103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2700

 

Introduced 1/10/2024, by Sen. Julie A. Morrison

 

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 the exemption applies to all real property that is the primary residence of a veteran with a disability (currently, property with an equalized assessed value of less than $250,000 that is the primary residence of a veteran with a disability). Provides that, with respect to veterans with a service connected disability of 70% or more and surviving spouses of veterans whose deaths were service-connected, the first $250,000 in equalized assessed value of the property is exempt.


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A BILL FOR

 

SB2700LRB103 35897 HLH 65982 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 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.
14    (b) For taxable years prior to 2015, the amount of the
15exemption under this Section is as follows:
16        (1) for veterans with a service-connected disability
17    of at least (i) 75% for exemptions granted in taxable
18    years 2007 through 2009 and (ii) 70% for exemptions
19    granted in taxable year 2010 and each taxable year
20    thereafter, as certified by the United States Department
21    of Veterans Affairs, the annual exemption is $5,000; and
22        (2) for veterans with a service-connected disability
23    of at least 50%, but less than (i) 75% for exemptions

 

 

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1    granted in taxable years 2007 through 2009 and (ii) 70%
2    for exemptions granted in taxable year 2010 and each
3    taxable year thereafter, as certified by the United States
4    Department of Veterans Affairs, the annual exemption is
5    $2,500.
6    (b-3) For taxable years 2015 through 2023 and thereafter:
7        (1) if the veteran has a service connected disability
8    of 30% or more but less than 50%, as certified by the
9    United States Department of Veterans Affairs, 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, then the
14    annual exemption is $5,000;
15        (3) if the veteran has a service connected disability
16    of 70% or more, as certified by the United States
17    Department of Veterans Affairs, then the property is
18    exempt from taxation under this Code; and
19        (4) for taxable year 2023 and thereafter, if the
20    taxpayer is the surviving spouse of a veteran whose death
21    was determined to be service-connected and who is
22    certified by the United States Department of Veterans
23    Affairs as a recipient of dependency and indemnity
24    compensation under federal law, then the property is also
25    exempt from taxation under this Code.
26    (b-4) For taxable year 2024 and thereafter:

 

 

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1        (1) if the veteran has a service connected disability
2    of 30% or more but less than 50%, as certified by the
3    United States Department of Veterans Affairs, then the
4    annual exemption is $2,500;
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 $5,000;
9        (3) if the veteran has a service connected disability
10    of 70% or more, as certified by the United States
11    Department of Veterans Affairs, then the first $250,000 in
12    equalized assessed value of the property is exempt from
13    taxation under this Code; and
14        (4) if the taxpayer is the surviving spouse of a
15    veteran whose death was determined to be service-connected
16    and who is certified by the United States Department of
17    Veterans Affairs as a recipient of dependency and
18    indemnity compensation under federal law, then the first
19    $250,000 in equalized assessed value of the property is
20    also exempt from taxation under this Code.
21    This amendatory Act of the 103rd General Assembly shall
22not be used as the basis for any appeal filed with the chief
23county assessment officer, the board of review, the Property
24Tax Appeal Board, or the circuit court with respect to the
25scope or meaning of the exemption under this Section for a tax
26year prior to tax year 2024.

 

 

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1    (b-5) If a homestead exemption is granted under this
2Section and the person awarded the exemption subsequently
3becomes a resident of a facility licensed under the Nursing
4Home Care Act or a facility operated by the United States
5Department of Veterans Affairs, then the exemption shall
6continue (i) so long as the residence continues to be occupied
7by the qualifying person's spouse or (ii) if the residence
8remains unoccupied but is still owned by the person who
9qualified for the homestead exemption.
10    (c) The tax exemption under this Section carries over to
11the benefit of the veteran's surviving spouse as long as the
12spouse holds the legal or beneficial title to the homestead,
13permanently resides thereon, and does not remarry. If the
14surviving spouse sells the property, an exemption not to
15exceed the amount granted from the most recent ad valorem tax
16roll may be transferred to his or her new residence as long as
17it is used as his or her primary residence and he or she does
18not remarry.
19    As used in this subsection (c):
20        (1) for taxable years prior to 2015, "surviving
21    spouse" means the surviving spouse of a veteran who
22    obtained an exemption under this Section prior to his or
23    her death;
24        (2) for taxable years 2015 through 2022, "surviving
25    spouse" means (i) the surviving spouse of a veteran who
26    obtained an exemption under this Section prior to his or

 

 

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1    her death and (ii) the surviving spouse of a veteran who
2    was killed in the line of duty at any time prior to the
3    expiration of the application period in effect for the
4    exemption for the taxable year for which the exemption is
5    sought; and
6        (3) for taxable year 2023 and thereafter, "surviving
7    spouse" means: (i) the surviving spouse of a veteran who
8    obtained the exemption under this Section prior to his or
9    her death; (ii) the surviving spouse of a veteran who was
10    killed in the line of duty at any time prior to the
11    expiration of the application period in effect for the
12    exemption for the taxable year for which the exemption is
13    sought; (iii) the surviving spouse of a veteran who did
14    not obtain an exemption under this Section before death,
15    but who would have qualified for the exemption under this
16    Section in the taxable year for which the exemption is
17    sought if he or she had survived, and whose surviving
18    spouse has been a resident of Illinois from the time of the
19    veteran's death through the taxable year for which the
20    exemption is sought; and (iv) the surviving spouse of a
21    veteran whose death was determined to be
22    service-connected, but who would not otherwise qualify
23    under item (i), (ii), or (iii), if the spouse (A) is
24    certified by the United States Department of Veterans
25    Affairs as a recipient of dependency and indemnity
26    compensation under federal law 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 and (B) remains eligible for that dependency and
4    indemnity compensation as of January 1 of the taxable year
5    for which the exemption is sought.
6    (c-1) Beginning with taxable year 2015, nothing in this
7Section shall require the veteran to have qualified for or
8obtained the exemption before death if the veteran was killed
9in the line of duty.
10    (d) The exemption under this Section applies for taxable
11year 2007 and thereafter. A taxpayer who claims an exemption
12under Section 15-165 or 15-168 may not claim an exemption
13under this Section.
14    (e) Except as otherwise provided in this subsection (e),
15each taxpayer who has been granted an exemption under this
16Section must reapply on an annual basis. Application must be
17made during the application period in effect for the county of
18his or her residence. The assessor or chief county assessment
19officer may determine the eligibility of residential property
20to receive the homestead exemption provided by this Section by
21application, visual inspection, questionnaire, or other
22reasonable methods. The determination must be made in
23accordance with guidelines established by the Department.
24    On and after May 23, 2022 (the effective date of Public Act
25102-895), if a veteran has a combined service connected
26disability rating of 100% and is deemed to be permanently and

 

 

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1totally disabled, as certified by the United States Department
2of Veterans Affairs, the taxpayer who has been granted an
3exemption under this Section shall no longer be required to
4reapply for the exemption on an annual basis, and the
5exemption shall be in effect for as long as the exemption would
6otherwise be permitted under this Section.
7    (e-1) If the person qualifying for the exemption does not
8occupy the qualified residence as of January 1 of the taxable
9year, the exemption granted under this Section shall be
10prorated on a monthly basis. The prorated exemption shall
11apply beginning with the first complete month in which the
12person occupies the qualified residence.
13    (e-5) Notwithstanding any other provision of law, each
14chief county assessment officer may approve this exemption for
15the 2020 taxable year, without application, for any property
16that was approved for this exemption for the 2019 taxable
17year, provided that:
18        (1) the county board has declared a local disaster as
19    provided in the Illinois Emergency Management Agency Act
20    related to the COVID-19 public health emergency;
21        (2) the owner of record of the property as of January
22    1, 2020 is the same as the owner of record of the property
23    as of January 1, 2019;
24        (3) the exemption for the 2019 taxable year has not
25    been determined to be an erroneous exemption as defined by
26    this Code; and

 

 

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

 

 

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1exemption was granted from applying for the exemption based on
2the subsequent service connected disability rating.
3    (f) For the purposes of this Section:
4    "Qualified residence" means, before tax year 2024, real
5property, but less any portion of that property that is used
6for commercial purposes, with an equalized assessed value of
7less than $250,000 that is the primary residence of a veteran
8with a disability. "Qualified residence" means, for tax year
92024 and thereafter, real property, but less any portion of
10that property that is used for commercial purposes, that is
11the primary residence of a veteran with a disability. Property
12rented for more than 6 months is presumed to be used for
13commercial purposes.
14    "Veteran" means an Illinois resident who has served as a
15member of the United States Armed Forces on active duty or
16State active duty, a member of the Illinois National Guard, or
17a member of the United States Reserve Forces and who has
18received an honorable discharge.
19(Source: P.A. 102-136, eff. 7-23-21; 102-895, eff. 5-23-22;
20103-154, eff. 6-30-23.)