2023/07/10 - Mayor's Column: Veterans Property Tax Exemption Pilot Program

“AN OPEN DOOR TO O’FALLON”
A WEEKLY NOTE FROM MAYOR HERB ROACH
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About two years ago, I met with our local schools to discuss the impact that the Disabled Veterans Property Tax Exemption was having on their finances. The school leaders explained that it impacted them by Millions of dollars in lost revenue. This is a very big hit on their budget.  They also explained how they had tried to get relief through legislation in the past, but they were unsuccessful.

Following that meeting, I read legislation from sixteen other states that had similar Property Tax Exemptions.  I also talked with other local Mayors to see what the impact of these exemptions had on their cities.  Then the County worked to give me information on the impact on the over 170 taxing districts in St. Clair County.  This was very helpful.

As a member of the Illinois Municipal League (IML) Executive Board, I presented my findings to the IML.  They did not realize the impact that it was having on some areas in the State.  As a result of this, the IML agreed to hire a Professor from the University of Illinois to do a study on the impact across the state. This study showed that there were certain areas in the State that were heavily impacted, and that St. Clair County was impacted the worst.

I then met with Mayors from the other highly impacted areas to get a better understanding of the effect in their areas and ask for their support if we could get some additional revenue for the taxing districts that were highly impacted, but not reduce or eliminate the tax exemption for our disabled veterans.   

I then proceeded to meet with our local Veterans’ Organizations, State Representatives and State Senators to ask for their input on what we could develop to help the areas so heavily impacted without impacting the disabled veteran’s exemption.

This has resulted in the “VETERANS PROPERTY REIMBURSEMENT PILOT PROGRAM” that was sponsored by Representative Jay Hoffman and Senator Christopher Belt. It is aimed at helping the three highly impacted areas in our state which are St. Clair, Rock Island and Lake County.

Taxing districts in these areas will be reimbursed 45% this year and 90% in years moving forward by the State of Illinois for tax dollars lost due to the exemption. This could mean about $4,000,000 to our local schools per year. This should give all taxing districts additional funding, so they won’t be faced with cutting programs or shifting the tax burden to other property owners.

THANK YOU, to our City Finance Director, the County, the Mayors, Illinois Municipal League, our local State Representatives and Senators and especially to Representative Hoffman and Senator Belt for taking the ball and carrying it across the finish line.

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.