103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1048

 

Introduced 1/12/2023, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-169

    Amends the Property Tax Code. In a Section granting a homestead exemption to veterans with disabilities, provides that property that is used as a qualified residence by a veteran who was a member of the United States Armed Forces during World War II is exempt from taxation regardless of the veteran's level of disability. Provides that a veteran who qualifies as a result of his or her service in World War II need not reapply for the exemption. Effective immediately.


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A BILL FOR

 

HB1048LRB103 03484 HLH 48490 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 to the amounts set forth in subsections (b)
11and (b-3), is granted for property that is used as a qualified
12residence by a veteran with a disability, and beginning with
13taxable year 2023, an annual homestead exemption, limited to
14the amounts set forth in subsection (b-4), is granted for
15property that is used as a qualified residence by a veteran who
16was a member of the United States Armed Forces during World War
17II.
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 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) for taxable year 2023 and thereafter, if the
24    taxpayer is the surviving spouse of a veteran whose death
25    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-4) For taxable years on or after 2023, if the veteran
5was a member of the United States Armed Forces during World War
6II, then the property is exempt from taxation under this Code
7regardless of the veteran's level of disability.
8    (b-5) If a homestead exemption is granted under this
9Section and the person awarded the exemption subsequently
10becomes a resident of a facility licensed under the Nursing
11Home Care Act or a facility operated by the United States
12Department of Veterans Affairs, then the exemption shall
13continue (i) so long as the residence continues to be occupied
14by the qualifying person's spouse or (ii) if the residence
15remains unoccupied but is still owned by the person who
16qualified for the homestead exemption.
17    (c) The tax exemption under this Section carries over to
18the benefit of the veteran's surviving spouse as long as the
19spouse holds the legal or beneficial title to the homestead,
20permanently resides thereon, and does not remarry. If the
21surviving spouse sells the property, an exemption not to
22exceed the amount granted from the most recent ad valorem tax
23roll may be transferred to his or her new residence as long as
24it is used as his or her primary residence and he or she does
25not remarry.
26    As used in this subsection (c):

 

 

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1        (1) for taxable years prior to 2015, "surviving
2    spouse" means the surviving spouse of a veteran who
3    obtained an exemption under this Section prior to his or
4    her death;
5        (2) for taxable years 2015 through 2022, "surviving
6    spouse" means (i) the surviving spouse of a veteran who
7    obtained an exemption under this Section prior to his or
8    her death and (ii) the surviving spouse of a veteran who
9    was killed in the line of duty at any time prior to the
10    expiration of the application period in effect for the
11    exemption for the taxable year for which the exemption is
12    sought; and
13        (3) for taxable year 2023 and thereafter, "surviving
14    spouse" means: (i) the surviving spouse of a veteran who
15    obtained the exemption under this Section prior to his or
16    her death; (ii) the surviving spouse of a veteran who was
17    killed in the line of duty at any time prior to the
18    expiration of the application period in effect for the
19    exemption for the taxable year for which the exemption is
20    sought; (iii) the surviving spouse of a veteran who did
21    not obtain an exemption under this Section before death,
22    but who would have qualified for the exemption under this
23    Section in the taxable year for which the exemption is
24    sought if he or she had survived, and whose surviving
25    spouse has been a resident of Illinois from the time of the
26    veteran's death through the taxable year for which the

 

 

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1    exemption is sought; and (iv) the surviving spouse of a
2    veteran whose death was determined to be
3    service-connected, but who would not otherwise qualify
4    under item items (i), (ii), or (iii), if the spouse (A) is
5    certified by the United States Department of Veterans
6    Affairs as a recipient of dependency and indemnity
7    compensation under federal law at any time prior to the
8    expiration of the application period in effect for the
9    exemption for the taxable year for which the exemption is
10    sought and (B) remains eligible for that dependency and
11    indemnity compensation as of January 1 of the taxable year
12    for which the exemption is sought.
13    (c-1) Beginning with taxable year 2015, nothing in this
14Section shall require the veteran to have qualified for or
15obtained the exemption before death if the veteran was killed
16in the line of duty.
17    (d) The exemption under this Section applies for taxable
18year 2007 and thereafter. A taxpayer who claims an exemption
19under Section 15-165 or 15-168 may not claim an exemption
20under this Section.
21    (e) Except as otherwise provided in this subsection (e),
22each taxpayer who has been granted an exemption under this
23Section must reapply on an annual basis, except that a veteran
24who qualifies as a result of his or her service in World War II
25need not reapply. Application must be made during the
26application period in effect for the county of his or her

 

 

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1residence. The assessor or chief county assessment officer may
2determine the eligibility of residential property to receive
3the homestead exemption provided by this Section by
4application, visual inspection, questionnaire, or other
5reasonable methods. The determination must be made in
6accordance with guidelines established by the Department.
7    On and after May 23, 2022 (the effective date of Public Act
8102-895) this amendatory Act of the 102nd General Assembly, if
9a veteran has a combined service connected disability rating
10of 100% and is deemed to be permanently and totally disabled,
11as certified by the United States Department of Veterans
12Affairs, the taxpayer who has been granted an exemption under
13this Section shall no longer be required to reapply for the
14exemption on an annual basis, and the exemption shall be in
15effect for as long as the exemption would otherwise be
16permitted under this Section.
17    (e-1) If the person qualifying for the exemption does not
18occupy the qualified residence as of January 1 of the taxable
19year, the exemption granted under this Section shall be
20prorated on a monthly basis. The prorated exemption shall
21apply beginning with the first complete month in which the
22person occupies the qualified residence.
23    (e-5) Notwithstanding any other provision of law, each
24chief county assessment officer may approve this exemption for
25the 2020 taxable year, without application, for any property
26that was approved for this exemption for the 2019 taxable

 

 

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1year, provided that:
2        (1) the county board has declared a local disaster as
3    provided in the Illinois Emergency Management Agency Act
4    related to the COVID-19 public health emergency;
5        (2) the owner of record of the property as of January
6    1, 2020 is the same as the owner of record of the property
7    as of January 1, 2019;
8        (3) the exemption for the 2019 taxable year has not
9    been determined to be an erroneous exemption as defined by
10    this Code; and
11        (4) the applicant for the 2019 taxable year has not
12    asked for the exemption to be removed for the 2019 or 2020
13    taxable years.
14    Nothing in this subsection shall preclude a veteran whose
15service connected disability rating has changed since the 2019
16exemption was granted from applying for the exemption based on
17the subsequent service connected disability rating.
18    (e-10) Notwithstanding any other provision of law, each
19chief county assessment officer may approve this exemption for
20the 2021 taxable year, without application, for any property
21that was approved for this exemption for the 2020 taxable
22year, if:
23        (1) the county board has declared a local disaster as
24    provided in the Illinois Emergency Management Agency Act
25    related to the COVID-19 public health emergency;
26        (2) the owner of record of the property as of January

 

 

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1    1, 2021 is the same as the owner of record of the property
2    as of January 1, 2020;
3        (3) the exemption for the 2020 taxable year has not
4    been determined to be an erroneous exemption as defined by
5    this Code; and
6        (4) the taxpayer for the 2020 taxable year has not
7    asked for the exemption to be removed for the 2020 or 2021
8    taxable years.
9    Nothing in this subsection shall preclude a veteran whose
10service connected disability rating has changed since the 2020
11exemption was granted from applying for the exemption based on
12the subsequent service connected disability rating.
13    (f) For the purposes of this Section:
14    "Qualified residence" means real property, but less any
15portion of that property that is used for commercial purposes,
16with an equalized assessed value of less than $250,000 that is
17the primary residence of a veteran with a disability. Property
18rented for more than 6 months is presumed to be used for
19commercial purposes.
20    "Veteran" means an Illinois resident who has served as a
21member of the United States Armed Forces on active duty or
22State active duty, a member of the Illinois National Guard, or
23a member of the United States Reserve Forces and who has
24received an honorable discharge.
25(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
26102-895, eff. 5-23-22; revised 9-6-22.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.