Illinois-2023-HB1154-Introduced

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1154

Introduced , by Rep. Norine K. Hammond

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-169

Amends the Property Tax Code. Provides that the surviving spouse of a veteran who has a service connected disability of 100% and is deemed to be permanently and totally disabled need not reapply for the homestead exemption for veterans with disabilities. 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 Section 15-169 as follows:

6 (35 ILCS 200/15-169)

7 Sec. 15-169. Homestead exemption for veterans with

8 disabilities.

9 (a) Beginning with taxable year 2007, an annual homestead

10 exemption, limited to the amounts set forth in subsections (b)

11 and (b-3), is granted for property that is used as a qualified

12 residence by a veteran with a disability.

13 (b) For taxable years prior to 2015, the amount of the

14 exemption 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

26 Section and the person awarded the exemption subsequently

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1 becomes a resident of a facility licensed under the Nursing

2 Home Care Act or a facility operated by the United States

3 Department of Veterans Affairs, then the exemption shall

4 continue (i) so long as the residence continues to be occupied

5 by the qualifying person's spouse or (ii) if the residence

6 remains unoccupied but is still owned by the person who

7 qualified for the homestead exemption.

8 (c) The tax exemption under this Section carries over to

9 the benefit of the veteran's surviving spouse as long as the

10 spouse holds the legal or beneficial title to the homestead,

11 permanently resides thereon, and does not remarry. If the

12 surviving spouse sells the property, an exemption not to

13 exceed the amount granted from the most recent ad valorem tax

14 roll may be transferred to his or her new residence as long as

15 it is used as his or her primary residence and he or she does

16 not 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 ~~items~~ (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

5 Section shall require the veteran to have qualified for or

6 obtained the exemption before death if the veteran was killed

7 in the line of duty.

8 (d) The exemption under this Section applies for taxable

9 year 2007 and thereafter. A taxpayer who claims an exemption

10 under Section 15-165 or 15-168 may not claim an exemption

11 under this Section.

12 (e) Except as otherwise provided in this subsection (e),

13 each taxpayer who has been granted an exemption under this

14 Section must reapply on an annual basis. Application must be

15 made during the application period in effect for the county of

16 his or her residence. The assessor or chief county assessment

17 officer may determine the eligibility of residential property

18 to receive the homestead exemption provided by this Section by

19 application, visual inspection, questionnaire, or other

20 reasonable methods. The determination must be made in

21 accordance with guidelines established by the Department.

22 On and after May 23, 2022 (the effective date of Public Act

23 102-895) ~~this amendatory Act of the 102nd General Assembly~~, if

24 a veteran has a combined service connected disability rating

25 of 100% and is deemed to be permanently and totally disabled,

26 as certified by the United States Department of Veterans

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1 Affairs, then that veteran, or that veteran's surviving

2 spouse, ~~the taxpayer who has been granted an exemption under~~

3 ~~this Section~~ shall no longer be required to reapply for the

4 exemption on an annual basis, and the exemption shall be in

5 effect for as long as the exemption would otherwise be

6 permitted under this Section.

7 (e-1) If the person qualifying for the exemption does not

8 occupy the qualified residence as of January 1 of the taxable

9 year, the exemption granted under this Section shall be

10 prorated on a monthly basis. The prorated exemption shall

11 apply beginning with the first complete month in which the

12 person occupies the qualified residence.

13 (e-5) Notwithstanding any other provision of law, each

14 chief county assessment officer may approve this exemption for

15 the 2020 taxable year, without application, for any property

16 that was approved for this exemption for the 2019 taxable

17 year, provided that:

18 (1) the county board has declared a local disaster as

19 provided in the Illinois Emergency Management Agency Act

20 related to the COVID-19 public health emergency;

21 (2) the owner of record of the property as of January

22 1, 2020 is the same as the owner of record of the property

23 as of January 1, 2019;

24 (3) the exemption for the 2019 taxable year has not

25 been determined to be an erroneous exemption as defined by

26 this Code; and

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1 (4) the applicant for the 2019 taxable year has not

2 asked for the exemption to be removed for the 2019 or 2020

3 taxable years.

4 Nothing in this subsection shall preclude a veteran whose

5 service connected disability rating has changed since the 2019

6 exemption was granted from applying for the exemption based on

7 the subsequent service connected disability rating.

8 (e-10) Notwithstanding any other provision of law, each

9 chief county assessment officer may approve this exemption for

10 the 2021 taxable year, without application, for any property

11 that was approved for this exemption for the 2020 taxable

12 year, if:

13 (1) the county board has declared a local disaster as

14 provided in the Illinois Emergency Management Agency Act

15 related to the COVID-19 public health emergency;

16 (2) the owner of record of the property as of January

17 1, 2021 is the same as the owner of record of the property

18 as of January 1, 2020;

19 (3) the exemption for the 2020 taxable year has not

20 been determined to be an erroneous exemption as defined by

21 this Code; and

22 (4) the taxpayer for the 2020 taxable year has not

23 asked for the exemption to be removed for the 2020 or 2021

24 taxable years.

25 Nothing in this subsection shall preclude a veteran whose

26 service connected disability rating has changed since the 2020

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1 exemption was granted from applying for the exemption based on

2 the subsequent service connected disability rating.

3 (f) For the purposes of this Section:

4 "Qualified residence" means real property, but less any

5 portion of that property that is used for commercial purposes,

6 with an equalized assessed value of less than $250,000 that is

7 the primary residence of a veteran with a disability. Property

8 rented for more than 6 months is presumed to be used for

9 commercial purposes.

10 "Veteran" means an Illinois resident who has served as a

11 member of the United States Armed Forces on active duty or

12 State active duty, a member of the Illinois National Guard, or

13 a member of the United States Reserve Forces and who has

14 received an honorable discharge.

15 (Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;

16 102-895, eff. 5-23-22; revised 9-6-22.)

17 Section 99. Effective date. This Act takes effect upon

18 becoming law.