Seniors can apply for real estate tax deferral program

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OTTAWA – Senior citizens with household incomes under $55,000 may wish to take advantage of the Illinois Department of Revenue’s “Senior Citizen Real Estate Tax Deferral Program.”

The Senior Citizen Real Estate Tax Deferral Program is a State sponsored tax relief program that allows qualified senior citizens to elect to defer all of the property taxes on their personal residences to 80% of equity. The maximum deferral each year is limited to $5,000. 

The deferred property taxes do not become due until the following:

  • Real estate is sold
  • Owner no longer qualifies
  • Death of the property owner.

Interest is assessed at 6 percent simple-interest on the outstanding balance. 

Filing deadline is March 1, 2022.  Applications can be obtained at the LaSalle County Treasurer’s Office.  Please call the Treasurer’s Office at 815-434-8219.

Who is Eligible?

To qualify for the real estate tax deferral, you must:

  • Be 65 years of age by June 1, 2022
  • Household income of no more than $55,000
  • Have lived in the property for at least the last three years
  • Own the property
  • Have no unpaid property taxes and special assessments on the property.

What is Qualifying Property?

Qualifying property is a homestead that:

  • You own or are purchasing
  • Is not income-producing
  • Is not subject to a lien for unpaid property taxes and special assessments.

The deferral is similar to a loan against the property’s market value. The maximum that can be deferred, including interest and lien fees, is 80 percent of the taxpayer’s equity interest in the property. Filing deadline is March 1, 2022. This program must be applied for annually.