103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0220

 

Introduced 1/31/2023, by Sen. David Koehler

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-169

    Amends the Property Tax Code. Provides that the portion of the property that is used by a business that is certified by the United States Small Business Administration as a Service-Disabled Veteran-Owned Small Business (SDVOSB) is not considered to be used for commercial purposes for the purposes of the homestead exemption for veterans with disabilities. Effective immediately.


LRB103 25776 HLH 52125 b

 

 

A BILL FOR

 

SB0220LRB103 25776 HLH 52125 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 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%

 

 

SB0220- 2 -LRB103 25776 HLH 52125 b

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

 

 

SB0220- 3 -LRB103 25776 HLH 52125 b

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.
17    As used in this subsection (c):
18        (1) for taxable years prior to 2015, "surviving
19    spouse" means the surviving spouse of a veteran who
20    obtained an exemption under this Section prior to his or
21    her death;
22        (2) for taxable years 2015 through 2022, "surviving
23    spouse" means (i) the surviving spouse of a veteran who
24    obtained an exemption under this Section prior to his or
25    her death and (ii) the surviving spouse of a veteran who
26    was killed in the line of duty at any time prior to the

 

 

SB0220- 4 -LRB103 25776 HLH 52125 b

1    expiration of the application period in effect for the
2    exemption for the taxable year for which the exemption is
3    sought; and
4        (3) for taxable year 2023 and thereafter, "surviving
5    spouse" means: (i) the surviving spouse of a veteran who
6    obtained the exemption under this Section prior to his or
7    her death; (ii) the surviving spouse of a veteran who was
8    killed in the line of duty at any time prior to the
9    expiration of the application period in effect for the
10    exemption for the taxable year for which the exemption is
11    sought; (iii) the surviving spouse of a veteran who did
12    not obtain an exemption under this Section before death,
13    but who would have qualified for the exemption under this
14    Section in the taxable year for which the exemption is
15    sought if he or she had survived, and whose surviving
16    spouse has been a resident of Illinois from the time of the
17    veteran's death through the taxable year for which the
18    exemption is sought; and (iv) the surviving spouse of a
19    veteran whose death was determined to be
20    service-connected, but who would not otherwise qualify
21    under item items (i), (ii), or (iii), if the spouse (A) is
22    certified by the United States Department of Veterans
23    Affairs as a recipient of dependency and indemnity
24    compensation under federal law at any time prior to the
25    expiration of the application period in effect for the
26    exemption for the taxable year for which the exemption is

 

 

SB0220- 5 -LRB103 25776 HLH 52125 b

1    sought and (B) remains eligible for that dependency and
2    indemnity compensation as of January 1 of the taxable year
3    for which the exemption is sought.
4    (c-1) Beginning with taxable year 2015, nothing in this
5Section shall require the veteran to have qualified for or
6obtained the exemption before death if the veteran was killed
7in the line of duty.
8    (d) The exemption under this Section applies for taxable
9year 2007 and thereafter. A taxpayer who claims an exemption
10under Section 15-165 or 15-168 may not claim an exemption
11under this Section.
12    (e) Except as otherwise provided in this subsection (e),
13each taxpayer who has been granted an exemption under this
14Section must reapply on an annual basis. Application must be
15made during the application period in effect for the county of
16his or her residence. The assessor or chief county assessment
17officer may determine the eligibility of residential property
18to receive the homestead exemption provided by this Section by
19application, visual inspection, questionnaire, or other
20reasonable methods. The determination must be made in
21accordance with guidelines established by the Department.
22    On and after May 23, 2022 (the effective date of Public Act
23102-895) this amendatory Act of the 102nd General Assembly, if
24a veteran has a combined service connected disability rating
25of 100% and is deemed to be permanently and totally disabled,
26as certified by the United States Department of Veterans

 

 

SB0220- 6 -LRB103 25776 HLH 52125 b

1Affairs, the taxpayer who has been granted an exemption under
2this Section shall no longer be required to reapply for the
3exemption on an annual basis, and the exemption shall be in
4effect for as long as the exemption would otherwise be
5permitted under this Section.
6    (e-1) If the person qualifying for the exemption does not
7occupy the qualified residence as of January 1 of the taxable
8year, the exemption granted under this Section shall be
9prorated on a monthly basis. The prorated exemption shall
10apply beginning with the first complete month in which the
11person occupies the qualified residence.
12    (e-5) Notwithstanding any other provision of law, each
13chief county assessment officer may approve this exemption for
14the 2020 taxable year, without application, for any property
15that was approved for this exemption for the 2019 taxable
16year, provided that:
17        (1) the county board has declared a local disaster as
18    provided in the Illinois Emergency Management Agency Act
19    related to the COVID-19 public health emergency;
20        (2) the owner of record of the property as of January
21    1, 2020 is the same as the owner of record of the property
22    as of January 1, 2019;
23        (3) the exemption for the 2019 taxable year has not
24    been determined to be an erroneous exemption as defined by
25    this Code; and
26        (4) the applicant for the 2019 taxable year has not

 

 

SB0220- 7 -LRB103 25776 HLH 52125 b

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

 

 

SB0220- 8 -LRB103 25776 HLH 52125 b

1the subsequent service connected disability rating.
2    (f) For the purposes of this Section:
3    "Qualified residence" means real property, but less any
4portion of that property that is used for commercial purposes,
5with an equalized assessed value of less than $250,000 that is
6the primary residence of a veteran with a disability.
7Beginning in taxable year 2024, the portion of the property
8that is used by a business that is certified by the United
9States Small Business Administration as a Service-Disabled
10Veteran-Owned Small Business (SDVOSB) is not considered to be
11used for commercial purposes for the purposes of this
12definition. Property rented for more than 6 months is presumed
13to be used for commercial 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. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
20102-895, eff. 5-23-22; revised 9-6-22.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.