103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2553

 

Introduced 2/15/2023, by Rep. Janet Yang Rohr

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-169

    Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities, provides that: (1) if the veteran has a service-connected disability of 30% or more but less than 50%, then the annual exemption is 30% of the assessed value of the property; (2) if the veteran has a service-connected disability of 50% or more but less than 70%, then the annual exemption is 50% of the assessed value of the property; and (3) if the veteran has a service-connected disability of 70% or more, then the property is exempt from taxation. Effective immediately.


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A BILL FOR

 

HB2553LRB103 27079 HLH 53447 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.
9    (a) Beginning with taxable year 2007, an annual homestead
10exemption, limited to the amounts set forth in subsections (b)
11and (b-3), and (b-4) is granted for property that is used as a
12qualified residence by a veteran with a disability.
13    (b) For taxable years prior to 2015, the amount of the
14exemption under this Section is as follows:
15        (1) for veterans with a service-connected disability
16    of at least (i) 75% for exemptions granted in taxable
17    years 2007 through 2009 and (ii) 70% for exemptions
18    granted in taxable year 2010 and each taxable year
19    thereafter, as certified by the United States Department
20    of Veterans Affairs, the annual exemption is $5,000; and
21        (2) for veterans with a service-connected disability
22    of at least 50%, but less than (i) 75% for exemptions
23    granted in taxable years 2007 through 2009 and (ii) 70%

 

 

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1    for exemptions granted in taxable year 2010 and each
2    taxable year thereafter, as certified by the United States
3    Department of Veterans Affairs, the annual exemption is
4    $2,500.
5    (b-3) For taxable years 2015 through 2023 and thereafter:
6        (1) if the veteran has a service-connected service
7    connected disability of 30% or more but less than 50%, as
8    certified by the United States Department of Veterans
9    Affairs, then the annual exemption is $2,500;
10        (2) if the veteran has a service-connected service
11    connected disability of 50% or more but less than 70%, as
12    certified by the United States Department of Veterans
13    Affairs, then the annual exemption is $5,000;
14        (3) if the veteran has a service-connected service
15    connected disability of 70% or more, as certified by the
16    United States Department of Veterans Affairs, then the
17    property is exempt from taxation under this Code; and
18        (4) for taxable year 2023 and thereafter, if the
19    taxpayer is the surviving spouse of a veteran whose death
20    was determined to be service connected service-connected
21    and who is certified by the United States Department of
22    Veterans Affairs as a recipient of dependency and
23    indemnity compensation under federal law, then the
24    property is also exempt from taxation under this Code.
25    (b-4) For taxable years 2024 and thereafter:
26        (1) if the veteran has a service-connected disability

 

 

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1    of 30% or more but less than 50%, as certified by the
2    United States Department of Veterans Affairs, then the
3    annual exemption is 30% of the assessed value of the
4    property;
5        (2) if the veteran has a service-connected disability
6    of 50% or more but less than 70%, as certified by the
7    United States Department of Veterans Affairs, then the
8    annual exemption is 50% of the assessed value of the
9    property; and
10        (3) if the veteran has a service-connected disability
11    of 70% or more, as certified by the United States
12    Department of Veterans Affairs, then the property is
13    exempt from taxation under this Code.
14    (b-5) If a homestead exemption is granted under this
15Section and the person awarded the exemption subsequently
16becomes a resident of a facility licensed under the Nursing
17Home Care Act or a facility operated by the United States
18Department of Veterans Affairs, then the exemption shall
19continue (i) so long as the residence continues to be occupied
20by the qualifying person's spouse or (ii) if the residence
21remains unoccupied but is still owned by the person who
22qualified for the homestead exemption.
23    (c) The tax exemption under this Section carries over to
24the benefit of the veteran's surviving spouse as long as the
25spouse holds the legal or beneficial title to the homestead,
26permanently resides thereon, and does not remarry. If the

 

 

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

 

 

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1    not obtain an exemption under this Section before death,
2    but who would have qualified for the exemption under this
3    Section in the taxable year for which the exemption is
4    sought if he or she had survived, and whose surviving
5    spouse has been a resident of Illinois from the time of the
6    veteran's death through the taxable year for which the
7    exemption is sought; and (iv) the surviving spouse of a
8    veteran whose death was determined to be
9    service-connected, but who would not otherwise qualify
10    under item items (i), (ii), or (iii), if the spouse (A) is
11    certified by the United States Department of Veterans
12    Affairs as a recipient of dependency and indemnity
13    compensation under federal law at any time prior to the
14    expiration of the application period in effect for the
15    exemption for the taxable year for which the exemption is
16    sought and (B) remains eligible for that dependency and
17    indemnity compensation as of January 1 of the taxable year
18    for which the exemption is sought.
19    (c-1) Beginning with taxable year 2015, nothing in this
20Section shall require the veteran to have qualified for or
21obtained the exemption before death if the veteran was killed
22in the line of duty.
23    (d) The exemption under this Section applies for taxable
24year 2007 and thereafter. A taxpayer who claims an exemption
25under Section 15-165 or 15-168 may not claim an exemption
26under this Section.

 

 

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1    (e) Except as otherwise provided in this subsection (e),
2each taxpayer who has been granted an exemption under this
3Section must reapply on an annual basis. Application must be
4made during the application period in effect for the county of
5his or her residence. The assessor or chief county assessment
6officer may determine the eligibility of residential property
7to receive the homestead exemption provided by this Section by
8application, visual inspection, questionnaire, or other
9reasonable methods. The determination must be made in
10accordance with guidelines established by the Department.
11    On and after May 23, 2024 (the effective date of Public Act
12102-895) this amendatory Act of the 102nd General Assembly, if
13a veteran has a combined service-connected service connected
14disability rating of 100% and is deemed to be permanently and
15totally disabled, as certified by the United States Department
16of Veterans Affairs, the taxpayer who has been granted an
17exemption under this Section shall no longer be required to
18reapply for the exemption on an annual basis, and the
19exemption shall be in effect for as long as the exemption would
20otherwise be permitted under this Section.
21    (e-1) If the person qualifying for the exemption does not
22occupy the qualified residence as of January 1 of the taxable
23year, the exemption granted under this Section shall be
24prorated on a monthly basis. The prorated exemption shall
25apply beginning with the first complete month in which the
26person occupies the qualified residence.

 

 

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

 

 

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

 

 

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1member of the United States Armed Forces on active duty or
2State active duty, a member of the Illinois National Guard, or
3a member of the United States Reserve Forces and who has
4received an honorable discharge.
5(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
6102-895, eff. 5-23-22; revised 9-6-22.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.