Real Estate Exemptions Update
by Eric Hasselberg
NOTE: All real estate exemptions apply only to owner-occupied residential property.
1. Homestead Exemption (H.E.) – a $4,000 reduction in assessed value where the homeowner(s) is 65 years of age or older; initial application must be made in person to the County Supervisor of Assessments Office; yearly renewal is automatic.
2. Home Revaluation Exemption (H.R.E.) – a reduction in assessed value up to $5,500 (can be less); calculated by subtracting the “Base Year” assessed value of the property from the current assessed value; the difference is the amount of the H.R.E., not to exceed $5,500; “Base Year” assessed value is that as of January 1, 1978, or, if the property was unimproved or had incomplete improvements as of that date, then the “Base Year” assessed value is that as of January 1 of the first year thereafter that the property is improved and complete; need not be applied for. This will increase to $6,000.00 in 2009.
3. Homestead Improvement Exemption (H.I.E) – a reduction in assessed value of up to $10,000; used to defer increases in assessed value due to structural improvements done to or added to the property; duration of the exemption is four years; need not be applied for.
4. Veteran's Exemption (V.E) – a reduction in assessed value of up to $30,000 (can be less); available only to United States military veterans who are 100% disabled as a direct result of military service; must be applied for through the Illinois Department of Revenue.
5. Senior Citizens Assessment Freeze Homestead Exemption – allows senior citizens who are 65 years of age or older during the tax year in question, and with a total yearly household income of $55,000 or less, to freeze the assessed value of their residence at a base year value and prevent any increase due to inflation; the base year is the year prior to the year the senior citizen first qualifies and applies for the exemption; application must be made by September 1 of every year to the County Supervisor of Assessments Office or the township assessor
6. Current Assessed Valuation (C.A.V.) – the assessed valuation of a property after all assessment changes have been made for a particular tax year; such changes may consist of any or all of the following: (1) changes made by the township assessor and/or the Supervisor of Assessments, (2) changes made by the Board of Review and/or the State of Illinois Property Tax Appeal Board, and (3) changes made as the result of the imposition of a township and/or state mandated county-wide multiplier.
New Homestead Exemptions
More Illinois veterans and disabled persons will be eligible for property tax relief as a result of legislation that was passed into law on October 17, 2007. Public Act 95-0644 creates three new homestead exemptions for Illinois’ disabled citizens and qualifying veterans. The legislation also expands current homestead exemptions to provide property tax relief for qualifying Illinois’ homeowners and senior citizens.
Three new homestead exemptions will take effect for the 2007 tax year (property taxes paid in 2008).
1. Returning Veterans’ Homestead Exemption. The new Returning Veterans’ Homestead Exemption (35 ILCS 200/15-167) provides a one-time $5,000 reduction in a property’s equalized assessed value (EAV) to qualifying veterans who return from active duty in an armed conflict involving the armed forces of the United States. To receive this exemption, the veteran must file an application upon their return home.
2. Disabled Persons’ Homestead Exemption. The new Disabled Persons’ Homestead Exemption (35 ILCS 200/15-168) provides a $2,000 reduction in a property’s EAV to a qualifying property owned by a disabled person. A disabled person must file an annual application by the county’s due date to continue to receive this exemption.
3. Disabled Veterans’ Standard Homestead Exemption. The new Disabled Veterans’ Standard Homestead Exemption (35 ILCS 200/15-169) provides a reduction in a property’s EAV to a qualifying property owned by a veteran with a service-connected disability certified by the U. S. Department of Veterans’ Affairs. A $2,500 homestead exemption is available to a veteran with a serviceconnected disability of at least 50% but less than 75% or a $5,000 homestead exemption is available to a veteran with a service connected disability of at least 75%. A disabled veteran must file an annual application by the county’s due date to continue to receive this exemption.
The current Disabled Veterans’ Homestead Exemption (35 ILCS 200/15-165) that provides up to a $70,000 reduction in assessed value for federally-approved specially adapted housing will continue to be available through the local Veterans’ Affairs Office. A disabled person’s or disabled veteran’s property can receive only one of the following exemptions each year: Disabled Veterans’ Exemption (35 ILCS 200/15-165), Disabled Persons’ Homestead Exemption (35 ILCS 200/ 15-168) or the Disabled Veterans’ Standard Homestead Exemption (35 ILCS 200/15-169).
The increase in the current homestead exemptions will provide additional property tax relief for some Illinois homeowners and senior citizens.
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