104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB2809 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-169 Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities, provides that: (1) if the veteran has a service-connected disability of 30% or more but less than 50%, then the annual exemption is 30% of the assessed value of the property; (2) if the veteran has a service-connected disability of 50% or more but less than 70%, then the annual exemption is 50% of the assessed value of the property; and (3) if the veteran has a service-connected disability of 70% or more, then the property is exempt from taxation. Effective immediately. LRB104 09473 HLH 22008 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB2809 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-169 35 ILCS 200/15-169 Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities, provides that: (1) if the veteran has a service-connected disability of 30% or more but less than 50%, then the annual exemption is 30% of the assessed value of the property; (2) if the veteran has a service-connected disability of 50% or more but less than 70%, then the annual exemption is 50% of the assessed value of the property; and (3) if the veteran has a service-connected disability of 70% or more, then the property is exempt from taxation. Effective immediately. LRB104 09473 HLH 22008 b LRB104 09473 HLH 22008 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB2809 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-169 35 ILCS 200/15-169
35 ILCS 200/15-169
Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities, provides that: (1) if the veteran has a service-connected disability of 30% or more but less than 50%, then the annual exemption is 30% of the assessed value of the property; (2) if the veteran has a service-connected disability of 50% or more but less than 70%, then the annual exemption is 50% of the assessed value of the property; and (3) if the veteran has a service-connected disability of 70% or more, then the property is exempt from taxation. Effective immediately.
LRB104 09473 HLH 22008 b LRB104 09473 HLH 22008 b
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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 Section 15-169 as follows:
6 (35 ILCS 200/15-169)
7 Sec. 15-169. Homestead exemption for veterans with
8 disabilities and veterans of World War II.
9 (a) Beginning with taxable year 2007, an annual homestead
10 exemption, limited as provided in this Section, is granted for
11 property that is used as a qualified residence by a veteran
12 with a disability, and beginning with taxable year 2024, an
13 annual homestead exemption, limited to the amounts set forth
14 in subsection (b-4), is granted for property that is used as a
15 qualified residence by a veteran who was a member of the United
16 States Armed Forces during World War II.
17 (b) For taxable years prior to 2015, the amount of the
18 exemption under this Section is as follows:
19 (1) for veterans with a service-connected disability
20 of at least (i) 75% for exemptions granted in taxable
21 years 2007 through 2009 and (ii) 70% for exemptions
22 granted in taxable year 2010 and each taxable year
23 thereafter, as certified by the United States Department
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB2809 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-169 35 ILCS 200/15-169
35 ILCS 200/15-169
Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities, provides that: (1) if the veteran has a service-connected disability of 30% or more but less than 50%, then the annual exemption is 30% of the assessed value of the property; (2) if the veteran has a service-connected disability of 50% or more but less than 70%, then the annual exemption is 50% of the assessed value of the property; and (3) if the veteran has a service-connected disability of 70% or more, then the property is exempt from taxation. Effective immediately.
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LRB104 09473 HLH 22008 b
A BILL FOR
35 ILCS 200/15-169
LRB104 09473 HLH 22008 b
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1 of Veterans Affairs, the annual exemption is $5,000; and
2 (2) for veterans with a service-connected disability
3 of at least 50%, but less than (i) 75% for exemptions
4 granted in taxable years 2007 through 2009 and (ii) 70%
5 for exemptions granted in taxable year 2010 and each
6 taxable year thereafter, as certified by the United States
7 Department of Veterans Affairs, the annual exemption is
8 $2,500.
9 (b-3) For taxable years 2015 through 2022:
10 (1) if the veteran has a service-connected service
11 connected disability of 30% or more but less than 50%, as
12 certified by the United States Department of Veterans
13 Affairs, then the annual exemption is $2,500;
14 (2) if the veteran has a service-connected service
15 connected disability of 50% or more but less than 70%, as
16 certified by the United States Department of Veterans
17 Affairs, then the annual exemption is $5,000;
18 (3) if the veteran has a service-connected service
19 connected disability of 70% or more, as certified by the
20 United States Department of Veterans Affairs, then the
21 property is exempt from taxation under this Code; and
22 (4) (Blank).
23 (b-3.1) For taxable year 2023 through 2025 and thereafter:
24 (1) if the veteran has a service-connected service
25 connected disability of 30% or more but less than 50%, as
26 certified by the United States Department of Veterans
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1 Affairs as of the date the application is submitted for
2 the exemption under this Section for the applicable
3 taxable year, then the annual exemption is $2,500;
4 (2) if the veteran has a service-connected service
5 connected disability of 50% or more but less than 70%, as
6 certified by the United States Department of Veterans
7 Affairs as of the date the application is submitted for
8 the exemption under this Section for the applicable
9 taxable year, then the annual exemption is $5,000;
10 (3) if the veteran has a service-connected service
11 connected disability of 70% or more, as certified by the
12 United States Department of Veterans Affairs as of the
13 date the application is submitted for the exemption under
14 this Section for the applicable taxable year, then the
15 first $250,000 in equalized assessed value of the property
16 is exempt from taxation under this Code; and
17 (4) if the taxpayer is the surviving spouse of a
18 veteran whose death was determined to be service connected
19 service-connected and who is certified by the United
20 States Department of Veterans Affairs as a recipient of
21 dependency and indemnity compensation under federal law as
22 of the date the application is submitted for the exemption
23 under this Section for the applicable taxable year, then
24 the first $250,000 in equalized assessed value of the
25 property is also exempt from taxation under this Code.
26 This amendatory Act of the 103rd General Assembly shall
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1 not be used as the basis for any appeal filed with the chief
2 county assessment officer, the board of review, the Property
3 Tax Appeal Board, or the circuit court with respect to the
4 scope or meaning of the exemption under this Section for a tax
5 year prior to tax year 2023.
6 (b-3.5) For taxable years 2026 and thereafter:
7 (1) if the veteran has a service-connected disability
8 of 30% or more but less than 50%, as certified by the
9 United States Department of Veterans Affairs, then the
10 annual exemption is 30% of the assessed value of the
11 property;
12 (2) if the veteran has a service-connected disability
13 of 50% or more but less than 70%, as certified by the
14 United States Department of Veterans Affairs, then the
15 annual exemption is 50% of the assessed value of the
16 property; and
17 (3) if the veteran has a service-connected disability
18 of 70% or more, as certified by the United States
19 Department of Veterans Affairs, then the property is
20 exempt from taxation under this Code.
21 (b-4) For taxable years on or after 2024, if the veteran
22 was a member of the United States Armed Forces during World War
23 II, then the property is exempt from taxation under this Code
24 regardless of the veteran's level of disability.
25 (b-5) If a homestead exemption is granted under this
26 Section and the person awarded the exemption subsequently
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1 becomes a resident of a facility licensed under the Nursing
2 Home Care Act or a facility operated by the United States
3 Department of Veterans Affairs, then the exemption shall
4 continue (i) so long as the residence continues to be occupied
5 by the qualifying person's spouse or (ii) if the residence
6 remains unoccupied but is still owned by the person who
7 qualified for the homestead exemption.
8 (c) The tax exemption under this Section carries over to
9 the benefit of the veteran's surviving spouse as long as the
10 spouse holds the legal or beneficial title to the homestead,
11 permanently resides thereon, and does not remarry. If the
12 surviving spouse sells the property, an exemption not to
13 exceed the amount granted from the most recent ad valorem tax
14 roll may be transferred to his or her new residence as long as
15 it is used as his or her primary residence and he or she does
16 not 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
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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 (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
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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
5 Section shall require the veteran to have qualified for or
6 obtained the exemption before death if the veteran was killed
7 in the line of duty.
8 (d) The exemption under this Section applies for taxable
9 year 2007 and thereafter. A taxpayer who claims an exemption
10 under Section 15-165 or 15-168 may not claim an exemption
11 under this Section.
12 (e) Except as otherwise provided in this subsection (e),
13 each taxpayer who has been granted an exemption under this
14 Section must reapply on an annual basis, except that a veteran
15 who qualifies as a result of his or her service in World War II
16 need not reapply. Application must be made during the
17 application period in effect for the county of his or her
18 residence. The assessor or chief county assessment officer may
19 determine the eligibility of residential property to receive
20 the homestead exemption provided by this Section by
21 application, visual inspection, questionnaire, or other
22 reasonable methods. The determination must be made in
23 accordance with guidelines established by the Department.
24 On and after May 23, 2022 (the effective date of Public Act
25 102-895), if a veteran has a combined service-connected
26 service connected disability rating of 100% and is deemed to
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1 be permanently and totally disabled, as certified by the
2 United States Department of Veterans Affairs, the taxpayer who
3 has been granted an exemption under this Section shall no
4 longer be required to reapply for the exemption on an annual
5 basis, and the exemption shall be in effect for as long as the
6 exemption would otherwise be permitted under this Section.
7 (e-1) If the person qualifying for the exemption does not
8 occupy the qualified residence as of January 1 of the taxable
9 year, the exemption granted under this Section shall be
10 prorated on a monthly basis. The prorated exemption shall
11 apply beginning with the first complete month in which the
12 person occupies the qualified residence.
13 (e-5) Notwithstanding any other provision of law, each
14 chief county assessment officer may approve this exemption for
15 the 2020 taxable year, without application, for any property
16 that was approved for this exemption for the 2019 taxable
17 year, provided that:
18 (1) the county board has declared a local disaster as
19 provided in the Illinois Emergency Management Agency Act
20 related to the COVID-19 public health emergency;
21 (2) the owner of record of the property as of January
22 1, 2020 is the same as the owner of record of the property
23 as of January 1, 2019;
24 (3) the exemption for the 2019 taxable year has not
25 been determined to be an erroneous exemption as defined by
26 this Code; and
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1 (4) the applicant for the 2019 taxable year has not
2 asked for the exemption to be removed for the 2019 or 2020
3 taxable years.
4 Nothing in this subsection shall preclude a veteran whose
5 service-connected service connected disability rating has
6 changed since the 2019 exemption was granted from applying for
7 the exemption based on the subsequent service-connected
8 service connected disability rating.
9 (e-10) Notwithstanding any other provision of law, each
10 chief county assessment officer may approve this exemption for
11 the 2021 taxable year, without application, for any property
12 that was approved for this exemption for the 2020 taxable
13 year, if:
14 (1) the county board has declared a local disaster as
15 provided in the Illinois Emergency Management Agency Act
16 related to the COVID-19 public health emergency;
17 (2) the owner of record of the property as of January
18 1, 2021 is the same as the owner of record of the property
19 as of January 1, 2020;
20 (3) the exemption for the 2020 taxable year has not
21 been determined to be an erroneous exemption as defined by
22 this Code; and
23 (4) the taxpayer for the 2020 taxable year has not
24 asked for the exemption to be removed for the 2020 or 2021
25 taxable years.
26 Nothing in this subsection shall preclude a veteran whose
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1 service-connected service connected disability rating has
2 changed since the 2020 exemption was granted from applying for
3 the exemption based on the subsequent service-connected
4 service connected disability rating.
5 (f) For the purposes of this Section:
6 "Qualified residence" means, before tax year 2023, real
7 property, but less any portion of that property that is used
8 for commercial purposes, with an equalized assessed value of
9 less than $250,000 that is the primary residence of a veteran
10 with a disability. "Qualified residence" means, for tax year
11 2023 and thereafter, real property, but less any portion of
12 that property that is used for commercial purposes, that is
13 the primary residence of a veteran with a disability. Property
14 rented for more than 6 months is presumed to be used for
15 commercial purposes.
16 "Service-connected disability" means an illness or injury
17 (i) that was caused by or worsened by active military service,
18 (ii) that is a current disability as of the date of the
19 application for the exemption under this Section for the
20 applicable tax year, as demonstrated by the veteran's United
21 States Department of Veterans Affairs certification, and (iii)
22 for which the veteran receives disability compensation.
23 For tax years 2022 and prior, "veteran" means an Illinois
24 resident who has served as a member of the United States Armed
25 Forces on active duty or State active duty, a member of the
26 Illinois National Guard, or a member of the United States
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1 Reserve Forces and who has received an honorable discharge.
2 For taxable years 2023 and thereafter, "veteran" means an
3 Illinois resident who has served as a member of the United
4 States Armed Forces on active duty or State active duty, a
5 member of the Illinois National Guard, or a member of the
6 United States Reserve Forces and who has a service-connected
7 disability, as certified by the United States Department of
8 Veterans Affairs, and receives disability compensation.
9 (Source: P.A. 102-136, eff. 7-23-21; 102-895, eff. 5-23-22;
10 103-154, eff. 6-30-23; 103-596, eff. 7-1-24.)
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