101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2950

 

Introduced , by Rep. David A. Welter

 

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 shall be prorated if the property is first used as a qualified residence by a veteran with a disability after January 1 of a taxable year; and (2) makes changes to the definition of "surviving spouse" to include the surviving spouse of a veteran who did not obtain an exemption before death, but who applied for a service-connected disability certification from the United States Department of Veterans Affairs or the United States Department of Defense no earlier than January 1, 2007 and would have qualified for the exemption under this Section in the current taxable year if he or she had survived. 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 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 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 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; and
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 exempt
17    from taxation under this Code.
18    (b-5) If a homestead exemption is granted under this
19Section and the person awarded the exemption subsequently
20becomes a resident of a facility licensed under the Nursing
21Home Care Act or a facility operated by the United States
22Department of Veterans Affairs, then the exemption shall
23continue (i) so long as the residence continues to be occupied
24by the qualifying person's spouse or (ii) if the residence
25remains unoccupied but is still owned by the person who
26qualified for the homestead exemption.

 

 

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1    (c) The tax exemption under this Section carries over to
2the benefit of the veteran's surviving spouse as long as the
3spouse holds the legal or beneficial title to the homestead,
4permanently resides thereon, and does not remarry. If the
5surviving spouse sells the property, an exemption not to exceed
6the amount granted from the most recent ad valorem tax roll may
7be transferred to his or her new residence as long as it is
8used as his or her primary residence and he or she does not
9remarry.
10    As used in this subsection (c):
11        (1) for taxable years prior to 2015, "surviving spouse"
12    means the surviving spouse of a veteran who obtained an
13    exemption under this Section prior to his or her death;
14        (2) for taxable years 2015 through 2018, "surviving
15    spouse" means (i) the surviving spouse of a veteran who
16    obtained an exemption under this Section prior to his or
17    her death or (ii) the surviving spouse of a veteran who was
18    killed in the line of duty; and
19        (3) for taxable year 2019 and thereafter, "surviving
20    spouse" means (i) the surviving spouse of a veteran who
21    qualified for the exemption under this Section prior to his
22    or her death, (ii) the surviving spouse of a veteran who
23    was killed in the line of duty, or (iii) the surviving
24    spouse of a veteran who did not obtain an exemption under
25    this Section before death, but who applied for a
26    service-connected disability certification from the United

 

 

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1    States Department of Veterans Affairs or the United States
2    Department of Defense no earlier than January 1, 2007 and
3    would have qualified for the exemption under this Section
4    in the current taxable year if he or she had survived.
5    (c-1) Beginning with taxable year 2015, nothing in this
6Section shall require the veteran to have qualified for or
7obtained the exemption before death if the veteran was killed
8in the line of duty.
9    (d) The exemption under this Section applies for taxable
10year 2007 and thereafter. A taxpayer who claims an exemption
11under Section 15-165 or 15-168 may not claim an exemption under
12this Section.
13    (e) Each taxpayer who has been granted an exemption under
14this Section must reapply on an annual basis. Application must
15be made during the application period in effect for the county
16of his or her residence. The assessor or chief county
17assessment officer may determine the eligibility of
18residential property to receive the homestead exemption
19provided by this Section by application, visual inspection,
20questionnaire, or other reasonable methods. The determination
21must be made in accordance with guidelines established by the
22Department.
23    (e-1) If the person qualifying for the exemption does not
24occupy the qualified residence as of January 1 of the taxable
25year, the exemption granted under this Section shall be
26prorated on a monthly basis. The prorated exemption shall apply

 

 

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1beginning with the first complete month in which the person
2occupies the qualified residence.
3    (e-5) If the property is first used as a qualified
4residence by a veteran with a disability after January 1 of a
5taxable year, the exemption under this Section shall be
6prorated for that taxable year.
7    (f) For the purposes of this Section:
8    "Qualified residence" means real property, but less any
9portion of that property that is used for commercial purposes,
10with an equalized assessed value of less than $250,000 that is
11the primary residence of a veteran with a disability. Property
12rented for more than 6 months is presumed to be used for
13commercial purposes.
14    "Veteran" means an Illinois resident who has served as a
15member of the United States Armed Forces on active duty or
16State active duty, a member of the Illinois National Guard, or
17a member of the United States Reserve Forces and who has
18received an honorable discharge.
19(Source: P.A. 99-143, eff. 7-27-15; 99-375, eff. 8-17-15;
2099-642, eff. 7-28-16; 100-869, eff. 8-14-18.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.