Hey seniors — listen up! It’s senior citizen property tax exemption time, and if you plan to apply for yours, do so quickly as the due date for returned applications is Feb. 8.
Forms were mailed out on Jan. 9, so if you haven’t received yours, be sure to contact your local assessor’s office. The applications are for the 2016 property taxes, which are paid in 2017. The savings from the exemptions will appear on the second installment tax bills mailed around late June 2017.
Every dollar saved is important to those on fixed incomes, said Oak Park Township Assessor Ali ElSaffar.
There are basic two senior tax exemptions:
* The senior exemption is available to all seniors regardless of income, and reduces property taxes by about $675, said ElSaffar. It’s available for any owner-occupied residential property if the owner was born in 1951 or before.
* The senior freeze provides some seniors with additional savings if the combined income of all household members is less than $55,000, and if the senior has been an owner-occupant of the property since Jan. 1, 2015.
And those who turned 65 in 2016 are now eligible for senior exemptions for the first time this year. But more than likely, you won’t get mailed a form and will need to get one from the local or Cook County Assessor’s Office.
It’s hard to keep track of it all, but there are some special rules, for seniors who live in assisted living facilities, for when a senior dies and leaves a spouse, and even a rule for after the senior dies or moves, said ElSaffar.
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All this exemption stuff can become mind-boggling, so to avoid erroneous senior exemptions, it’s important to understand the eligibility rules, said ElSaffar. But if a senior was in residence on Jan. 1, 2016, the property should be eligible for the 2016 senior exemptions (paid in 2017), even if the old-timer stopped living at the property later in 2016.
“Although generally straightforward, the rules can be confusing after a senior leaves his or her home,” said ElSaffar.
And golden oldies struggling to pay their taxes should check out the Senior Citizen Tax Deferral Program, where someone can defer as much as $5,000 of their property tax bill every year. Seniors have to have an annual household income of less than $55,000, have equity in their homes exceeding the sum of property taxes deferred, and have lived in their homes for at least three years to qualify.
The deferral program is basically a loan from the state carrying a 6 percent annual interest rate. A lien is put on the senior’s home, preventing it from being sold until the loan is paid. (Applications due by March 1).
“Not a huge number of people take advantage of it but some do,” said ElSaffar. “It’s kind of like a reverse mortgage for taxes.”
If you qualify for the deferral, you should also be eligible for the senior freeze and the senior homestead exemption, said ElSaffar. By applying for the other senior benefits, you’ll reduce your property tax liability, which reduces the deferred tax that will eventually be repaid, he said.
“All the ideas were designed over the years to make sure seniors get what they are entitled to,” said ElSaffar,
Anyone with questions should call their Township Assessor’s office. Seniors with additional questions can call the Oak Park Township Assessor’s office, 708-383-8005.
Oops! Sincerest apologies to Jean Buckley, whose first name was misidentified in a recent column. So sorry Jean!
Felicia Dechter is a freelance columnist for Pioneer Press.