Bill Text: IL HB2918 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue shall reimburse eligible taxing districts for revenue loss associated with providing homestead exemptions for veterans with disabilities. Specifies that a taxing district is eligible for reimbursement if application of the homestead exemptions for veterans with disabilities results in reduction in the total equalized assessed value of all taxable property in the taxing district in which the taxing district is located of more than 2.5% for the taxable year that is 2 years before the start of the State fiscal year in which the application for reimbursement is made and the taxing district is located in whole or in part in a county that contains a United States military base. Provides that the aggregate amount of reimbursements for all taxing districts in any calendar year may not exceed $30,000,000. Sets forth the amount of the reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2918 Detail]

Download: Illinois-2023-HB2918-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2918 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
20 ILCS 2505/2505-810 new
Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue shall reimburse eligible taxing districts for revenue loss associated with providing homestead exemptions for veterans with disabilities. Specifies that a taxing district is eligible for reimbursement if application of the homestead exemptions for veterans with disabilities results in reduction in the total equalized assessed value of all taxable property in the taxing district in which the taxing district is located of more than 2.5% for the taxable year that is 2 years before the start of the State fiscal year in which the application for reimbursement is made and the taxing district is located in whole or in part in a county that contains a United States military base. Provides that the aggregate amount of reimbursements for all taxing districts in any calendar year may not exceed $30,000,000. Sets forth the amount of the reimbursement. Effective immediately.
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A BILL FOR
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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 Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by adding Section
2505-810 as follows:
(20 ILCS 2505/2505-810 new)
Sec. 2505-810. Veterans Property Tax Relief Reimbursement
Pilot Program.
(a) Subject to appropriation, for State fiscal years that
begin on or after July 1, 2023 and before July 1, 2028, the
Department shall establish and administer a Veterans Property
Tax Relief Reimbursement Pilot Program. For purposes of the
Program, the Department shall reimburse eligible taxing
districts, in an amount calculated under subsection (c), for
revenue loss associated with providing homestead exemptions to
veterans with disabilities. A taxing district is eligible for
reimbursement under this Section if (i) application of the
homestead exemptions for veterans with disabilities under
Sections 15-165 and 15-169 of the Property Tax Code results in
a cumulative reduction of more than 2.5% in the total
equalized assessed value of all taxable property in the taxing
district, when compared with the total equalized assessed

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value of all taxable property in the taxing district prior to
the application of those exemptions, for the taxable year that
is 2 years before the start of the State fiscal year in which
the application for reimbursement is made and (ii) the taxing
district is located in whole or in part in a county that
contains a United States military base. Reimbursement payments
shall be made to the county that applies to the Department of
Revenue on behalf of the taxing district under subsection (b)
and shall be distributed by the county to the taxing district
as directed by the Department of Revenue.
(b) If the county clerk determines that one or more taxing
districts located in whole or in part in the county qualify for
reimbursement under this Section, then the county clerk shall
apply to the Department of Revenue on behalf of the taxing
district for reimbursement under this Section in the form and
manner required by the Department. The county clerk shall
consolidate applications submitted on behalf of more than one
taxing district into a single application. The Department of
Revenue may audit the information submitted by the county
clerk as part of the application under this Section for the
purpose of verifying the accuracy of that information.
(c) Subject to the maximum aggregate reimbursement amount
set forth in this subsection, the amount of the reimbursement
shall be as follows:
(1) for reimbursements awarded for the fiscal year
that begins on July 1, 2023, 50% of the difference

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between: (1) 97.5% of the amount of property tax revenue
that would have been required to be collected and
distributed to the taxing district for taxable year 2021
if the homestead exemptions for veterans with disabilities
under Sections 15-165 and 15-169 of the Property Tax Code
had not been applied; and (2) the amount of property tax
revenue that was required to be collected and distributed
to the taxing district for taxable year 2021 after the
application of those exemptions; and
(2) for reimbursements awarded for fiscal years that
begin on or after July 1, 2024 and before July 1, 2028,
100% of the difference between: (1) 97.5% of the amount of
property tax revenue that would have been required to be
collected and distributed to the taxing district for the
taxable year that falls 2 years before the start of the
State fiscal year if the homestead exemptions for veterans
with disabilities under Sections 15-165 and 15-169 of the
Property Tax Code had not been applied; and (2) the amount
of property tax revenue that was required to be collected
and distributed to the taxing district for that taxable
year.
The aggregate amount of reimbursements that may be awarded
under this Section for all taxing districts in any calendar
year may not exceed $30,000,000. If the total amount of
eligible reimbursements under this Section exceeds $30,000,000
in any calendar year, then the reimbursement amount awarded to

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each particular taxing district shall be reduced on a pro rata
basis until the aggregate amount of reimbursements awarded
under this Section for the calendar year does not exceed
$30,000,000.
(d) The Department of Revenue may adopt rules necessary
for the implementation of this Section.
(e) As used in this Section:
"Taxable year" means the calendar year during which
property taxes payable in the next succeeding year are levied.
"Taxing district" has the meaning given to that term in
Section 1-150 of the Property Tax Code.