HB0612 EngrossedLRB103 04197 HLH 49203 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-169 as follows:
 
6    (35 ILCS 200/15-169)
7    Sec. 15-169. Homestead exemption for veterans with
8disabilities and veterans of World War II.
9    (a) Beginning with taxable year 2007, an annual homestead
10exemption, limited as provided in this Section to the amounts
11set forth in subsections (b) and (b-3), is granted for
12property that is used as a qualified residence by a veteran
13with a disability, and beginning with taxable year 2024, an
14annual homestead exemption, limited to the amounts set forth
15in subsection (b-4), is granted for property that is used as a
16qualified residence by a veteran who was a member of the United
17States Armed Forces during World War II.
18    (b) For taxable years prior to 2015, the amount of the
19exemption under this Section is as follows:
20        (1) for veterans with a service-connected disability
21    of at least (i) 75% for exemptions granted in taxable
22    years 2007 through 2009 and (ii) 70% for exemptions
23    granted in taxable year 2010 and each taxable year

 

 

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1    thereafter, as certified by the United States Department
2    of Veterans Affairs, the annual exemption is $5,000; and
3        (2) for veterans with a service-connected disability
4    of at least 50%, but less than (i) 75% for exemptions
5    granted in taxable years 2007 through 2009 and (ii) 70%
6    for exemptions granted in taxable year 2010 and each
7    taxable year thereafter, as certified by the United States
8    Department of Veterans Affairs, the annual exemption is
9    $2,500.
10    (b-3) For taxable years 2015 through 2022 and thereafter:
11        (1) if the veteran has a service connected disability
12    of 30% or more but less than 50%, as certified by the
13    United States Department of Veterans Affairs, then the
14    annual exemption is $2,500;
15        (2) if the veteran has a service connected disability
16    of 50% or more but less than 70%, as certified by the
17    United States Department of Veterans Affairs, then the
18    annual exemption is $5,000;
19        (3) if the veteran has a service connected disability
20    of 70% or more, as certified by the United States
21    Department of Veterans Affairs, then the property is
22    exempt from taxation under this Code; and
23        (4) (Blank). for taxable year 2023 and thereafter, if
24    the taxpayer is the surviving spouse of a veteran whose
25    death was determined to be service-connected and who is
26    certified by the United States Department of Veterans

 

 

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1    Affairs as a recipient of dependency and indemnity
2    compensation under federal law, then the property is also
3    exempt from taxation under this Code.
4    (b-3.1) For taxable year 2023 and thereafter:
5        (1) if the veteran has a service connected disability
6    of 30% or more but less than 50%, as certified by the
7    United States Department of Veterans Affairs as of the
8    date the application is submitted for the exemption under
9    this Section for the applicable taxable year, then the
10    annual exemption is $2,500;
11        (2) if the veteran has a service connected disability
12    of 50% or more but less than 70%, as certified by the
13    United States Department of Veterans Affairs as of the
14    date the application is submitted for the exemption under
15    this Section for the applicable taxable year, then the
16    annual exemption is $5,000;
17        (3) if the veteran has a service connected disability
18    of 70% or more, as certified by the United States
19    Department of Veterans Affairs as of the date the
20    application is submitted for the exemption under this
21    Section for the applicable taxable year, then the first
22    $250,000 in equalized assessed value of the property is
23    exempt from taxation under this Code; and
24        (4) if the taxpayer is the surviving spouse of a
25    veteran whose death was determined to be service-connected
26    and who is certified by the United States Department of

 

 

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1    Veterans Affairs as a recipient of dependency and
2    indemnity compensation under federal law as of the date
3    the application is submitted for the exemption under this
4    Section for the applicable taxable year, then the first
5    $250,000 in equalized assessed value of the property is
6    also exempt from taxation under this Code.
7    This amendatory Act of the 103rd General Assembly shall
8not be used as the basis for any appeal filed with the chief
9county assessment officer, the board of review, the Property
10Tax Appeal Board, or the circuit court with respect to the
11scope or meaning of the exemption under this Section for a tax
12year prior to tax year 2023.
13    (b-4) For taxable years on or after 2024, if the veteran
14was a member of the United States Armed Forces during World War
15II, then the property is exempt from taxation under this Code
16regardless of the veteran's level of disability.
17    (b-5) If a homestead exemption is granted under this
18Section and the person awarded the exemption subsequently
19becomes a resident of a facility licensed under the Nursing
20Home Care Act or a facility operated by the United States
21Department of Veterans Affairs, then the exemption shall
22continue (i) so long as the residence continues to be occupied
23by the qualifying person's spouse or (ii) if the residence
24remains unoccupied but is still owned by the person who
25qualified for the homestead exemption.
26    (c) The tax exemption under this Section carries over to

 

 

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1the benefit of the veteran's surviving spouse as long as the
2spouse holds the legal or beneficial title to the homestead,
3permanently resides thereon, and does not remarry. If the
4surviving spouse sells the property, an exemption not to
5exceed the amount granted from the most recent ad valorem tax
6roll may be transferred to his or her new residence as long as
7it is used as his or her primary residence and he or she does
8not remarry.
9    As used in this subsection (c):
10        (1) for taxable years prior to 2015, "surviving
11    spouse" means the surviving spouse of a veteran who
12    obtained an exemption under this Section prior to his or
13    her death;
14        (2) for taxable years 2015 through 2022, "surviving
15    spouse" means (i) the surviving spouse of a veteran who
16    obtained an exemption under this Section prior to his or
17    her death and (ii) the surviving spouse of a veteran who
18    was killed in the line of duty at any time prior to the
19    expiration of the application period in effect for the
20    exemption for the taxable year for which the exemption is
21    sought; and
22        (3) for taxable year 2023 and thereafter, "surviving
23    spouse" means: (i) the surviving spouse of a veteran who
24    obtained the exemption under this Section prior to his or
25    her death; (ii) the surviving spouse of a veteran who was
26    killed in the line of duty at any time prior to the

 

 

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1    expiration of the application period in effect for the
2    exemption for the taxable year for which the exemption is
3    sought; (iii) the surviving spouse of a veteran who did
4    not obtain an exemption under this Section before death,
5    but who would have qualified for the exemption under this
6    Section in the taxable year for which the exemption is
7    sought if he or she had survived, and whose surviving
8    spouse has been a resident of Illinois from the time of the
9    veteran's death through the taxable year for which the
10    exemption is sought; and (iv) the surviving spouse of a
11    veteran whose death was determined to be
12    service-connected, but who would not otherwise qualify
13    under item (i), (ii), or (iii), if the spouse (A) is
14    certified by the United States Department of Veterans
15    Affairs as a recipient of dependency and indemnity
16    compensation under federal law at any time prior to the
17    expiration of the application period in effect for the
18    exemption for the taxable year for which the exemption is
19    sought and (B) remains eligible for that dependency and
20    indemnity compensation as of January 1 of the taxable year
21    for which the exemption is sought.
22    (c-1) Beginning with taxable year 2015, nothing in this
23Section shall require the veteran to have qualified for or
24obtained the exemption before death if the veteran was killed
25in the line of duty.
26    (d) The exemption under this Section applies for taxable

 

 

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1year 2007 and thereafter. A taxpayer who claims an exemption
2under Section 15-165 or 15-168 may not claim an exemption
3under this Section.
4    (e) Except as otherwise provided in this subsection (e),
5each taxpayer who has been granted an exemption under this
6Section must reapply on an annual basis, except that a veteran
7who qualifies as a result of his or her service in World War II
8need not reapply. Application must be made during the
9application period in effect for the county of his or her
10residence. The assessor or chief county assessment officer may
11determine the eligibility of residential property to receive
12the homestead exemption provided by this Section by
13application, visual inspection, questionnaire, or other
14reasonable methods. The determination must be made in
15accordance with guidelines established by the Department.
16    On and after May 23, 2022 (the effective date of Public Act
17102-895), if a veteran has a combined service connected
18disability rating of 100% and is deemed to be permanently and
19totally disabled, as certified by the United States Department
20of Veterans Affairs, the taxpayer who has been granted an
21exemption under this Section shall no longer be required to
22reapply for the exemption on an annual basis, and the
23exemption shall be in effect for as long as the exemption would
24otherwise be permitted under this Section.
25    (e-1) If the person qualifying for the exemption does not
26occupy the qualified residence as of January 1 of the taxable

 

 

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1year, the exemption granted under this Section shall be
2prorated on a monthly basis. The prorated exemption shall
3apply beginning with the first complete month in which the
4person occupies the qualified residence.
5    (e-5) Notwithstanding any other provision of law, each
6chief county assessment officer may approve this exemption for
7the 2020 taxable year, without application, for any property
8that was approved for this exemption for the 2019 taxable
9year, provided that:
10        (1) the county board has declared a local disaster as
11    provided in the Illinois Emergency Management Agency Act
12    related to the COVID-19 public health emergency;
13        (2) the owner of record of the property as of January
14    1, 2020 is the same as the owner of record of the property
15    as of January 1, 2019;
16        (3) the exemption for the 2019 taxable year has not
17    been determined to be an erroneous exemption as defined by
18    this Code; and
19        (4) the applicant for the 2019 taxable year has not
20    asked for the exemption to be removed for the 2019 or 2020
21    taxable years.
22    Nothing in this subsection shall preclude a veteran whose
23service connected disability rating has changed since the 2019
24exemption was granted from applying for the exemption based on
25the subsequent service connected disability rating.
26    (e-10) Notwithstanding any other provision of law, each

 

 

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1chief county assessment officer may approve this exemption for
2the 2021 taxable year, without application, for any property
3that was approved for this exemption for the 2020 taxable
4year, if:
5        (1) the county board has declared a local disaster as
6    provided in the Illinois Emergency Management Agency Act
7    related to the COVID-19 public health emergency;
8        (2) the owner of record of the property as of January
9    1, 2021 is the same as the owner of record of the property
10    as of January 1, 2020;
11        (3) the exemption for the 2020 taxable year has not
12    been determined to be an erroneous exemption as defined by
13    this Code; and
14        (4) the taxpayer for the 2020 taxable year has not
15    asked for the exemption to be removed for the 2020 or 2021
16    taxable years.
17    Nothing in this subsection shall preclude a veteran whose
18service connected disability rating has changed since the 2020
19exemption was granted from applying for the exemption based on
20the subsequent service connected disability rating.
21    (f) For the purposes of this Section:
22    "Qualified residence" means, before tax year 2023, real
23property, but less any portion of that property that is used
24for commercial purposes, with an equalized assessed value of
25less than $250,000 that is the primary residence of a veteran
26with a disability. "Qualified residence" means, for tax year

 

 

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12023 and thereafter, real property, but less any portion of
2that property that is used for commercial purposes, that is
3the primary residence of a veteran with a disability. Property
4rented for more than 6 months is presumed to be used for
5commercial purposes.
6    "Service-connected disability" means an illness or injury
7(i) that was caused by or worsened by active military service,
8(ii) that is a current disability as of the date of the
9application for the exemption under this Section for the
10applicable tax year, as demonstrated by the veteran's United
11States Department of Veterans Affairs certification, and (iii)
12for which the veteran receives disability compensation.
13    For tax years 2022 and prior, "veteran" "Veteran" means an
14Illinois resident who has served as a member of the United
15States Armed Forces on active duty or State active duty, a
16member of the Illinois National Guard, or a member of the
17United States Reserve Forces and who has received an honorable
18discharge. For taxable years 2023 and thereafter, "veteran"
19means an Illinois resident who has served as a member of the
20United States Armed Forces on active duty or State active
21duty, a member of the Illinois National Guard, or a member of
22the United States Reserve Forces and who has a
23service-connected disability, as certified by the United
24States Department of Veterans Affairs, and receives disability
25compensation.
26(Source: P.A. 102-136, eff. 7-23-21; 102-895, eff. 5-23-22;

 

 

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1103-154, eff. 6-30-23.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.