103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3538 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-165 35 ILCS 200/15-169 Amends the Property Tax Code. Provides that a veteran may submit an application for the homestead exemptions for veterans with disabilities to the chief county assessment officer with respect to a specific property before the veteran purchases the property. Effective immediately. LRB103 29865 HLH 56274 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3538 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-165 35 ILCS 200/15-169 35 ILCS 200/15-165 35 ILCS 200/15-169 Amends the Property Tax Code. Provides that a veteran may submit an application for the homestead exemptions for veterans with disabilities to the chief county assessment officer with respect to a specific property before the veteran purchases the property. Effective immediately. LRB103 29865 HLH 56274 b LRB103 29865 HLH 56274 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3538 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-165 35 ILCS 200/15-169 35 ILCS 200/15-165 35 ILCS 200/15-169
35 ILCS 200/15-165
35 ILCS 200/15-169
Amends the Property Tax Code. Provides that a veteran may submit an application for the homestead exemptions for veterans with disabilities to the chief county assessment officer with respect to a specific property before the veteran purchases the property. Effective immediately.
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A BILL FOR
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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Sections 15-165 and 15-169 as follows:
6 (35 ILCS 200/15-165)
7 Sec. 15-165. Veterans with disabilities. Property up to an
8 assessed value of $100,000, owned and used exclusively by a
9 veteran with a disability, or the spouse or unmarried
10 surviving spouse of the veteran, as a home, is exempt. As used
11 in this Section, a "veteran with a disability" means a person
12 who has served in the Armed Forces of the United States and
13 whose disability is of such a nature that the Federal
14 Government has authorized payment for purchase or construction
15 of Specially Adapted Housing as set forth in the United States
16 Code, Title 38, Chapter 21, Section 2101.
17 The exemption applies to housing where Federal funds have
18 been used to purchase or construct special adaptations to suit
19 the veteran's disability.
20 The exemption also applies to housing that is specially
21 adapted to suit the veteran's disability, and purchased
22 entirely or in part by the proceeds of a sale, casualty loss
23 reimbursement, or other transfer of a home for which the
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3538 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-165 35 ILCS 200/15-169 35 ILCS 200/15-165 35 ILCS 200/15-169
35 ILCS 200/15-165
35 ILCS 200/15-169
Amends the Property Tax Code. Provides that a veteran may submit an application for the homestead exemptions for veterans with disabilities to the chief county assessment officer with respect to a specific property before the veteran purchases the property. Effective immediately.
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A BILL FOR
35 ILCS 200/15-165
35 ILCS 200/15-169
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1 Federal Government had previously authorized payment for
2 purchase or construction as Specially Adapted Housing.
3 However, the entire proceeds of the sale, casualty loss
4 reimbursement, or other transfer of that housing shall be
5 applied to the acquisition of subsequent specially adapted
6 housing to the extent that the proceeds equal the purchase
7 price of the subsequently acquired housing.
8 Beginning with the 2015 tax year, the exemption also
9 applies to housing that is specifically constructed or adapted
10 to suit a qualifying veteran's disability if the housing or
11 adaptations are donated by a charitable organization, the
12 veteran has been approved to receive funds for the purchase or
13 construction of Specially Adapted Housing under Title 38,
14 Chapter 21, Section 2101 of the United States Code, and the
15 home has been inspected and certified by a licensed home
16 inspector to be in compliance with applicable standards set
17 forth in U.S. Department of Veterans Affairs, Veterans
18 Benefits Administration Pamphlet 26-13 Handbook for Design of
19 Specially Adapted Housing.
20 For purposes of this Section, "charitable organization"
21 means any benevolent, philanthropic, patriotic, or
22 eleemosynary entity that solicits and collects funds for
23 charitable purposes and includes each local, county, or area
24 division of that charitable organization.
25 For purposes of this Section, "unmarried surviving spouse"
26 means the surviving spouse of the veteran at any time after the
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1 death of the veteran during which such surviving spouse is not
2 married.
3 This exemption must be reestablished on an annual basis by
4 certification from the Illinois Department of Veterans'
5 Affairs to the Department, which shall forward a copy of the
6 certification to local assessing officials.
7 Notwithstanding any other provision of law, a veteran may
8 submit an application for the exemption under this Section to
9 the chief county assessment officer with respect to a specific
10 property before the veteran purchases the property. The chief
11 county assessment officer shall process the application under
12 this subsection within 15 days after receipt of the
13 application and shall notify the applicant of the approval or
14 denial of the application.
15 A taxpayer who claims an exemption under Section 15-168 or
16 15-169 may not claim an exemption under this Section.
17 (Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
18 (35 ILCS 200/15-169)
19 Sec. 15-169. Homestead exemption for veterans with
20 disabilities.
21 (a) Beginning with taxable year 2007, an annual homestead
22 exemption, limited to the amounts set forth in subsections (b)
23 and (b-3), is granted for property that is used as a qualified
24 residence by a veteran with a disability.
25 (b) For taxable years prior to 2015, the amount of the
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1 exemption under this Section is as follows:
2 (1) for veterans with a service-connected disability
3 of at least (i) 75% for exemptions granted in taxable
4 years 2007 through 2009 and (ii) 70% for exemptions
5 granted in taxable year 2010 and each taxable year
6 thereafter, as certified by the United States Department
7 of Veterans Affairs, the annual exemption is $5,000; and
8 (2) for veterans with a service-connected disability
9 of at least 50%, but less than (i) 75% for exemptions
10 granted in taxable years 2007 through 2009 and (ii) 70%
11 for exemptions granted in taxable year 2010 and each
12 taxable year thereafter, as certified by the United States
13 Department of Veterans Affairs, the annual exemption is
14 $2,500.
15 (b-3) For taxable years 2015 and thereafter:
16 (1) if the veteran has a service connected disability
17 of 30% or more but less than 50%, as certified by the
18 United States Department of Veterans Affairs, then the
19 annual exemption is $2,500;
20 (2) if the veteran has a service connected disability
21 of 50% or more but less than 70%, as certified by the
22 United States Department of Veterans Affairs, then the
23 annual exemption is $5,000;
24 (3) if the veteran has a service connected disability
25 of 70% or more, as certified by the United States
26 Department of Veterans Affairs, then the property is
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1 exempt from taxation under this Code; and
2 (4) for taxable year 2023 and thereafter, if the
3 taxpayer is the surviving spouse of a veteran whose death
4 was determined to be service-connected and who is
5 certified by the United States Department of Veterans
6 Affairs as a recipient of dependency and indemnity
7 compensation under federal law, then the property is also
8 exempt from taxation under this Code.
9 (b-5) If a homestead exemption is granted under this
10 Section and the person awarded the exemption subsequently
11 becomes a resident of a facility licensed under the Nursing
12 Home Care Act or a facility operated by the United States
13 Department of Veterans Affairs, then the exemption shall
14 continue (i) so long as the residence continues to be occupied
15 by the qualifying person's spouse or (ii) if the residence
16 remains unoccupied but is still owned by the person who
17 qualified for the homestead exemption.
18 (c) The tax exemption under this Section carries over to
19 the benefit of the veteran's surviving spouse as long as the
20 spouse holds the legal or beneficial title to the homestead,
21 permanently resides thereon, and does not remarry. If the
22 surviving spouse sells the property, an exemption not to
23 exceed the amount granted from the most recent ad valorem tax
24 roll may be transferred to his or her new residence as long as
25 it is used as his or her primary residence and he or she does
26 not remarry.
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1 As used in this subsection (c):
2 (1) for taxable years prior to 2015, "surviving
3 spouse" means the surviving spouse of a veteran who
4 obtained an exemption under this Section prior to his or
5 her death;
6 (2) for taxable years 2015 through 2022, "surviving
7 spouse" means (i) the surviving spouse of a veteran who
8 obtained an exemption under this Section prior to his or
9 her death and (ii) the surviving spouse of a veteran who
10 was killed in the line of duty at any time prior to the
11 expiration of the application period in effect for the
12 exemption for the taxable year for which the exemption is
13 sought; and
14 (3) for taxable year 2023 and thereafter, "surviving
15 spouse" means: (i) the surviving spouse of a veteran who
16 obtained the exemption under this Section prior to his or
17 her death; (ii) the surviving spouse of a veteran who was
18 killed in the line of duty at any time prior to the
19 expiration of the application period in effect for the
20 exemption for the taxable year for which the exemption is
21 sought; (iii) the surviving spouse of a veteran who did
22 not obtain an exemption under this Section before death,
23 but who would have qualified for the exemption under this
24 Section in the taxable year for which the exemption is
25 sought if he or she had survived, and whose surviving
26 spouse has been a resident of Illinois from the time of the
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1 veteran's death through the taxable year for which the
2 exemption is sought; and (iv) the surviving spouse of a
3 veteran whose death was determined to be
4 service-connected, but who would not otherwise qualify
5 under item items (i), (ii), or (iii), if the spouse (A) is
6 certified by the United States Department of Veterans
7 Affairs as a recipient of dependency and indemnity
8 compensation under federal law 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 and (B) remains eligible for that dependency and
12 indemnity compensation as of January 1 of the taxable year
13 for which the exemption is sought.
14 (c-1) Beginning with taxable year 2015, nothing in this
15 Section shall require the veteran to have qualified for or
16 obtained the exemption before death if the veteran was killed
17 in the line of duty.
18 (d) The exemption under this Section applies for taxable
19 year 2007 and thereafter. A taxpayer who claims an exemption
20 under Section 15-165 or 15-168 may not claim an exemption
21 under this Section.
22 (e) Except as otherwise provided in this subsection (e),
23 each taxpayer who has been granted an exemption under this
24 Section must reapply on an annual basis. Application must be
25 made during the application period in effect for the county of
26 his or her residence. The assessor or chief county assessment
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1 officer may determine the eligibility of residential property
2 to receive the homestead exemption provided by this Section by
3 application, visual inspection, questionnaire, or other
4 reasonable methods. The determination must be made in
5 accordance with guidelines established by the Department.
6 On and after May 23, 2022 (the effective date of Public Act
7 102-895) this amendatory Act of the 102nd General Assembly, if
8 a veteran has a combined service connected disability rating
9 of 100% and is deemed to be permanently and totally disabled,
10 as certified by the United States Department of Veterans
11 Affairs, the taxpayer who has been granted an exemption under
12 this Section shall no longer be required to reapply for the
13 exemption on an annual basis, and the exemption shall be in
14 effect for as long as the exemption would otherwise be
15 permitted under this Section.
16 (e-1) If the person qualifying for the exemption does not
17 occupy the qualified residence as of January 1 of the taxable
18 year, the exemption granted under this Section shall be
19 prorated on a monthly basis. The prorated exemption shall
20 apply beginning with the first complete month in which the
21 person occupies the qualified residence.
22 (e-5) Notwithstanding any other provision of law, each
23 chief county assessment officer may approve this exemption for
24 the 2020 taxable year, without application, for any property
25 that was approved for this exemption for the 2019 taxable
26 year, provided that:
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1 (1) the county board has declared a local disaster as
2 provided in the Illinois Emergency Management Agency Act
3 related to the COVID-19 public health emergency;
4 (2) the owner of record of the property as of January
5 1, 2020 is the same as the owner of record of the property
6 as of January 1, 2019;
7 (3) the exemption for the 2019 taxable year has not
8 been determined to be an erroneous exemption as defined by
9 this Code; and
10 (4) the applicant for the 2019 taxable year has not
11 asked for the exemption to be removed for the 2019 or 2020
12 taxable years.
13 Nothing in this subsection shall preclude a veteran whose
14 service connected disability rating has changed since the 2019
15 exemption was granted from applying for the exemption based on
16 the subsequent service connected disability rating.
17 (e-10) Notwithstanding any other provision of law, each
18 chief county assessment officer may approve this exemption for
19 the 2021 taxable year, without application, for any property
20 that was approved for this exemption for the 2020 taxable
21 year, if:
22 (1) the county board has declared a local disaster as
23 provided in the Illinois Emergency Management Agency Act
24 related to the COVID-19 public health emergency;
25 (2) the owner of record of the property as of January
26 1, 2021 is the same as the owner of record of the property
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1 as of January 1, 2020;
2 (3) the exemption for the 2020 taxable year has not
3 been determined to be an erroneous exemption as defined by
4 this Code; and
5 (4) the taxpayer for the 2020 taxable year has not
6 asked for the exemption to be removed for the 2020 or 2021
7 taxable years.
8 Nothing in this subsection shall preclude a veteran whose
9 service connected disability rating has changed since the 2020
10 exemption was granted from applying for the exemption based on
11 the subsequent service connected disability rating.
12 (e-15) Notwithstanding any other provision of law, a
13 veteran may submit an application for the exemption under this
14 Section to the chief county assessment officer with respect to
15 a specific property before the veteran purchases the property.
16 The chief county assessment officer shall process the
17 application under this subsection within 15 days after receipt
18 of the application and shall notify the applicant of the
19 approval or denial of the application.
20 (f) For the purposes of this Section:
21 "Qualified residence" means real property, but less any
22 portion of that property that is used for commercial purposes,
23 with an equalized assessed value of less than $250,000 that is
24 the primary residence of a veteran with a disability. Property
25 rented for more than 6 months is presumed to be used for
26 commercial purposes.
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1 "Veteran" means an Illinois resident who has served as a
2 member of the United States Armed Forces on active duty or
3 State active duty, a member of the Illinois National Guard, or
4 a member of the United States Reserve Forces and who has
5 received an honorable discharge.
6 (Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
7 102-895, eff. 5-23-22; revised 9-6-22.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.
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