Illinois General Assembly

Rep. Tracy Passes Legislation Allowing Seniors to Maintain Property Tax Relief

For Immediate Release
Contact Rep. Jil Tracy
(217) 223-0833

April 01, 2008

Springfield, IL…State Representative Jil Tracy (R-Mt. Sterling) unanimously passed legislation out of the Illinois House on Tuesday that will allow seniors to retain their property tax benefits.  House Bill 4179 would allow seniors to retain their Senior Citizen Homestead Exemption and the Senior Citizen Assessment Freeze in the event they move into an assisted living facility.  The senior property tax relief would remain in place as long as the owner or a spouse kept the residence and did not rent the property for a profit. 

“The Property Tax Code specifically allows residents under the Nursing Home Care Act to qualify for the Senior Freeze and Exemption, but nothing was added to address the situation if a senior becomes a resident of an assisted living facility. Under current law they would not be eligible to retain these senior property tax breaks, but if this legislation is signed into law that will change.  When the nursing home provision was added to the Property Tax Code, the concept of assisted living wasn’t prevalent.” said Rep. Tracy.

The problem was brought to the attention of Rep. Tracy after a constituent explained that when his mother moved into an assisted living facility she no longer qualified for the Senior Property Tax Assessment Freeze or the Senior Homestead Exemption.  She still maintained ownership of her residence, but because she was in an assisted living facility rather than a nursing home, all her senior property tax benefits were abolished causing a sharp increase in property tax rates.  This put her in a difficult financial situation.

“It is only fair that seniors who move into an assisted living or shared housing facility have the option of retaining their home while also receiving their deserved tax breaks,” Tracy said.  “Just because a senior was moved into one of these facilities does not necessarily mean they plan on living out the rest of their days there.  Higher property taxes for seniors in this type of situation should in no way be the deciding factor for them returning to their home.”

HB4179 now moves to the Senate for further consideration.