103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4335

 

Introduced 1/16/2024, by Rep. John M. Cabello

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-169

    Amends the Property Tax Code. Provides that, for taxable year 2024 and thereafter, the homestead exemption for veterans with disabilities carries over to the benefit of a deceased veteran's remarried surviving spouse as long as the surviving spouse holds the legal or beneficial title to the property and permanently resides on the property (currently, the surviving spouse is not eligible for the exemption if the spouse remarries). Effective immediately.


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A BILL FOR

 

HB4335LRB103 35191 HLH 65165 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), is granted for property that is used as a qualified
12residence 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 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-5) If a homestead exemption is granted under this
26Section and the person awarded the exemption subsequently

 

 

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1becomes a resident of a facility licensed under the Nursing
2Home Care Act or a facility operated by the United States
3Department of Veterans Affairs, then the exemption shall
4continue (i) so long as the residence continues to be occupied
5by the qualifying person's spouse or (ii) if the residence
6remains unoccupied but is still owned by the person who
7qualified for the homestead exemption.
8    (c) The tax exemption under this Section carries over to
9the benefit of the veteran's surviving spouse as long as the
10spouse holds the legal or beneficial title to the homestead
11and , permanently resides thereon, and does not remarry. For
12taxable years before taxable year 2024, the exemption does not
13carry over to the benefit of the veteran's surviving spouse if
14the surviving spouse is remarried. For taxable year 2024 and
15thereafter, the exemption carries over to the benefit of the
16veteran's remarried surviving spouse as long as the surviving
17spouse holds the legal or beneficial title to the homestead
18and permanently resides thereon. If the surviving spouse sells
19the property, an exemption not to exceed the amount granted
20from the most recent ad valorem tax roll may be transferred to
21his or her new residence as long as it is used as his or her
22primary residence and he or she does not remarry.
23    As used in this subsection (c):
24        (1) for taxable years prior to 2015, "surviving
25    spouse" means 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;
2        (2) for taxable years 2015 through 2022, "surviving
3    spouse" means (i) the surviving spouse of a veteran who
4    obtained an exemption under this Section prior to his or
5    her death and (ii) the surviving spouse of a veteran who
6    was killed in the line of duty at any time prior to the
7    expiration of the application period in effect for the
8    exemption for the taxable year for which the exemption is
9    sought; and
10        (3) for taxable year 2023 and thereafter, "surviving
11    spouse" means: (i) the surviving spouse of a veteran who
12    obtained the exemption under this Section prior to his or
13    her death; (ii) the surviving spouse of a veteran who was
14    killed in the line of duty at any time prior to the
15    expiration of the application period in effect for the
16    exemption for the taxable year for which the exemption is
17    sought; (iii) the surviving spouse of a veteran who did
18    not obtain an exemption under this Section before death,
19    but who would have qualified for the exemption under this
20    Section in the taxable year for which the exemption is
21    sought if he or she had survived, and whose surviving
22    spouse has been a resident of Illinois from the time of the
23    veteran's death through the taxable year for which the
24    exemption is sought; and (iv) the surviving spouse of a
25    veteran whose death was determined to be
26    service-connected, but who would not otherwise qualify

 

 

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

 

 

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1accordance with guidelines established by the Department.
2    On and after May 23, 2022 (the effective date of Public Act
3102-895), if a veteran has a combined service connected
4disability rating of 100% and is deemed to be permanently and
5totally disabled, as certified by the United States Department
6of Veterans Affairs, the taxpayer who has been granted an
7exemption under this Section shall no longer be required to
8reapply for the exemption on an annual basis, and the
9exemption shall be in effect for as long as the exemption would
10otherwise be permitted under this Section.
11    (e-1) If the person qualifying for the exemption does not
12occupy the qualified residence as of January 1 of the taxable
13year, the exemption granted under this Section shall be
14prorated on a monthly basis. The prorated exemption shall
15apply beginning with the first complete month in which the
16person occupies the qualified residence.
17    (e-5) Notwithstanding any other provision of law, each
18chief county assessment officer may approve this exemption for
19the 2020 taxable year, without application, for any property
20that was approved for this exemption for the 2019 taxable
21year, provided that:
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, 2020 is the same as the owner of record of the property

 

 

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

 

 

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1    asked for the exemption to be removed for the 2020 or 2021
2    taxable years.
3    Nothing in this subsection shall preclude a veteran whose
4service connected disability rating has changed since the 2020
5exemption was granted from applying for the exemption based on
6the subsequent service connected disability rating.
7    (f) For the purposes of this Section:
8    "Qualified residence" means real property, but less any
9portion of that property that is used for commercial purposes,
10with an equalized assessed value of less than $250,000 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.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.