State of Illinois Property Tax Relief for Veterans, Seniors, Homeowners and Disabled People

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[November 29, 2007]  SPRINGFIELD -- The Illinois General Assembly overwhelmingly approved property tax relief legislation (House Bill 664) during the spring legislative session. The bill became Public Act 95-644. State Rep. Rich Brauer (100th District) knows the importance of taxpayers -- particularly our veterans and seniors -- being informed about new changes in property tax relief programs offered by the state of Illinois.

The numerous tax relief provisions help the following:

• *New benefit*
  Returning veteran homestead exemption: Creates a one-time $5,000 homestead exemption for tax year 2007 and thereafter for veterans returning home from active duty.

• "Veteran" includes any Illinois resident who is a member of the U.S. armed forces, Illinois National Guard or U.S. reserve forces.

• The one-time exemption is in addition to any other homestead exemptions that may be available for the veteran's property.

• *New benefit*
  Disabled veteran homestead exemption: Creates a $5,000 homestead exemption for veterans who are 75 percent to 100 percent disabled and a $2,500 homestead exemption for those 50 percent to 75 percent disabled for tax year 2007 and thereafter.

• A service-connected disability is determined by the U.S. Department of Veterans Affairs.

• The exemption, if granted, is available to a veteran's surviving spouse as long as the spouse holds titles to the residence and does not remarry. The surviving spouse may transfer the exemption to a new property in Illinois if the same conditions are satisfied.

• If an exemption is claimed under this provision, a disabled person's homestead exemption ($2,000) or disabled veteran's federal housing exemption (exemption for homes built with federal funds) cannot be claimed.

• Senior homestead exemption: Increases to $4,000 in tax year 2008 and thereafter (now, $3,500).

  • Available to all senior citizens (65 years of age or older) for their principal place of residence. It is not subject to any income limitations. A senior who receives this exemption also automatically qualifies for the general homestead exemption (see below).

• Senior citizen assessment freeze homestead exemption: Grants full assessment freeze benefits for seniors (65 years of age or older) with a household income of $50,000 or less and eliminates the graduated exemption for household income between $45,000 and $50,000 for the 2007 tax year. Increases the maximum income limitation to $55,000 in the 2008 tax year and thereafter (now, $45,000-$50,000 maximum, with declining benefits).

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• Circuit Breaker income limitation: Increases the maximum income threshold by $1,000 for Circuit Breaker eligibility (now, $21,218 for a one-member household, $28,480 for a two-member household and $35,740 for a household of three or more).

• The new maximum income limitations are $22,218 for a one-person household, $29,480 for a two-person household and $36,740 for a household of three or more members.

• The new income thresholds apply only to the property tax grant and license plate fee assistance components of the Circuit Breaker program. The pharmaceutical assistance portion of the Circuit Breaker program, now known as Illinois Cares Rx, has different maximum income limitations.

• General homestead exemption: Increases to $5,500 in tax year 2008 and $6,000 in tax year 2009 and thereafter (now, $5,000).

  • Available to all Illinois homeowners for their principal place of residence. It is not subject to any income limitations.

• Tax relief awareness: Requires tax bills to include information about tax exemptions, abatements and other assistance programs (no current requirement exists).

• *New benefit*
  Disabled homestead exemption: Creates a $2,000 homestead exemption for disabled homeowners for tax year 2007 and thereafter.

• Proof of disability may include (i) documentation that the taxpayer is eligible to receive disability payments under the Federal Social Security Act; or (ii) an Illinois Disabled Person Identification Card that states the taxpayer is under a Class 2 disability; or (iii) an examination by a physician that determines the taxpayer is a disabled person in accordance with the same standards established by the federal Social Security Administration.

• If an exemption is claimed under this provision, a disabled veteran homestead exemption ($2,500-$5,000) or disabled veteran federal housing exemption (exemption for homes built with federal funds) cannot be claimed.

"Tax year" indicates the year before the year property taxes are due. For example, the 2008 year affects property taxes payable in calendar year 2009.

It is important to contact your local township assessor, county assessor, or chief county assessment officer to determine filing requirements for the property tax relief provisions. Your local state representative or senator may also be helpful in answering your questions.

[Text from file from the office of Rep. Rich Brauer]

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