This year, senior citizens at least 65 years old may qualify for one of three Illinois programs that provide property tax relief. But only one program, the Senior Tax Deferral, is accepting applications now. Seniors should be able to apply for the two other programs, the Senior Citizen Exemption and the income-based Senior Freeze Exemption, sometime in February.
The two senior exemptions reduce property tax bills on the owner-occupied homes of senior citizens. Even with the savings from these exemptions, however, property tax bills can still be quite high for seniors on fixed incomes.
Such seniors may get some relief from the Deferral program if they have built up equity in their homes by paying down or paying off their mortgages. Under the Deferral, qualifying seniors living in a household with annual income of $65,000 or less can borrow against the equity in their homes to pay as much as $7,500 in property taxes per year.
The money for the Deferral is essentially a loan from the state, which charges 3% simple interest on the money but does not require loan payments. Instead, the entire loan is repaid when the home is sold or within a year of the applicant’s death.
Deferral applications are due by March 1. The Oak Park Township Assessor’s Office is available to provide additional details about eligibility for the program and help seniors apply for it. My office will also be able to help seniors applying for the Senior Citizen and Senior Freeze exemptions when those applications become available.
I strongly encourage Deferral applicants to apply for the two senior exemptions, as the savings from those exemptions will reduce the taxes to be paid or deferred. In addition, seniors should note that although Deferral loans will eventually have to be repaid, savings from the two senior exemptions are not loans and never have to be repaid.
Senior citizens seeking property tax relief can defer up to $7,500 in taxes can call me at 708-383-8005.
Ali ElSaffar
Oak Park Township Assessor