Preferential Assessments

<div class="body"><h4>Solar Energy Systems</h4><p>When a solar energy system has been installed as an improvement on real property and the majority of the energy produced is consumed on-site, the owner may file a claim for an alternate assessment with the chief county assessment officer.</p><p>The improvement is assessed by conventional means, AND it is also assessed with the solar energy system. The alternate valuation is the lesser of the two means of assessment and is used for taxable purposes. The alternate valuation continues as long as the solar energy system is used.</p><p><b>Note: </b>This benefit does not apply to a commercial solar energy system</p><h4>Historical Residences</h4><p>Residential property with certain historic designations may be eligible for preferential assessment if the owner has received a certificate of rehabilitation of the property from the Historic Preservation Agency. Assessments are frozen for a period of eight years and are gradually increased to full value over the following four years.</p><p>To qualify, the property must be owner occupied, be a registered historic building-listed on the National Register of Historic Places, a contributing property within a National Register Historic District, or designated as an individual local landmark in a community.<h4>Airports</h4><p>While the properties of airport authorities or other governmental entities used as airports is exempt from real estate taxation, nongovernmental airports in counties of 200,000 or more may qualify for a special assessment. (Brookeridge Airpark in Downers Grove is an example)</p><p>The property is assessed at 33 1/3 percent of its fair cash value based on its use for airport purposes. It must have been so used for the three preceding years, and there is a 3-year recovery of tax benefits plus interest if the use changes.</p><h4>Open Space Assessment</h4><p>An assessment based upon “use value” is available for land that is used exclusively for maintaining or enhancing natural or scenic resources, promoting conservation of natural resources, or preserving historic sites. This special assessment may be less than 33 1/3 percent of the fair cash value of the land for its highest value use.</p><p>The land must consist of more than 10 acres, must have been in a qualified use for the preceding three years, and must not be used primarily for residential purposes. Public and private golf courses qualify.</p><h4>Forestry Management</h4><p>Property owners that own or operate at least ten contiguous acres of land on which no building is present and have one of the primary management goals to be timber production, may qualify for a forestry management assessment.</p><p>Property owners that own or operate at least ten contiguous acres of land on which no building is present and have one of the primary management goals to be timber production, may qualify for a forestry management assessment.</p><h4>Model Homes</h4><p>When a dwelling is constructed and used as a model or demonstration home, the equalized assessed value of the property remains at the level prior to construction of the home. The lower equalized assessed value remains in effect until the home is sold or leased for use other than as a model home.</p><p>An entity can have no more than three qualifying model homes within a 3-mile radius.</p><h4>Veterans / Fraternal Organization</h4><p>A qualified veterans organization (chartered under federal law) may elect to freeze the assessed value of the real property it owns and on which is located the principal building for the post, camp, or chapter.</p><p>The assessed value is frozen at 15 percent of the 1999 assessed value for property that qualified in tax year 2000, or 15 percent of the assessed value for property for the tax year that the property first qualifies after tax year 2000. Any improvements or additions that are made to the property that increase the assessed value of the property also are frozen at 15 percent of the assessed value of the improvement or addition in the year first assessed.</p><h4>Low Income Housing</h4><p>Property tax incentivizes to developers and builders who provide and maintain low-income housing: defined by section 42 of the IRS Code or constructed with financing defined in section 515.</p><p>Income approach is required for valuation using probably or actual gross income. The key part of this preferential assessment is the vacancy amount cannot exceed 5%.</p><h4>Supportive Living Facility</h4><p>A supportive living facility integrates housing with health, personal care, and supportive services and is a designated setting that offers resident their own separate, private, and distinct living units.</p><p>The valuation procedures of a supportive living facility must use the income approach, but unlike low-income housing, there are no specific parameters regarding vents, vacancy rates, expenses, or capitalization rates.</p><h4>Conservation Stewardship</h4><p>The thought process is it’s the best interest of the state to maintain preserve, conserve and manage unimproved lands, such as woodlands, prairie, wetlands or other vacant and undeveloped land that is not used for any residential or commercial purpose.</p><p>The program is limited to at least 5 contiguous acres that has been subject to a Conservation Management Plan and approved by the Illinois Department of Natural Resources.</p><p>The assessed valuation of this property is 5% of the fair cash value.</p><h4>Wind Farms – Wind Energy Property</h4><p>A wind energy device means any device with a nameplate capacity of at least .05 megawatts, which is used for commercial sale. The valuation process starts at a 2007 starting point value of $360,000 per megawatt, multiplied by the trending factor (inflation factor) less depreciation.</p></div>