103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1293

 

Introduced 2/3/2023, by Sen. Christopher Belt

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-810 new

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue shall reimburse eligible taxing districts for revenue loss associated with providing homestead exemptions for veterans with disabilities. Specifies that a taxing district is eligible for reimbursement if application of the homestead exemptions for veterans with disabilities results in reduction in the total equalized assessed value of all taxable property in the taxing district in which the taxing district is located of more than 2.5% for the taxable year that is 2 years before the start of the State fiscal year in which the application for reimbursement is made and the taxing district is located in whole or in part in a county that contains a United States military base. Provides that the aggregate amount of reimbursements for all taxing districts in any calendar year may not exceed $15,000,000. Sets forth the amount of the reimbursement. Effective immediately.


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A BILL FOR

 

SB1293LRB103 29034 HLH 55420 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 Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-810 as follows:
 
7    (20 ILCS 2505/2505-810 new)
8    Sec. 2505-810. Veterans Property Tax Relief Reimbursement
9Pilot Program.
10    (a) Subject to appropriation, for State fiscal years that
11begin on or after July 1, 2023 and before July 1, 2028, the
12Department shall establish and administer a Veterans Property
13Tax Relief Reimbursement Pilot Program. For purposes of the
14Program, the Department shall reimburse eligible taxing
15districts, in an amount calculated under subsection (c), for
16revenue loss associated with providing homestead exemptions to
17veterans with disabilities. A taxing district is eligible for
18reimbursement under this Section if (i) application of the
19homestead exemptions for veterans with disabilities under
20Sections 15-165 and 15-169 of the Property Tax Code results in
21a cumulative reduction of more than 2.5% in the total
22equalized assessed value of all taxable property in the taxing
23district, when compared with the total equalized assessed

 

 

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1value of all taxable property in the taxing district prior to
2the application of those exemptions, for the taxable year that
3is 2 years before the start of the State fiscal year in which
4the application for reimbursement is made and (ii) the taxing
5district is located in whole or in part in a county that
6contains a United States military base. Reimbursement payments
7shall be made to the county that applies to the Department of
8Revenue on behalf of the taxing district under subsection (b)
9and shall be distributed by the county to the taxing district
10as directed by the Department of Revenue.
11    (b) If the county clerk determines that that one or more
12taxing districts located in whole or in part in the county
13qualify for reimbursement under this Section, then the county
14clerk shall apply to the Department of Revenue on behalf of the
15taxing district for reimbursement under this Section in the
16form and manner required by the Department. The county clerk
17shall consolidate applications submitted on behalf of more
18than one taxing district into a single application. The
19Department of Revenue may audit the information submitted by
20the county clerk as part of the application under this Section
21for the purpose of verifying the accuracy of that information.
22    (c) Subject to the maximum aggregate reimbursement amount
23set forth in this subsection, the amount of the reimbursement
24shall be as follows:
25        (1) for reimbursements awarded for the fiscal year
26    that begins on July 1, 2023, 50% of the difference

 

 

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1    between: (1) 97.5% of the amount of property tax revenue
2    that would have been required to be collected and
3    distributed to the taxing district for taxable year 2021
4    if the homestead exemptions for veterans with disabilities
5    under Sections 15-165 and 15-169 of the Property Tax Code
6    had not been applied; and (2) the amount of property tax
7    revenue that was required to be collected and distributed
8    to the taxing district for taxable year 2021 after the
9    application of those exemptions; and
10        (2) for reimbursements awarded for fiscal years that
11    begin on or after July 1, 2024 and before July 1, 2028,
12    100% of the difference between: (1) 97.5% of the amount of
13    property tax revenue that would have been required to be
14    collected and distributed to the taxing district for the
15    taxable year that falls 2 years before the start of the
16    State fiscal year if the homestead exemptions for veterans
17    with disabilities under Sections 15-165 and 15-169 of the
18    Property Tax Code had not been applied; and (2) the amount
19    of property tax revenue that was required to be collected
20    and distributed to the taxing district for that taxable
21    year.
22    The aggregate amount of reimbursements that may be awarded
23under this Section for all taxing districts in any calendar
24year may not exceed $15,000,000. If the total amount of
25eligible reimbursements under this Section exceeds $15,000,000
26in any calendar year, then the reimbursement amount awarded to

 

 

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1each particular taxing district shall be reduced on a pro rata
2basis until the aggregate amount of reimbursements awarded
3under this Section for the calendar year does not exceed
4$15,000,000.
5    (d) The Department of Revenue may adopt rules necessary
6for the implementation of this Section.
7    (e) As used in this Section:
8    "Taxable year" means the calendar year during which
9property taxes payable in the next succeeding year are levied.
10    "Taxing district" has the meaning given to that term in
11Section 1-150 of the Property Tax Code.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.