102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3420

 

Introduced 2/22/2021, by Rep. Janet Yang Rohr

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-169

    Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities, provides that: (1) if the veteran has a service connected disability of 30% or more but less than 50%, then the annual exemption is 30% of the assessed value of the property; (2) if the veteran has a service connected disability of 50% or more but less than 70%, then the annual exemption is 50% of the assessed value of the property; and (3) if the veteran has a service connected disability of 70% or more, then the property is exempt from taxation. Effective immediately.


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

 

 

A BILL FOR

 

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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), and (b-4) is granted for property that is used as a
12qualified residence 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 through 2021 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; and
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.
18    (b-4) For taxable years 2022 and thereafter:
19        (1) if the veteran has a service connected disability
20    of 30% or more but less than 50%, as certified by the
21    United States Department of Veterans Affairs, then the
22    annual exemption is 30% of the assessed value of the
23    property;
24        (2) if the veteran has a service connected disability
25    of 50% or more but less than 70%, as certified by the
26    United States Department of Veterans Affairs, then the

 

 

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1    annual exemption is 50% of the assessed value of the
2    property; and
3        (3) if the veteran has a service connected disability
4    of 70% or more, as certified by the United States
5    Department of Veterans Affairs, then the property is
6    exempt from taxation under this Code.
7    (b-5) If a homestead exemption is granted under this
8Section and the person awarded the exemption subsequently
9becomes a resident of a facility licensed under the Nursing
10Home Care Act or a facility operated by the United States
11Department of Veterans Affairs, then the exemption shall
12continue (i) so long as the residence continues to be occupied
13by the qualifying person's spouse or (ii) if the residence
14remains unoccupied but is still owned by the person who
15qualified for the homestead exemption.
16    (c) The tax exemption under this Section carries over to
17the benefit of the veteran's surviving spouse as long as the
18spouse holds the legal or beneficial title to the homestead,
19permanently resides thereon, and does not remarry. If the
20surviving spouse sells the property, an exemption not to
21exceed the amount granted from the most recent ad valorem tax
22roll may be transferred to his or her new residence as long as
23it is used as his or her primary residence and he or she does
24not remarry.
25    (c-1) Beginning with taxable year 2015, nothing in this
26Section shall require the veteran to have qualified for or

 

 

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1obtained the exemption before death if the veteran was killed
2in the line of duty.
3    (d) The exemption under this Section applies for taxable
4year 2007 and thereafter. A taxpayer who claims an exemption
5under Section 15-165 or 15-168 may not claim an exemption
6under this Section.
7    (e) Each taxpayer who has been granted an exemption under
8this Section must reapply on an annual basis. Application must
9be made during the application period in effect for the county
10of his or her residence. The assessor or chief county
11assessment officer may determine the eligibility of
12residential property to receive the homestead exemption
13provided by this Section by application, visual inspection,
14questionnaire, or other reasonable methods. The determination
15must be made in accordance with guidelines established by the
16Department.
17    (e-1) If the person qualifying for the exemption does not
18occupy the qualified residence as of January 1 of the taxable
19year, the exemption granted under this Section shall be
20prorated on a monthly basis. The prorated exemption shall
21apply beginning with the first complete month in which the
22person occupies the qualified residence.
23    (e-5) Notwithstanding any other provision of law, each
24chief county assessment officer may approve this exemption for
25the 2020 taxable year, without application, for any property
26that was approved for this exemption for the 2019 taxable

 

 

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1year, provided that:
2        (1) the county board has declared a local disaster as
3    provided in the Illinois Emergency Management Agency Act
4    related to the COVID-19 public health emergency;
5        (2) the owner of record of the property as of January
6    1, 2020 is the same as the owner of record of the property
7    as of January 1, 2019;
8        (3) the exemption for the 2019 taxable year has not
9    been determined to be an erroneous exemption as defined by
10    this Code; and
11        (4) the applicant for the 2019 taxable year has not
12    asked for the exemption to be removed for the 2019 or 2020
13    taxable years.
14    Nothing in this subsection shall preclude a veteran whose
15service connected disability rating has changed since the 2019
16exemption was granted from applying for the exemption based on
17the subsequent service connected disability rating.
18    (f) For the purposes of this Section:
19    "Qualified residence" means real property, but less any
20portion of that property that is used for commercial purposes,
21with an equalized assessed value of less than $250,000 that is
22the primary residence of a veteran with a disability. Property
23rented for more than 6 months is presumed to be used for
24commercial purposes.
25    "Veteran" means an Illinois resident who has served as a
26member of the United States Armed Forces on active duty or

 

 

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1State active duty, a member of the Illinois National Guard, or
2a member of the United States Reserve Forces and who has
3received an honorable discharge.
4(Source: P.A. 100-869, eff. 8-14-18; 101-635, eff. 6-5-20.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.