Homeowner Exemption Property tax relief  the 7% Expanded Homeowner Exemption

In 2003, Cook County Assessor Jim Houlihan developed the 7% Expanded Homeowner Exemption (EHE) in an effort to provide immediate relief to homeowners facing assessment increases and the resulting increases on their property tax bills.  The 7% EHE is an expanded homeowner exemption that provides additional savings to homeowners by slowing the impact of a home’s reassessment and providing taxpayers with more stable and predictable tax bills.  This property tax relief legislation was signed into law in July of 2004 and first implemented for 2003 City of Chicago tax bills.

In October of 2007, the 7% EHE was renewed for an additional reassessment cycle with new maximum exemption amounts. This legislation will be in effect for the City of Chicago until 2008, for the North suburbs until 2009, and for the South suburbs until 2010.

How To Calculate

Your tax bill
To calculate   $100,000 Market Value 1
your property   X       .16 Residential Assessment Level (16%) 2
tax bill, use   $16,000 Assessment Valuation
the following   X         2 Sample Equalization Factor 3
example for a   $32,000 Equalized Assessed Value
home with an   -  $5,000 Homeowner Exemption 4
estimated   $27,000 Adjusted Equalized Assessed Value
market value   X       .10 Sample Tax Rate (10%) 5
of $100,000.   $2,700 Yearly Tax Bill

1 Market Value – what your property could sell for on the open market.

2 Assessment Level – the rate at which property is assessed. Single family

homes, condos, co-ops, apartment buildings and mixed-use properties, six units and under, are assessed at 16%.

3 Equalization Factor – a number determined each year by the Illinois Department of Revenue to even out or “equalize” assessed values, by county, across the state. It is also called the multiplier.

4 Homeowner Exemption – the 7% expanded exemption increased the exemption amount from a minimum of $5,000 in Equalized Assessed Value (EAV) to a maximum of amount that changes with each tax year. The amount of the exemption will vary based on the value of the home and the amount of the assessment increase.

5 Tax Rate – the result of dividing the spending request of a particular local government or school district by the total equalized valuation of all properties  in that area. The tax rate can stay the same , increase or decrease when taxing bodies request more money. Always review dollars levied, not just tax rates. Actual tax rates vary across Cook County and are determined by local government spending needs and requests.

Senior Citizens receiving the Senior Citizen Exemption automatically qualify for the Homeowner Exemption and do not have to apply for it separately.

The Senior Citizen Exemption provides tax relief by reducing the equalized valuation of an eligible residence. This savings is in the form of a deduction on the second-installment of the real estate tax bill.

Homeowners who received the Senior Exemption on their tax bills last year and did not sell their homes in the last year, do not have to reapply for the Senior Exemption this year.

Eligibility Requirements
1 You must be 65 years of age or older during the year for which you are applying;
2

You must either own the property or have a lease or contract which makes you responsible for the real estate taxes; and
3 The property must be your principal residence.
If you have moved or plan to move in the future, you may be entitled to a prorated Senior Citizen Exemption, based on the time of occupancy.
1 To apply for a prorated Senior Citizen Exemption you must submit:
2 A Senior Citizen Exemption Application Form
3 A closing or settlement statement
4 Copy of a recent property tax bill
5 Copy of proof of age and residency

Application Procedures
1 If you are eligible for the exemption, please complete and sign the Senior Citizen Exemption Application Form. Information pertaining to Permanent Index Number and Township can be found on your real estate tax bill.
2 You must also provide the following information:

Recent Real Estate Tax Bill For Your Home

This includes your residential/property address and index number. If your bill is not mailed to your home, you must supply ONE MORE document that would prove your home address, such as your voter's registration card, voting record from the tax year(s) for which you are applying, or Driver's License or Illinois Identification (ID) card showing your address as the property address issued prior to the earliest year for which you are applying.
Proof Of Your Age

Submit ONLY ONE official document that clearly shows your birth date, such as your Driver's License, Illinois Identification (ID) Card, Alien Registration Card, Social Security Form 2458, Naturalization Papers, Passport, or Birth or Baptismal Certificate. NOTE: Women who submit documents with maiden name must provide Marriage Certificate(s) to show connection with current name.
Cooperatives

Owners of cooperative apartments must also submit a stock certificate, occupancy agreement or trust agreement along with their application.
Applying for the Senior Citizen Exemption by mail

If you apply by mail, do not send originals of the above documents. Please send copies because the documents cannot be returned to you.
Applying for the Senior Citizen Exemption in person

If you apply in person at the Assessor's Office, your documents will be examined and returned to you while you wait.
Approval Procedure

The Assessor's Office will notify you when your application is approved.

What Is It?

The Senior Freeze Exemption allows qualified senior citizens to apply for a freeze of the equalized assessed value (EAV) of their properties for the year preceding the year in which the applicant first qualifies and applies for this exemption. For example, a senior citizen who qualifies and applies for this exemption in taxable year 2007 will have the EAV of the property frozen at the 2006 EAV.

Those who qualify and receive this exemption should be aware that this does not automatically freeze the amount of their tax bill. Only the EAV remains at the fixed amount. The amount of dollars that the taxing districts asks for (levy) may change and thus alter a tax bill.

Who Is Eligible?

To qualify for the taxable year 2007, you must meet all of these requirements:

  • Be 65 years of age or older in 2007.
    •
  • Have a total gross household income of no more than $50,000 for 2006
    •
  • Own the property, or have a legal, equitable or leasehold interest in the property on January 1, 2006 and January 1, 2007
    •
  • Be liable for the payment of 2006 and 2007 property taxes
    •
  • Use the property as a principal place of residence on January 1, 2006 and January 1, 2007.
    •

    When Do I Apply?

    Those who are currently receiving the Senior Citizen Exemption will automatically receive an application form for the Senior Freeze Exemption.

    You must file each year in order to continue to receive the Senior Freeze Exemption, and the requirements must be met each year.

    Other Tax Relief Options
    Senior Citizen Real Estate
    Tax Deferral Program
    Cook County Treasurer's Office 312/443-5100
    Circuit Breaker Program
    Illinois Department of Revenue 800/624-2459

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    Disabled Persons’ Homeowner Exemption

    What is it?

    This exemption provides disabled persons with an annual $2,000 reduction in the equalized assessed value (EAV) of the property.

    Qualifications

    To qualify the applicant must be:

    • disabled or become disabled during the assessment year,
    • own or have a legal or equitable interest in the property, or a leasehold interest of a single-family residence,
    • occupy the property as the principal residence on January 1, 2007 and
    • be liable for the payment of property taxes.

    If a person’s home previously received the Disabled Persons’ Homeowner Exemption and the taxpayer now resides in a facility licensed under the Nursing Home Care Act, his or her home is still eligible to receive this exemption provided:

    • The property is occupied by the spouse, and
    • The property remains unoccupied.

    Documentation Needed

    Applicants must complete the exemption application with the CCAO and must provide one of the following documents:

    • A Class 2 Disabled Person Illinois Identification Card from the Illinois Secretary of State’s Office
    • Proof of Social Security Administration disability benefits. This proof includes an award letter, verification letter, or annual cost of living adjustment
    • Proof of Veterans’ Administration disability benefits.  This proof includes an award letter of total (100%) disability, pension statement, or statement showing compensation rated at 100%.
    • Proof of Railroad or Civil Service disability benefits is an award letter of total (100%) disability.

    If a taxpayer can not provide proof from one of the items listed above they will need to submit the Illinois Department of Revenue’s Form PTAX 343-A Physician’s Statement of Proof of a Disability. The taxpayer may also be required to be re-examined by an IDOR designated physician.

    Please Note: This exemption cannot be received with the

     Disabled Veterans’ Standard Homeowner Exemption.

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    Disabled Veterans’ Standard Homeowner Exemption

    What is it?

    Veterans with a service connected disability as certified by the U.S. Department of Veteran Affairs are eligible for this annual exemption.  A disability of at least 75 percent is eligible for a $5,000 exemption in equalized assessed value (EAV). A disability of at least 50 percent, but less than 75 percent, is eligible for a $2,500 reduction in EAV.

    Qualifications

    To qualify the veteran must be:

    • an Illinois resident who has served as a member of the U.S. Armed Forces on active duty or on active duty in the state of Illinois, Illinois National Guard, or U.S. Reserve Forces and has been honorably discharged,
    • have at least a 50% service-connected disability certified by the U.S Department of Veterans’ Affairs,
    • own and occupy the property as the primary residence on January 1, 2007, and
    • have a total EAV of less than $250,000 for the primary residence, excluding the EAV of property used for commercial purposes or rented for more than 6 months. 

    A surviving spouse of the qualified veteran may claim this exemption as long as the spouse does not remarry.  If the surviving spouse sells the residence, the exemption may be transferred to his or her new primary residence.

    Documentation Needed

    Veterans must complete the exemption application with the CCAO and:

    • A first-time applicant will need to provide a Department of Defense DD Form 214, certified by the County Recorder, Recorder of Deed’s, or Illinois Department of Veterans’ Affairs and a Disability Certification Letter from the U.S. Department of Veterans’ Affairs. 
    • A surviving spouse applying for the first time or transferring the exemption to a new address will also need to provide the disabled veteran’s death certificate and proof of ownership.

    Please Note: This exemption cannot be received with the

     Disabled Persons’ Homeowner Exemption.

    Returning Veterans’ Homeowner Exemption

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    Returning Veterans’ Homeowner Exemption

    What is it?

    Veterans returning from active duty in armed conflict are eligible to receive a $5,000 reduction in the equalized assessed value of their property only for each taxable year in which they return.

    Qualifications

    To qualify the veteran must be:

    • an Illinois resident who has served as a member of the U.S. Armed Forces, Illinois National Guard or U.S. Reserve Forces,
    • be returning from active duty in an armed conflict involving the armed forces of the U.S.,
    • owned or had a legal or equitable interest in the property and used it as a principal place of residence on January 1, 2007 and
    • be liable for the payment of property taxes. 

    Documentation Needed

    Veterans must complete the exemption application with the CCAO and:

    • If a veteran is discharged from active duty service, he or she will need to provide the Department of Defense DD Form 214 certified by the County Recorder or Recorder of Deed’s or the Illinois Department of Veterans’ Affairs.
    • If a veteran is still on active duty after returning home, they will need to provide military orders and a travel voucher showing the date of his or her return.  The documents must state that they are returning from armed conflict involving the armed forces of the U.S. within the tax year that they are requesting the exemption.

    Please Note: This exemption may be received in addition

     to any of the other exemptions.
    What Is the Home Improvement Exemption?

    The Home Improvement Exemption allows you to increase the value of your home with up to $75,000 worth of improvements without increasing your property taxes for at least four years.

    Who Qualifies?

    The exemption is available to owners of single-family homes, condominiums, cooperatives, and apartment buildings up to six units.

    How Does It Work?

    Assume you wish to add a deluxe family room costing $75,000 onto your present home . Spending $75,000 would normally increase the assessed valuation by $12,000 ($75,000 x 16%). Your property taxes would increase by about $2,950. But with the Home Improvement Exemption, the room addition will not increase the taxable value of your home for at least four years. And you would save about $2,950 for each of those years. You will automatically receive the exemption when our office field checks the building permit for the improvement. A notice will be sent to you after we complete the check.

    Damage To Your Home

    The Home Improvement Exemption can also be used for repair necessitated by structural damage as a result of severe weather conditions, such as flooding.

    What Is Not Covered

    The exemption is not granted for loss of personal property, normal weather damage, or routine maintenance. Routine maintenance includes repairs to or replacement of parts that would not increase the value of your property. The following are examples of normal upkeep:

    • Repair or replace roofing materials, sidewalks, driveways, or fencing
    • Insulate and/or add storm windows and doors
    • Add or replace gutters and downspouts
    • Place siding over existing frame structure
    • Add or improve trees, lawns, and landscaping
    • Paint, decorate, plaster, or change exterior ornamentations
    • Replace furnace, or replace old heating systems with solar heating
    • Replace kitchen cabinets, flooring, fixtures
    • Replace or add water softener, or add larger hot water heater
    • Add outdoor lighting, burglar or fire alarms
    • Replace electrical systems or plumbing fixtures
    • Install above-ground swimming pool or outdoor playground facilities
    • Add automatic garage door opener
    • Add aluminum soffit and facia
    Where To Call

    To learn whether you may qualify for the Home Improvement Exemption, call the Cook County Assessor's Office at 312/443-7550

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