Bill Text: IL HB0612 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Property Tax Code. In a Section granting a homestead exemption to veterans with disabilities, provides that property that is used as a qualified residence by a veteran who was a member of the United States Armed Forces during World War II is exempt from taxation regardless of the veteran's level of disability. Provides that a veteran who qualifies as a result of his or her service in World War II need not reapply for the exemption. Makes changes concerning service-connected disabilities. Makes changes concerning surviving spouses. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Engrossed) 2024-05-17 - Rule 2-10 Committee Deadline Established As May 24, 2024 [HB0612 Detail]

Download: Illinois-2023-HB0612-Engrossed.html

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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 15-169 as follows:
(35 ILCS 200/15-169)
Sec. 15-169. Homestead exemption for veterans with
disabilities and veterans of World War II.
(a) Beginning with taxable year 2007, an annual homestead
exemption, limited as provided in this Section to the amounts
set forth in subsections (b) and (b-3), is granted for
property that is used as a qualified residence by a veteran
with a disability, and beginning with taxable year 2024, an
annual homestead exemption, limited to the amounts set forth
in subsection (b-4), is granted for property that is used as a
qualified residence by a veteran who was a member of the United
States Armed Forces during World War II.
(b) For taxable years prior to 2015, the amount of the
exemption under this Section is as follows:
(1) for veterans with a service-connected disability
of at least (i) 75% for exemptions granted in taxable
years 2007 through 2009 and (ii) 70% for exemptions
granted in taxable year 2010 and each taxable year

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thereafter, as certified by the United States Department
of Veterans Affairs, the annual exemption is $5,000; and
(2) for veterans with a service-connected disability
of at least 50%, but less than (i) 75% for exemptions
granted in taxable years 2007 through 2009 and (ii) 70%
for exemptions granted in taxable year 2010 and each
taxable year thereafter, as certified by the United States
Department of Veterans Affairs, the annual exemption is
$2,500.
(b-3) For taxable years 2015 through 2022 and thereafter:
(1) if the veteran has a service connected disability
of 30% or more but less than 50%, as certified by the
United States Department of Veterans Affairs, then the
annual exemption is $2,500;
(2) if the veteran has a service connected disability
of 50% or more but less than 70%, as certified by the
United States Department of Veterans Affairs, then the
annual exemption is $5,000;
(3) if the veteran has a service connected disability
of 70% or more, as certified by the United States
Department of Veterans Affairs, then the property is
exempt from taxation under this Code; and
(4) (Blank). for taxable year 2023 and thereafter, if
the taxpayer is the surviving spouse of a veteran whose
death was determined to be service-connected and who is
certified by the United States Department of Veterans

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Affairs as a recipient of dependency and indemnity
compensation under federal law, then the property is also
exempt from taxation under this Code.
(b-3.1) For taxable year 2023 and thereafter:
(1) if the veteran has a service connected disability
of 30% or more but less than 50%, as certified by the
United States Department of Veterans Affairs as of the
date the application is submitted for the exemption under
this Section for the applicable taxable year, then the
annual exemption is $2,500;
(2) if the veteran has a service connected disability
of 50% or more but less than 70%, as certified by the
United States Department of Veterans Affairs as of the
date the application is submitted for the exemption under
this Section for the applicable taxable year, then the
annual exemption is $5,000;
(3) if the veteran has a service connected disability
of 70% or more, as certified by the United States
Department of Veterans Affairs as of the date the
application is submitted for the exemption under this
Section for the applicable taxable year, then the first
$250,000 in equalized assessed value of the property is
exempt from taxation under this Code; and
(4) if the taxpayer is the surviving spouse of a
veteran whose death was determined to be service-connected
and who is certified by the United States Department of

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Veterans Affairs as a recipient of dependency and
indemnity compensation under federal law as of the date
the application is submitted for the exemption under this
Section for the applicable taxable year, then the first
$250,000 in equalized assessed value of the property is
also exempt from taxation under this Code.
This amendatory Act of the 103rd General Assembly shall
not be used as the basis for any appeal filed with the chief
county assessment officer, the board of review, the Property
Tax Appeal Board, or the circuit court with respect to the
scope or meaning of the exemption under this Section for a tax
year prior to tax year 2023.
(b-4) For taxable years on or after 2024, if the veteran
was a member of the United States Armed Forces during World War
II, then the property is exempt from taxation under this Code
regardless of the veteran's level of disability.
(b-5) If a homestead exemption is granted under this
Section and the person awarded the exemption subsequently
becomes a resident of a facility licensed under the Nursing
Home Care Act or a facility operated by the United States
Department of Veterans Affairs, then the exemption shall
continue (i) so long as the residence continues to be occupied
by the qualifying person's spouse or (ii) if the residence
remains unoccupied but is still owned by the person who
qualified for the homestead exemption.
(c) The tax exemption under this Section carries over to

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the benefit of the veteran's surviving spouse as long as the
spouse holds the legal or beneficial title to the homestead,
permanently resides thereon, and does not remarry. If the
surviving spouse sells the property, an exemption not to
exceed the amount granted from the most recent ad valorem tax
roll may be transferred to his or her new residence as long as
it is used as his or her primary residence and he or she does
not remarry.
As used in this subsection (c):
(1) for taxable years prior to 2015, "surviving
spouse" means the surviving spouse of a veteran who
obtained an exemption under this Section prior to his or
her death;
(2) for taxable years 2015 through 2022, "surviving
spouse" means (i) the surviving spouse of a veteran who
obtained an exemption under this Section prior to his or
her death and (ii) the surviving spouse of a veteran who
was killed in the line of duty at any time prior to the
expiration of the application period in effect for the
exemption for the taxable year for which the exemption is
sought; and
(3) for taxable year 2023 and thereafter, "surviving
spouse" means: (i) the surviving spouse of a veteran who
obtained the exemption under this Section prior to his or
her death; (ii) the surviving spouse of a veteran who was
killed in the line of duty at any time prior to the

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expiration of the application period in effect for the
exemption for the taxable year for which the exemption is
sought; (iii) the surviving spouse of a veteran who did
not obtain an exemption under this Section before death,
but who would have qualified for the exemption under this
Section in the taxable year for which the exemption is
sought if he or she had survived, and whose surviving
spouse has been a resident of Illinois from the time of the
veteran's death through the taxable year for which the
exemption is sought; and (iv) the surviving spouse of a
veteran whose death was determined to be
service-connected, but who would not otherwise qualify
under item (i), (ii), or (iii), if the spouse (A) is
certified by the United States Department of Veterans
Affairs as a recipient of dependency and indemnity
compensation under federal law at any time prior to the
expiration of the application period in effect for the
exemption for the taxable year for which the exemption is
sought and (B) remains eligible for that dependency and
indemnity compensation as of January 1 of the taxable year
for which the exemption is sought.
(c-1) Beginning with taxable year 2015, nothing in this
Section shall require the veteran to have qualified for or
obtained the exemption before death if the veteran was killed
in the line of duty.
(d) The exemption under this Section applies for taxable

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year 2007 and thereafter. A taxpayer who claims an exemption
under Section 15-165 or 15-168 may not claim an exemption
under this Section.
(e) Except as otherwise provided in this subsection (e),
each taxpayer who has been granted an exemption under this
Section must reapply on an annual basis, except that a veteran
who qualifies as a result of his or her service in World War II
need not reapply. Application must be made during the
application period in effect for the county of his or her
residence. The assessor or chief county assessment officer may
determine the eligibility of residential property to receive
the homestead exemption provided by this Section by
application, visual inspection, questionnaire, or other
reasonable methods. The determination must be made in
accordance with guidelines established by the Department.
On and after May 23, 2022 (the effective date of Public Act
102-895), if a veteran has a combined service connected
disability rating of 100% and is deemed to be permanently and
totally disabled, as certified by the United States Department
of Veterans Affairs, the taxpayer who has been granted an
exemption under this Section shall no longer be required to
reapply for the exemption on an annual basis, and the
exemption shall be in effect for as long as the exemption would
otherwise be permitted under this Section.
(e-1) If the person qualifying for the exemption does not
occupy the qualified residence as of January 1 of the taxable

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year, the exemption granted under this Section shall be
prorated on a monthly basis. The prorated exemption shall
apply beginning with the first complete month in which the
person occupies the qualified residence.
(e-5) Notwithstanding any other provision of law, each
chief county assessment officer may approve this exemption for
the 2020 taxable year, without application, for any property
that was approved for this exemption for the 2019 taxable
year, provided that:
(1) the county board has declared a local disaster as
provided in the Illinois Emergency Management Agency Act
related to the COVID-19 public health emergency;
(2) the owner of record of the property as of January
1, 2020 is the same as the owner of record of the property
as of January 1, 2019;
(3) the exemption for the 2019 taxable year has not
been determined to be an erroneous exemption as defined by
this Code; and
(4) the applicant for the 2019 taxable year has not
asked for the exemption to be removed for the 2019 or 2020
taxable years.
Nothing in this subsection shall preclude a veteran whose
service connected disability rating has changed since the 2019
exemption was granted from applying for the exemption based on
the subsequent service connected disability rating.
(e-10) Notwithstanding any other provision of law, each

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chief county assessment officer may approve this exemption for
the 2021 taxable year, without application, for any property
that was approved for this exemption for the 2020 taxable
year, if:
(1) the county board has declared a local disaster as
provided in the Illinois Emergency Management Agency Act
related to the COVID-19 public health emergency;
(2) the owner of record of the property as of January
1, 2021 is the same as the owner of record of the property
as of January 1, 2020;
(3) the exemption for the 2020 taxable year has not
been determined to be an erroneous exemption as defined by
this Code; and
(4) the taxpayer for the 2020 taxable year has not
asked for the exemption to be removed for the 2020 or 2021
taxable years.
Nothing in this subsection shall preclude a veteran whose
service connected disability rating has changed since the 2020
exemption was granted from applying for the exemption based on
the subsequent service connected disability rating.
(f) For the purposes of this Section:
"Qualified residence" means, before tax year 2023, real
property, but less any portion of that property that is used
for commercial purposes, with an equalized assessed value of
less than $250,000 that is the primary residence of a veteran
with a disability. "Qualified residence" means, for tax year

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2023 and thereafter, real property, but less any portion of
that property that is used for commercial purposes, that is
the primary residence of a veteran with a disability. Property
rented for more than 6 months is presumed to be used for
commercial purposes.
"Service-connected disability" means an illness or injury
(i) that was caused by or worsened by active military service,
(ii) that is a current disability as of the date of the
application for the exemption under this Section for the
applicable tax year, as demonstrated by the veteran's United
States Department of Veterans Affairs certification, and (iii)
for which the veteran receives disability compensation.
For tax years 2022 and prior, "veteran" "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 and who has received an honorable
discharge. For taxable years 2023 and thereafter, "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 and who has a
service-connected disability, as certified by the United
States Department of Veterans Affairs, and receives disability
compensation.
(Source: P.A. 102-136, eff. 7-23-21; 102-895, eff. 5-23-22;

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103-154, eff. 6-30-23.)