It’s only takes about 3 minutes, it remains effective for as long as you live in the home and it’s simple! It’s called the General Homestead Exemption and it allows homeowners that use the property for their principal home or dwelling to reduce their tax base by $6000.
The exemption has increased over the last few years to $6000 and hopefully will continue to rise with property values. This does not mean your taxes will be reduced by $6000. Instead, you will reduce your taxable base by $6000. Continue reading for a real world example.
The subject property has an assessed value of $203,510. The total tax due is based on the following formula; ((1/3 x Assessed value) – exemptions) x Tax Rate. In this situation the homeowner is saving $636.07 by having the exemption in place (10.601% x $6000). Tax rates vary throughout Champaign County so your savings will vary.
See below for a look at the property card for this example. You can research your assessed value at the Champaign County Treasurer’s website. Make sure you have the Owner Occupied Exemption on your tax record. If you don’t you can print the Homestead Exemption form and mail it in.
Questions? Feel free to post below or email for answers.