Even as property values continue to decrease around the Chicago area, most people have not seen an equivalent decline in their property tax bills. If you are a senior citizen, there are a few exemptions and programs available to help manage your property taxes:

  • Senior Homestead Exemption: In addition to the standard homeowner's exemption, the Senior Homestead Exemption results in a reduction of $3,000 in the equalized assessed value of the property. Depending on the tax rate of your township, this reduction can result in savings of approximately $300 on your tax bill. To qualify for the exemption for the 2008 bill payable in 2009, you must have (1) owned and occupied the property on January 1, 2008 and (2) be 65 years of age or older in 2008.
  • Senior Citizen Assessment Freeze: If you are eligible for this exemption, the equalized assessed value of your property will stay at the level where it is in the year prior to your application. The benefit of this exemption is that your assessment value will not increase as a result of Cook County's triennial assessment cycle. To receive the Senior Assessment Freeze Exemption, you must (1) be 65 or older in 2008; (2) have a total gross household income for 2007 that does not exceed $55,000; (3) own or have a lease on the property; (4) be responsible for payment of 2007 and 2008 property taxes; and (5) use the property as your principal residence on January 1, 2007 and January 1, 2008. To continue to receive this exemption, an annual application is required to ensure that you meet these criteria.
  • Senior Citizen Tax Deferral Program: This program works like a loan, and allows qualified seniors to defer the payment of all or part of their property taxes. When the property is sold or transferred to an heir, the state is repaid at an interest rate of 6%. To qualify, you must (1) be age 65 by June 1 of the application year; (2) have a household income of $50,000 or less; (3) own or occupy the property for at least three years; (4) have fire or casualty insurance; and (5) be current on your property taxes and special assessments.

For more information, please contact me at (847) 705-9563, or gnagler@lavellelaw.com. General Law