103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3538

 

Introduced 2/17/2023, by Rep. Amy L. Grant

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-165
35 ILCS 200/15-169

    Amends the Property Tax Code. Provides that a veteran may submit an application for the homestead exemptions for veterans with disabilities to the chief county assessment officer with respect to a specific property before the veteran purchases the property. Effective immediately.


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A BILL FOR

 

HB3538LRB103 29865 HLH 56274 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
5Sections 15-165 and 15-169 as follows:
 
6    (35 ILCS 200/15-165)
7    Sec. 15-165. Veterans with disabilities. Property up to an
8assessed value of $100,000, owned and used exclusively by a
9veteran with a disability, or the spouse or unmarried
10surviving spouse of the veteran, as a home, is exempt. As used
11in this Section, a "veteran with a disability" means a person
12who has served in the Armed Forces of the United States and
13whose disability is of such a nature that the Federal
14Government has authorized payment for purchase or construction
15of Specially Adapted Housing as set forth in the United States
16Code, Title 38, Chapter 21, Section 2101.
17    The exemption applies to housing where Federal funds have
18been used to purchase or construct special adaptations to suit
19the veteran's disability.
20    The exemption also applies to housing that is specially
21adapted to suit the veteran's disability, and purchased
22entirely or in part by the proceeds of a sale, casualty loss
23reimbursement, or other transfer of a home for which the

 

 

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1Federal Government had previously authorized payment for
2purchase or construction as Specially Adapted Housing.
3    However, the entire proceeds of the sale, casualty loss
4reimbursement, or other transfer of that housing shall be
5applied to the acquisition of subsequent specially adapted
6housing to the extent that the proceeds equal the purchase
7price of the subsequently acquired housing.
8    Beginning with the 2015 tax year, the exemption also
9applies to housing that is specifically constructed or adapted
10to suit a qualifying veteran's disability if the housing or
11adaptations are donated by a charitable organization, the
12veteran has been approved to receive funds for the purchase or
13construction of Specially Adapted Housing under Title 38,
14Chapter 21, Section 2101 of the United States Code, and the
15home has been inspected and certified by a licensed home
16inspector to be in compliance with applicable standards set
17forth in U.S. Department of Veterans Affairs, Veterans
18Benefits Administration Pamphlet 26-13 Handbook for Design of
19Specially Adapted Housing.
20    For purposes of this Section, "charitable organization"
21means any benevolent, philanthropic, patriotic, or
22eleemosynary entity that solicits and collects funds for
23charitable purposes and includes each local, county, or area
24division of that charitable organization.
25    For purposes of this Section, "unmarried surviving spouse"
26means the surviving spouse of the veteran at any time after the

 

 

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1death of the veteran during which such surviving spouse is not
2married.
3    This exemption must be reestablished on an annual basis by
4certification from the Illinois Department of Veterans'
5Affairs to the Department, which shall forward a copy of the
6certification to local assessing officials.
7    Notwithstanding any other provision of law, a veteran may
8submit an application for the exemption under this Section to
9the chief county assessment officer with respect to a specific
10property before the veteran purchases the property. The chief
11county assessment officer shall process the application under
12this subsection within 15 days after receipt of the
13application and shall notify the applicant of the approval or
14denial of the application.
15    A taxpayer who claims an exemption under Section 15-168 or
1615-169 may not claim an exemption under this Section.
17(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
 
18    (35 ILCS 200/15-169)
19    Sec. 15-169. Homestead exemption for veterans with
20disabilities.
21    (a) Beginning with taxable year 2007, an annual homestead
22exemption, limited to the amounts set forth in subsections (b)
23and (b-3), is granted for property that is used as a qualified
24residence by a veteran with a disability.
25    (b) For taxable years prior to 2015, the amount of the

 

 

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1exemption under this Section is as follows:
2        (1) for veterans with a service-connected disability
3    of at least (i) 75% for exemptions granted in taxable
4    years 2007 through 2009 and (ii) 70% for exemptions
5    granted in taxable year 2010 and each taxable year
6    thereafter, as certified by the United States Department
7    of Veterans Affairs, the annual exemption is $5,000; and
8        (2) for veterans with a service-connected disability
9    of at least 50%, but less than (i) 75% for exemptions
10    granted in taxable years 2007 through 2009 and (ii) 70%
11    for exemptions granted in taxable year 2010 and each
12    taxable year thereafter, as certified by the United States
13    Department of Veterans Affairs, the annual exemption is
14    $2,500.
15    (b-3) For taxable years 2015 and thereafter:
16        (1) if the veteran has a service connected disability
17    of 30% or more but less than 50%, as certified by the
18    United States Department of Veterans Affairs, then the
19    annual exemption is $2,500;
20        (2) if the veteran has a service connected disability
21    of 50% or more but less than 70%, as certified by the
22    United States Department of Veterans Affairs, then the
23    annual exemption is $5,000;
24        (3) if the veteran has a service connected disability
25    of 70% or more, as certified by the United States
26    Department of Veterans Affairs, then the property is

 

 

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1    exempt from taxation under this Code; and
2        (4) for taxable year 2023 and thereafter, if the
3    taxpayer is the surviving spouse of a veteran whose death
4    was determined to be service-connected and who is
5    certified by the United States Department of Veterans
6    Affairs as a recipient of dependency and indemnity
7    compensation under federal law, then the property is also
8    exempt from taxation under this Code.
9    (b-5) If a homestead exemption is granted under this
10Section and the person awarded the exemption subsequently
11becomes a resident of a facility licensed under the Nursing
12Home Care Act or a facility operated by the United States
13Department of Veterans Affairs, then the exemption shall
14continue (i) so long as the residence continues to be occupied
15by the qualifying person's spouse or (ii) if the residence
16remains unoccupied but is still owned by the person who
17qualified for the homestead exemption.
18    (c) The tax exemption under this Section carries over to
19the benefit of the veteran's surviving spouse as long as the
20spouse holds the legal or beneficial title to the homestead,
21permanently resides thereon, and does not remarry. If the
22surviving spouse sells the property, an exemption not to
23exceed the amount granted from the most recent ad valorem tax
24roll may be transferred to his or her new residence as long as
25it is used as his or her primary residence and he or she does
26not remarry.

 

 

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

 

 

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

 

 

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1officer may determine the eligibility of residential property
2to receive the homestead exemption provided by this Section by
3application, visual inspection, questionnaire, or other
4reasonable methods. The determination must be made in
5accordance with guidelines established by the Department.
6    On and after May 23, 2022 (the effective date of Public Act
7102-895) this amendatory Act of the 102nd General Assembly, if
8a veteran has a combined service connected disability rating
9of 100% and is deemed to be permanently and totally disabled,
10as certified by the United States Department of Veterans
11Affairs, the taxpayer who has been granted an exemption under
12this Section shall no longer be required to reapply for the
13exemption on an annual basis, and the exemption shall be in
14effect for as long as the exemption would otherwise be
15permitted under this Section.
16    (e-1) If the person qualifying for the exemption does not
17occupy the qualified residence as of January 1 of the taxable
18year, the exemption granted under this Section shall be
19prorated on a monthly basis. The prorated exemption shall
20apply beginning with the first complete month in which the
21person occupies the qualified residence.
22    (e-5) Notwithstanding any other provision of law, each
23chief county assessment officer may approve this exemption for
24the 2020 taxable year, without application, for any property
25that was approved for this exemption for the 2019 taxable
26year, provided that:

 

 

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

 

 

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1    as of January 1, 2020;
2        (3) the exemption for the 2020 taxable year has not
3    been determined to be an erroneous exemption as defined by
4    this Code; and
5        (4) the taxpayer for the 2020 taxable year has not
6    asked for the exemption to be removed for the 2020 or 2021
7    taxable years.
8    Nothing in this subsection shall preclude a veteran whose
9service connected disability rating has changed since the 2020
10exemption was granted from applying for the exemption based on
11the subsequent service connected disability rating.
12    (e-15) Notwithstanding any other provision of law, a
13veteran may submit an application for the exemption under this
14Section to the chief county assessment officer with respect to
15a specific property before the veteran purchases the property.
16The chief county assessment officer shall process the
17application under this subsection within 15 days after receipt
18of the application and shall notify the applicant of the
19approval or denial of the application.
20    (f) For the purposes of this Section:
21    "Qualified residence" means real property, but less any
22portion of that property that is used for commercial purposes,
23with an equalized assessed value of less than $250,000 that is
24the primary residence of a veteran with a disability. Property
25rented for more than 6 months is presumed to be used for
26commercial purposes.

 

 

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1    "Veteran" means an Illinois resident who has served as a
2member of the United States Armed Forces on active duty or
3State active duty, a member of the Illinois National Guard, or
4a member of the United States Reserve Forces and who has
5received an honorable discharge.
6(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
7102-895, eff. 5-23-22; revised 9-6-22.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.