101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5250

Introduced , by Rep. Frances Ann Hurley

SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-169

Amends the Property Tax Code. Provides that a veteran who has a service connected disability of 100% need not reapply for the homestead exemption for veterans with disabilities. Effective immediately. LRB101 15566 HLH 64911 b FISCAL NOTE ACT MAY APPLYHOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

HB5250LRB101 15566 HLH 64911 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 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; and21 (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

HB5250- 2 -LRB101 15566 HLH 64911 b 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; and14 (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.

HB5250- 3 -LRB101 15566 HLH 64911 b 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 (c-1) Beginning with taxable year 2015, nothing in this 11Section shall require the veteran to have qualified for or 12obtained the exemption before death if the veteran was killed 13in the line of duty. 14 (d) The exemption under this Section applies for taxable 15year 2007 and thereafter. A taxpayer who claims an exemption 16under Section 15-165 or 15-168 may not claim an exemption under 17this Section.18 (e) Each taxpayer who has been granted an exemption under 19this Section must reapply on an annual basis, except that a 20veteran who has a service connected disability of 100%, as 21certified by the United States Department of Veterans Affairs, 22and a surviving spouse of such a veteran who qualifies under 23subsection (c), need not reapply after the initial exemption is 24approved. Application must be made during the application 25period in effect for the county of his or her residence. The 26assessor or chief county assessment officer may determine the

HB5250- 4 -LRB101 15566 HLH 64911 b 1eligibility of residential property to receive the homestead 2exemption provided by this Section by application, visual 3inspection, questionnaire, or other reasonable methods. The 4determination must be made in accordance with guidelines 5established by the Department.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 apply 10beginning with the first complete month in which the person 11occupies the qualified residence. 12 (f) For the purposes of this Section:13 "Qualified residence" means real property, but less any 14portion of that property that is used for commercial purposes, 15with an equalized assessed value of less than $250,000 that is 16the primary residence of a veteran with a disability. Property 17rented for more than 6 months is presumed to be used for 18commercial purposes.19 "Veteran" means an Illinois resident who has served as a 20member of the United States Armed Forces on active duty or 21State active duty, a member of the Illinois National Guard, or 22a member of the United States Reserve Forces and who has 23received an honorable discharge.24(Source: P.A. 99-143, eff. 7-27-15; 99-375, eff. 8-17-15; 2599-642, eff. 7-28-16; 100-869, eff. 8-14-18.) 26 Section 99. Effective date. This Act takes effect upon

HB5250- 5 -LRB101 15566 HLH 64911 b 1becoming law.