103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2991

 

Introduced 2/16/2023, by Rep. Joe C. Sosnowski

 

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, if the veteran has a service connected disability of 10% or more but less than 30%, as certified by the United States Department of Veterans Affairs, then the annual exemption is $1,500 (currently, there is no exemption if the veteran has a service connected disability of less than 30%). Effective immediately.


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A BILL FOR

 

HB2991LRB103 26848 HLH 53212 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 10% or more but less than 30%, as certified by the
2    United States Department of Veterans Affairs, then the
3    annual exemption is $1,500;
4        (2) if the veteran has a service connected disability
5    of 30% or more but less than 50%, as certified by the
6    United States Department of Veterans Affairs, then the
7    annual exemption is $2,500;
8        (3) if the veteran has a service connected disability
9    of 50% or more but less than 70%, as certified by the
10    United States Department of Veterans Affairs, then the
11    annual exemption is $5,000;
12        (4) if the veteran has a service connected disability
13    of 70% or more, as certified by the United States
14    Department of Veterans Affairs, then the property is
15    exempt from taxation under this Code; and
16        (5) if the taxpayer is the surviving spouse of a
17    veteran whose death was determined to be service-connected
18    and who is certified by the United States Department of
19    Veterans Affairs as a recipient of dependency and
20    indemnity compensation under federal law, then the
21    property is also exempt from taxation under this Code.
22    (b-5) If a homestead exemption is granted under this
23Section and the person awarded the exemption subsequently
24becomes a resident of a facility licensed under the Nursing
25Home Care Act or a facility operated by the United States
26Department of Veterans Affairs, then the exemption shall

 

 

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

 

 

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1        (3) for taxable year 2023 and thereafter, "surviving
2    spouse" means: (i) the surviving spouse of a veteran who
3    obtained the exemption under this Section prior to his or
4    her death; (ii) the surviving spouse of a veteran who was
5    killed in the line of duty at any time prior to the
6    expiration of the application period in effect for the
7    exemption for the taxable year for which the exemption is
8    sought; (iii) the surviving spouse of a veteran who did
9    not obtain an exemption under this Section before death,
10    but who would have qualified for the exemption under this
11    Section in the taxable year for which the exemption is
12    sought if he or she had survived, and whose surviving
13    spouse has been a resident of Illinois from the time of the
14    veteran's death through the taxable year for which the
15    exemption is sought; and (iv) the surviving spouse of a
16    veteran whose death was determined to be
17    service-connected, but who would not otherwise qualify
18    under item items (i), (ii), or (iii), if the spouse (A) is
19    certified by the United States Department of Veterans
20    Affairs as a recipient of dependency and indemnity
21    compensation under federal law at any time prior to the
22    expiration of the application period in effect for the
23    exemption for the taxable year for which the exemption is
24    sought and (B) remains eligible for that dependency and
25    indemnity compensation as of January 1 of the taxable year
26    for which the exemption is sought.

 

 

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1    (c-1) Beginning with taxable year 2015, nothing in this
2Section shall require the veteran to have qualified for or
3obtained the exemption before death if the veteran was killed
4in the line of duty.
5    (d) The exemption under this Section applies for taxable
6year 2007 and thereafter. A taxpayer who claims an exemption
7under Section 15-165 or 15-168 may not claim an exemption
8under this Section.
9    (e) Except as otherwise provided in this subsection (e),
10each taxpayer who has been granted an exemption under this
11Section must reapply on an annual basis. Application must be
12made during the application period in effect for the county of
13his or her residence. The assessor or chief county assessment
14officer may determine the eligibility of residential property
15to receive the homestead exemption provided by this Section by
16application, visual inspection, questionnaire, or other
17reasonable methods. The determination must be made in
18accordance with guidelines established by the Department.
19    On and after May 23, 2022 (the effective date of Public Act
20102-895) this amendatory Act of the 102nd General Assembly, if
21a veteran has a combined service connected disability rating
22of 100% and is deemed to be permanently and totally disabled,
23as certified by the United States Department of Veterans
24Affairs, the taxpayer who has been granted an exemption under
25this Section shall no longer be required to reapply for the
26exemption on an annual basis, and the exemption shall be in

 

 

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

 

 

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

 

 

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1portion of that property that is used for commercial purposes,
2with an equalized assessed value of less than $250,000 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    "Veteran" means an Illinois resident who has served as a
7member of the United States Armed Forces on active duty or
8State active duty, a member of the Illinois National Guard, or
9a member of the United States Reserve Forces and who has
10received an honorable discharge.
11(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
12102-895, eff. 5-23-22; revised 9-6-22.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.