EXEMPTIONS
Under Illinois Law, several programs designed to provide property tax relief are available to homeowners. This guide is prepared to familiarize the property owner with these programs, and to answer the most frequently asked questions. In the back of this brochure, we have provided definitions of terms which are frequently used in discussing property taxes.
As you will learn, eligibility requirements vary among these programs, and you should review each program’s qualifications carefully.
The staff in the Township Assessor’s Office or the County Assessment Office will be happy to provide additional information and you are encouraged to contact us if you have any questions.
EXEMPTION PROGRAM
What is the Illinois Homestead Exemption Program, and who qualifies?
Through four different types of exemptions, this program either reduces or defers an increase in the equalized value of your property. The net effect of these exemptions is to lower the assessed valuation to which the tax rate is then applied. As explained below, qualifications and application procedures vary for each program. You must own the property to qualify for any of these exemptions or lease the property and be responsible for.
HOMESTEAD LIMITED EXEMPTION
This exemption lowers the equalized assessed value of your property by $5,000 for 2007, $5,500 for 2008, $6,000 for 2009. To receive this exemption, you must:
▪ Own and live in the property on or before January 1 of the assessment year.
HOMSTEAD IMPROVEMENT EXEMPTION
This exemption defers for four years any increase in the assessment of your property due to an addition or other improvement to your home which would add to the assessed value of the home.
▪The property has to be exclusively used as residential property.
▪The property is owned and occupied as of January 1 of the assessment year.
▪A maximum of $25,000 of assessed value ($75,000 of market value) may be deferred under this exemption.
▪This exemption is initiated by the Township Assessor and approved by the Board of Review.
SENIOR HOMSTEAD EXEMPTION
This exemption lowers the equalized assessed value of your property by $3,500 for 2007, $4,000 for 2008, and may be claimed in addition to the other exemptions. To receive this exemption, you must:
▪Own and occupy the home during the assessment year.
▪ Reached the age of 65 during the assessment year.
▪ Apply for the exemption in the County Assessment Office. Proof of ownership and age may be required.
▪If the property is in trust, a copy of the trust agreement if required.
▪This exemption no longer needs to be renewed in Boone County. Initial application is required.
▪A property owner who resides in a nursing home may still receive this exemption if the home is not rented and left for the property owner to return to.
SENIOR CITIZENS ASSESSMENT FREEZE HOMESTEAD EXEMPTION
This exemption freezes the assessment on your property, but does not freeze the taxes. This exemption may be claimed in addition to any or all of the above.
The filing deadline for this exemption, by Boone County Board of Review action is November 1. To receive this exemption, you must:
▪Own and occupy the property as of January 1 of the assessment year and January 1 of the previous year.
▪ Reach the age of 65 during the assessment year.
▪ Have a maximum household income of $55,000 or less. This household income includes all persons using the property as their principal dwelling place on January 1 or the assessment year.
▪Applications are mailed by the Boone County Assessment Office to all those who have applied and qualified for the Senior Homestead Exemption during January or may be obtained in the Boone County Assessment Office. Your completed application and proof of income must be provided to the Boone County Board of Review. The application must be notarized and returned to the Boone County Assessment Office. The County Assessment Office will make copies and notarize the application for property owners.
SENIOR CITIZENS REAL ESTATE TAX DEFERRAL PROGRAM
What is the Senior Citizens Tax Deferral Program and who qualifies?
This program is designed to allow senior citizens to defer payment of part or all of the property taxes on their homes. This program functions as a loan with an annual interest rate of six percent. To qualify, you must:
▪ Own the property which must be used exclusively as a residence. Please note that joint ownership under this program is limited to you and your spouse.
▪Have lived on this or another qualifying property for at least three years, except for periods in which you may have resided temporarily in a nursing or sheltered care home.
▪ Be age 65 or older by June 1 of the tax year.
▪ Have a maximum household income of $40,000.
▪ Owe no delinquent taxes on the property.
▪ Note: The filing deadline for the program is March 1 of the assessment year.
How much may be deferred?
Eligible residents may defer part or all of their property taxes for each year in which they qualify. The maximum which may be deferred (including interest and fees) is 80 percent of the taxpayer’s equity in the property.
When must deferred taxes be paid?
Property taxes which are deferred under this program become due when the residence is sold or upon the death of the taxpayer. The deferral may be continued by a surviving spouse who is at least age 55 within six months of the taxpayer’s death.
How does one apply for this tax deferral program?
Application for the Senior Citizens Real Estate Tax Deferral Program must be made each year and involves completing two forms which are available at the Boone County Treasurer’s Office. This application includes:
▪ A request for information about the taxpayer, his or her income and the property for which the deferral is being sought.
▪ A request that any joint owners and mortgage lenders agree to the deferral.
▪ Presentation of evidence of adequate insurance on the property.
▪Completion of an agreement which sets out the conditions of the tax deferral, including the maximum amount which can be deferred, including the maximum amount which can be deferred, the interest rate to be charged and arrangements for repaying the “loan”.
▪Assistance with filling out these forms, and further processing of the completed forms are available from:
Boone County Treasurer’s Office
601 N. Main St. Suite 203
Boone County Courthouse
Belvidere, Il 61008
815-544-2666
SENIOR CITIZENS CIRCUIT BREAKER GRANTS
What is a Senior Citizens Circuit Breaker Grant and who qualifies?
This program provides low-income senior citizens with yearly grants to help pay property taxes. The amount of grant is determined by a formula which takes into account you property taxes and your total household income. To qualify for a “circuit breaker”, you must:
▪ Be age 65 or older before January 1 of the assessment year. If you reach age 65 during the assessment year, you may be eligible for a partial grant covering the months which you qualify.
▪ Have lived in an Illinois residence which was subject to property taxes during the assessment year.
▪ Live in Illinois at time you file for a grant.
▪ Obtain an application from the Keen-Age Center. The form needs to be completed and filed on or before December 31 of the assessment year. The form indicates the procedure and place for filing.
When are these grants paid?
If you file a qualifying claim early in the year, grants will be issued within three to four months. For claims filed after May 1, grants are generally issued within 8 to 10 weeks.
If I die, will my spouse continue to receive the circuit breaker grant?
If your surviving spouse was age 63 or older before your death, he or she may continue to file for circuit breaker grants.
DISABLED VETERANS EXEMPTION
What is a Disabled Veterans Exemption and who qualifies?
Under this program, up to $58,000 of the equalized assessed value of a home owned by a qualifying veteran, or the veteran’s spouse or unmarried surviving spouse is exempt from property taxes. To qualify for this exemption, you must:
▪ Have served in the Armed Forces of the United States.
▪ Have a disability of such nature that the Federal Government has authorized payment for the purchase or construction of housing which has special adaptations to meet the needs of the disability.
How do I establish a Disabled Veterans Exemption?
You apply for this exemption through the Illinois Department of Veterans’ Affairs. Once the exemption has been approved the County Assessment Office and the Township Assessor are notified by the Illinois Department of Revenue. Please note that this exemption must be renewed each year.
You may obtain the required forms from the:
Illinois Department of Veterans Affairs
In Rockford or Woodstock, Illinois.
Disabled Veterans’ Standard
The disabled Veterans’ Standard Homestead Exemption (35ILCS 200/15-169) provides an annual reduction in the equalized assessed value on January 2 of the assessment year. The DVSHE amount depends on the percentage of the service-connected disability as certified by the U.S. Department of Veterans’ Affairs. A disabled veteran with at least a 75% service-connected disability will receiver $5,000 reduction in property’s EAV. A disabled veteran with at least 50%, but less than 75% service-connected disability will receiver a DVSHE of $2,500 reduction in property’s EAV.
Returning Veterans’ Homestead Exemption
The return Veterans’ Homestead Exemption (32ILCS 200/15-167) provides a one-time $5,000 reduction in the equalized assessed value (EAV) of the veteran’s principal residence for the taxable year that the veteran returns form active duty in an armed conflict involving the armed forces of the United States. The veteran must own and occupy the property on January 1 of the assessment year his or her principal residence.
DISABLED PERSONS’ HOMESTEAD EXEMPTION
The Disabled Persons’ Homestead Exemption (35ILCS 200/15-168) provides an annual $2,000 reduction in the equalized assessed value (EAV) of the property owned and occupied as the primary residence on January 1 of the assessment year by a disabled person who is liable for the payment of property taxes.
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