(A)  What is the Senior Citizens Real Estate Tax Deferral Program?

The Senior Citizens Real Estate Tax Deferral Program is a tax-relief program that works like a loan. It lets qualified seniors defer all or part of their taxes and special assessments on their primary homes. The taxes are paid when the properties are sold or transferred to heirs.

(B)  Who qualifies?

To participate, the taxpayer must:

• turn 65 years of age by June 30, 2000;
• have a total annual household income no greater than $25,000;
• own the property in his/her name or with his/her spouse;
• have occupied the property for at least the last three years as your principal residence;
• have no delinquent taxes or overdue special assessments on the property; and
• have adequate insurance against fire or casualty loss.

(C)  What are the limits?

You may defer up to 100 percent of the taxes. You select the percentage in the application. The total of all deferrals, however, cannot exceed 80 percent of the taxpayers equity interest in the property.

(D)  What if I already have a mortgage?

You can still qualify. You do not have to get your lenders approval. However, if you have a reverse mortgage, you will need to check with your lender to make sure you can participate without jeopardizing your reverse mortgage.

(E)  How do you apply?

The taxpayer must file all applications and forms with the County Collector (Treasurer). The forms are available after Jan. 1 and must be filed by March 1 of each year. The Illinois Department of Revenue gives final approval.

Taxpayers must file a complete affidavit of title status, Application for Deferral of Real Estate Taxes, and Real Estate Tax Deferral and Recovery Agreement. You will need:

• personal identification data;
• property description or the 14-digit property index number;
• your total household income;
• signatures of joint owners;
• proof of adequate fire and casualty insurance; and
• an affidavit of title status.

The Deferral and Recovery Agreement is an important legal document should be kept with your personal records. To apply for a special assessment deferral, the taxpayer must complete and file Form IL-1017 SA and Form IL-1018 SA.

(F)  Do I ever pay these taxes?

If you sell your home, you repay the taxes plus interest. If you die, your estate has one year to repay the deferred taxes plus interest.

(G)  What is the interest rate?

It is a flat rate of 6 percent per year.

(H)  Must I stay in the program?

You may go in and out of the program as you wish.

(I)  What if my spouse dies?

You may continue in the program on your own. As a surviving spouse, you can qualify on your own if you are 55 or older within 6 months of your spouses death.

(J)  Must I apply every year?

Yes, but there is less paperwork in subsequent years.

Important reminder:  The last day to file for the Senior Citizens Real Estate Tax Deferral is March 1, 2001 (for 2000 taxes payable in the year 2001).