Governor Blagojevich uses amendatory veto to expand property tax relief for veterans with severe service-connected disabilities

Press Release - Sunday, August 10, 2008

SPRINGFIELD -

Joined by 200 veterans and their families at the Illinois State Fair Veterans' Day, Governor Rod R. Blagojevich used his amendatory veto power to give a full property tax exemption to an estimated 16,000 Illinois veterans who have a service-connected disability of 50% or more.

Because veterans with a severe service-connected disability, rated at 50 percent or higher by the U.S. Department of Veterans Affairs, may have an impaired ability to work or have lost their ability to work altogether, they may be living on fixed incomes and are more susceptible to the rising cost of consumer goods and changes in property taxes.

"As the wars abroad continue, we sorrowfully watch many of these brave men and women fighting on our behalf as they return to our country with severe injuries. They've given so much to protect our freedom that we should do everything we can to help them live productive and stable lives when they return home. For those veterans who have suffered service-related injuries which have left them severely disabled, I am pleased that this legislation will ensure that they will not lose their homes because they can not pay their rising property taxes," said Governor Blagojevich.

The U.S. Department of Veterans' Affairs uses a rating system based on an official finding that links the Veteran's disability or illness with the period of a Veteran's military service. The severity of the Veteran's disability dictates what percent the disability rating will be. For example: a Veteran who suffered a leg amputation just above the knee would have a 60% disability rating from the VA while a Veteran with a leg amputation just below the knee would have a 40% rating. And with the advances in medical technology, more Veterans are surviving devastating combat wounds and coming home from the current conflicts with severe injuries.

A veteran rated at 50% disability and above has suffered a range of service-connected injuries, from memory and hearing impairment with regular attacks of vertigo, to loss of limbs or total occupational and social impairment. This severe disability means their ability to earn a living is impaired and they are often on a fixed income.

The amount of property taxes paid in Illinois has increased over 31 percent in the last 5 years, and 64 percent over the last 10 years. In this difficult housing market, where more than 90,000 Illinoisans filed foreclosure last year, veterans who have severe service-connected disability have earned additional protections.

"When our veterans answered the call to duty, they left their homes, their families, and their entire lives behind for the betterment of this country. Those who were injured during their service and made it home deserve to be honored and respected. But most importantly, they deserve the very best benefits that this nation can give them. After all - they are the ones who have allowed us Americans to be free and own our own homes," said Illinois Department of Veterans' Affairs Director Tammy Duckworth.

This new legislation would expand of the Disabled Veterans Standard Homestead Exemption, which was passed by the General Assembly in 2007. That exemption provided a reduction in a property's Equalized Assessed Valuation (EAV) to a qualifying property owned by a Veteran with a service-connected disability certified by the U. S. Department of Veterans' Affairs. A $2,500 homestead exemption is available to a Veteran with a service-connected disability of at least 50 percent, but less than 75 percent, and a $5,000 homestead exemption is available to a veteran with a service connected disability of at least 75 percent.

The amendatory veto of HB 4201 extends a Tax Increment Financing (TIF) district in the Village of Downs from 23 to 35 years.

The Governor was joined on the Illinois State Fair Veterans' Day by more than 200 veterans and their families including United States Army Vietnam Veteran Gordon Brenner who served in Vietnam for eight months before he was wounded in the upper right thigh by an AK-47 round. He now serves as a National Service Officer for the Military Order of the Purple Heart in Illinois.

"It is becoming increasingly difficult to pay bills with the cost of living being so high right now. A lot of our veterans are just barely able to get by and remain living in their own homes. Having no property taxes to pay will really help me and other veterans who were wounded serving this country," said Brenner.

For this amended legislation to become law, both houses of the General Assembly will need to vote to accept the changes. First, the House sponsor must file a motion to accept the amendatory veto, and then the House has 15 days to accept the AV by a simple majority. If the House fails to act, the improvements to the legislation, and the original bill, will die. If the House accepts the amendatory veto, the Senate will need to repeat the process in their chamber. Once the General Assembly has accepted the AV, the law will be effective January 1, 2009.