Ways and Means Committee unanimously adopts special homestead exemption for municipally built homes

The Peoria County Ways and Means Committee on June 22 unanimously approved a resolution enabling a special homestead exemption under 35 ILCS 200/15-174.5 for newly constructed homes owned initially by a municipality and later sold as a homeowner’s primary residence.

County staff member Scott Sorrel told the committee the exemption was added to state law in 2024 and was automatically applied in Cook County but requires action by each other county that wishes to adopt it. Sorrel said the relief reduces the equalized assessed value for the homeowner: a 50% reduction in EAV for the first eight years after initial sale, one-third reduction in years nine and ten, and no reduction beginning in year 11, at which point other existing exemptions a homeowner qualifies for would apply.

Sorrel said the county examined the Village of Peoria Heights and identified roughly 15 properties that would be immediately eligible; he also noted the provision would be available to all municipal governments across Peoria County, and observed that municipal property is often already tax-exempt, so the county would likely see increased tax base from new construction even with the temporary EAV reductions.

Chair Betty Duncan called for a motion and the committee voted unanimously to approve the resolution. The measure creates the local enabling action; implementation steps and any administrative procedures were not detailed during the meeting.

Next steps: the resolution was adopted by the committee and will be reflected in county records; staff did not provide a specific timeline during the meeting for administrative implementation or for notifying municipalities beyond the discussion on Monday.