Illinois Senate Panel Advances Bill Extending Property Tax Exemption to More Seniors

The Illinois Senate Revenue Committee has advanced legislation to make it easier for some senior citizens to access a state program that restricts property tax hikes on their homes, reports the State Journal-Register . Current law states that people 65 and older with incomes up to $65,000 can claim the Senior Citizens Assessment Freeze Homestead Exemption, which freezes the taxable valuation of their homes so their tax bills cannot increase simply because the market value of their home appreciates. The new legislation would implement a moderate expansion, beginning in the 2019 tax year, by permitting seniors to deduct from their income whatever money they spend on Medicare premiums, enabling some with incomes slightly more than $65,000 to claim the exemption. Sen Laura Ellman (D-Ill.) said the measure would benefit seniors who are "on the cusp" of the income ceiling. Medicare Part B premiums currently stand at $135.50 monthly for people with annual incomes of less than $85,000, while Medicare Part D premiums average $33.19 monthly. The bill's approval would thus raise the income cap for the seniors' homestead exemption by about $2,024 yearly for individuals who purchase both Medicare options, or $4,048 annually for couples.