The city of Urbana recently launched a tax incentive program. Aimed at enticing new residents into the area, a number of programs have been enacted that lower the cost of building your home in Urbana. Participants in the program can save up to 60% off property taxes on their new home in the first five years, and pay no sales tax on construction materials purchased in Illinois.
The Urbana Tax Abatement – A 5-year graduated real estate obligation
As an incentive to individuals considering building a new home in the city, the City of Urbana has introduced an abatement program for property taxes, equivalent to a 3-year, 100% abatement from participating taxing bodies.
Under the program, homeowners would receive a 100% abatement on their property taxes the first year, 80% the second year, 60% the third year, and so on for a five year period. This equates to an overall savings of 60% on your first 5 years of property taxes.
The Urbana Sales Tax Exemption – No sales tax on your building materials
The City of Urbana has also made available a Sales Tax Exemption certificate for materials used in the construction new homes. This exemption is available for building materials used in projects meeting the program’s criteria. The materials must be purchased from a qualified Illinois retailer, and must be new materials permanently affixed to the property.
Information on applying for these, and other incentives, can be found on the City of Urbana’s website at http://www.urbanaillinois.us/ez.
But how much can I really save?
Try our calculator below to see what you will have paid in taxes after 1, 5, and 10 years, depending on where you choose to build!
*The above estimates are based on a 10.6% property tax rate and 9% sales tax rate, and assumes a Homestead Tax Exemption. Numbers are approximate and do not take into account city’s changing their tax rates.