The annual income has been raised to $40,000 in a program to allow senior citizens to defer all or part of the property taxes on their homes this year if they file by March 1, 2003, Cook County Treasurer Maria Pappas said today.

Under Senior Citizen Tax Deferral, a state program managed by the Treasurer's Office, homeowners may qualify if they are at least 65 years old and have lived in their homes for at least three years. The $40,000 income limit became effective January 1, 2003, up from $25,000.

"The beauty of deferring taxes is that it allows senior citizens to stay in their homes while easing their financial burdens," Pappas said. "And the higher income allowed means that more seniors can avoid having to move."

The state loan, made at 6 percent simple interest, enables seniors to pay their county real estate taxes. The loan is repaid when the home is sold or the owner dies. Basic provisions include:

• One spouse must be 65 as of June 1 in the year a deferral is claimed.
• If one spouse dies, the other can continue the program if he or she is 55 years of age within six months of the other's death.
• Up to 100 percent of property taxes can be deferred annually as long as the total amount being deferred does not exceed 80 percent of the home's market value.
• Property value is determined by the assessed value amount on the tax bill, or by an independent appraiser.
• Only qualifying seniors and spouses can own the property.
• There can be no unpaid taxes or liens on the home, which must be insured.
• Applications must be renewed yearly.

To qualify, applicants must show proof of age, ownership of the home, insurance on the home and the last real estate tax bill received. If an application is denied one year, the homeowner may reapply the next.

Application forms are available in the Treasurer's Legal Department, Room 222, County Building, 118 North Clark Street, Chicago, or by phone at (312) 603-5783. The Office also distributes the forms to Chicago aldermen, Cook County commissioners and suburban township assessors.

When applicants mail the deferral forms back to the Treasurer's Office, postmarks on the envelopes must be no later than March 1, 2003. The due date for first-installment bills for tax year 2002 is March 4, 2003.

"Deferring property taxes gives seniors a way to keep their homes instead of being forced to sell them in their latter years," Pappas said.