Tax deferral program available to senior citizens

Senior citizens with household incomes total no more than $65,000 can 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 or part of the property taxes on their personal residences. The maximum amount that can be deferred (including interest and fees) is 80% of the equity of the property up to a maximum of $7,500.

The deferral is similar to a loan against the property’s market value, and deferred amounts are borrowed from the state of Illinois, which pays the tax bill. A 3% interest is charged each year on the deferred amounts, and a lien is filed on the property.

The deferred property taxes are effective until the real estate is sold, the owner no longer qualifies or the property owner dies.

To qualify for the real estate tax deferral, you must be 65 years old by June 1, have a household income of no more than $65,000, have no unpaid property taxes and special assessments on the property, have insurance against fire or casualty loss, have owned and lived on the property for the past three years, and have no income coming from the property.

The filing deadline is Friday, March 1. Applications can be obtained at the La Salle County Treasurer’s Office, 707 E. Etna Road, Ottawa. Call the treasurer’s office at 815-434-8219, option 4, for information.