IL HB1377

Creates a special homestead exemption for single-family homes built by municipalities on or after January 1, 2021 and sold to private homeowners before January 1, 2035.

Applies automatically in counties with 3,000,000 or more inhabitants; other counties may opt in by ordinance or resolution.

Provides a 10-year exemption period starting the tax year after the municipality's initial sale, reducing equalized assessed value by 50% for the first 8 years and 33% for years 9-10.

Exemption is transferable to new owners if the property remains the owner's principal residence and the owner notifies the assessor.

Property must be zoned for residential or mixed use and either was tax-exempt before construction or had environmental remediation conducted by the municipality.