SB2146 94TH GENERAL ASSEMBLY

LRB094 13640 BDD 48508 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2146

Introduced 10/26/2005, by Sen. Dale A. Righter - Pamela J. Althoff - Adeline Jay Geo-Karis - Peter J. Roskam - Edward Petka, et al.

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-165
35 ILCS 200/15-166 new

Amends the Property Tax Code. Ends the current exemption for disabled veterans with the 2005 tax year. Provides that, beginning with the 2006 tax year, the total value of property that is owned and used as a homestead by (i) a disabled veteran (or his or her spouse), (ii) a veteran confined to a wheelchair (or his or her spouse), or (iii) the surviving spouse of a veteran who died from service-connected causes while on active duty is exempt from taxation. Sets forth requirements for the exemptions. Provides that a surviving spouse may transfer the exemption to homestead property acquired after the veteran's death. Requires an annual application for the exemptions. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Section 15-165 and by adding Section 15-166 as follows:

(35 ILCS 200/15-165)

Sec. 15-165. Disabled veterans. This Section applies through the 2005 tax year.

Property up to an assessed value of $70,000, owned and used exclusively by a disabled veteran, or the spouse or unmarried surviving spouse of the veteran, as a home, is exempt. As used in this Section, a disabled veteran means a person who has served in the Armed Forces of the United States and whose disability is of such a nature that the Federal Government has authorized payment for purchase or construction of Specially Adapted Housing as set forth in the United States Code, Title 38, Chapter 21, Section 2101.

The exemption applies to housing where Federal funds have been used to purchase or construct special adaptations to suit the veteran's disability.

The exemption also applies to housing that is specially adapted to suit the veteran's disability, and purchased entirely or in part by the proceeds of a sale, casualty loss reimbursement, or other transfer of a home for which the Federal Government had previously authorized payment for purchase or construction as Specially Adapted Housing.

However, the entire proceeds of the sale, casualty loss reimbursement, or other transfer of that housing shall be applied to the acquisition of subsequent specially adapted housing to the extent that the proceeds equal the purchase price of the subsequently acquired housing.

For purposes of this Section, "unmarried surviving spouse" means the surviving spouse of the veteran at any time after the death of the veteran during which such surviving spouse is not married.

This exemption must be reestablished on an annual basis by certification from the Illinois Department of Veterans' Affairs to the Department, which shall forward a copy of the certification to local assessing officials.

(Source: P.A. 94-310, eff. 7-25-05.)

(35 ILCS 200/15-166 new)

Sec. 15-166. Disabled veterans; veterans confined to wheelchairs; surviving spouses.

(a) This Section applies to tax years 2006 and thereafter.

(b) Any real estate that is owned and used as a homestead by a veteran who was honorably discharged with a service-connected total and permanent disability and for whom a letter from the United States Government or United States Department of Veterans Affairs or its predecessor has been issued certifying that the veteran is a totally and permanently disabled person is exempt from taxation, if the veteran is a permanent resident of this State on January 1 of the tax year for which exemption is being claimed or was a permanent resident of this State on January 1 of the year the veteran died.

The production by a veteran or the spouse or surviving spouse of a letter of total and permanent disability from the United States Government or United States Department of Veterans Affairs or its predecessor before the chief county assessment officer of the county in which property of the veteran lies is prima facie evidence of the fact that the veteran or the surviving spouse is entitled to the exemption.

If the totally and permanently disabled veteran predeceases his or her spouse and if, upon the death of the veteran, the spouse holds the legal or beneficial title to the homestead and permanently resides thereon, then the exemption from taxation carries over to the benefit of the veteran's spouse until such time as he or she remarries or sells or otherwise disposes of the property. If the spouse sells the property, then an exemption not to exceed the amount granted from the most recent ad valorem tax roll may be transferred to his or her new residence, as long as it is used as his or her primary residence and he or she does not remarry.

(c) Any real estate is exempt from taxation that is used and owned as a homestead by a veteran who has been honorably discharged with a service-connected total disability and who has a certificate from the United States Government or United States Department of Veterans Affairs, or its predecessor or successors, certifying that the veteran is (i) receiving or has received special pecuniary assistance due to disability requiring specially adapted housing and (ii) required to use a wheelchair for his or her transportation.

The production by a veteran of a certificate of disability from the United States Government or the United States Department of Veterans Affairs, or its predecessor or successors, before the chief county assessment officer of the county in which the veteran's property lies is prima facie evidence of the fact that he or she is entitled to the exemption under this Section.

In the event the homestead of the wheelchair veteran was or is held with the veteran's spouse as an estate by the entirety, and in the event the veteran did or shall predecease his or her spouse, the exemption from taxation shall carry over to the benefit of the veteran's spouse, provided the spouse continues to reside on such real estate and uses it as his or her domicile or until such time as he or she remarries or sells or otherwise disposes of the property.

(d) Any real estate that is owned and used as a homestead by the surviving spouse of a veteran who died from service-connected causes while on active duty as a member of the United States Armed Forces and for whom a letter from the United States Government or United States Department of Veterans Affairs or its predecessor has been issued certifying that the veteran who died from service-connected causes while on active duty is exempt from taxation if the veteran was a permanent resident of this state on January 1 of the year in which the veteran died.

The production by the surviving spouse of a letter that was issued as required under this subsection and that attests the veteran's death while on active duty is prima facie evidence of the fact that the surviving spouse is entitled to an exemption under this subsection.

The tax exemption that applies under this subsection to the surviving spouse carries over to the benefit of the veteran's surviving spouse as long as the spouse holds the legal or beneficial title to the homestead, permanently resides thereon, and does not remarry. If the surviving spouse sells the property, an exemption not to exceed the amount granted from the most recent ad valorem tax roll may be transferred to his or her new residence as long as it is used as his or her primary residence and he or she does not remarry.

(e) Every person who, on January 1, has the legal title to real or personal property that is entitled to an exemption under this Section must, on or before March 1 of each year, file an application for the exemption with the chief county assessment officer, listing and describing the property for which exemption is claimed and certifying its ownership and use. The Department of Revenue shall prescribe the forms upon which the application is made. The failure to make an application as required under this subsection constitutes a waiver of the exemption privilege for that year.

Once an original application for tax exemption has been granted, in each succeeding year on or before February 1, the chief county assessment officer must mail a renewal application to the applicant, and the officer shall accept from each that applicant a renewal application on a form to be prescribed by the Department of Revenue. This renewal application shall be accepted as evidence of exemption by the chief county assessment officer unless he or she denies the application.

(f) For the purposes of this Section:

"Real estate used and owned as a homestead" means real property but less any portion of that property that is used for commercial purposes, with the title of that property being recorded in the official records of the county in which the property is located. Property rented for more than 6 months is presumed to be used for commercial purposes.

"Totally and permanently disabled person" means a person who is currently certified by 2 licensed physicians of this State who are professionally unrelated, by the United States Department of Veterans Affairs or its predecessor, or by the Social Security Administration, to be totally and permanently disabled.

"Veteran" means an Illinois resident who has served as a member of the United States Armed Forces on active duty or State active duty, a member of the Illinois National Guard, or a member of the United States Reserve Forces.

Section 99. Effective date. This Act takes effect upon becoming law.