Property Tax Exemptions
There are several exemptions from property taxes created by the Illinois Legislature. Generally speaking there are two type of exemption, homestead and non-homestead exemptions. Homestead Exemption are typically for individuals, relating to their single family houses, condominium or cooperative apartment. Non-Homestead Exemption are those used by governments, such as federal, state, county, townships, park districts, library districts, schools, etc.. Also, Non-Homestead Exemptions are granted to churches, veteran organization, fraternal organizations, as well as Historical Societies. There are other ownership interests and use that may qualify for a non-homestead exemption, you may click on the link here to be taken to the Illinois Complied Statutes.
Listed below are the current exemptions along with a brief explanation of the benefits and requirements.
General Homestead Exemption - (35 ILCS 200/15-175) This exemption is better known as the "Owner Occupied" exemption. The exemption allows for a reduction in the equalized assessed value of a homestead property of up to $6,000. The amount of the exemption is calculated by comparing the 1977 E.A.V. to the current E.A.V.. If the current E.A.V. has increased $6,000 or more, the full amount of the exemption is granted. In the event the current E.A.V. has increased only $3,333 from that in 1977, the exemption amount to be granted would be $3,333. This exemption can be prorated for those properties with a newly constructed house. An application should be filed for this exemption. Property owners/leasees filing for this exemption, must annually file an application with a copy of the annual lease by March 1st of each year (Contact the Assessment Office for more details).
Senior Citizen Homestead Exemption - (35 ILCS 200/15-170) This exemption offers those age 65 and older, meeting the requirements of the General Homestead Exemption, an additional reduction of $5,000 off the assessed value. The exemption amount is calculated after the General Homestead Exemption is calculated. The exemption can be granted on a prorated basis, if the Senior Citizen purchases a new or different home any time of the year. Taxpayers are eligible to receive the benefit of this exemption for the whole year, regardless of the when in the year they turn 65. An application is necessary for this exemption.
Senior Citizen Assessment Freeze Homestead Exemption - (35 ILCS 200/15-172) This exemption will "freeze" the assessed value of the residence and home site (the year prior to the first year they apply and qualify). General eligibility requirements include, household income of $55,000 or less, live in the property as of January 1 the year you apply and the previous January 1 for a full exemption. An application is necessary for this exemption along with a copy of the first two pages of the prior year's income tax return.
Homestead Improvement Exemption - (35 ILCS 200/15-180) This exemption is for new residential improvements, such as a room addition, new garage, adding central air conditioning or finishing a basement. The property must be Owner Occupied. The exemption reduces the assessed value attributed to the new improvement and has a maximum assessment reduction of $25,000. This exemption runs for a period of four years. An application is generally not necessary, as the exemption is granted as the new construction is added to the assessment rolls.
Returning Veteran's Homestead Exemption - (35 ILCS 200/15-167) This exemption is for owner-occupied that is the principal residence of a veteran returning from an armed conflict involving the Armed Forces of the US, who is liable for the payment of property taxes. This exemption is a $5,000 reduction in the property's EAV and only for the tax year in which the veteran returns from active duty. A veteran can reapply in if returning from active duty in a subsequent tax year. An application is required for this exemption.
Disabled Veteran's Standard Homestead Exemption - (35 ILCS 200/15-169) This exemption is for owner-occupied property that is the primary residence of a disabled veteran, liable for the payment of property taxes. "Veteran" means an Illinois Resident who has served as a member of the US Armed Forces on active duty or State active duty, a member of the Illinois National Guard, or member of the US Reserved Forces and who has received an honorable discharge. For veterans with a service-connected disability and certified by the US Dept of Veteran's Affairs as having at least 30% disability, an annual exemption of $2,500 and those veterans with a certified disability of at least 50%, but less than 70%, an annual exemption of $5,000. Service-connected disability of 70% or greater, the residential portion of the property is exempt from taxation. This exemption must be certified by the US Dept of Veterans' Affairs.This exemption requires an annual application/recertification. The tax exemption benefits carries over to a qualifed surviving spouse. Begining with the tax year 2015, the surviving spouse of a veteran killed in the line of duty can quality for this exemption.
Disabled Person's Homestead Exemption - (35 ILCS 200/15- 168) This exemption is for owner-occupied property that is the primary residence of a disabled person who is liable for the payment of property taxes. This exemption reduces the EAV for the eligible property $2,000. General requirements to be eligible a "Disabled Person" has to received benefits under the Federal Social Security Act or possess a "Disabled Person Identification Card" stating the claimant is under class 2 disability. An application for this exemption is required. This exemption requires an annual application/recertification.
Disabled Veteran's Exemption - (35 ILCS 200/15-165) This exemption is administered by the Illinois Department of Veteran's Affairs. The exemption allow for up to $100,000 of the assessed value to be exempt from property taxes. The Illinois Department of Revenue annually certifies to the Chief County Assessment Officer those eligible to receive the exemption.
Senior Citizen Tax Deferral - (320 ILCS 30/3) This act permits the deferral of real estate taxes on the residence. The deferred taxes then become a lien on the property to be paid when the property is eventually sold. The age requirements is 65 or older, income limit is $40,000. The owner must apply by March 1 every year with the County Treasurer.