Saturday, April 22, 2006

Illinois Taxes and Woodford County

ILLINOIS
Sales Taxes
State Sales Tax:
6.25% (1% on qualifying food, prescription & non-prescription drugs, medical appliances). Woodford County Public Safety Tax of 1.0%. Municipal taxes not included.
Gasoline Tax: * 36.2 cents/gallon
Diesel Fuel Tax: 36.6 cents/gallon
Gasohol Tax: 36.2 cents/gallon
Cigarette Tax: 98 cents/pack of 20

Personal Income Taxes
Tax Rate Range:
Flat rate of 3% of federal adjusted gross income
Personal Exemptions: Single - $2,000; Married - $4,000; Dependents - $2,000
Standard Deduction: None
Medical/Dental Deduction: None
Federal Income Tax Deduction: None

Property Taxes
Taxes are imposed by local government taxing districts (counties, townships, municipalities, school districts, and special taxing districts. Most property in the state is assessed at 33.33% of its market value, except farmland which is based on its ability to produce income.

There are six different homestead exemptions (Click here for details).

General Homestead Exemption is available annually for owner-occupied residential property. The amount of exemption is the increase in the current year's equalized assessed value (EAV), above the 1977 EAV, upto a maximum of $5,000.

Senior Citizens Assessment Freeze Homestead Exemption allows senior citizens who have a total household income of less than $40,000, and meet certain other qualifications to elect to maintain the equalized assessed value (EAV) of their homes at the base year EAV thereby preventing any increase in that value due to inflation.

Homestead Improvement Exemption is limited to the fair cash value that was added to the homestead property by any new improvement, up to an annual maximum of $75,000. The exemption continues for four years from the date the improvement is completed and occupied.

Senior Citizens Homestead Exemption allows a $3,000 reduction ($3,500 in Cook County) in the EAV of the property that a person 65 years of age or older is obligated to pay taxes on, and owns and occupies, or leases and occupies as a residence. Exemption is limited to the fair cash value that was added to the homestead property by any new improvement, up to an annual maximum of $45,000. The exemption continues for four years from the date the improvement is completed and occupied.

Disabled Veterans' Exemption may be up to $58,000 of the assessed value for certain types of housing owned and used by a disabled veteran or his or her unmarried surviving spouse. The Illinois Department of Veterans' Affairs determines the eligibility for this exemption, which must be reestablished annually.

Senior Citizens Real Estate Tax Deferral Program allows persons age 65 or older, who have a total household income of less than $40,000 and meet certain other qualifications, to defer all or part of their real estate taxes and special assessments. The deferral is similar to a loan against the property's market value and a lien is filed on the property in order to ensure repayment to the deferral. The state pays the property taxes and then recovers the money, plus 6 percent annual interest, when the property is sold or transferred.

Inheritance and Estate Taxes
There is no inheritance tax and only a limited estate tax related to federal estate tax collection.

For further information, visit the Illinois Department of Revenue

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