What is the Natural Disaster Homestead Exemption (NDHE)?
The Natural Disaster Homestead Exemption is an exemption on homestead property for a rebuilt residential structure following a natural disaster occurring in the taxable year 2012 or any taxable year thereafter.
The amount of the exemption is the reduction in equalized assessed value (EAV) of the residence in the first taxable year for which the taxpayer applies for an exemption minus the equalized assessed value of the
residence for the taxable year prior to the taxable year in which the natural disaster occurred. The exemption continues at the same amount until the taxable year in which the property is sold or transferred.
Note: Property is not eligible for the NDHE (35 ILC 200/15-173) and the Homestead Improvement Exemption (35 ILCS 200/15-180) for the same natural disaster or catastrophic event. The property may, however,
remain eligible for an additional Homestead Improvement Exemption for any separate event occurring after the property qualified for the NDHE.
Who is eligible?
To be eligible for an exemption,
- you must own or have a legal or equitable interest in the property on which a single family residence is occupied as your principal residence during the assessment year;
- you must be liable for payment of the real estate taxes;
- the residential structure must be rebuilt within 2 years after the date of the natural disaster; and
- the square footage of the rebuilt residential structure may not be more than 110 percent of the square footage of the original residential structure as it existed immediately prior to the natural disaster.
If you are a resident of a cooperative apartment building or life care facility as defined under Section 2 of the Life Care Facilities Act, you are still eligible to receive the NDHE provided you occupy the property as your
primary residence and you are
- liable by contract with the owner(s) of record for the payment of the apportioned property taxes on the property; and
- an owner of record of a legal or equitable interest in the cooperative apartment building. Leasehold interest does not qualify for this exemption.
Is a surviving spouse eligible?
The NDHE carries over to the benefit of a surviving spouse who holds a legal or beneficial title to the homestead and permanently resides on the property.
What is a natural disaster?
Natural disaster means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, storm, or extended period
of severe inclement weather. In the case of a residential structure affected by flooding, the structure shall not be eligible for an exemption unless it is located within a local jurisdiction which is participating in the
National Flood Insurance Program. A proclamation of disaster by the President of the United States or the Governor of the State of Illinois is not a prerequisite to the classification of an occurrence as a natural disaster.
When should I file?
Your initial Form PTAX-327, Application for the Natural Disaster Homestead Exemption, must be filed with the chief county assessment office no later than July 1 of the first taxable year after the residential structure is
rebuilt or the filing date set by your county. The county’s due date to file this form is printed on the front of this application. You must continue to file Form PTAX-327 every year and meet the qualifications to continue to
receive the NDHE. The chief county assessment office may require you to submit additional documentation as proof for this exemption.