Attention Renewing Disabled Veterans:
Please note the following disclaimer, applications will NOT be processed without it:
Applicants are required to include and submit a letter from the Department of Veterans Affairs, dated no earlier than 2015, verifying the applicant's percentage of disability. Application forms cannot be processed without such a letter.
Old letters from the Department of Veterans Affairs will NOT be accepted.
Dramatically Higher Tax Savings for Some Disabled Veterans Takes Effect
Under a new law taking effect this year, veterans of the US Armed Forces who were severely wounded while serving their country will no longer be required to pay property taxes in Illinois.
A property tax exemption for disabled veterans has been in effect since 2007, but the law taking effect this year applies to more disabled veterans and provides greater tax savings than was the case in prior years. Under the new law, the most severely wounded veterans will not pay any property taxes at all. “Given these changes,” Assessor Smogolski said, “I urge all disabled veterans to check the eligibility requirements under the new law.”
Eligibility Rules and Tax Savings. To qualify for the Disabled Veterans Exemption, a property must be owned and occupied by a disabled veteran, and the veteran must have a disability that is connected to military service. The law requires that the service-connected disability be certified by the US Department of Veterans Affairs, which determines the extent of a veteran's disability. The chart below reflects the savings taking effect this year:
Level of Disability Tax Savings
70% or more Veteran's home is completely exempt from property tax
50%-69% $5,000 in Equalized Assessed Value (about $X in savings in TOWNSHIP)
30%-49% $2,500 in Equalized Assessed Value (about $X in savings in TOWNSHIP)
0%-29% No tax savings for this level of disability
Houses with very high market values ($917,000 or more last year) are not eligible for the exemption. It should also be noted that if a disabled veteran dies and is survived by a spouse, the surviving spouse can retain the Disabled Veterans Exemption until the survivor remarries.
First Installment Bills. First installment tax bills are issued before any exemptions are calculated. This means that disabled veterans who are completely exempt from paying taxes this year will nonetheless receive a first installment tax bill that is 55% of their total property tax bill from last year. Once second installment bills come out in July, however, these veterans will be eligible for a refund of the amount paid for the first installment. Veterans with questions about first installment bills should call Hanover Township Assessor’s office.
Application Information. All veterans who received the Disabled Veterans Exemption last year will receive renewal forms in late January, and must return them by March 2. The renewal applications must include a letter from the Department of Veterans Affairs dated after January 1, 2016 that verifies the veteran's level of disability.
Those who did not apply for the exemption last year will not get an application in the mail. “In the past, veterans with disabilities of 50% or less were not eligible for the exemption, but eligibility now starts at a disability level of 30%,” Assessor Smogolski said. “These newly eligible veterans, along with any other disabled veteran, can call my office if they have questions about the exemption or need help completing the application.”
If a bank or mortgage company requires confirmation of total exemption from property taxes before eliminating the escrow portion of your monthly payment, please read the following:
Some disabled veterans who are eligible for complete (100%) exemption from property taxes may encounter difficulty getting their banks or mortgage companies to eliminate the escrow portion of their monthly mortgage accounts.
The disabled veterans eligible for complete exemption are those whose service-connected disability is 70% or more. The Assessor’s Office has composed a letter which will be customized for each veteran to provide to a lender proof of complete exemption. Our letter states particulars including approval for and application of the complete exemption, State of Illinois (IL) law and Illinois Department of Revenue (IDOR) policy and other details.
All disabled veterans qualifying for complete exemption should please contact the Cook County Assessor’s Office at (312) 443-7550 to provide the following information for inclusion in his/her customized letter:
• Name of disabled veteran approved to received full exemption
• Property Identification Number (PIN) of the parcel for which the Exemption has been approved
• Name and address of the lender (bank, mortgagor)
• Loan number