Bill Text: IL HB1789 | 2017-2018 | 100th General Assembly | Introduced

---

Bill Title: Amends the Property Tax Code. Provides that disabled veterans need not annually seek certification from the Illinois Department of Veterans' Affairs in order to continue receiving the exemption for veterans with disabilities. Makes conforming changes to the Mobile Home Local Services Tax Act. Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Failed) 2019-01-08 - Session Sine Die [HB1789 Detail]

Download: Illinois-2017-HB1789-Introduced.html

---

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB1789 Introduced , by Rep. Terri Bryant SYNOPSIS AS INTRODUCED:
35 ILCS 515/7.5
35 ILCS 200/15-165
35 ILCS 200/15-169
Amends the Property Tax Code. Provides that disabled veterans need not annually seed certification from the Illinois Department of Veterans' Affairs in order to continue receiving the exemption for veterans with disabilities. Makes conforming changes to the Mobile Home Local Services Tax Act. Effective immediately.
LRB100 08278 HLH 18380 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB1789 LRB100 08278 HLH 18380 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Mobile Home Local Services Tax Act is
amended by changing Section 7.5 as follows:
(35 ILCS 515/7.5)
Sec. 7.5. Exemption for veterans with disabilities.
(a) Beginning on January 1, 2004, a mobile home owned and
used exclusively by a veteran with a disability or the spouse
or unmarried surviving spouse of the veteran as a home, is
exempt from the tax imposed under this Act.
Beginning with the 2015 tax year, the exemption also
applies to housing that is specifically constructed or adapted
to suit a qualifying veteran's disability if the housing or
adaptations are donated by a charitable organization, the
veteran has been approved to receive funds for the purchase or
construction of Specially Adapted Housing under Title 38,
Chapter 21, Section 2101 of the United States Code, and the
home has been inspected and certified by a licensed home
inspector to be in compliance with applicable standards set
forth in U.S. Department of Veterans Affairs, Veterans Benefits
Administration Pamphlet 26-13 Handbook for Design of Specially
Adapted Housing.

HB1789 - 2 - LRB100 08278 HLH 18380 b
(b) As used in this Section:
"Veteran with a disability" means a person who has served
in the armed forces of the United States and whose disability
is of such a nature that the federal government has authorized
payment for purchase or construction of specially adapted
housing as set forth in the United States Code, Title 38,
Chapter 21, Section 2101.
For purposes of this Section, "charitable organization"
means any benevolent, philanthropic, patriotic, or
eleemosynary entity that solicits and collects funds for
charitable purposes and includes each local, county, or area
division of that charitable organization.
"Unmarried surviving spouse" means the surviving spouse of
the veteran at any time after the death of the veteran during
which the surviving spouse is not married.
(c) Beginning with taxable year 2017, eligibility
Eligibility for this exemption must be reestablished on an
annual basis by certification from the Illinois Department of
Veterans' Affairs to the county clerk of the county in which
the exempt mobile home is located, except as provided in
subsection (d). The county clerk shall forward a copy of the
certification to local assessing officials, except as provided
in subsection (d).
(d) Beginning taxable year 2017, a taxpayer who has
received the same protected evaluation rating and level of
disability for 20 or more years by the U.S. Department of

HB1789 - 3 - LRB100 08278 HLH 18380 b
Veterans' Affairs need not annually seek certification from the
Illinois Department of Veterans' Affairs for the exemption
provided under this Section. In such a case, the taxpayer shall
automatically be certified each year by the Department and a
copy of this certification shall be forwarded to local
assessing officials by the county clerk.
(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
Section 10. The Property Tax Code is amended by changing
Sections 15-165 and 15-169 as follows:
(35 ILCS 200/15-165)
Sec. 15-165. Veterans with disabilities. Property up to an
assessed value of $100,000, owned and used exclusively by a
veteran with a disability, or the spouse or unmarried surviving
spouse of the veteran, as a home, is exempt. As used in this
Section, a "veteran with a disability" means a person who has
served in the Armed Forces of the United States and whose
disability is of such a nature that the Federal Government has
authorized payment for purchase or construction of Specially
Adapted Housing as set forth in the United States Code, Title
38, Chapter 21, Section 2101.
The exemption applies to housing where Federal funds have
been used to purchase or construct special adaptations to suit
the veteran's disability.
The exemption also applies to housing that is specially

HB1789 - 4 - LRB100 08278 HLH 18380 b
adapted to suit the veteran's disability, and purchased
entirely or in part by the proceeds of a sale, casualty loss
reimbursement, or other transfer of a home for which the
Federal Government had previously authorized payment for
purchase or construction as Specially Adapted Housing.
However, the entire proceeds of the sale, casualty loss
reimbursement, or other transfer of that housing shall be
applied to the acquisition of subsequent specially adapted
housing to the extent that the proceeds equal the purchase
price of the subsequently acquired housing.
Beginning with the 2015 tax year, the exemption also
applies to housing that is specifically constructed or adapted
to suit a qualifying veteran's disability if the housing or
adaptations are donated by a charitable organization, the
veteran has been approved to receive funds for the purchase or
construction of Specially Adapted Housing under Title 38,
Chapter 21, Section 2101 of the United States Code, and the
home has been inspected and certified by a licensed home
inspector to be in compliance with applicable standards set
forth in U.S. Department of Veterans Affairs, Veterans Benefits
Administration Pamphlet 26-13 Handbook for Design of Specially
Adapted Housing.
For purposes of this Section, "charitable organization"
means any benevolent, philanthropic, patriotic, or
eleemosynary entity that solicits and collects funds for
charitable purposes and includes each local, county, or area

HB1789 - 5 - LRB100 08278 HLH 18380 b
division of that charitable organization.
For purposes of this Section, "unmarried surviving spouse"
means the surviving spouse of the veteran at any time after the
death of the veteran during which such surviving spouse is not
married.
Beginning with taxable year 2017, this This exemption must
be reestablished on an annual basis by certification from the
Illinois Department of Veterans' Affairs to the Department,
which shall forward a copy of the certification to local
assessing officials, except as otherwise provided in this
paragraph. Beginning taxable year 2017, a taxpayer who has
received the same protected evaluation rating and level of
disability for 20 or more years by the U.S. Department of
Veterans' Affairs need not annually seek certification from the
Illinois Department of Veterans' Affairs for the exemption
provided under this Section; in such a case, the taxpayer shall
automatically be certified each year by the Department and a
copy of this certification shall be forwarded to local
assessing officials.
A taxpayer who claims an exemption under Section 15-168 or
15-169 may not claim an exemption under this Section.
(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
(35 ILCS 200/15-169)
Sec. 15-169. Homestead exemption for veterans with
disabilities.

HB1789 - 6 - LRB100 08278 HLH 18380 b
(a) Beginning with taxable year 2007, an annual homestead
exemption, limited 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.
(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 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 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

HB1789 - 7 - LRB100 08278 HLH 18380 b
United States Department of Veterans Affairs, then the
annual exemption is $5,000; and
(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.
(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
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.
(c-1) Beginning with taxable year 2015, nothing in this
Section shall require the veteran to have qualified for or

HB1789 - 8 - LRB100 08278 HLH 18380 b
obtained the exemption before death if the veteran was killed
in the line of duty.
(d) The exemption under this Section applies for taxable
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) Beginning with taxable year 2017, each Each taxpayer
who has been granted an exemption under this Section must
reapply on an annual basis, except as otherwise provided in
subsection (e-1). 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.
(e-1) Beginning taxable year 2017, a taxpayer who has
received the same protected evaluation rating and level of
disability for 20 or more years by the U.S. Department of
Veterans' Affairs must not reapply for the exemption annually,
but instead be automatically granted the exemption provided
under this Section each year.
(f) For the purposes of this Section:
"Qualified residence" means real property, but less any
portion of that property that is used for commercial purposes,

HB1789 - 9 - LRB100 08278 HLH 18380 b
with an equalized assessed value of less than $250,000 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.
"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.
(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
99-375, eff. 8-17-15; 99-642, eff. 7-28-16.)
Section 99. Effective date. This Act takes effect upon
becoming law.