100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB1789

 

Introduced , by Rep. Terri Bryant

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 515/7.5
35 ILCS 200/15-165
35 ILCS 200/15-169

    Amends the Property Tax Code. Provides that disabled veterans need not annually seed certification from the Illinois Department of Veterans' Affairs in order to continue receiving the exemption for veterans with disabilities. Makes conforming changes to the Mobile Home Local Services Tax Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1789LRB100 08278 HLH 18380 b

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 Mobile Home Local Services Tax Act is
5amended by changing Section 7.5 as follows:
 
6    (35 ILCS 515/7.5)
7    Sec. 7.5. Exemption for veterans with disabilities.
8    (a) Beginning on January 1, 2004, a mobile home owned and
9used exclusively by a veteran with a disability or the spouse
10or unmarried surviving spouse of the veteran as a home, is
11exempt from the tax imposed under this Act.
12    Beginning with the 2015 tax year, the exemption also
13applies to housing that is specifically constructed or adapted
14to suit a qualifying veteran's disability if the housing or
15adaptations are donated by a charitable organization, the
16veteran has been approved to receive funds for the purchase or
17construction of Specially Adapted Housing under Title 38,
18Chapter 21, Section 2101 of the United States Code, and the
19home has been inspected and certified by a licensed home
20inspector to be in compliance with applicable standards set
21forth in U.S. Department of Veterans Affairs, Veterans Benefits
22Administration Pamphlet 26-13 Handbook for Design of Specially
23Adapted Housing.

 

 

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1    (b) As used in this Section:
2    "Veteran with a disability" means a person who has served
3in the armed forces of the United States and whose disability
4is of such a nature that the federal government has authorized
5payment for purchase or construction of specially adapted
6housing as set forth in the United States Code, Title 38,
7Chapter 21, Section 2101.
8    For purposes of this Section, "charitable organization"
9means any benevolent, philanthropic, patriotic, or
10eleemosynary entity that solicits and collects funds for
11charitable purposes and includes each local, county, or area
12division of that charitable organization.
13    "Unmarried surviving spouse" means the surviving spouse of
14the veteran at any time after the death of the veteran during
15which the surviving spouse is not married.
16    (c) Beginning with taxable year 2017, eligibility
17Eligibility for this exemption must be reestablished on an
18annual basis by certification from the Illinois Department of
19Veterans' Affairs to the county clerk of the county in which
20the exempt mobile home is located, except as provided in
21subsection (d). The county clerk shall forward a copy of the
22certification to local assessing officials, except as provided
23in subsection (d).
24    (d) Beginning taxable year 2017, a taxpayer who has
25received the same protected evaluation rating and level of
26disability for 20 or more years by the U.S. Department of

 

 

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1Veterans' Affairs need not annually seek certification from the
2Illinois Department of Veterans' Affairs for the exemption
3provided under this Section. In such a case, the taxpayer shall
4automatically be certified each year by the Department and a
5copy of this certification shall be forwarded to local
6assessing officials by the county clerk.
7(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
 
8    Section 10. The Property Tax Code is amended by changing
9Sections 15-165 and 15-169 as follows:
 
10    (35 ILCS 200/15-165)
11    Sec. 15-165. Veterans with disabilities. Property up to an
12assessed value of $100,000, owned and used exclusively by a
13veteran with a disability, or the spouse or unmarried surviving
14spouse of the veteran, as a home, is exempt. As used in this
15Section, a "veteran with a disability" means a person who has
16served in the Armed Forces of the United States and whose
17disability is of such a nature that the Federal Government has
18authorized payment for purchase or construction of Specially
19Adapted Housing as set forth in the United States Code, Title
2038, Chapter 21, Section 2101.
21    The exemption applies to housing where Federal funds have
22been used to purchase or construct special adaptations to suit
23the veteran's disability.
24    The exemption also applies to housing that is specially

 

 

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1adapted to suit the veteran's disability, and purchased
2entirely or in part by the proceeds of a sale, casualty loss
3reimbursement, or other transfer of a home for which the
4Federal Government had previously authorized payment for
5purchase or construction as Specially Adapted Housing.
6    However, the entire proceeds of the sale, casualty loss
7reimbursement, or other transfer of that housing shall be
8applied to the acquisition of subsequent specially adapted
9housing to the extent that the proceeds equal the purchase
10price of the subsequently acquired housing.
11    Beginning with the 2015 tax year, the exemption also
12applies to housing that is specifically constructed or adapted
13to suit a qualifying veteran's disability if the housing or
14adaptations are donated by a charitable organization, the
15veteran has been approved to receive funds for the purchase or
16construction of Specially Adapted Housing under Title 38,
17Chapter 21, Section 2101 of the United States Code, and the
18home has been inspected and certified by a licensed home
19inspector to be in compliance with applicable standards set
20forth in U.S. Department of Veterans Affairs, Veterans Benefits
21Administration Pamphlet 26-13 Handbook for Design of Specially
22Adapted Housing.
23    For purposes of this Section, "charitable organization"
24means any benevolent, philanthropic, patriotic, or
25eleemosynary entity that solicits and collects funds for
26charitable purposes and includes each local, county, or area

 

 

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1division of that charitable organization.
2    For purposes of this Section, "unmarried surviving spouse"
3means the surviving spouse of the veteran at any time after the
4death of the veteran during which such surviving spouse is not
5married.
6    Beginning with taxable year 2017, this This exemption must
7be reestablished on an annual basis by certification from the
8Illinois Department of Veterans' Affairs to the Department,
9which shall forward a copy of the certification to local
10assessing officials, except as otherwise provided in this
11paragraph. Beginning taxable year 2017, a taxpayer who has
12received the same protected evaluation rating and level of
13disability for 20 or more years by the U.S. Department of
14Veterans' Affairs need not annually seek certification from the
15Illinois Department of Veterans' Affairs for the exemption
16provided under this Section; in such a case, the taxpayer shall
17automatically be certified each year by the Department and a
18copy of this certification shall be forwarded to local
19assessing officials.
20    A taxpayer who claims an exemption under Section 15-168 or
2115-169 may not claim an exemption under this Section.
22(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
 
23    (35 ILCS 200/15-169)
24    Sec. 15-169. Homestead exemption for veterans with
25disabilities.

 

 

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1    (a) Beginning with taxable year 2007, an annual homestead
2exemption, limited to the amounts set forth in subsections (b)
3and (b-3), is granted for property that is used as a qualified
4residence by a veteran with a disability.
5    (b) For taxable years prior to 2015, the amount of the
6exemption under this Section is as follows:
7        (1) for veterans with a service-connected disability
8    of at least (i) 75% for exemptions granted in taxable years
9    2007 through 2009 and (ii) 70% for exemptions granted in
10    taxable year 2010 and each taxable year thereafter, as
11    certified by the United States Department of Veterans
12    Affairs, the annual exemption is $5,000; and
13        (2) for veterans with a service-connected disability
14    of at least 50%, but less than (i) 75% for exemptions
15    granted in taxable years 2007 through 2009 and (ii) 70% for
16    exemptions granted in taxable year 2010 and each taxable
17    year thereafter, as certified by the United States
18    Department of Veterans Affairs, the annual exemption is
19    $2,500.
20    (b-3) For taxable years 2015 and thereafter:
21        (1) if the veteran has a service connected disability
22    of 30% or more but less than 50%, as certified by the
23    United States Department of Veterans Affairs, then the
24    annual exemption is $2,500;
25        (2) if the veteran has a service connected disability
26    of 50% or more but less than 70%, as certified by the

 

 

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1    United States Department of Veterans Affairs, then the
2    annual exemption is $5,000; and
3        (3) if the veteran has a service connected disability
4    of 70% or more, as certified by the United States
5    Department of Veterans Affairs, then the property is exempt
6    from taxation under this Code.
7    (b-5) If a homestead exemption is granted under this
8Section and the person awarded the exemption subsequently
9becomes a resident of a facility licensed under the Nursing
10Home Care Act or a facility operated by the United States
11Department of Veterans Affairs, then the exemption shall
12continue (i) so long as the residence continues to be occupied
13by the qualifying person's spouse or (ii) if the residence
14remains unoccupied but is still owned by the person who
15qualified for the homestead exemption.
16    (c) The tax exemption under this Section carries over to
17the benefit of the veteran's surviving spouse as long as the
18spouse holds the legal or beneficial title to the homestead,
19permanently resides thereon, and does not remarry. If the
20surviving spouse sells the property, an exemption not to exceed
21the amount granted from the most recent ad valorem tax roll may
22be transferred to his or her new residence as long as it is
23used as his or her primary residence and he or she does not
24remarry.
25    (c-1) Beginning with taxable year 2015, nothing in this
26Section shall require the veteran to have qualified for or

 

 

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1obtained the exemption before death if the veteran was killed
2in the line of duty.
3    (d) The exemption under this Section applies for taxable
4year 2007 and thereafter. A taxpayer who claims an exemption
5under Section 15-165 or 15-168 may not claim an exemption under
6this Section.
7    (e) Beginning with taxable year 2017, each Each taxpayer
8who has been granted an exemption under this Section must
9reapply on an annual basis, except as otherwise provided in
10subsection (e-1). Application must be made during the
11application period in effect for the county of his or her
12residence. The assessor or chief county assessment officer may
13determine the eligibility of residential property to receive
14the homestead exemption provided by this Section by
15application, visual inspection, questionnaire, or other
16reasonable methods. The determination must be made in
17accordance with guidelines established by the Department.
18    (e-1) Beginning taxable year 2017, a taxpayer who has
19received the same protected evaluation rating and level of
20disability for 20 or more years by the U.S. Department of
21Veterans' Affairs must not reapply for the exemption annually,
22but instead be automatically granted the exemption provided
23under this Section each year.
24    (f) For the purposes of this Section:
25    "Qualified residence" means real property, but less any
26portion of that property that is used for commercial purposes,

 

 

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1with an equalized assessed value of less than $250,000 that is
2the primary residence of a veteran with a disability. Property
3rented for more than 6 months is presumed to be used for
4commercial purposes.
5    "Veteran" means an Illinois resident who has served as a
6member of the United States Armed Forces on active duty or
7State active duty, a member of the Illinois National Guard, or
8a member of the United States Reserve Forces and who has
9received an honorable discharge.
10(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15;
1199-375, eff. 8-17-15; 99-642, eff. 7-28-16.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.