Chicago Real Estate Notes

.1. Homeowner Exemption

Taxpayers whose single-family home, townhouse, condominium, co-op or apartment building (up to six units) is their primary residence can save $250 to $2,000 per year, depending on local tax rates and assessment increases. First-time applicants must have been the occupant of the property as of January 1 of the tax year in question.

The Cook County Assessor’s Office now automatically renews Homeowner Exemptions for properties that were not sold to new owners in the last year.

In neighborhoods where assessments have increased sharply, this exemption also now can help buffer the reassessment and be worth as much as $2,000 ($20,000 in Equalized Assessed Value multiplied by the local tax rate).

This program is administered by the Cook County Assessor’s Office. New owners should apply to:

Cook County Assessor’s Office
118 N. Clark Street, Room 301
Chicago, IL 60602
312.443.7550

You may find applications and additional information at: www.cookcountyassessor.com.
 

2. Senior Citizen Homestead Exemption

Depending on local tax rates, seniors who own and occupy their properties can save $160-$250 a year in property taxes (in addition to hundreds of dollars in savings from the Homeowner Exemption). For the 2009 tax year, the applicant must have owned and occupied the property as of Jan. 1, 2009 and must have been 65 years of age or older in 2009.

3. Senior Citizen Assessment Freeze Exemption

Qualified senior citizens can apply for a freeze of the assessed value of their property. Over time, in many areas, this program results in taxes changing minimally and often decreasing as surrounding properties continue to rise in assessed value. This is the most valuable homeowner exemption program. The value increases over the years as it eliminates the impact of regular re-assessment increases that may occur every three years.

For the 2009 tax year, the applicant must have owned and occupied the home on Jan. 1, 2008 and Jan. 1, 2009 and have been responsible for the 2008 and 2009 taxes.

4. Home Improvement Exemption

Homeowners can make up to $75,000 worth of property improvements without an increase in property taxes for at least four years. The value varies depending on the reduction of the assessed value and the tax rates where the property is located.  Any exemption that is granted will be reflected on the Second Installment tax bill.

 The City Of Chicago and the State Of Illinois offer the following programs:

Senior Citizen Tax Deferral
The household income limit to participate in this program has increased to $50,000. This program works like a loan from the State of Illinois to qualified senior citizens, with an annual interest rate of 6%. Any portion or all of the tax may be deferred until the house is sold or until the death of the taxpayer. To apply, contact the Cook County Treasurer’s Office at 312.443.5100.

Disabled Veteran Homestead Exemption
Administered through the Illinois Department of Veteran’s Affairs. Call 312.814.2460.

Circuit Breaker Program
Qualifying seniors and disabled citizens receive a state grant based on property taxes, nursing home costs or pharmaceutical expenses. For information, call the Illinois Department on Aging at 1.800.252.8966.

CHAP (Chicago Homeowner Assistance Program)
This program works like a loan from the City of Chicago for long-time homeowners who have had recent and large assessment increases. The loan is offered at a simple interest rate of 3%. For more information, call 312.744.1000

Source – Cook County Treasurers Office