Bill Text: IL HB3013 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Provides that the maximum equalized assessed valuation for the homestead exemption for veterans with disabilities shall be adjusted each year by the cumulative percentage increase or decrease reported in the All-Transactions House Price Index for Illinois. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2023-02-16 - Referred to Rules Committee [HB3013 Detail]
Download: Illinois-2023-HB3013-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | |||||||||||||||||||
5 | Section 15-169 as follows:
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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, the taxpayer who has been granted an exemption under | ||||||
2 | this Section shall no longer be required to reapply for the | ||||||
3 | exemption on an annual basis, and the exemption shall be in | ||||||
4 | effect for as long as the exemption would otherwise be | ||||||
5 | permitted under this Section. | ||||||
6 | (e-1) If the person qualifying for the exemption does not | ||||||
7 | occupy the qualified residence as of January 1 of the taxable | ||||||
8 | year, the exemption granted under this Section shall be | ||||||
9 | prorated on a monthly basis. The prorated exemption shall | ||||||
10 | apply beginning with the first complete month in which the | ||||||
11 | person occupies the qualified residence. | ||||||
12 | (e-5) Notwithstanding any other provision of law, each | ||||||
13 | chief county assessment officer may approve this exemption for | ||||||
14 | the 2020 taxable year, without application, for any property | ||||||
15 | that was approved for this exemption for the 2019 taxable | ||||||
16 | year, provided that: | ||||||
17 | (1) the county board has declared a local disaster as | ||||||
18 | provided in the Illinois Emergency Management Agency Act | ||||||
19 | related to the COVID-19 public health emergency; | ||||||
20 | (2) the owner of record of the property as of January | ||||||
21 | 1, 2020 is the same as the owner of record of the property | ||||||
22 | as of January 1, 2019; | ||||||
23 | (3) the exemption for the 2019 taxable year has not | ||||||
24 | been determined to be an erroneous exemption as defined by | ||||||
25 | this Code; and | ||||||
26 | (4) the applicant for the 2019 taxable year has not |
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1 | asked for the exemption to be removed for the 2019 or 2020 | ||||||
2 | taxable years. | ||||||
3 | Nothing in this subsection shall preclude a veteran whose | ||||||
4 | service connected disability rating has changed since the 2019 | ||||||
5 | exemption was granted from applying for the exemption based on | ||||||
6 | the subsequent service connected disability rating. | ||||||
7 | (e-10) Notwithstanding any other provision of law, each | ||||||
8 | chief county assessment officer may approve this exemption for | ||||||
9 | the 2021 taxable year, without application, for any property | ||||||
10 | that was approved for this exemption for the 2020 taxable | ||||||
11 | year, if: | ||||||
12 | (1) the county board has declared a local disaster as | ||||||
13 | provided in the Illinois Emergency Management Agency Act | ||||||
14 | related to the COVID-19 public health emergency; | ||||||
15 | (2) the owner of record of the property as of January | ||||||
16 | 1, 2021 is the same as the owner of record of the property | ||||||
17 | as of January 1, 2020; | ||||||
18 | (3) the exemption for the 2020 taxable year has not | ||||||
19 | been determined to be an erroneous exemption as defined by | ||||||
20 | this Code; and | ||||||
21 | (4) the taxpayer for the 2020 taxable year has not | ||||||
22 | asked for the exemption to be removed for the 2020 or 2021 | ||||||
23 | taxable years. | ||||||
24 | Nothing in this subsection shall preclude a veteran whose | ||||||
25 | service connected disability rating has changed since the 2020 | ||||||
26 | exemption was granted from applying for the exemption based on |
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1 | the subsequent service connected disability rating. | ||||||
2 | (f) For the purposes of this Section: | ||||||
3 | "Maximum equalized assessed value" means (i) for taxable | ||||||
4 | years prior to the 2023 taxable year, $250,000 and (ii) for | ||||||
5 | taxable year 2023 and thereafter, the maximum equalized | ||||||
6 | assessed value for the immediately preceding taxable year, | ||||||
7 | adjusted by the cumulative percentage increase or decrease | ||||||
8 | reported in the All-Transactions House Price Index for | ||||||
9 | Illinois, published quarterly by the Federal Reserve Bank of | ||||||
10 | St. Louis, using the 4 most recent quarters of data that are | ||||||
11 | published before the first day of the taxable year for which | ||||||
12 | the maximum equalized assessed value is calculated, and | ||||||
13 | rounded to the nearest $100. | ||||||
14 | "Qualified residence" means real
property, but less any | ||||||
15 | portion of that property that is used for
commercial purposes, | ||||||
16 | with an equalized assessed value of less than the maximum | ||||||
17 | equalized assessed value $250,000 that is the primary | ||||||
18 | residence of a veteran with a disability. Property rented for | ||||||
19 | more than 6 months is
presumed to be used for commercial | ||||||
20 | purposes. | ||||||
21 | "Veteran" means an Illinois resident who has served as a
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22 | member of the United States Armed Forces on active duty or
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23 | State active duty, a member of the Illinois National Guard, or
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24 | a member of the United States Reserve Forces and who has | ||||||
25 | received an honorable discharge. | ||||||
26 | (Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21; |
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1 | 102-895, eff. 5-23-22; revised 9-6-22.)
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
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