103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3363

 

Introduced 2/7/2024, by Sen. Craig Wilcox

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-169

    Amends the Property Tax Code. Provides that the homestead exemption for veterans with disabilities applies to veterans with current service-connected disabilities for which the veteran is eligible to receive disability compensation. Effective immediately.


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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), is granted for property that is used as a qualified
12residence 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 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;
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; and
18        (4) for taxable year 2023 and thereafter, if the
19    taxpayer is the surviving spouse of a veteran whose death
20    was determined to be service-connected and who is
21    certified by the United States Department of Veterans
22    Affairs as a recipient of dependency and indemnity
23    compensation under federal law, then the property is also
24    exempt from taxation under this Code.
25    (b-5) If a homestead exemption is granted under this
26Section and the person awarded the exemption subsequently

 

 

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1becomes a resident of a facility licensed under the Nursing
2Home Care Act or a facility operated by the United States
3Department of Veterans Affairs, then the exemption shall
4continue (i) so long as the residence continues to be occupied
5by the qualifying person's spouse or (ii) if the residence
6remains unoccupied but is still owned by the person who
7qualified for the homestead exemption.
8    (c) The tax exemption under this Section carries over to
9the benefit of the veteran's surviving spouse as long as the
10spouse holds the legal or beneficial title to the homestead,
11permanently resides thereon, and does not remarry. If the
12surviving spouse sells the property, an exemption not to
13exceed the amount granted from the most recent ad valorem tax
14roll may be transferred to his or her new residence as long as
15it is used as his or her primary residence and he or she does
16not remarry.
17    As used in this subsection (c):
18        (1) for taxable years prior to 2015, "surviving
19    spouse" means the surviving spouse of a veteran who
20    obtained an exemption under this Section prior to his or
21    her death;
22        (2) for taxable years 2015 through 2022, "surviving
23    spouse" means (i) the surviving spouse of a veteran who
24    obtained an exemption under this Section prior to his or
25    her death and (ii) the surviving spouse of a veteran who
26    was killed in the line of duty at any time prior to the

 

 

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1    expiration of the application period in effect for the
2    exemption for the taxable year for which the exemption is
3    sought; and
4        (3) for taxable year 2023 and thereafter, "surviving
5    spouse" means: (i) the surviving spouse of a veteran who
6    obtained the exemption under this Section prior to his or
7    her death; (ii) the surviving spouse of a veteran who was
8    killed in the line of duty at any time prior to the
9    expiration of the application period in effect for the
10    exemption for the taxable year for which the exemption is
11    sought; (iii) the surviving spouse of a veteran who did
12    not obtain an exemption under this Section before death,
13    but who would have qualified for the exemption under this
14    Section in the taxable year for which the exemption is
15    sought if he or she had survived, and whose surviving
16    spouse has been a resident of Illinois from the time of the
17    veteran's death through the taxable year for which the
18    exemption is sought; and (iv) the surviving spouse of a
19    veteran whose death was determined to be
20    service-connected, but who would not otherwise qualify
21    under item (i), (ii), or (iii), if the spouse (A) is
22    certified by the United States Department of Veterans
23    Affairs as a recipient of dependency and indemnity
24    compensation under federal law at any time prior to the
25    expiration of the application period in effect for the
26    exemption for the taxable year for which the exemption is

 

 

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1    sought and (B) remains eligible for that dependency and
2    indemnity compensation as of January 1 of the taxable year
3    for which the exemption is sought.
4    (c-1) Beginning with taxable year 2015, nothing in this
5Section shall require the veteran to have qualified for or
6obtained the exemption before death if the veteran was killed
7in the line of duty.
8    (d) The exemption under this Section applies for taxable
9year 2007 and thereafter. A taxpayer who claims an exemption
10under Section 15-165 or 15-168 may not claim an exemption
11under this Section.
12    (e) Except as otherwise provided in this subsection (e),
13each taxpayer who has been granted an exemption under this
14Section must reapply on an annual basis. Application must be
15made during the application period in effect for the county of
16his or her residence. The assessor or chief county assessment
17officer may determine the eligibility of residential property
18to receive the homestead exemption provided by this Section by
19application, visual inspection, questionnaire, or other
20reasonable methods. The determination must be made in
21accordance with guidelines established by the Department.
22    On and after May 23, 2022 (the effective date of Public Act
23102-895), if a veteran has a combined service connected
24disability rating of 100% and is deemed to be permanently and
25totally disabled, as certified by the United States Department
26of Veterans Affairs, the taxpayer who has been granted an

 

 

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1exemption under this Section shall no longer be required to
2reapply for the exemption on an annual basis, and the
3exemption shall be in effect for as long as the exemption would
4otherwise be permitted under this Section.
5    (e-1) If the person qualifying for the exemption does not
6occupy the qualified residence as of January 1 of the taxable
7year, the exemption granted under this Section shall be
8prorated on a monthly basis. The prorated exemption shall
9apply beginning with the first complete month in which the
10person occupies the qualified residence.
11    (e-5) Notwithstanding any other provision of law, each
12chief county assessment officer may approve this exemption for
13the 2020 taxable year, without application, for any property
14that was approved for this exemption for the 2019 taxable
15year, provided that:
16        (1) the county board has declared a local disaster as
17    provided in the Illinois Emergency Management Agency Act
18    related to the COVID-19 public health emergency;
19        (2) the owner of record of the property as of January
20    1, 2020 is the same as the owner of record of the property
21    as of January 1, 2019;
22        (3) the exemption for the 2019 taxable year has not
23    been determined to be an erroneous exemption as defined by
24    this Code; and
25        (4) the applicant for the 2019 taxable year has not
26    asked for the exemption to be removed for the 2019 or 2020

 

 

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1    taxable years.
2    Nothing in this subsection shall preclude a veteran whose
3service connected disability rating has changed since the 2019
4exemption was granted from applying for the exemption based on
5the subsequent service connected disability rating.
6    (e-10) Notwithstanding any other provision of law, each
7chief county assessment officer may approve this exemption for
8the 2021 taxable year, without application, for any property
9that was approved for this exemption for the 2020 taxable
10year, if:
11        (1) the county board has declared a local disaster as
12    provided in the Illinois Emergency Management Agency Act
13    related to the COVID-19 public health emergency;
14        (2) the owner of record of the property as of January
15    1, 2021 is the same as the owner of record of the property
16    as of January 1, 2020;
17        (3) the exemption for the 2020 taxable year has not
18    been determined to be an erroneous exemption as defined by
19    this Code; and
20        (4) the taxpayer for the 2020 taxable year has not
21    asked for the exemption to be removed for the 2020 or 2021
22    taxable years.
23    Nothing in this subsection shall preclude a veteran whose
24service connected disability rating has changed since the 2020
25exemption was granted from applying for the exemption based on
26the subsequent service connected disability rating.

 

 

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1    (f) For the purposes of this Section:
2    "Qualified residence" means real property, but less any
3portion of that property that is used for commercial purposes,
4with an equalized assessed value of less than $250,000 that is
5the primary residence of a veteran with a disability. Property
6rented for more than 6 months is presumed to be used for
7commercial purposes.
8    "Service-connected disability" means a current illness or
9injury that was caused by or worsened by active military
10service, as certified by the United States Department of
11Veterans Affairs, resulting in disability compensation.
12    For taxable years 2024 and prior, "veteran" "Veteran"
13means an Illinois resident who has served as a member of the
14United States Armed Forces on active duty or State active
15duty, a member of the Illinois National Guard, or a member of
16the United States Reserve Forces and who has received an
17honorable discharge. For taxable years 2025 and thereafter,
18"veteran" means an Illinois resident who has served as a
19member of the United States Armed Forces on active duty or
20State active duty, a member of the Illinois National Guard, or
21a member of the United States Reserve Forces who has a
22service-connected disability as certified by the United States
23Department of Veterans Affairs and is in receipt of disability
24compensation.
25(Source: P.A. 102-136, eff. 7-23-21; 102-895, eff. 5-23-22;
26103-154, eff. 6-30-23.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.