103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2317

 

Introduced 2/10/2023, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-169

    Amends the Property Tax Code. Provides that property that has been granted the homestead exemption for veterans with disabilities is 100% exempt from taxation under the Code if the veteran has a service connected disability of 60% or more (currently, 70%). Effective immediately.


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A BILL FOR

 

SB2317LRB103 27690 HLH 54067 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
11(b), and (b-3), and (b-4) is granted for property that is used
12as a qualified 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 disability
7    of 30% or more but less than 50%, as certified by the
8    United States Department of Veterans Affairs, then the
9    annual exemption is $2,500;
10        (2) if the veteran has a service connected disability
11    of 50% or more but less than 70%, as certified by the
12    United States Department of Veterans Affairs, then the
13    annual exemption is $5,000;
14        (3) if the veteran has a service connected disability
15    of 70% or more, as certified by the United States
16    Department of Veterans Affairs, then the property is
17    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 and who is
21    certified by the United States Department of Veterans
22    Affairs as a recipient of dependency and indemnity
23    compensation under federal law, then the property is also
24    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 $2,500;
4        (2) if the veteran has a service connected disability
5    of 50% or more but less than 60%, as certified by the
6    United States Department of Veterans Affairs, then the
7    annual exemption is $5,000;
8        (3) if the veteran has a service connected disability
9    of 60% or more, as certified by the United States
10    Department of Veterans Affairs, then the property is
11    exempt from taxation under this Code; and
12        (4) if the taxpayer is the surviving spouse of a
13    veteran whose death was determined to be service-connected
14    and who is certified by the United States Department of
15    Veterans Affairs as a recipient of dependency and
16    indemnity compensation under federal law, then the
17    property is also exempt from taxation under this Code.
18    (b-5) If a homestead exemption is granted under this
19Section and the person awarded the exemption subsequently
20becomes a resident of a facility licensed under the Nursing
21Home Care Act or a facility operated by the United States
22Department of Veterans Affairs, then the exemption shall
23continue (i) so long as the residence continues to be occupied
24by the qualifying person's spouse or (ii) if the residence
25remains unoccupied but is still owned by the person who
26qualified for the homestead exemption.

 

 

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

 

 

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

 

 

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1    (d) The exemption under this Section applies for taxable
2year 2007 and thereafter. A taxpayer who claims an exemption
3under Section 15-165 or 15-168 may not claim an exemption
4under this Section.
5    (e) Except as otherwise provided in this subsection (e),
6each taxpayer who has been granted an exemption under this
7Section must reapply on an annual basis. Application must be
8made during the application period in effect for the county of
9his or her residence. The assessor or chief county assessment
10officer may determine the eligibility of residential property
11to receive the homestead exemption provided by this Section by
12application, visual inspection, questionnaire, or other
13reasonable methods. The determination must be made in
14accordance with guidelines established by the Department.
15    On and after May 23, 2022 (the effective date of Public Act
16102-895) this amendatory Act of the 102nd General Assembly, if
17a veteran has a combined service connected disability rating
18of 100% and is deemed to be permanently and totally disabled,
19as certified by the United States Department of Veterans
20Affairs, the taxpayer who has been granted an exemption under
21this Section shall no longer be required to reapply for the
22exemption on an annual basis, and the exemption shall be in
23effect for as long as the exemption would otherwise be
24permitted 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 real property, but less any
23portion of that property that is used for commercial purposes,
24with an equalized assessed value of less than $250,000 that is
25the primary residence of a veteran with a disability. Property
26rented for more than 6 months is presumed to be used for

 

 

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1commercial purposes.
2    "Veteran" means an Illinois resident who has served as a
3member of the United States Armed Forces on active duty or
4State active duty, a member of the Illinois National Guard, or
5a member of the United States Reserve Forces and who has
6received an honorable discharge.
7(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
8102-895, eff. 5-23-22; revised 9-6-22.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.