Homeowner Tax Exemption ~ Take it!

Every time I meet a new client, I ask them if they took the Homeowner Exemption. About half the time, I receive a puzzled look. Many people don’t know what it is. The Homeowner Exemption is a property tax exemption for Cook County that a homeowner is eligible for from the beginning of a calendar year, if they were occupying the property as their primary residence. Other counties have similar exemptions, so you can check with your local assessor’s office.

There are a few things that you will need to take note of. Remember that Illinois is taxed one year in arrears. To be eligible for the exemption, you must own the property since January 1st for the year in question. You can check if the exemption was applied with the Cook County Treasurer.

In some cases, the prior owner didn’t take the exemption either because it was new construction or new rehab without a PIN (permanent index number), rented out, or just didn’t know to apply for the exemption. You will need to check with the Cook County Assessor to find your PIN. The exemption must also be filed each year the property is reassessed, and currently Illinois is reassessed on a triennial basis (every third year.)

This can be a consideration if you are looking to buy or sell. If a home’s property taxes look higher than others you are considering, the seller may not have taken the exemption. When a seller has not taken the exemption, a buyer can ask the seller to apply for it as part of the terms negotiated into a sales contract. Most sellers are happy to do it. Chances are that if they didn’t take the exemption for several years, they will have a refund coming back to them once they file the appeal with a Certificate of Error.

Take the exemption if you are eligible!