HB1725 95TH GENERAL ASSEMBLY

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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1725

Introduced 2/22/2007, by Rep. Thomas Holbrook

SYNOPSIS AS INTRODUCED:

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

Amends the Property Tax Code. Creates a property tax exemption for property that is owned and used as a homestead by a disabled veteran who has, at least, a 30% disability. Sets forth the amount of the exemption based on the percentage of disability of the veteran. Sets forth requirements for the exemption. Requires an annual application for the exemption. Provides that a current exemption for disabled veterans does not apply if the taxpayer receives an exemption created by this amendatory Act. 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.

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.

This exemption does not apply for any taxable year for which the taxpayer receives an exemption under Section 15-166.

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 with at least a 30% disability.

(a) This Section applies to taxable years 2007 and thereafter.

(b) A homestead exemption is granted for property that is owned and used exclusively as a homestead by a disabled veteran in the amount set forth under subsection (c). As used in this Section: "disabled veteran" means a veteran who was honorably discharged with a service-connected disability and for whom documentation, in any form, from any branch of the United States Armed Forces has been issued certifying that the veteran suffers from a disability of at least 30%; and "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.

(c) The amount of the exemption is as follows:

(1) for a disabled veteran who suffers from a disability of at least 30%, the exemption is 30% of the equalized assessed value of the property;

(2) for a disabled veteran who suffers from a disability of at least 40%, the exemption is 40% of the equalized assessed value of the property;

(3) for a disabled veteran who suffers from a disability of at least 50%, the exemption is 50% of the equalized assessed value of the property;

(4) for a disabled veteran who suffers from a disability of at least 60%, the exemption is 60% of the equalized assessed value of the property;

(5) for a disabled veteran who suffers from a disability of at least 70%, the exemption is 70% of the equalized assessed value of the property;

(6) for a disabled veteran who suffers from a disability of at least 80%, the exemption is 80% of the equalized assessed value of the property;

(7) for a disabled veteran who suffers from a disability of at least 90%, the exemption is 90% of the equalized assessed value of the property; and

(8) for a disabled veteran who suffers from a disability of that exceeds 90%, the exemption is 100% of the equalized assessed value of the property.

(d) 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.

The production by a veteran of a letter of disability from the United States Government or United States Department of Veterans Affairs or its predecessor, indicating a disability of at least 30%, 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.

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 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.

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