Change in Law Lets Tax Breaks Automatically Renew for Homeowners with Disabilities

By: Maria Pappas

State lawmakers have made it easier for people with disabilities to continue receiving property tax relief on an annual basis. Cook County homeowners who receive the Persons with Disabilities Exemption no longer must reapply for the benefit every year. Lawmakers recently acted to allow the benefit to automatically renew annually, at least through 2027. Exemptions are tax breaks that typically reduce a property’s Equalized Assessed Valuation, or EAV. The Persons with Disabilities Exemption reduces a property’s EAV by $2,000, thus reducing the tax bill. Legislators directed that the exemption may be automatically renewed in Cook County and in any other county “where the county board has authorized such action by ordinance or resolution.” Without automatic renewal, people receiving the benefit may forget to reapply each year and miss having their tax bill reduced by potentially hundreds of dollars. The following eligibility requirements must be met to receive the Persons with Disabilities Exemption:

• The home must be owned and occupied by a person with a disability who is responsible for paying property taxes on Jan. 1 of the year for which the
application is made

• The homeowner must submit proof of disability, such as Class 2 Illinois Person with a Disability Identification Card

• The property cannot receive this exemption in the same year it is receiving the Veterans with Disabilities Exemption for Specially Adapted Housing or the Veterans with Disabilities Exemption

Federal law defines what qualifies as disabilities, and those definitions are used by the Social Security Administration and others to assess eligibility for benefits. Prior to the change in state law, homeowners receiving the Persons with Disabilities Exemption had to reapply for the benefit each year, except for one year during the pandemic when the benefit was automatically renewed for all recipients. Previously, people receiving the benefit had to fill out and submit a form each year. They also had to submit proof of their disability on an annual basis. Automatic renewal will save people the hassle of filling out paperwork and reduce the number of people who miss out on the benefit because they forgot to reapply.

Other exemptions, including the Homeowner Exemption and the Senior Citizen Exemption, also automatically renew on an annual basis. However, people receiving theSenior Freeze Exemption, which is available for senior citizens with annual household income of $65,000 or less, must reapply every year to demonstrate they continue to meet income eligibility requirements. My website, cookcountytreasurer.com, has more information about exemptions and can walk you through the application process.