Galesburg landmarks can once again benefit from a state program that freezes property tax assessments for historic, owner-occupied homes undergoing significant renovations.
Aldermen on Monday extended Galesburg’s participation in the program sponsored by the State Historic Preservation Office.
The Illinois State Statutes provide for a Property Tax Assessment Freeze Program. This program freezes the assessed valuation of an owner-occupied historic residence when substantial rehabilitation is performed. The assessed valuation is frozen for a period of eight years at the level when the rehabilitation was begun. The valuation is then brought back to market level over a period of four years. The statute does allow for taxing bodies to opt out of the program within the first 30 days of each calendar year.
Galesburg has remained in the program since 1989 and, during that time, just one property used the program in 1999. The City and County Assessor’s offices have indicated the State has not notified them of any property owners who utilized this program during 2024.
“By reducing the financial burden, the program incentivizes property owners to invest in maintaining and restoring historic properties. This will help to preserve the community’s cultural and architectural heritage, enhance neighborhood character and attract tourism.” — Steve Gugliotta, director of Community Development
Steve Gugliotta, director of Community Development, tells WGIL, “Technically, the state law is that a taxing district has the option to opt out within 30 days of each calendar year. So we are automatically in the program unless we want out. I bring the item to Council every year as a way to shed some light on a program that most may not even be aware is available.”
Gugliotta said the only property that has utilized the program was 512 N. Broad St., and it did not receive the full 12-year benefit because the incentive ended when the property was sold in 2006.
Asked why so few property owners of historic residences in Galesburg have enrolled the program, Gugliotta said, “There are a number of conditions that must be met to be eligible for the program, which may be why it is not used often, but it is still available for the right project.”
Gugliotta said the city has no administration of the program, noting it is all done through the State Historic Preservation Office The single-family, owner occupied residence — which could be up to 6 units if the owner resides in one of the units — must be a certified historic structure by the SHPO.
The renovation budget must be more than 25% of the assessor’s fair market value within a 24 month period and all renovations must meet the Secretary of the Interior’s Standards for Rehabilitation. Prior to any renovation, all proposed work must be reviewed and approved by the SHPO and also approved by SHPO at the completion of the work.
Gugliotta said he’s not aware of any local projects that are currently utilizing the program.
There are currently 25 Local Landmarks and 2 National Landmarks in Galesburg.
The program freezes the property tax assessment for 8 years at the pre-rehabilitation value and is then brought back to market level over a period of 4 years. While the tax assessment is frozen, the actual market value of the property may increase due to the enhancements, giving owners a more valuable asset without an immediate increase in taxes.
“By reducing the financial burden, the program incentivizes property owners to invest in maintaining and restoring historic properties,” Gugliotta said. “This will help to preserve the community’s cultural and architectural heritage, enhance neighborhood character and attract tourism.”
