SPRINGFIELD – With the Illinois Senate on Friday joining the House in overriding Gov. Rod Blagojevich’s veto, state Rep. Karen Yarbrough (D-Maywood) announced that the popular “7 percent solution” capping the amount assessed property values can increase each year will become law.

“The people of Cook County, especially seniors living on fixed incomes, can breathe a sigh of relief today with the renewal of the seven percent solution,” Yarbrough said.  “With the debate finally resolved, tax relief is coming and schools can get the funding they have been waiting for.”

Major provisions of the 7 percent solution, House Bill 664, include:

1. 7 Percent Assessment Cap – Caps annual taxable increases at 7 percent for households making less than $75,000 per year.

2. General Homestead Exemption – Exemption increased from $5,000 to $6,000 by 2009.

3. Senior Homestead Exemption – ¬Exemption increased from $3,500 to $4,000.

4. Disabled Homestead Exemption – This new program provides a $2,000 exemption for homeowners with disabilities.

5. Returning Veteran Homestead Exemption – This new program provides a one-time $5,000 exemption, available for the year in which soldiers return from duty. 

6. Disabled Veteran Homestead Exemption – This new program gives a $2,500 exemption to veterans who are 50 percent to 75 percent disabled and a $5,000 exemption for veterans who are 75 percent to 100 percent disabled. 

7. Senior Freeze – Maximum annual household income in order to qualify increased to $55,000.

8. Circuit Breaker – Each income threshold increased by $1,000.

For more information, please contact Yarbrough’s constituent service office at 708-615-1747.

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