Oak Park residents 65 years of age or older should receive renewal forms for senior citizen property tax exemptions this week, and will have until Feb. 4 to file them. Local seniors should feel free to call the office of Oak Park Township Assessor Ali ElSaffar for help completing the forms.
Eligibility
There are two senior tax exemptions:
1) The Senior Exemption, available to all seniors regardless of income, reduces property taxes by about $600. It is available to any owner-occupied residential property if the owner was born in 1949 or earlier.
2) The Senior Freeze provides some seniors with additional savings if the combined income of all members of the household is less than $55,000, and if the senior has been an owner-occupant of the property since Jan. 1, 2013.
The recently mailed senior applications are for the 2014 property taxes, which are paid in calendar year 2015. The savings from the exemptions will appear on the second installment tax bills, which will likely be mailed in late June of 2015.
For seniors who don’t receive mailings
Homeowners who were born in 1949 turned 65 in 2014 and thus are likely to be eligible for one of the senior exemptions for the first time. Taxpayers who recently turned 65 will probably not receive applications when the senior renewal forms are mailed. I encourage such individuals to call my office to obtain the forms and information necessary to receive the senior exemptions. The forms are also available online at www.CookCountyAssessor.com.
Erroneous exemptions lawÂ
Owners of properties that erroneously receive tax exemptions can be forced to repay the tax savings from any exemption for which they are not eligible. To avoid erroneous senior citizen exemptions, it is important to understand the eligibility rules for such exemptions. Although generally straightforward, the rules can be confusing when a senior moves.
If a senior was in residence on Jan. 1, 2014, the property should be eligible for the 2014 senior exemptions (paid in 2015) even if the senior citizen no longer lives on the property. But in most cases the property will not be eligible for senior tax exemptions in subsequent years. Residents with questions about eligibility for the senior exemptions should call the Township Assessor’s office.
Property tax deferrals
Senior citizens struggling with property taxes can defer payment of their property taxes until their homes or condominiums are sold. The Senior Citizen Tax Deferral Program allows seniors to defer as much as $5,000 of their property tax bill every year.
To qualify for the deferral program, seniors must have annual household income of less than $55,000, have equity in their homes that exceeds the sum of property taxes deferred, and have lived in their homes for three years. Small multi-family properties such as two-flats that generate rental income are not eligible for the program. Cook County Treasurer Maria Pappas, whose office administers the program, has set a March 1 deadline for deferral applications.
The tax deferral program is essentially a loan from the state that is assessed simple interest of 6% per year. To assure repayment, a lien is placed on the senior’s home that will prevent it from being sold until the loan is paid.
Having a lien placed on a home is often considered a bad thing. But a home mortgage is also a lien on the home, and no one views mortgages in a negative light. Liens, whether for mortgages or property taxes, are merely designed to ensure that the lent money is repaid.
There are some circumstances, however, where senior citizens might not want a lien on their homes. Seniors uncertain about whether to apply for tax deferral can speak with the Township Assessor’s Office but should also consider discussing the matter with legal advisers, financial advisers or family members.
Those interested in the deferral program should still apply for other tax benefits available to senior citizens. If you are eligible for the deferral, you should also be eligible for the senior freeze and the senior homestead exemption. By applying for the other senior benefits, you will reduce your property tax liability, which reduces the deferred tax that will eventually be repaid.”
Seniors with additional questions can call the Oak Park Township Assessor’s Office at 708-383-8005.Â