Bill Text: IL HB5096 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Provides that, in the case of a veteran with a disability who dies on or after the effective date of the amendatory Act, the exemption for veterans with a disability carries over to the benefit of a surviving immediate family member of the veteran if: (i) the immediate family member resided with the veteran and served as the veteran's caregiver immediately prior to the veteran's death; (ii) the veteran designated the immediate family member as the veteran's caregiver; and (iii) the immediate family member continues to use the residence as his or her primary residence.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB5096 Detail]

Download: Illinois-2023-HB5096-Introduced.html

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5096

Introduced , by Rep. Harry Benton

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-169

Amends the Property Tax Code. Provides that, in the case of a veteran with a disability who dies on or after the effective date of the amendatory Act, the exemption for veterans with a disability carries over to the benefit of a surviving immediate family member of the veteran if: (i) the immediate family member resided with the veteran and served as the veteran's caregiver immediately prior to the veteran's death; (ii) the veteran designated the immediate family member as the veteran's caregiver; and (iii) the immediate family member continues to use the residence as his or her primary residence.
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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,
3represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5Section 15-169 as follows:
6 (35 ILCS 200/15-169)
7 Sec. 15-169. Homestead exemption for veterans with
8disabilities.
9 (a) Beginning with taxable year 2007, an annual homestead
10exemption, limited to the amounts set forth in subsections (b)
11and (b-3), is granted for property that is used as a qualified
12residence by a veteran with a disability.
13 (b) For taxable years prior to 2015, the amount of the
14exemption 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
26Section and the person awarded the exemption subsequently

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1becomes a resident of a facility licensed under the Nursing
2Home Care Act or a facility operated by the United States
3Department of Veterans Affairs, then the exemption shall
4continue (i) so long as the residence continues to be occupied
5by the qualifying person's spouse or (ii) if the residence
6remains unoccupied but is still owned by the person who
7qualified for the homestead exemption.
8 (c) The tax exemption under this Section carries over to
9the benefit of the veteran's surviving spouse as long as the
10spouse holds the legal or beneficial title to the homestead,
11permanently resides thereon, and does not remarry. If the
12surviving spouse sells the property, an exemption not to
13exceed the amount granted from the most recent ad valorem tax
14roll may be transferred to his or her new residence as long as
15it is used as his or her primary residence and he or she does
16not remarry. In the case of a veteran with a disability who
17dies on or after the effective date of this amendatory Act of
18the 103rd General Assembly, the tax exemption under this
19Section also carries over to the benefit of a surviving
20immediate family member of the veteran if: (i) the immediate
21family member resided with the veteran and served as the
22veteran's caregiver immediately prior to the veteran's death;
23(ii) the veteran designated the immediate family member as the
24veteran's caregiver on the application for an exemption under
25this Section filed for the most recent taxable year to occur
26before the veteran's death; and (iii) the immediate family

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1member continues to use the residence as his or her primary
2residence.
3 As used in this subsection (c):
4 (1) for taxable years prior to 2015, "surviving
5 spouse" means the surviving spouse of a veteran who
6 obtained an exemption under this Section prior to his or
7 her death;
8 (2) for taxable years 2015 through 2022, "surviving
9 spouse" means (i) the surviving spouse of a veteran who
10 obtained an exemption under this Section prior to his or
11 her death and (ii) the surviving spouse of a veteran who
12 was killed in the line of duty at any time prior to the
13 expiration of the application period in effect for the
14 exemption for the taxable year for which the exemption is
15 sought; and
16 (3) for taxable year 2023 and thereafter, "surviving
17 spouse" means: (i) the surviving spouse of a veteran who
18 obtained the exemption under this Section prior to his or
19 her death; (ii) the surviving spouse of a veteran who was
20 killed in the line of duty at any time prior to the
21 expiration of the application period in effect for the
22 exemption for the taxable year for which the exemption is
23 sought; (iii) the surviving spouse of a veteran who did
24 not obtain an exemption under this Section before death,
25 but who would have qualified for the exemption under this
26 Section in the taxable year for which the exemption is

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1 sought if he or she had survived, and whose surviving
2 spouse has been a resident of Illinois from the time of the
3 veteran's death through the taxable year for which the
4 exemption is sought; and (iv) the surviving spouse of a
5 veteran whose death was determined to be
6 service-connected, but who would not otherwise qualify
7 under item (i), (ii), or (iii), if the spouse (A) is
8 certified by the United States Department of Veterans
9 Affairs as a recipient of dependency and indemnity
10 compensation under federal law at any time prior to the
11 expiration of the application period in effect for the
12 exemption for the taxable year for which the exemption is
13 sought and (B) remains eligible for that dependency and
14 indemnity compensation as of January 1 of the taxable year
15 for which the exemption is sought.
16 "Immediate family member" means the parent, sibling, or
17child or the veteran with a disability.
18 (c-1) Beginning with taxable year 2015, nothing in this
19Section shall require the veteran to have qualified for or
20obtained the exemption before death if the veteran was killed
21in the line of duty.
22 (d) The exemption under this Section applies for taxable
23year 2007 and thereafter. A taxpayer who claims an exemption
24under Section 15-165 or 15-168 may not claim an exemption
25under this Section.
26 (e) Except as otherwise provided in this subsection (e),

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1each taxpayer who has been granted an exemption under this
2Section must reapply on an annual basis. Application must be
3made during the application period in effect for the county of
4his or her residence. The assessor or chief county assessment
5officer may determine the eligibility of residential property
6to receive the homestead exemption provided by this Section by
7application, visual inspection, questionnaire, or other
8reasonable methods. The determination must be made in
9accordance with guidelines established by the Department.
10 On and after May 23, 2022 (the effective date of Public Act
11102-895), if a veteran has a combined service connected
12disability rating of 100% and is deemed to be permanently and
13totally disabled, as certified by the United States Department
14of Veterans Affairs, the taxpayer who has been granted an
15exemption under this Section shall no longer be required to
16reapply for the exemption on an annual basis, and the
17exemption shall be in effect for as long as the exemption would
18otherwise be permitted under this Section.
19 (e-1) If the person qualifying for the exemption does not
20occupy the qualified residence as of January 1 of the taxable
21year, the exemption granted under this Section shall be
22prorated on a monthly basis. The prorated exemption shall
23apply beginning with the first complete month in which the
24person occupies the qualified residence.
25 (e-5) Notwithstanding any other provision of law, each
26chief county assessment officer may approve this exemption for

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1the 2020 taxable year, without application, for any property
2that was approved for this exemption for the 2019 taxable
3year, provided that:
4 (1) the county board has declared a local disaster as
5 provided in the Illinois Emergency Management Agency Act
6 related to the COVID-19 public health emergency;
7 (2) the owner of record of the property as of January
8 1, 2020 is the same as the owner of record of the property
9 as of January 1, 2019;
10 (3) the exemption for the 2019 taxable year has not
11 been determined to be an erroneous exemption as defined by
12 this Code; and
13 (4) the applicant for the 2019 taxable year has not
14 asked for the exemption to be removed for the 2019 or 2020
15 taxable years.
16 Nothing in this subsection shall preclude a veteran whose
17service connected disability rating has changed since the 2019
18exemption was granted from applying for the exemption based on
19the subsequent service connected disability rating.
20 (e-10) Notwithstanding any other provision of law, each
21chief county assessment officer may approve this exemption for
22the 2021 taxable year, without application, for any property
23that was approved for this exemption for the 2020 taxable
24year, if:
25 (1) the county board has declared a local disaster as
26 provided in the Illinois Emergency Management Agency Act

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1 related to the COVID-19 public health emergency;
2 (2) the owner of record of the property as of January
3 1, 2021 is the same as the owner of record of the property
4 as of January 1, 2020;
5 (3) the exemption for the 2020 taxable year has not
6 been determined to be an erroneous exemption as defined by
7 this Code; and
8 (4) the taxpayer for the 2020 taxable year has not
9 asked for the exemption to be removed for the 2020 or 2021
10 taxable years.
11 Nothing in this subsection shall preclude a veteran whose
12service connected disability rating has changed since the 2020
13exemption was granted from applying for the exemption based on
14the subsequent service connected disability rating.
15 (f) For the purposes of this Section:
16 "Qualified residence" means real property, but less any
17portion of that property that is used for commercial purposes,
18with an equalized assessed value of less than $250,000 that is
19the primary residence of a veteran with a disability. Property
20rented for more than 6 months is presumed to be used for
21commercial purposes.
22 "Veteran" means an Illinois resident who has served as a
23member of the United States Armed Forces on active duty or
24State active duty, a member of the Illinois National Guard, or
25a member of the United States Reserve Forces and who has
26received an honorable discharge.

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