Bill Text: IL SB2317 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Provides that property that has been granted the homestead exemption for veterans with disabilities is 100% exempt from taxation under the Code if the veteran has a service connected disability of 60% or more (currently, 70%). Effective immediately.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB2317 Detail]
Download: Illinois-2023-SB2317-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 | |||||||||||||||||||
11 | (b) , and (b-3), and (b-4) is granted for property that is used | |||||||||||||||||||
12 | as a qualified 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 through 2023 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-4) For taxable years 2024 and thereafter: | ||||||
26 | (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 60%, as certified by the | ||||||
6 | United States Department of Veterans Affairs, then the | ||||||
7 | annual exemption is $5,000; | ||||||
8 | (3) if the veteran has a service connected disability | ||||||
9 | of 60% or more, as certified by the United States | ||||||
10 | Department of Veterans Affairs, then the property is | ||||||
11 | exempt from taxation under this Code; and | ||||||
12 | (4) if the taxpayer is the surviving spouse of a | ||||||
13 | veteran whose death was determined to be service-connected | ||||||
14 | and who is certified by the United States Department of | ||||||
15 | Veterans Affairs as a recipient of dependency and | ||||||
16 | indemnity compensation under federal law, then the | ||||||
17 | property is also exempt from taxation under this Code. | ||||||
18 | (b-5) If a homestead exemption is granted under this | ||||||
19 | Section and the person awarded the exemption subsequently | ||||||
20 | becomes a resident of a facility licensed under the Nursing | ||||||
21 | Home Care Act or a facility operated by the United States | ||||||
22 | Department of Veterans Affairs, then the exemption shall | ||||||
23 | continue (i) so long as the residence continues to be occupied | ||||||
24 | by the qualifying person's spouse or (ii) if the residence | ||||||
25 | remains unoccupied but is still owned by the person who | ||||||
26 | qualified for the homestead exemption. |
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1 | (c) The tax exemption under this Section carries over to | ||||||
2 | the benefit of the veteran's
surviving spouse as long as the | ||||||
3 | spouse holds the legal or
beneficial title to the homestead, | ||||||
4 | permanently resides
thereon, and does not remarry. If the | ||||||
5 | surviving spouse sells
the property, an exemption not to | ||||||
6 | exceed the amount granted
from the most recent ad valorem tax | ||||||
7 | roll may be transferred to
his or her new residence as long as | ||||||
8 | it is used as his or her
primary residence and he or she does | ||||||
9 | not remarry. | ||||||
10 | As used in this subsection (c): | ||||||
11 | (1) for taxable years prior to 2015, "surviving | ||||||
12 | spouse" means the surviving spouse of a veteran who | ||||||
13 | obtained an exemption under this Section prior to his or | ||||||
14 | her death; | ||||||
15 | (2) for taxable years 2015 through 2022, "surviving | ||||||
16 | spouse" means (i) the surviving spouse of a veteran who | ||||||
17 | obtained an exemption under this Section prior to his or | ||||||
18 | her death and (ii) the surviving spouse of a veteran who | ||||||
19 | was killed in the line of duty at any time prior to the | ||||||
20 | expiration of the application period in effect for the | ||||||
21 | exemption for the taxable year for which the exemption is | ||||||
22 | sought; and | ||||||
23 | (3) for taxable year 2023 and thereafter, "surviving | ||||||
24 | spouse" means: (i) the surviving spouse of a veteran who | ||||||
25 | obtained the exemption under this Section prior to his or | ||||||
26 | her death; (ii) the surviving spouse of a veteran who was |
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1 | killed in the line of duty at any time prior to the | ||||||
2 | expiration of the application period in effect for the | ||||||
3 | exemption for the taxable year for which the exemption is | ||||||
4 | sought; (iii) the surviving spouse of a veteran who did | ||||||
5 | not obtain an exemption under this Section before death, | ||||||
6 | but who would have qualified for the exemption under this | ||||||
7 | Section in the taxable year for which the exemption is | ||||||
8 | sought if he or she had survived, and whose surviving | ||||||
9 | spouse has been a resident of Illinois from the time of the | ||||||
10 | veteran's death through the taxable year for which the | ||||||
11 | exemption is sought; and (iv) the surviving spouse of a | ||||||
12 | veteran whose death was determined to be | ||||||
13 | service-connected, but who would not otherwise qualify | ||||||
14 | under item items (i), (ii), or (iii), if the spouse (A) is | ||||||
15 | certified by the United States Department of Veterans | ||||||
16 | Affairs as a recipient of dependency and indemnity | ||||||
17 | compensation under federal law at any time prior to the | ||||||
18 | expiration of the application period in effect for the | ||||||
19 | exemption for the taxable year for which the exemption is | ||||||
20 | sought and (B) remains eligible for that dependency and | ||||||
21 | indemnity compensation as of January 1 of the taxable year | ||||||
22 | for which the exemption is sought. | ||||||
23 | (c-1) Beginning with taxable year 2015, nothing in this | ||||||
24 | Section shall require the veteran to have qualified for or | ||||||
25 | obtained the exemption before death if the veteran was killed | ||||||
26 | in the line of duty. |
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1 | (d) The exemption under this Section applies for taxable | ||||||
2 | year 2007 and thereafter. A taxpayer who claims an exemption | ||||||
3 | under Section 15-165 or 15-168 may not claim an exemption | ||||||
4 | under this Section. | ||||||
5 | (e) Except as otherwise provided in this subsection (e), | ||||||
6 | each taxpayer who has been granted an exemption under this | ||||||
7 | Section must reapply on an annual basis. Application must be | ||||||
8 | made during the application period
in effect for the county of | ||||||
9 | his or her residence. The assessor
or chief county assessment | ||||||
10 | officer may determine the
eligibility of residential property | ||||||
11 | to receive the homestead
exemption provided by this Section by | ||||||
12 | application, visual
inspection, questionnaire, or other | ||||||
13 | reasonable methods. The
determination must be made in | ||||||
14 | accordance with guidelines
established by the Department. | ||||||
15 | On and after May 23, 2022 ( the effective date of Public Act | ||||||
16 | 102-895) this amendatory Act of the 102nd General Assembly , if | ||||||
17 | a veteran has a combined service connected disability rating | ||||||
18 | of 100% and is deemed to be permanently and totally disabled, | ||||||
19 | as certified by the United States Department of Veterans | ||||||
20 | Affairs, the taxpayer who has been granted an exemption under | ||||||
21 | this Section shall no longer be required to reapply for the | ||||||
22 | exemption on an annual basis, and the exemption shall be in | ||||||
23 | effect for as long as the exemption would otherwise be | ||||||
24 | permitted under this Section. | ||||||
25 | (e-1) If the person qualifying for the exemption does not | ||||||
26 | occupy the qualified residence as of January 1 of the taxable |
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1 | year, the exemption granted under this Section shall be | ||||||
2 | prorated on a monthly basis. The prorated exemption shall | ||||||
3 | apply beginning with the first complete month in which the | ||||||
4 | person occupies the qualified residence. | ||||||
5 | (e-5) Notwithstanding any other provision of law, each | ||||||
6 | chief county assessment officer may approve this exemption for | ||||||
7 | the 2020 taxable year, without application, for any property | ||||||
8 | that was approved for this exemption for the 2019 taxable | ||||||
9 | year, provided that: | ||||||
10 | (1) the county board has declared a local disaster as | ||||||
11 | provided in the Illinois Emergency Management Agency Act | ||||||
12 | related to the COVID-19 public health emergency; | ||||||
13 | (2) the owner of record of the property as of January | ||||||
14 | 1, 2020 is the same as the owner of record of the property | ||||||
15 | as of January 1, 2019; | ||||||
16 | (3) the exemption for the 2019 taxable year has not | ||||||
17 | been determined to be an erroneous exemption as defined by | ||||||
18 | this Code; and | ||||||
19 | (4) the applicant for the 2019 taxable year has not | ||||||
20 | asked for the exemption to be removed for the 2019 or 2020 | ||||||
21 | taxable years. | ||||||
22 | Nothing in this subsection shall preclude a veteran whose | ||||||
23 | service connected disability rating has changed since the 2019 | ||||||
24 | exemption was granted from applying for the exemption based on | ||||||
25 | the subsequent service connected disability rating. | ||||||
26 | (e-10) Notwithstanding any other provision of law, each |
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1 | chief county assessment officer may approve this exemption for | ||||||
2 | the 2021 taxable year, without application, for any property | ||||||
3 | that was approved for this exemption for the 2020 taxable | ||||||
4 | year, if: | ||||||
5 | (1) the county board has declared a local disaster as | ||||||
6 | provided in the Illinois Emergency Management Agency Act | ||||||
7 | related to the COVID-19 public health emergency; | ||||||
8 | (2) the owner of record of the property as of January | ||||||
9 | 1, 2021 is the same as the owner of record of the property | ||||||
10 | as of January 1, 2020; | ||||||
11 | (3) the exemption for the 2020 taxable year has not | ||||||
12 | been determined to be an erroneous exemption as defined by | ||||||
13 | this Code; and | ||||||
14 | (4) the taxpayer for the 2020 taxable year has not | ||||||
15 | asked for the exemption to be removed for the 2020 or 2021 | ||||||
16 | taxable years. | ||||||
17 | Nothing in this subsection shall preclude a veteran whose | ||||||
18 | service connected disability rating has changed since the 2020 | ||||||
19 | exemption was granted from applying for the exemption based on | ||||||
20 | the subsequent service connected disability rating. | ||||||
21 | (f) For the purposes of this Section: | ||||||
22 | "Qualified residence" means real
property, but less any | ||||||
23 | portion of that property that is used for
commercial purposes, | ||||||
24 | with an equalized assessed value of less than $250,000 that is | ||||||
25 | the primary residence of a veteran with a disability. Property | ||||||
26 | rented for more than 6 months is
presumed to be used for |
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1 | commercial purposes. | ||||||
2 | "Veteran" means an Illinois resident who has served as a
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3 | member of the United States Armed Forces on active duty or
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4 | State active duty, a member of the Illinois National Guard, or
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5 | a member of the United States Reserve Forces and who has | ||||||
6 | received an honorable discharge. | ||||||
7 | (Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21; | ||||||
8 | 102-895, eff. 5-23-22; revised 9-6-22.)
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9 | Section 99. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
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