assessment Office
Application Process: File a PTAX-763 (PDF) by December 31 of each assessment year for which that assessment is desired. The initial application must include:
- A copy of the organization's congressional charter.
- A copy of the organization's articles of incorporation.
- The location or description of the property on which is located the principal building for the post, camp, or chapter.
- A written instrument evidencing that the organization is the record owner or has a legal or equitable interest in the property.
- An affidavit that the organization is liable for paying the real property taxes on the property, and
- The signature of the organization's chief presiding officer.
- Failure to make a timely filing in any assessment year constitutes a waiver of the right to benefit for that assessment year.
- If approved, assessment reduction is grated by Board of Review.
Renewal Process: Subsequent applications shall include a PTAX-763 (PDF) signed by the organization's chief presiding officer along with a written description of any changes in the initial application.
Benefit: The organization assessment freeze allows qualified veterans organizations, chartered under federal law, to elect to freeze the assessed value of the real property it owns and on which is located the principle building of the for the post, camp, chapter, or organization. The assessed value is frozen at 15% of the assessed value of the property for the tax year that the property first qualifies.
For Owners of Historic Residence Undergoing a Rehabilitation
Program Name: Historic Residence Assessment Freeze
Statutory Citation: 35 ILCS 200/10-40
Qualification Criteria: Certain historic owner occupied residences which are undergoing a rehabilitation under the approval and direction of the Illinois Historic Preservation Agency.
Where Do I Apply? Illinois Historic Preservation Agency
Application Process: Please see Illinois Historic Preservation Agency's website.
Renewal Process: The exemption remains in place for eleven years, including a three-year phase-in period, assuming there is not a change in ownership. On the twelfth year under this program, the assessment reverts to a fair cash assessment.
Benefit: The assessment freeze prevents assessed value increase normally triggered by the rehabilitation process for an eight-year period.
For Owners of Vacant or Underdeveloped Land
Program Name: Conservation Easement Preferential Assessment
Statutory Citation: 35 ILCS 200/10-166
Qualification Criteria: Property encumbered by a conservation right certified by the Illinois Department meeting at least one of the following requirements:
- Land providing a regular opportunity for public access to outdoor recreation or outdoor education.
- Land preserving habitat for State or federal endangered or threatened species or federal candidate species as defined in the Code of Federal Regulations (50 CFR 424.02).
- Land identified in the Illinois Natural Areas Inventory.
- Land determined to be eligible for registration under Section 16 of the Illinois Natural Areas Preservation Act.
- Land contributing to the ecological viability of a park, conservation area, nature preserve, or other high quality native terrestrial or aquatic area that is publicly owned or otherwise protected.
- Land included in, or consistent with a federal, State, regional, or local government policy or plan for the conservation of wildlife habitat or open space, for the restoration or protection of lakes and streams, or for the protection of scenic areas.
Where Do I Apply? Illinois Department of Natural Resources
Application Process: File a PTAX-337-R (PDF) with the Illinois Department of Natural Resources
Renewal Process: The preferential assessment remains in place unless the easement is terminated by the grantee. Upon termination of the easement, a 10-year roll back tax may become due.
Benefit: Land registered or encumbered by a IL-DNR certified conservation easement shall be valued at 8-1/3% of its fair market value estimated as if it were not registered or encumbered.
Program Name: Conservation Stewardship Preferential Assessment
Statutory Citation: 35 ILCS 200/10-400
Additional Reference: 17 IL Administrative Code 2580, Conservation Stewardship Rules (PDF)
Qualification Criteria:
- Subject property is unimproved land of 5 contiguous acres or more, and,
- Is subject to a conservation management plan that has been approved by the Illinois Department of Natural Resources as meeting the requirements of the Illinois Conservation Stewardship Law.
Where Do I Apply? Illinois Department of Natural Resources
Application Process: Contact the Illinois Department of Natural Resources
Renewal Process: Conservation management certification by the Illinois Department of Natural Resources is typically valid for ten years, unless the property use has changed.
Benefit: The land is valued at is valued at 5% of its fair cash value.
Program Name: Farmland Assessment
Statutory Citation: 35 ILCS 200/10-110
Additional Reference: Illinois Department of Revenue Publication 122 (PDF)
Qualification Criteria: Land used solely as a farm in the current assessment year and for the 2 preceding years. Farm use includes:
- The growing and harvesting of crops;
- For the feeding, breeding and management of livestock;
- Land which is primarily used for residential purposes even though some farm products may be grown or farm animals bred or fed on the property incidental to its primary use does not qualify for the preferential farm assessment.
Where Do I Apply? Township Assessors Office
Application Process: Varies by township.
Renewal Process: Varies by township.
Benefit: Instead of being tax based upon the probable fair cash value, the property is tax solely upon its ability to produce a crop.
Program Name: Open Space Preferential Assessment
Statutory Citation: 35 ILCS 200/10-155
Qualification Criteria: 10 acres, or larger and exclusively used for:
- Maintaining or enhancing natural or scenic resources,
- Protects air or streams or water supplies,
- Promotes conservation of soil, wetlands, beaches, or marshes, including ground cover or planted perennial grasses, trees and shrubs and other natural perennial growth, and including any body of water, whether man-made or natural,
- Conserves landscaped areas, such as public or private golf courses,
- Enhances the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations, sanctuaries, or other open spaces, or preserves historic sites.
- Land is not considered used for open space purposes if it is used primarily for residential purposes.
Where Do I Apply? Supervisor of Assessments Office
Application Process: File a PTAX-334 (PDF) by June 30 of each year for which that valuation is desired.
Renewal Process: Annual Reapplication Required. If the property is placed into a different use, the property owner is required to notify the Supervisor of Assessments. Failure to make a timely filing in any assessment year constitutes a waiver of the right to benefit for that assessment year
Benefit: The subject property is assessed base upon the value property in DuPage County typically sells for if it remains in an open space use.
