Bill Text: IL HB2666 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Creates a veterans' standard homestead exemption. Provides that the exemption applies only for the first taxable year after the veteran acquires an ownership interest in the property. Provides that the amount of the exemption is a reduction from the property's equalized assessed value in the amount of: (1) $5,000 if the property has an equalized assessed value of $250,000 or less; or (2) $10,000 if the property has an equalized assessed value of more than $250,000. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced) 2017-03-31 - House Committee Amendment No. 1 Rule 19(a) / Re-referred to Rules Committee [HB2666 Detail]

Download: Illinois-2017-HB2666-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2666

Introduced , by Rep. Rita Mayfield

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-166 new
35 ILCS 200/15-167
35 ILCS 200/15-169

Amends the Property Tax Code. Creates a veterans' standard homestead exemption. Provides that the exemption applies only for the first taxable year after the veteran acquires an ownership interest in the property. Provides that the amount of the exemption is a reduction from the property's equalized assessed value in the amount of: (1) $5,000 if the property has an equalized assessed value of $250,000 or less; or (2) $10,000 if the property has an equalized assessed value of more than $250,000. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB2666LRB100 08461 HLH 18579 b
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
5Sections 15-167 and 15-169 and by adding Section 15-166 as
6follows:
7 (35 ILCS 200/15-166 new)
8 Sec. 15-166. Veterans' Standard Homestead Exemption.
9 (a) Beginning with taxable year 2017, a homestead
10exemption, as provided in subsection (b), is granted for
11property that is owned and occupied as the principal residence
12of a veteran. The exemption under this Section applies only for
13the first taxable year after the veteran acquires an ownership
14interest in the property. As of January 1 of the taxable year
15for which the exemption is granted, the veteran must be an
16owner of record of the property or have a legal or equitable
17interest therein as evidenced by a written instrument, except
18for a leasehold interest, other than a leasehold interest of
19land on which a single family residence is located, which is
20occupied as the principal residence of a veteran who (i) has an
21ownership interest therein, legal, equitable or as a lessee,
22and (ii) is liable for the payment of property taxes.
23 (b) The amount of the exemption is a reduction from the

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1property's equalized assessed value in the amount of:
2 (1) $5,000 if the property has an equalized assessed
3 value of $250,000 or less; or
4 (2) $10,000 if the property has an equalized assessed
5 value of more than $250,000.
6 (c) Application for the exemption granted under this
7Section must be made during the application period in effect
8for the county of residence. The assessor or chief county
9assessment officer may determine the eligibility of
10residential property to receive the homestead exemption
11provided by this Section by application, visual inspection,
12questionnaire, or other reasonable methods. The determination
13must be made in accordance with guidelines established by the
14Department.
15 (d) A taxpayer who claims an exemption under Section
1615-165, 15-167, 15-168, or 15-169 may not claim an exemption
17under this Section.
18 (e) For land improved with (i) an apartment building owned
19and operated as a cooperative or (ii) a life care facility as
20defined under Section 2 of the Life Care Facilities Act that is
21considered to be a cooperative, the maximum reduction from the
22value of the property, as equalized or assessed by the
23Department, shall be multiplied by the number of apartments or
24units occupied by a veteran who qualifies for an exemption
25under this Section. If a homestead exemption is granted under
26this Section, the cooperative association or management firm

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1shall credit the savings resulting from the exemption to the
2apportioned tax liability of the veteran. The chief county
3assessment officer may request reasonable proof that the
4association or firm has properly credited the exemption. A
5person who willfully refuses to credit an exemption as required
6under this subsection (e) is guilty of a Class B misdemeanor.
7 (f) For purposes of the exemption under this Section,
8"veteran" means an Illinois resident who has served as a member
9of the United States Armed Forces, a member of the Illinois
10National Guard, or a member of the United States Reserve
11Forces.
12 (35 ILCS 200/15-167)
13 Sec. 15-167. Returning Veterans' Homestead Exemption.
14 (a) Beginning with taxable year 2007, a homestead
15exemption, limited to a reduction set forth under subsection
16(b), from the property's value, as equalized or assessed by the
17Department, is granted for property that is owned and occupied
18as the principal residence of a veteran returning from an armed
19conflict involving the armed forces of the United States who is
20liable for paying real estate taxes on the property and is an
21owner of record of the property or has a legal or equitable
22interest therein as evidenced by a written instrument, except
23for a leasehold interest, other than a leasehold interest of
24land on which a single family residence is located, which is
25occupied as the principal residence of a veteran returning from

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1an armed conflict involving the armed forces of the United
2States who has an ownership interest therein, legal, equitable
3or as a lessee, and on which he or she is liable for the payment
4of property taxes. For purposes of the exemption under this
5Section, "veteran" means an Illinois resident who has served as
6a member of the United States Armed Forces, a member of the
7Illinois National Guard, or a member of the United States
8Reserve Forces.
9 (b) In all counties, the reduction is $5,000 for the
10taxable year in which the veteran returns from active duty in
11an armed conflict involving the armed forces of the United
12States; however, if the veteran first acquires his or her
13principal residence during the taxable year in which he or she
14returns, but after January 1 of that year, and if the property
15is owned and occupied by the veteran as a principal residence
16on January 1 of the next taxable year, he or she may apply the
17exemption for the next taxable year, and only the next taxable
18year, after he or she returns. Beginning in taxable year 2010,
19the reduction shall also be allowed for the taxable year after
20the taxable year in which the veteran returns from active duty
21in an armed conflict involving the armed forces of the United
22States. For land improved with an apartment building owned and
23operated as a cooperative, the maximum reduction from the value
24of the property, as equalized by the Department, must be
25multiplied by the number of apartments or units occupied by a
26veteran returning from an armed conflict involving the armed

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1forces of the United States who is liable, by contract with the
2owner or owners of record, for paying property taxes on the
3property and is an owner of record of a legal or equitable
4interest in the cooperative apartment building, other than a
5leasehold interest. In a cooperative where a homestead
6exemption has been granted, the cooperative association or the
7management firm of the cooperative or facility shall credit the
8savings resulting from that exemption only to the apportioned
9tax liability of the owner or resident who qualified for the
10exemption. Any person who willfully refuses to so credit the
11savings is guilty of a Class B misdemeanor.
12 (c) Application must be made during the application period
13in effect for the county of his or her residence. The assessor
14or chief county assessment officer may determine the
15eligibility of residential property to receive the homestead
16exemption provided by this Section by application, visual
17inspection, questionnaire, or other reasonable methods. The
18determination must be made in accordance with guidelines
19established by the Department.
20 (d) Except as provided in subsection (d) of Section 15-166,
21the The exemption under this Section is in addition to any
22other homestead exemption provided in this Article 15.
23Notwithstanding Sections 6 and 8 of the State Mandates Act, no
24reimbursement by the State is required for the implementation
25of any mandate created by this Section.
26(Source: P.A. 96-1288, eff. 7-26-10; 96-1418, eff. 8-2-10;

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197-333, eff. 8-12-11.)
2 (35 ILCS 200/15-169)
3 Sec. 15-169. Homestead exemption for veterans with
4disabilities.
5 (a) Beginning with taxable year 2007, an annual homestead
6exemption, limited to the amounts set forth in subsections (b)
7and (b-3), is granted for property that is used as a qualified
8residence by a veteran with a disability.
9 (b) For taxable years prior to 2015, the amount of the
10exemption under this Section is as follows:
11 (1) for veterans with a service-connected disability
12 of at least (i) 75% for exemptions granted in taxable years
13 2007 through 2009 and (ii) 70% for exemptions granted in
14 taxable year 2010 and each taxable year thereafter, as
15 certified by the United States Department of Veterans
16 Affairs, the annual exemption is $5,000; and
17 (2) for veterans with a service-connected disability
18 of at least 50%, but less than (i) 75% for exemptions
19 granted in taxable years 2007 through 2009 and (ii) 70% for
20 exemptions granted in taxable year 2010 and each taxable
21 year thereafter, as certified by the United States
22 Department of Veterans Affairs, the annual exemption is
23 $2,500.
24 (b-3) For taxable years 2015 and thereafter:
25 (1) if the veteran has a service connected disability

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1 of 30% or more but less than 50%, as certified by the
2 United States Department of Veterans Affairs, then the
3 annual exemption is $2,500;
4 (2) if the veteran has a service connected disability
5 of 50% or more but less than 70%, as certified by the
6 United States Department of Veterans Affairs, then the
7 annual exemption is $5,000; and
8 (3) if the veteran has a service connected disability
9 of 70% or more, as certified by the United States
10 Department of Veterans Affairs, then the property is exempt
11 from taxation under this Code.
12 (b-5) If a homestead exemption is granted under this
13Section and the person awarded the exemption subsequently
14becomes a resident of a facility licensed under the Nursing
15Home Care Act or a facility operated by the United States
16Department of Veterans Affairs, then the exemption shall
17continue (i) so long as the residence continues to be occupied
18by the qualifying person's spouse or (ii) if the residence
19remains unoccupied but is still owned by the person who
20qualified for the homestead exemption.
21 (c) The tax exemption under this Section carries over to
22the benefit of the veteran's surviving spouse as long as the
23spouse holds the legal or beneficial title to the homestead,
24permanently resides thereon, and does not remarry. If the
25surviving spouse sells the property, an exemption not to exceed
26the amount granted from the most recent ad valorem tax roll may

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1be transferred to his or her new residence as long as it is
2used as his or her primary residence and he or she does not
3remarry.
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, 15-166, or 15-168 may not claim an
11exemption under this Section.
12 (e) Each taxpayer who has been granted an exemption under
13this Section must reapply on an annual basis. Application must
14be made during the application period in effect for the county
15of his or her residence. The assessor or chief county
16assessment officer may determine the eligibility of
17residential property to receive the homestead exemption
18provided by this Section by application, visual inspection,
19questionnaire, or other reasonable methods. The determination
20must be made in accordance with guidelines established by the
21Department.
22 (f) For the purposes of this Section:
23 "Qualified residence" means real property, but less any
24portion of that property that is used for commercial purposes,
25with an equalized assessed value of less than $250,000 that is
26the primary residence of a veteran with a disability. Property

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1rented for more than 6 months is presumed to be used for
2commercial purposes.
3 "Veteran" means an Illinois resident who has served as a
4member of the United States Armed Forces on active duty or
5State active duty, a member of the Illinois National Guard, or
6a member of the United States Reserve Forces and who has
7received an honorable discharge.
8(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
999-375, eff. 8-17-15; 99-642, eff. 7-28-16.)
10 Section 99. Effective date. This Act takes effect upon
11becoming law.
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