City Council Reviews Demolition Tax
Discussion ensues on tax, deferral, exemptions at Monday's meeting.
The information below comes from the City of Highland Park.
At the City Council meeting Monday, March 11, the Council reviewed the demolition tax, and opportunities to best serve the community.
The demolition tax of $10,000 applies to any person who demolishes a residential home within the City of Highland Park.
The amount is paid prior to receipt of a demolition permit. Several exemptions apply to this tax, which include demolishers who:
- Have owned and occupied the demolished property five years prior to the demolition and plan to own and occupy the property at least five years after demolition
- Establish that the demolition is necessary based on some force of nature or other factors beyond the owner’s control
- Establish that the demolition is necessary based on the medical condition of the owner and that the owner is determined as a low or moderate-income household who will occupy the replacement home.
- Establish that the replacement housing is affordable under the City’s definition of affordable housing
- Enter into an agreement with the Housing Commission for the provision of affordable housing.
The demolisher may defer the tax if desired, but with a 50% surcharge to the amount when paid.
The demolition tax was established in 2002 as a primary funding source for the Affordable Housing Trust Fund (HTF). Because of the tax, more than three million dollars has been raised in 10 years, resulting in the completion of 44 permanently affordable homes throughout Highland Park.
To learn more about the demolition tax, visit the City’s website at www.cityhpil.com/demotax or call the Community Development Department at 847-432-0867. Further discussion regarding the demolition tax will take place at future Committee of the Whole and City Council meetings.