2023/02/21 - Mayor's Column: Veterans Property Tax Exemption

­“AN OPEN DOOR TO O’FALLON”
A WEEKLY NOTE FROM MAYOR HERB ROACH
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One of the priorities for myself and the City Council has been to make sure O’Fallon residents get good value for their tax dollars and that the City tax structure is fair.  We have worked hard during the past few years to keep property taxes low and have been concerned about the effect that the Disabled Veterans Property Tax Exemption has had on our Schools, the City and other taxing districts. The exemption has been a great benefit for our veterans but has caused shortfalls for taxing districts that rely heavily on property taxes, particularly our 3 school districts (4.5 Million Dollars last year).

So, I have been working with the Illinois Municipal League, other local Mayors, Mayors from other impacted areas in the State, County Officials and State Legislators on legislation that would provide some relief to taxing districts.  The good news is that TWO NEW bills have been introduced by local legislators this year that would provide relief to taxing districts that are heavily impacted.  These bills would not eliminate the exemption but would provide state funding to make up for some of the funds lost due to the exemption.

I have been asked recently whether the City is trying to eliminate the Disabled Veterans Tax Exemption and I can tell you that this is TOTALLY UNTRUE.  I’m looking into doing something because some of our local taxing districts are among the hardest hit by the exemption.

Over a year ago I met with Members of the American Legion, which I’m a member of, and the VFW to let them know what I was attempting to do to help our schools and other taxing bodies that are heavily impacted by the exemption and causing additional taxes to be placed on the other property owners in some cases. 

I told everyone that the city was not out to eliminate the tax exemption but was looking for an approach to get the schools and other taxing districts either made whole or have some part of the losses made up like the State does for other items that have a serious impact on the school or area.

After spending the last 18 months studying the laws in each of the states that have veterans’ exemptions, speaking with local taxing bodies that are impacted and then going to the IML Board of Directors to ask for their assistance, the IML paid to have a Professor from the University of Illinois do a study on the impact that it is having across the state.

As a result of all the efforts by everyone, we have seen two bills submitted in Springfield this year to help eliminate some of the loss of funding.  Representative Charlie Meier has submitted House Bill 1239 to help our schools and Senator Christopher Belt has submitted Senate Bill 1293 to help all effected taxing bodies.  NEITHER OF THEM ARE LOOKING TO ELIMINATE THE EXEMPTION.

I have had discussions recently with Representatives Meier and Schmidt on HB 1239 and have a meeting set with Representatives Hoffman & Stuart and Senator Belt and others to discuss SB 1293.

I will repeat in none of the discussions was there any discussion of eliminating the Veterans Property Tax exemption. I have recently again talked with our Local American Legion and VFW again about this and repeated my position on this.

I want to THANK our local Representatives and Senator for listening to the concerns raised and being willing to draft legislation to try to help. And neither of these pieces of legislation calls for any halt or elimination of the Veterans Exemption. But it could help the taxpayers that have to pick up the difference and the taxing bodies that are impacted.

I think it is great that we have both sides of the isle working for some relief.

As residents of O’Fallon, you should always be able to reach out to your elected officials and ask questions about what is happening in O’Fallon. Having open communications is important to me and something I care very deeply about. Thank you for reading, and please remember, my door is always open.