Bill Text: IL SB0871 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Property Tax Code. Makes the following changes with respect to the homestead exemption for veterans with disabilities: (1) provides that the exemption amount shall not be deducted from the property's equalized assessed value, but shall be an abatement from the property's total property tax liability for the taxable year; (2) provides that, if the veteran is a recipient of the Congressional Medal of Honor or is a former prisoner of war, then the property is exempt from taxation; (3) provides that the veteran is not required to have qualified for or obtained the exemption before death if the veteran was killed in the line of duty and the death is found to be service-connected; (4) makes changes concerning reapplication; and (5) provides that, if the veteran has a service-connected disability of 70% or more and the property has an equalized assessed value of $100,000 or more, then the amount of the exemption is $5,000 (currently, the property is exempt). Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced) 2017-05-05 - Rule 3-9(a) / Re-referred to Assignments [SB0871 Detail]

Download: Illinois-2017-SB0871-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0871

Introduced 2/7/2017, by Sen. Kyle McCarter

SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-169

Amends the Property Tax Code. Makes the following changes with respect to the homestead exemption for veterans with disabilities: (1) provides that the exemption amount shall not be deducted from the property's equalized assessed value, but shall be an abatement from the property's total property tax liability for the taxable year; (2) provides that, if the veteran is a recipient of the Congressional Medal of Honor or is a former prisoner of war, then the property is exempt from taxation; (3) provides that the veteran is not required to have qualified for or obtained the exemption before death if the veteran was killed in the line of duty and the death is found to be service-connected; (4) makes changes concerning reapplication; and (5) provides that, if the veteran has a service-connected disability of 70% or more and the property has an equalized assessed value of $100,000 or more, then the amount of the exemption is $5,000 (currently, the property is exempt). Effective immediately.
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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

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 qualified veterans
8with disabilities.
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 qualified 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 years
17 2007 through 2009 and (ii) 70% for exemptions granted in
18 taxable year 2010 and each taxable year thereafter, as
19 certified by the United States Department of Veterans
20 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% for

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1 exemptions granted in taxable year 2010 and each taxable
2 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 service
7 connected disability of 30% or more but less than 50%, as
8 certified by the United States Department of Veterans
9 Affairs, then the annual exemption is $2,500;
10 (2) if the veteran has a service-connected service
11 connected disability of 50% or more but less than 70%, as
12 certified by the United States Department of Veterans
13 Affairs, then the annual exemption is $5,000; and
14 (2-5) beginning in taxable year 2017, if the veteran
15 has a service-connected disability of 70% or more, as
16 certified by the United States Department of Veterans
17 Affairs, and if that veteran's property has an equalized
18 assessed value of $100,000 or more, then the annual
19 exemption is $5,000;
20 (3) if the veteran has a service-connected service
21 connected disability of 70% or more, as certified by the
22 United States Department of Veterans Affairs, and,
23 beginning in taxable year 2017, that veteran's property has
24 an equalized assessed value of less than $100,000, then the
25 property is exempt from taxation under this Code; and .
26 (4) for taxable year 2017 and thereafter, if the

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1 veteran is a recipient of the Congressional Medal of Honor
2 or is a former prisoner of war, then the property is exempt
3 from taxation under this Code regardless of whether or not
4 the veteran has a service-connected disability.
5 For taxable years prior to 2017, the exemption is a
6reduction from the property's value, as equalized or assessed
7by the Department. For taxable year 2017 and thereafter, the
8exemption amount shall not be deducted from the property's
9value, as equalized or assessed by the Department, but shall be
10an abatement from the property's total property tax liability
11for the taxable year. In no event shall an exemption under this
12Section reduce the tax liability attributable to the property
13to less than zero.
14 (b-5) If a homestead exemption is granted under this
15Section and the person awarded the exemption subsequently
16becomes a resident of a facility licensed under the Nursing
17Home Care Act or a facility operated by the United States
18Department of Veterans Affairs, then the exemption shall
19continue (i) so long as the residence continues to be occupied
20by the qualifying person's spouse or (ii) if the residence
21remains unoccupied but is still owned by the person who
22qualified for the homestead exemption.
23 (c) The tax exemption eligibility under this Section
24carries over to the benefit of the veteran's surviving spouse
25as long as the spouse holds the legal or beneficial title to
26the homestead, permanently resides thereon, and does not

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1remarry. If the surviving spouse sells the property, an
2exemption not to exceed the amount granted from the most recent
3ad valorem tax roll may be transferred to his or her new
4residence as long as it is used as his or her primary residence
5and he or she does not remarry.
6 (c-1) Beginning with taxable year 2015, nothing in this
7Section shall require the veteran to have qualified for or
8obtained the exemption before death if the veteran was killed
9in the line of duty and the death is found to be
10service-connected.
11 (d) The exemption under this Section applies for taxable
12year 2007 and thereafter. A taxpayer who claims an exemption
13under Section 15-165 or 15-168 may not claim an exemption under
14this Section.
15 (e) Each taxpayer who has been granted an exemption under
16this Section must reapply on an annual basis unless the veteran
17has been found by the Department of Veterans' Affairs to be
18permanently and totally disabled. Application must be made
19during the application period in effect for the county of his
20or her residence. The assessor or chief county assessment
21officer may determine the eligibility of residential property
22to receive the homestead exemption provided by this Section by
23application, visual inspection, questionnaire, or other
24reasonable methods. The determination must be made in
25accordance with guidelines established by the Department.
26 (f) For the purposes of this Section:

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1 "Qualified residence" means real property, but less any
2portion of that property that is used for commercial purposes,
3with an equalized assessed value of less than $250,000 that is
4the primary residence of a qualified veteran for 31 or more
5days of the tax year with a disability. Property rented for
6more than 6 months is presumed to be used for commercial
7purposes.
8 "Qualified veteran" means a veteran who (i) for taxable
9years prior to 2017, meets the service-connected disability
10requirements set forth in subsection (b) or (b-3) for the
11applicable taxable year and (ii) for taxable year 2017 and
12thereafter, meets the service connected-disability
13requirements set forth in subsection (b-3) or is a recipient of
14the Congressional Medal of Honor or a former prisoner of war.
15 "Veteran" means an Illinois resident who has served as a
16member of the United States Armed Forces on active duty or
17State active duty, a member of the Illinois National Guard, or
18a member of the United States Reserve Forces and who has
19received an honorable discharge.
20(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
2199-375, eff. 8-17-15; 99-642, eff. 7-28-16.)
22 Section 99. Effective date. This Act takes effect upon
23becoming law.
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