103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2918
 
Introduced , by Rep. Jay Hoffman
 
SYNOPSIS AS INTRODUCED:



20 ILCS 2505/2505-810 new

 Amends the Department of Revenue Law of the
Civil Administrative Code of Illinois. Provides that the Department of Revenue shall reimburse eligible taxing districts for revenue loss associated with providing homestead exemptions for veterans with disabilities. Specifies that a taxing district is eligible for reimbursement if application of the homestead exemptions for veterans with disabilities results in reduction in the total equalized assessed value of all taxable property in the taxing district in which the taxing district is located of more than 2.5% for the taxable year that is 2 years before the start of the State fiscal year in which the application for reimbursement is made and the taxing district is located in whole or in part in a county that contains a United States military base. Provides that the aggregate amount of reimbursements for all taxing districts in any calendar year may not exceed $30,000,000. Sets forth the amount of the reimbursement. Effective immediately.



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A BILL FOR
 


HB2918LRB103 26789 HLH 53152 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 Department of Revenue Law of the
Civil 
5Administrative Code of Illinois is amended by adding Section 
62505-810 as follows:

7 (20 ILCS 2505/2505-810 new)
8 Sec. 2505-810. Veterans Property Tax Relief Reimbursement 
9Pilot Program.
10 (a) Subject to appropriation, for State fiscal years that 
11begin on or after July 1, 2023 and before July 1, 2028, the 
12Department shall establish and administer a Veterans Property 
13Tax Relief Reimbursement Pilot Program. For purposes of the 
14Program, the Department shall reimburse eligible taxing 
15districts, in an amount calculated under subsection (c), for 
16revenue loss associated with providing homestead exemptions to 
17veterans with disabilities. A taxing district is eligible for 
18reimbursement under this Section if (i) application of the 
19homestead exemptions for veterans with disabilities under 
20Sections 15-165 and 15-169 of the Property Tax Code results in 
21a cumulative reduction of more than 2.5% in the total 
22equalized assessed value of all taxable property in the taxing 
23district, when compared with the total equalized assessed 
 
 
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1value of all taxable property in the taxing district prior to 
2the application of those exemptions, for the taxable year that 
3is 2 years before the start of the State fiscal year in which 
4the application for reimbursement is made and (ii) the taxing 
5district is located in whole or in part in a county that 
6contains a United States military base. Reimbursement payments 
7shall be made to the county that applies to the Department of 
8Revenue on behalf of the taxing district under subsection (b) 
9and shall be distributed by the county to the taxing district 
10as directed by the Department of Revenue.
11 (b) If the county clerk determines that one or more taxing 
12districts located in whole or in part in the county qualify for 
13reimbursement under this Section, then the county clerk shall 
14apply to the Department of Revenue on behalf of the taxing 
15district for reimbursement under this Section in the form and 
16manner required by the Department. The county clerk shall 
17consolidate applications submitted on behalf of more than one 
18taxing district into a single application. The Department of 
19Revenue may audit the information submitted by the county 
20clerk as part of the application under this Section for the 
21purpose of verifying the accuracy of that information. 
22 (c) Subject to the maximum aggregate reimbursement amount 
23set forth in this subsection, the amount of the reimbursement 
24shall be as follows: 
25  (1) for reimbursements awarded for the fiscal year 
26 that begins on July 1, 2023, 50% of the difference 
 
 
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1 between: (1) 97.5% of the amount of property tax revenue 
2 that would have been required to be collected and 
3 distributed to the taxing district for taxable year 2021 
4 if the homestead exemptions for veterans with disabilities 
5 under Sections 15-165 and 15-169 of the Property Tax Code 
6 had not been applied; and (2) the amount of property tax 
7 revenue that was required to be collected and distributed 
8 to the taxing district for taxable year 2021 after the 
9 application of those exemptions; and 
10  (2) for reimbursements awarded for fiscal years that 
11 begin on or after July 1, 2024 and before July 1, 2028, 
12 100% of the difference between: (1) 97.5% of the amount of 
13 property tax revenue that would have been required to be 
14 collected and distributed to the taxing district for the 
15 taxable year that falls 2 years before the start of the 
16 State fiscal year if the homestead exemptions for veterans 
17 with disabilities under Sections 15-165 and 15-169 of the 
18 Property Tax Code had not been applied; and (2) the amount 
19 of property tax revenue that was required to be collected 
20 and distributed to the taxing district for that taxable 
21 year. 
22 The aggregate amount of reimbursements that may be awarded 
23under this Section for all taxing districts in any calendar 
24year may not exceed $30,000,000. If the total amount of 
25eligible reimbursements under this Section exceeds $30,000,000 
26in any calendar year, then the reimbursement amount awarded to 
 
 
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1each particular taxing district shall be reduced on a pro rata 
2basis until the aggregate amount of reimbursements awarded 
3under this Section for the calendar year does not exceed 
4$30,000,000. 
5 (d) The Department of Revenue may adopt rules necessary 
6for the implementation of this Section. 
7 (e) As used in this Section: 
8 "Taxable year" means the calendar year during which 
9property taxes payable in the next succeeding year are levied. 
10 "Taxing district" has the meaning given to that term in 
11Section 1-150 of the Property Tax Code.