Property Tax Assessment Freeze Program

Print

The Village of Barrington Historic Preservation Overly District was recently awarded the Certified Local Government (CLG) status by the National Park Service and Illinois Historic Preservation Agency.  This certification recognizes the Village of Barrington at both the federal and state level for being committed to historic preservation through the enforcement of an approved historic preservation ordinance.  One of the benefits to becoming a CLG at the state level is the opportunity to participate in the property tax assessment freeze program under the Illinois Revenue Act.  This program provides property owners the opportunity to apply for an eight (8) year freeze on the assessed value of their historic residences upon completion of a qualifying rehabilitation project.

The purpose of the tax assessment freeze program is to provide a financial incentive to property owners that have substantially rehabilitated their historic homes.  The program freezes the assessed value of a historic owner-occupied principal residence for a period of eight (8) years, followed by a four (4) year period during which the assessed value steps up to an amount based upon its current market value.  This results in a total of twelve (12) years of reduced property taxes.  The property is still subject to multipliers and fluctuating tax rates throughout the freeze period.  In order to qualify for the program the following conditions must be met:

1.)   The building must be owner occupied.  Single-family houses, residential buildings with up to six units (as long as the building owner resides in one of the units) and condominium buildings are eligible.
 

2.)  The rehabilitation project must involve a contributing structure located in the Historic Preservation Overlay District.  Approximately 283 of the 364 houses in the Historic District are classified as contributing structures. 

 

3.)   The total cost of all eligible rehabilitation expenses must total 25% of the property’s fair market value as indicated on the current year tax bill.  For example, if the fair market value of a property is $300,000.00, the rehabilitation expenses must total $75,000.00 in order to qualify.  Eligible expenses include but are not limited to roof replacement, masonry repointing, wood refinishing, exterior painting, electrical, plumbing and mechanical system upgrades and architectural fees.  Reconstruction of missing historic features such as porches or cornice details may be eligible if the reconstruction is based upon historical or physical documentation.  Expenses incurred outside of the existing building including construction of additions and/or detached garages are not eligible.  In addition, any work paid for by a grant or insurance claim is not eligible.


This program is administered by the Illinois Historic Preservation Agency.  For information on how to apply, please visit www.illinois.gov/ihpa/preserve/pages/taxfreeze.aspx.