Full Text of HB3538 103rd General Assembly
HB3538 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3538 Introduced 2/17/2023, by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: |
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35 ILCS 200/15-165 |
| 35 ILCS 200/15-169 | |
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Amends the Property Tax Code. Provides that a veteran may submit an application for the homestead exemptions for veterans with disabilities to the chief county assessment officer with respect to a specific property before the veteran purchases the property. 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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Sections 15-165 and 15-169 as follows:
| 6 | | (35 ILCS 200/15-165)
| 7 | | Sec. 15-165. Veterans with disabilities. Property up to an | 8 | | assessed value of $100,000,
owned and used exclusively by a | 9 | | veteran with a disability, or the spouse or unmarried
| 10 | | surviving spouse of the veteran, as a home, is exempt. As used | 11 | | in this
Section, a "veteran with a disability" means a person | 12 | | who has served in the Armed Forces
of the United States and | 13 | | whose disability is of such a nature that the Federal
| 14 | | Government has authorized payment for purchase or construction | 15 | | of Specially
Adapted Housing as set forth in the United States | 16 | | Code, Title 38, Chapter 21,
Section 2101.
| 17 | | The exemption applies to housing where Federal funds have | 18 | | been used to
purchase or construct special adaptations to suit | 19 | | the veteran's disability.
| 20 | | The exemption also applies to housing that is specially | 21 | | adapted to suit the
veteran's disability, and purchased | 22 | | entirely or in part by the proceeds of a
sale, casualty loss | 23 | | reimbursement, or other transfer of a home for which the
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| 1 | | Federal Government had previously authorized payment for | 2 | | purchase or
construction as Specially Adapted Housing.
| 3 | | However, the entire proceeds of the sale, casualty loss | 4 | | reimbursement, or
other transfer of that housing shall be | 5 | | applied to the acquisition of
subsequent specially adapted | 6 | | housing to the extent that the proceeds equal the
purchase | 7 | | price of the subsequently acquired housing.
| 8 | | Beginning with the 2015 tax year, the exemption also | 9 | | applies to housing that is specifically constructed or adapted | 10 | | to suit a qualifying veteran's disability if the housing or | 11 | | adaptations are donated by a charitable organization, the | 12 | | veteran has been approved to receive funds for the purchase or | 13 | | construction of Specially Adapted Housing under Title 38, | 14 | | Chapter 21, Section 2101 of the United States Code, and the | 15 | | home has been inspected and certified by a licensed home | 16 | | inspector to be in compliance with applicable standards set | 17 | | forth in U.S. Department of Veterans Affairs, Veterans | 18 | | Benefits Administration Pamphlet 26-13 Handbook for Design of | 19 | | Specially Adapted Housing. | 20 | | For purposes of this Section, "charitable organization" | 21 | | means any benevolent, philanthropic, patriotic,
or | 22 | | eleemosynary entity that solicits and
collects funds for | 23 | | charitable purposes and includes each local, county, or
area | 24 | | division of that charitable organization. | 25 | | For purposes of this Section, "unmarried surviving spouse" | 26 | | means the
surviving spouse of the veteran at any time after the |
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| 1 | | death of the veteran
during which such surviving spouse is not | 2 | | married.
| 3 | | This exemption must be reestablished on an annual basis by
| 4 | | certification from the Illinois Department of Veterans' | 5 | | Affairs to the
Department, which shall forward a copy of the | 6 | | certification to local
assessing officials.
| 7 | | Notwithstanding any other provision of law, a veteran may | 8 | | submit an application for the exemption under this Section to | 9 | | the chief county assessment officer with respect to a specific | 10 | | property before the veteran purchases the property. The chief | 11 | | county assessment officer shall process the application under | 12 | | this subsection within 15 days after receipt of the | 13 | | application and shall notify the applicant of the approval or | 14 | | denial of the application. | 15 | | A taxpayer who claims an exemption under Section 15-168 or | 16 | | 15-169 may not claim an exemption under this Section.
| 17 | | (Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
| 18 | | (35 ILCS 200/15-169) | 19 | | Sec. 15-169. Homestead exemption for veterans with | 20 | | disabilities. | 21 | | (a) Beginning with taxable year 2007, an annual homestead | 22 | | exemption, limited to the amounts set forth in subsections (b) | 23 | | and (b-3), is granted for property that is used as a qualified | 24 | | residence by a veteran with a disability. | 25 | | (b) For taxable years prior to 2015, the amount of the |
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| 1 | | exemption under this Section is as follows: | 2 | | (1) for veterans with a service-connected disability | 3 | | of at least (i) 75% for exemptions granted in taxable | 4 | | years 2007 through 2009 and (ii) 70% for exemptions | 5 | | granted in taxable year 2010 and each taxable year | 6 | | thereafter, as certified by the United States Department | 7 | | of Veterans Affairs, the annual exemption is $5,000; and | 8 | | (2) for veterans with a service-connected disability | 9 | | of at least 50%, but less than (i) 75% for exemptions | 10 | | granted in taxable years 2007 through 2009 and (ii) 70% | 11 | | for exemptions granted in taxable year 2010 and each | 12 | | taxable year thereafter, as certified by the United States | 13 | | Department of Veterans Affairs, the annual exemption is | 14 | | $2,500. | 15 | | (b-3) For taxable years 2015 and thereafter: | 16 | | (1) if the veteran has a service connected disability | 17 | | of 30% or more but less than 50%, as certified by the | 18 | | United States Department of Veterans Affairs, then the | 19 | | annual exemption is $2,500; | 20 | | (2) if the veteran has a service connected disability | 21 | | of 50% or more but less than 70%, as certified by the | 22 | | United States Department of Veterans Affairs, then the | 23 | | annual exemption is $5,000; | 24 | | (3) if the veteran has a service connected disability | 25 | | of 70% or more, as certified by the United States | 26 | | Department of Veterans Affairs, then the property is |
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| 1 | | exempt from taxation under this Code; and | 2 | | (4) for taxable year 2023 and thereafter, if the | 3 | | taxpayer is the surviving spouse of a veteran whose death | 4 | | was determined to be service-connected and who is | 5 | | certified by the United States Department of Veterans | 6 | | Affairs as a recipient of dependency and indemnity | 7 | | compensation under federal law, then the property is also | 8 | | exempt from taxation under this Code. | 9 | | (b-5) If a homestead exemption is granted under this | 10 | | Section and the person awarded the exemption subsequently | 11 | | becomes a resident of a facility licensed under the Nursing | 12 | | Home Care Act or a facility operated by the United States | 13 | | Department of Veterans Affairs, then the exemption shall | 14 | | continue (i) so long as the residence continues to be occupied | 15 | | by the qualifying person's spouse or (ii) if the residence | 16 | | remains unoccupied but is still owned by the person who | 17 | | qualified for the homestead exemption. | 18 | | (c) The tax exemption under this Section carries over to | 19 | | the benefit of the veteran's
surviving spouse as long as the | 20 | | spouse holds the legal or
beneficial title to the homestead, | 21 | | permanently resides
thereon, and does not remarry. If the | 22 | | surviving spouse sells
the property, an exemption not to | 23 | | exceed the amount granted
from the most recent ad valorem tax | 24 | | roll may be transferred to
his or her new residence as long as | 25 | | it is used as his or her
primary residence and he or she does | 26 | | not remarry. |
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| 1 | | As used in this subsection (c): | 2 | | (1) for taxable years prior to 2015, "surviving | 3 | | spouse" means the surviving spouse of a veteran who | 4 | | obtained an exemption under this Section prior to his or | 5 | | her death; | 6 | | (2) for taxable years 2015 through 2022, "surviving | 7 | | spouse" means (i) the surviving spouse of a veteran who | 8 | | obtained an exemption under this Section prior to his or | 9 | | her death and (ii) the surviving spouse of a veteran who | 10 | | was killed in the line of duty at any time prior to the | 11 | | expiration of the application period in effect for the | 12 | | exemption for the taxable year for which the exemption is | 13 | | sought; and | 14 | | (3) for taxable year 2023 and thereafter, "surviving | 15 | | spouse" means: (i) the surviving spouse of a veteran who | 16 | | obtained the exemption under this Section prior to his or | 17 | | her death; (ii) the surviving spouse of a veteran who was | 18 | | killed in the line of duty at any time prior to the | 19 | | expiration of the application period in effect for the | 20 | | exemption for the taxable year for which the exemption is | 21 | | sought; (iii) the surviving spouse of a veteran who did | 22 | | not obtain an exemption under this Section before death, | 23 | | but who would have qualified for the exemption under this | 24 | | Section in the taxable year for which the exemption is | 25 | | sought if he or she had survived, and whose surviving | 26 | | spouse has been a resident of Illinois from the time of the |
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| 1 | | veteran's death through the taxable year for which the | 2 | | exemption is sought; and (iv) the surviving spouse of a | 3 | | veteran whose death was determined to be | 4 | | service-connected, but who would not otherwise qualify | 5 | | under item items (i), (ii), or (iii), if the spouse (A) is | 6 | | certified by the United States Department of Veterans | 7 | | Affairs as a recipient of dependency and indemnity | 8 | | compensation under federal law 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 and (B) remains eligible for that dependency and | 12 | | indemnity compensation as of January 1 of the taxable year | 13 | | for which the exemption is sought. | 14 | | (c-1) Beginning with taxable year 2015, nothing in this | 15 | | Section shall require the veteran to have qualified for or | 16 | | obtained the exemption before death if the veteran was killed | 17 | | in the line of duty. | 18 | | (d) The exemption under this Section applies for taxable | 19 | | year 2007 and thereafter. A taxpayer who claims an exemption | 20 | | under Section 15-165 or 15-168 may not claim an exemption | 21 | | under this Section. | 22 | | (e) Except as otherwise provided in this subsection (e), | 23 | | each taxpayer who has been granted an exemption under this | 24 | | Section must reapply on an annual basis. Application must be | 25 | | made during the application period
in effect for the county of | 26 | | his or her residence. The assessor
or chief county assessment |
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| 1 | | officer may determine the
eligibility of residential property | 2 | | to receive the homestead
exemption provided by this Section by | 3 | | application, visual
inspection, questionnaire, or other | 4 | | reasonable methods. The
determination must be made in | 5 | | accordance with guidelines
established by the Department. | 6 | | On and after May 23, 2022 ( the effective date of Public Act | 7 | | 102-895) this amendatory Act of the 102nd General Assembly , if | 8 | | a veteran has a combined service connected disability rating | 9 | | of 100% and is deemed to be permanently and totally disabled, | 10 | | as certified by the United States Department of Veterans | 11 | | Affairs, the taxpayer who has been granted an exemption under | 12 | | this Section shall no longer be required to reapply for the | 13 | | exemption on an annual basis, and the exemption shall be in | 14 | | effect for as long as the exemption would otherwise be | 15 | | permitted under this Section. | 16 | | (e-1) If the person qualifying for the exemption does not | 17 | | occupy the qualified residence as of January 1 of the taxable | 18 | | year, the exemption granted under this Section shall be | 19 | | prorated on a monthly basis. The prorated exemption shall | 20 | | apply beginning with the first complete month in which the | 21 | | person occupies the qualified residence. | 22 | | (e-5) Notwithstanding any other provision of law, each | 23 | | chief county assessment officer may approve this exemption for | 24 | | the 2020 taxable year, without application, for any property | 25 | | that was approved for this exemption for the 2019 taxable | 26 | | year, provided that: |
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| 1 | | (1) the county board has declared a local disaster as | 2 | | provided in the Illinois Emergency Management Agency Act | 3 | | related to the COVID-19 public health emergency; | 4 | | (2) the owner of record of the property as of January | 5 | | 1, 2020 is the same as the owner of record of the property | 6 | | as of January 1, 2019; | 7 | | (3) the exemption for the 2019 taxable year has not | 8 | | been determined to be an erroneous exemption as defined by | 9 | | this Code; and | 10 | | (4) the applicant for the 2019 taxable year has not | 11 | | asked for the exemption to be removed for the 2019 or 2020 | 12 | | taxable years. | 13 | | Nothing in this subsection shall preclude a veteran whose | 14 | | service connected disability rating has changed since the 2019 | 15 | | exemption was granted from applying for the exemption based on | 16 | | the subsequent service connected disability rating. | 17 | | (e-10) Notwithstanding any other provision of law, each | 18 | | chief county assessment officer may approve this exemption for | 19 | | the 2021 taxable year, without application, for any property | 20 | | that was approved for this exemption for the 2020 taxable | 21 | | year, if: | 22 | | (1) the county board has declared a local disaster as | 23 | | provided in the Illinois Emergency Management Agency Act | 24 | | related to the COVID-19 public health emergency; | 25 | | (2) the owner of record of the property as of January | 26 | | 1, 2021 is the same as the owner of record of the property |
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| 1 | | as of January 1, 2020; | 2 | | (3) the exemption for the 2020 taxable year has not | 3 | | been determined to be an erroneous exemption as defined by | 4 | | this Code; and | 5 | | (4) the taxpayer for the 2020 taxable year has not | 6 | | asked for the exemption to be removed for the 2020 or 2021 | 7 | | taxable years. | 8 | | Nothing in this subsection shall preclude a veteran whose | 9 | | service connected disability rating has changed since the 2020 | 10 | | exemption was granted from applying for the exemption based on | 11 | | the subsequent service connected disability rating. | 12 | | (e-15) Notwithstanding any other provision of law, a | 13 | | veteran may submit an application for the exemption under this | 14 | | Section to the chief county assessment officer with respect to | 15 | | a specific property before the veteran purchases the property. | 16 | | The chief county assessment officer shall process the | 17 | | application under this subsection within 15 days after receipt | 18 | | of the application and shall notify the applicant of the | 19 | | approval or denial of the application. | 20 | | (f) For the purposes of this Section: | 21 | | "Qualified residence" means real
property, but less any | 22 | | portion of that property that is used for
commercial purposes, | 23 | | with an equalized assessed value of less than $250,000 that is | 24 | | the primary residence of a veteran with a disability. Property | 25 | | rented for more than 6 months is
presumed to be used for | 26 | | commercial purposes. |
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| 1 | | "Veteran" means an Illinois resident who has served as a
| 2 | | member of the United States Armed Forces on active duty or
| 3 | | State active duty, a member of the Illinois National Guard, or
| 4 | | a member of the United States Reserve Forces and who has | 5 | | received an honorable discharge. | 6 | | (Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21; | 7 | | 102-895, eff. 5-23-22; revised 9-6-22.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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