State of Illinois Property Tax Freeze Program

The Property Tax Assessment Freeze Program provides tax incentives to owner-occupants who rehabilitate their homes. The homes must be listed on the National, State or Local Register of Historic Places. Through the Property Tax Assessment Freeze Program, the assessed valuation of the historic property is frozen for eight years at its level the year rehabilitation began. The valuation then is brought back to market level over a period of four years.

The following is an example of how a property would be affected. The savings to the owner of a bungalow that has been rehabilitated with and without designation is illustrated in Columns II and III below.

	Original	Rehabbed w/o tax freeze	Rehabbed with tax freeze
Property value	$150,000	$200,000	$150,000
Assessment level	x .16	x .16	x .16
Assessed Value	$24,000	$32,000	$24,000
Equalization Factor	x 2.2505	x 2.2505	x 2.2505
Equalized Assessed Value	$54,012	$72,016	$54,012
Homeowner Exemption	-$4500	-$4500	-$4500
Adjusted Equalized Value	$49,512	$67,516	$49,512
Sample Rate	x .1000	x .1000	x .1000
Tax bill in dollars	$4,951.10	$6,751.60	$4,951.10

Assuming no change in market value and no increase in equalization and tax rate the homeowner in the rehabbed house with a historic designation would save $1,804 annually in real estate taxes. In the 12 year period for which the freeze is in effect, the owner would save more than $17,100.

For information about the Property Tax Freeze contact the Illinois Historic Preservation Agency at (217) 785-5042.