100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4320

 

Introduced , by Rep. Michael D. Unes

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-165
35 ILCS 200/15-169
35 ILCS 515/7.5

    Amends the Property Tax Code and the Mobile Home Local Services Tax Act. In provisions granting exemptions for veterans with disabilities, provides that, if the veteran has received the same protected evaluation rating and level of disability for 20 or more years by the United States Department of Veterans' Affairs, then that veteran need not annually reapply for the exemption. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4320LRB100 16138 HLH 31257 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 surviving
10spouse of the veteran, as a home, is exempt. As used in this
11Section, a "veteran with a disability" means a person who has
12served in the Armed Forces of the United States and whose
13disability is of such a nature that the Federal Government has
14authorized payment for purchase or construction of Specially
15Adapted Housing as set forth in the United States Code, Title
1638, 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 Benefits
18Administration Pamphlet 26-13 Handbook for Design of Specially
19Adapted 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    Except as otherwise provided in this paragraph, this This
4exemption must be reestablished on an annual basis by
5certification from the Illinois Department of Veterans'
6Affairs to the Department, which shall forward a copy of the
7certification to local assessing officials. Beginning in
8taxable year 2018, a taxpayer who has received the same
9protected evaluation rating and level of disability for 20 or
10more years by the United States Department of Veterans' Affairs
11need not annually seek certification from the Illinois
12Department of Veterans' Affairs for the exemption provided
13under this Section; in that case, the taxpayer shall
14automatically be certified each year by the Department, and a
15copy of the certification shall be forwarded to local assessing
16officials.
17    A taxpayer who claims an exemption under Section 15-168 or
1815-169 may not claim an exemption under this Section.
19(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
 
20    (35 ILCS 200/15-169)
21    Sec. 15-169. Homestead exemption for veterans with
22disabilities.
23    (a) Beginning with taxable year 2007, an annual homestead
24exemption, limited to the amounts set forth in subsections (b)
25and (b-3), is granted for property that is used as a qualified

 

 

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

 

 

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1    of 70% or more, as certified by the United States
2    Department of Veterans Affairs, then the property is exempt
3    from taxation under this Code.
4    (b-5) If a homestead exemption is granted under this
5Section and the person awarded the exemption subsequently
6becomes a resident of a facility licensed under the Nursing
7Home Care Act or a facility operated by the United States
8Department of Veterans Affairs, then the exemption shall
9continue (i) so long as the residence continues to be occupied
10by the qualifying person's spouse or (ii) if the residence
11remains unoccupied but is still owned by the person who
12qualified for the homestead exemption.
13    (c) The tax exemption under this Section carries over to
14the benefit of the veteran's surviving spouse as long as the
15spouse holds the legal or beneficial title to the homestead,
16permanently resides thereon, and does not remarry. If the
17surviving spouse sells the property, an exemption not to exceed
18the amount granted from the most recent ad valorem tax roll may
19be transferred to his or her new residence as long as it is
20used as his or her primary residence and he or she does not
21remarry.
22    (c-1) Beginning with taxable year 2015, nothing in this
23Section shall require the veteran to have qualified for or
24obtained the exemption before death if the veteran was killed
25in the line of duty.
26    (d) The exemption under this Section applies for taxable

 

 

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1year 2007 and thereafter. A taxpayer who claims an exemption
2under Section 15-165 or 15-168 may not claim an exemption under
3this Section.
4    (e) Except as otherwise provided in subsection (e-1), each
5Each taxpayer who has been granted an exemption under this
6Section must reapply on an annual basis. Application must be
7made during the application period in effect for the county of
8his or her residence. The assessor or chief county assessment
9officer may determine the eligibility of residential property
10to receive the homestead exemption provided by this Section by
11application, visual inspection, questionnaire, or other
12reasonable methods. The determination must be made in
13accordance with guidelines established by the Department.
14    (e-1) Beginning taxable year 2018, a taxpayer who has
15received the same protected evaluation rating and level of
16disability for 20 or more years by the United States Department
17of Veterans' Affairs need not reapply for the exemption
18annually, but shall instead be automatically granted the
19exemption provided under this Section each year.
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. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
799-375, eff. 8-17-15; 99-642, eff. 7-28-16.)
 
8    Section 10. The Mobile Home Local Services Tax Act is
9amended by changing Section 7.5 as follows:
 
10    (35 ILCS 515/7.5)
11    Sec. 7.5. Exemption for veterans with disabilities.
12    (a) Beginning on January 1, 2004, a mobile home owned and
13used exclusively by a veteran with a disability or the spouse
14or unmarried surviving spouse of the veteran as a home, is
15exempt from the tax imposed under this Act.
16    Beginning with the 2015 tax year, the exemption also
17applies to housing that is specifically constructed or adapted
18to suit a qualifying veteran's disability if the housing or
19adaptations are donated by a charitable organization, the
20veteran has been approved to receive funds for the purchase or
21construction of Specially Adapted Housing under Title 38,
22Chapter 21, Section 2101 of the United States Code, and the
23home has been inspected and certified by a licensed home
24inspector to be in compliance with applicable standards set

 

 

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1forth in U.S. Department of Veterans Affairs, Veterans Benefits
2Administration Pamphlet 26-13 Handbook for Design of Specially
3Adapted Housing.
4    (b) As used in this Section:
5    "Veteran with a disability" means a person who has served
6in the armed forces of the United States and whose disability
7is of such a nature that the federal government has authorized
8payment for purchase or construction of specially adapted
9housing as set forth in the United States Code, Title 38,
10Chapter 21, Section 2101.
11    For purposes of this Section, "charitable organization"
12means any benevolent, philanthropic, patriotic, or
13eleemosynary entity that solicits and collects funds for
14charitable purposes and includes each local, county, or area
15division of that charitable organization.
16    "Unmarried surviving spouse" means the surviving spouse of
17the veteran at any time after the death of the veteran during
18which the surviving spouse is not married.
19    (c) Except as provided in subsection (d), eligibility
20Eligibility for this exemption must be reestablished on an
21annual basis by certification from the Illinois Department of
22Veterans' Affairs to the county clerk of the county in which
23the exempt mobile home is located. The county clerk shall
24forward a copy of the certification to local assessing
25officials.
26    (d) Beginning taxable year 2018, a taxpayer who has

 

 

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1received the same protected evaluation rating and level of
2disability for 20 or more years by the United States Department
3of Veterans' Affairs need not annually seek certification from
4the Illinois Department of Veterans' Affairs for the exemption
5provided under this Section. In that case, the taxpayer shall
6automatically be certified to the county clerk each year by the
7Illinois Department of Veterans' Affairs, and a copy of the
8certification shall be forwarded to local assessing officials
9by the county clerk.
10(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.