Eye On Illinois: Property tax help for veterans requires diligence from public servants

Few issues get at the complications of balancing layers of government like the military.

Consider the recent Illinois Department of Revenue report on veterans with disabilities applying for property tax relief under a law that took effect in 2015. According to Daily Herald Media Group, lawmakers commissioned the report last year, and state Rep. Stephanie Kifowit, D-Oswego, wants to discuss its findings in a committee hearing.

There are no major alarm bells, but discussion will include a rather obvious outcome: in counties dense with development and population, the effect of exempting a few people from paying property tax is fairly easily subsidized across everyone else. In counties with fewer taxpayers, the impact is more noticeable. In this specific situation, some rural counties have an outsized veteran population compared to the statewide average.

Setting aside that discussion, the report sheds light on the challenges of administering a broadly popular program.

To qualify to have property taxes fully exempted, for properties with a market value less than $750,000, a veteran has to show they are more than 70% disabled as a result of military service. If the rating falls between 50% and 70%, the exemption is capped at $5,000. From 30% to 50%, the limit is $2,500.

The U.S. Department of Veterans Affairs makes those disability decisions. The ratings are immensely important to any veteran in a variety of matters, financially and otherwise. A few percentage points can make a big difference to an individual, but in this context it’s worth considering the county assessment offices who have no say in whether the exemption exists or who qualifies and to what degree.

Veterans agencies are (and should be!) working to make eligible people aware of the application process. But that’s a moving target as well. Illinois lawmakers just opened the exemption to any World War II veteran, regardless of disability status. In 2022, Congress finally expanded disability coverage for veterans exposed to toxic substances like Agent Orange and burn pits.

Two quotes from the Daily Herald story offer a helpful summary. The first, from Kifowit: “These are individuals who gave to their country through their military service, but gave up a significant portion of their health and well-being. We need to continue to work to make sure our disabled veterans are taken care of.”

The second, from Veterans Assistance Commission of Lake County Chairman Andrew Tangen: “There’s 45,000 vets in Lake County and only 2,436 receiving the full exemption. Most veterans I know would rather not have these health issues than a property tax exemption.”

Sometimes that’s public service: navigating administrative challenges to provide useful help to the right people, then having to do it all again the next year under different rules.

• Scott T. Holland writes about state government issues for Shaw Media. Follow him on Twitter @sth749. He can be reached at sholland@shawmedia.com.