If you're in the market for a new place to live, you have until the end of the year to take advantage of a program offering a three-year tax break if you buy a distressed or foreclosed home in the city of Rockford, Ill.
The City Council earlier this month extended through 2017 the Homebuyer's Property Tax Refund initiative, which provides a three-year property tax rebate to purchasers of qualifying homes. About 80 homes qualify for the program this year, ranging in price from $4,900 to $349,000. The city says the annual tax rebate for a house valued at $100,000 may total up to $3,200.
The program debuted in April 2016 and generated tax rebates totaling more than $300,000 for 51 property owners for the 2016 tax year.
Program participants say they've used their rebates for home repairs. In the long run, the program is expected to help raise property values, boost rates of homeownership and stabilize neighborhoods.
"We need to have a healthy growing property tax base in our city," Mayor Larry Morrissey said today outside a qualifying home in the Churchill's Grove neighborhood. "We need to have a community in which our values grow and our tax rate declines. We had some very good success with it last year."
The 2016 tax rebates amounted to $312,174 — $83,532 from the city of Rockford, $188,926 from Rockford Public Schools, $27,349 from the Rockford Park District and $12,367 from the Rockford Public Library, said Steve Bois, chief executive officer of the Rockford Area Realtors.
The qualifying homes had a total assessed value of about $5 million. The rebate amounted to about 80% of the qualifying property owners' annual property tax bill.
"In its first year, this program attracted a wide range of potential buyers — empty nesters looking to downsize...millennials and others seeking their first home...and (those) looking to renovate a home or create more value," Bois said. "In this type of success and beyond, we think that this will fuel a second year of this program."
Rockford Ald. Tom McNamara, D-3, who is running for mayor, had pushed for the extension.
"This program really shows that a number of taxing bodies came together, and we said doing nothing is not an option," he said. "We want residents to take a new look at the city of Rockford, take a look at the wonderful amenities and all the benefits of living in our great community.
"This program will attract not only new residents but also help stabilize wonderful neighborhoods like Churchill's Grove."
Juston and Danielle Stratemeyer sold their Machesney Park home last year to purchase a qualifying home in Churchill's Grove. The residence is nearly 100 years old and in need of major repairs. They'll use the tax rebate to help cover cost of repairs.
"We couldn't be happier with our new home," Danielle Stratemeyer said. "We're very blessed to call Rockford our hometown. We couldn't have asked for a better neighborhood or neighbors. We're falling in love with the city of Rockford and taking pride in being Rockford residents."
