Property Tax Relief

Under Illinois law, several programs designed to provide property tax relief are available to homeowners. Eligibility requirements vary widely among these programs and you should review each program's qualifications carefully.

The Illinois Tax Exemption Program: 

Through four different types of exemptions, this program either reduces or defers an increase in the equalized value of your property. These exemptions lower the assessed valuation when the tax rate is then applied. Qualifications and application procedures vary for each program. However, you must own and occupy the property on January 1st of the year to qualify for any of these exemptions.

1. Owner Occupied General Exemption

This exemption lowers the equaled assessed value of your property up to $3500.

To receive this exemption, you must:

• Have lived on the property on or before January 1st of the tax year.
• Apply for this exemption at the Assessor’s office.

2. Home Improvement Exemption

This exempts, for four years, any increase in the assessment of your due to an addition or other improvement to your home for which the Assessor would add value.

• Limited to $15,000 of assessed value per year.
• Apply for building permit.
• Must own home and use it exclusively for a residential purpose.

3. Senior Homestead Exemption

This exemption lowers the equalized assessed value of your property by $2,000 and may be claimed in addition to the Owner Occupied Exemption.

To receive this exemption, you must:

• Have lived on the property on or before January 1st of the tax year
• Have reached age 65 during the tax year.
• Apply for the exemption at the Assessors office. Bring I.D. with your birth date listed.

4. Senior Citizen Assessment Freeze Exemption

This exemption freezes the taxable assessment on your property, but not the tax Rate. This exemption may be claimed in addition to those described previously. The actual taxes which you pay may continue to increase based on the amounts levied by the taxing bodies where you reside (school districts, sanitary district, count, city township, etc.) The filing deadline for this exemption is December 31st of each year.

To receive this exemption, you must:

• Have owned and occupied the property for two years starting January 1st.
• Be age 65 or older.
• Have a maximum gross household income of $40,000, including that of all persons using the property as their principal dwelling place on January 1st of the tax year.
• Obtain an application for the exemption at the Assessor’s office.. Note: This exemption must be renewed annually, Your completed application must be notarized and returned to:
  
  Supervisor of Assessment
  111 East Washington Street
  Morris, Illinois 60450 

Senior Citizens Real Estate Tax Deferral Program:

This program is designed to allow senior citizens to defer payment of part or all 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 and use it exclusively as a residence. 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 resided temporarily in a nursing or sheltered care home.
• Be age 65 or older by June 1st of the tax year.
• Have a maximum household income of $40,000 or less.
• Owe no delinquent taxes on the property

Note: Filing deadline for the program is March 1 of the tax year. Eligible residents may defer part of their property taxes for each year in which may be deferred (including interest and fees) is 80% of the taxpayer’s equity in the property.

Property taxes deferred under this program become due when the residence is sold or upon the death of the taxpayer. Deferral may be continued by a surviving spouse who is at least 55 within six months of the taxpayer’s death.

Applications for the Senior Citizens Real Estate Tax Deferral Program must be made each year, and involves completing two forms available at the Grundy County Treasurer’s office.

Application includes:

• A request for information about the taxpayer, their income, and the property for which the deferral is sought.
• A request that any joint owners and mortgage lenders agree to the deferral.
• Evidence of adequate insurance on the property.
• Completion of an agreement which set out conditions of the tax deferral, including the maximum amount which can be deferred, interest rate to be charged, and arrangements for repaying for the “loan.”

Circuit Breaker Grants:

The program provides low-income senior citizens and disabled citizen’s yearly grants to help pay property taxes. Taxes amount of the grant is determined by a formula which takes into account your property taxes and total household income.

To qualify for a circuit breaker grant, you must:

• Be age 65 or older before January 1st of the tax year. If you reach age 65 during the tax year, you may be eligible for the partial grant covering the month’s in which you qualify.
• Be disabled and at least 16 years old.
• Have lived in an Illinois residence which was subject to property taxes during the tax year.
• Lived in Illinois at the time you file for a grant.
• Have an income of $21,218 a year for a single person, $28,480 for a couple or $35,740 for a three-person household. Complete and file forms on or before December 31st of the tax year.

Grants will be issued within three to four months, if you file a qualifying claim early in the year. Grants are generally issued within 8—10 weeks for claims filed after May 1st.

If your surviving spouse was age 63 or older before death, he or she may continue to file for circuit breaker grants after your death.

Disabled Veterans Exemption:

Under this, program, up to $58,000 of the equalized assessed value of a home owned by a qualifying veteran, 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 or construction of housing which has special adaptations to meet the needs of your disability.
• Applications available through the Illinois Department of Veterans Affairs.