Tax Exemptions

Tax Exemptions

The Illinois Homestead 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. However, you must own the property to qualify for any of these exemptions.

General Homestead Exemption	Homestead Improvement Exemption
Senior Citizens Real Estate Tax Deferral Program	Senior Citizens Circuit Breaker Grant
Disabled Veterans Exemption	Senior Homestead Exemption
Senior Citizens Assessment Freeze Homestead Exemption	Definitions

General Homestead Exemption
This exemption lowers the equalized assessed value of your property by $5,000. To receive this exemption, you must:

Have lived on the property on or before January 1st of the tax year.
The Township Assessor’s office initiates this exemption.

Homestead 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 for which the township assessor would add value.

A maximum of $25,000 of assessed value may be deferred under this program.
The Township Assessor's Office initiates this exemption.

Senior Homestead Exemption
This exemption lowers the equalized assessed value of your property by $3,500, and may be claimed in addition to the General Homestead Exemption. To receive this exemption, you must:

Have lived on the property on or before January 1 of the tax year.
Have reached age 65 during the tax year.
Apply for the exemption at the Township Assessor's Office. You will need to bring a copy of the deed to the property and proof of age with you when you apply.

Senior Citizens Assessment Freeze Homestead Exemption
This exemption freezes the assessment on your property, but does not freeze the tax rate. This exemption may be claimed in addition to those described above. You need to understand that the actual taxes that you pay may continue to increase based upon the amounts levied by the taxing bodies where you reside (school districts, park district, village or city, township, etc.).

The filing deadline for this exemption is typically mid-September of each year. To receive this exemption, you must:

Have fulfilled a property residency requirement as explained on the application form.
Be age 65 or older.
Have a maximum household income of $45,000. You get a partial exemption over $45,000 and less than $50,000. This household income includes that of all persons using the property as their principal dwelling place on January 1 of the tax year.
Obtain an application for the exemption at the Township Assessor’s office. Your completed application must be notarized and returned to:

Chief County Assessment Officer
18 N. County St.
Waukegan, Illinois 60085

Please note that this exemption must be renewed annually. Annual renewals are mailed each year after the initial application.

SENIOR CITIZENS REAL ESTATE TAX DEFERRAL PROGRAM

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 for this deferral, 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.
Have a maximum household income of $40,000.00.
Owe no delinquent taxes on the property.
NOTE: The filing deadline for the program is March 1 of the tax 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 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 Lake County Treasurer’s office. The applications include:

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, the interest rate to be charged, and arrangements for repaying the “loan.”
Assistance with filling out the forms, and further processing of completed forms are available from:

Lake County Treasurer
18 North County Street
Waukegan, IL 60085
847-377-2323

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 the grant is determined by a formula which takes into account your property taxes and your total household income. To qualify for a “circuit breaker” grant, you must:

Be age 65 or older before January 1 of the tax year. If you reach age 65 during the tax year, you may be eligible for a partial grant covering the months in which you qualify
Have lived in an Illinois residence which was subject to property taxes during the tax year.
Live in Illinois at the time you file for a grant
Have a maximum household income of $21,218 for a one-person household, $28,480 for a two-person household, and $35,740 for a household of three or more persons.
Obtain an application from the Township Assessor's office and complete and file it on or before December 31 of the tax year

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 eight 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 $70,000.00 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 your 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 Township Assessor is notified automatically. Please note that this exemption must be renewed each year.

You may obtain the required forms from the:

Illinois Department of Veterans’ Affairs
3001 Greenbay Road
North Chicago, IL 60064
Phone: (847) 689-4153

Definitions of Property Tax Terms

Below, for your convenience, are definitions of several terms which are used frequently in discussing the property tax system.

Ad Valorem
According to value.

Assessed Value
The value placed upon property after multiplying the assessment level by the market value.

Assessment
The official act of discovering, listing and appraising property for ad valorem tax purposes - currently 33.33 %.

Assessment Level
The percentage of full value at which property is assessed as mandated by state law.

Assessor
The government official responsible for establishing the value of property for ad valorem tax purposes.

Board of Review
A panel of three residents of a county, experienced in real estate appraisal, who review complaints filed by individual taxpayers. The Board of Review has specific statutory responsibilities to perform during a designated period of time.

Equalization
The process of providing uniform aggregate assessments between townships and counties (see multiplier).

Equalized Value
The assessed value multiplied by the county and/or state multiplier. This calculation gives the value of the property to which the tax rate is applied.

Extension
This term is used in two different contexts: 1) The process in which the county clerk determines the tax rate needed to raise the revenue certified to the clerk by each taxing body in the county; and 2) The actual dollar amount of revenue resulting from the tax rate when it is multiplied by the assessed value of a district.

Improvement
Any structure, addition or other product of labor which is attached, lying upon or within the land that may not be removed without physical stress.

Levy
The amount of money that a taxing body requires to be collected through the property tax system.

Market value
The most probable price, estimated in terms of money, which a property would bring in a sale between a willing buyer and seller under arm length conditions.

Mass Appraisal
The process of valuing a universe of property by employing a common reference for data in allowing for statistical testing.

Multiplier
A figure used by county and state officials and applied uniformly to all parcels within a township to "equalize" assessments between townships and counties so that all values reflect the same assessment level.

Permanent Index Number (PIN)
A 10-digit number used to identify property for tax purposes. This number is used in place of lengthy legal descriptions.

Property Tax Appeal Board
A state-level panel of five residents, experienced in assessment appeals, who review complaints by property owners who are unsatisfied with decisions rendered by the Board of Review.

Quadrennial Reassessment
The assessment that takes place every four years during which the township assessor must revalue property based on the previous three years' sales activity.

Taxing Body
An organization or government body having the statutory right to fund itself through the property tax system. Examples include schools, park districts, villages and townships.

Tax Rate
A percentage applied to each taxing body's assessed valuation which will produce the amount of that taxing body's levy, or, in other words, the levy divided by assessed value equals the tax rate. The tax rate is expressed in terms of "dollars per $100 of assessed value".

Taxing District
The geographic area whose boundaries define the taxing jurisdiction for a group of taxing bodies.

Frequently Called Lake County Office Numbers

Treasurer 847-377-2323

Chief County Assessment Officer 847-377-2050

Recorder 847-377-2575

Board of Review 847-377-2100

Map Department 847-377-2373