Senior tax deferral program expected to grow

A property tax deferral program aimed at low-income seniors in DuPage County is expected to grow in popularity this year.

Treasurer Gwen Henry the anticipated need is prompting her office to promote the program more this year.

It allows county residents 65 and older who have an annual household income of less than $50,000 to defer each year's property tax debt until the house is sold. The state covers the debt with a 6-percent interest rate that compounds annually until the taxes are repaid, Henry said. There is no limit on the number of deferrals seniors can receive.

"This is the time to sign up for it because March 1 is the deadline to apply," she said. "This would eliminate having to pay taxes June 1 or Sept. 1 of this year."

Nearly 300 seniors took advantage of the program last year, a 3 percent jump from the previous year, Henry added.

The deferral program is different from the state's "circuit breaker" program that provides property tax rebates for seniors and disabled residents.

"Circuit breaker doesn't cover all your taxes by a long shot," said Loretto Cowhig, a planner with the Northeastern Illinois Area Agency on Aging. As an example, she cited a senior with an income of $20,000 who pays $1,240 in property taxes. That person would be entitled to a rebate of only $70.

Far fewer Illinois residents qualify for circuit breaker benefits than the deferral program, but nothing prevents residents from participating in both, Henry said.

Henry's office has been reaching out to churches to help spread the word about the deferral program, and participants from last year will be receiving mailed notices next week as well.