Bill Text: IL HB3538 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Slight Partisan Bill (Republican 25-9)

Status: (Introduced) 2024-04-18 - Added Co-Sponsor Rep. Patrick Sheehan [HB3538 Detail]

Download: Illinois-2023-HB3538-Introduced.html

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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.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 15-165 and 15-169 as follows:
(35 ILCS 200/15-165)
Sec. 15-165. Veterans with disabilities. Property up to an
assessed value of $100,000, owned and used exclusively by a
veteran with a disability, or the spouse or unmarried
surviving spouse of the veteran, as a home, is exempt. As used
in this Section, a "veteran with a disability" means a person
who has served in the Armed Forces of the United States and
whose disability is of such a nature that the Federal
Government has authorized payment for purchase or construction
of Specially Adapted Housing as set forth in the United States
Code, Title 38, Chapter 21, Section 2101.
The exemption applies to housing where Federal funds have
been used to purchase or construct special adaptations to suit
the veteran's disability.
The exemption also applies to housing that is specially
adapted to suit the veteran's disability, and purchased
entirely or in part by the proceeds of a sale, casualty loss
reimbursement, or other transfer of a home for which the

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Federal Government had previously authorized payment for
purchase or construction as Specially Adapted Housing.
However, the entire proceeds of the sale, casualty loss
reimbursement, or other transfer of that housing shall be
applied to the acquisition of subsequent specially adapted
housing to the extent that the proceeds equal the purchase
price of the subsequently acquired housing.
Beginning with the 2015 tax year, the exemption also
applies to housing that is specifically constructed or adapted
to suit a qualifying veteran's disability if the housing or
adaptations are donated by a charitable organization, the
veteran has been approved to receive funds for the purchase or
construction of Specially Adapted Housing under Title 38,
Chapter 21, Section 2101 of the United States Code, and the
home has been inspected and certified by a licensed home
inspector to be in compliance with applicable standards set
forth in U.S. Department of Veterans Affairs, Veterans
Benefits Administration Pamphlet 26-13 Handbook for Design of
Specially Adapted Housing.
For purposes of this Section, "charitable organization"
means any benevolent, philanthropic, patriotic, or
eleemosynary entity that solicits and collects funds for
charitable purposes and includes each local, county, or area
division of that charitable organization.
For purposes of this Section, "unmarried surviving spouse"
means the surviving spouse of the veteran at any time after the

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death of the veteran during which such surviving spouse is not
married.
This exemption must be reestablished on an annual basis by
certification from the Illinois Department of Veterans'
Affairs to the Department, which shall forward a copy of the
certification to local assessing officials.
Notwithstanding any other provision of law, a veteran may
submit an application for the exemption under this Section to
the chief county assessment officer with respect to a specific
property before the veteran purchases the property. The chief
county assessment officer shall process the application under
this subsection within 15 days after receipt of the
application and shall notify the applicant of the approval or
denial of the application.
A taxpayer who claims an exemption under Section 15-168 or
15-169 may not claim an exemption under this Section.
(Source: P.A. 98-1145, eff. 12-30-14; 99-143, eff. 7-27-15.)
(35 ILCS 200/15-169)
Sec. 15-169. Homestead exemption for veterans with
disabilities.
(a) Beginning with taxable year 2007, an annual homestead
exemption, limited to the amounts set forth in subsections (b)
and (b-3), is granted for property that is used as a qualified
residence by a veteran with a disability.
(b) For taxable years prior to 2015, the amount of the

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exemption under this Section is as follows:
(1) for veterans with a service-connected disability
of at least (i) 75% for exemptions granted in taxable
years 2007 through 2009 and (ii) 70% for exemptions
granted in taxable year 2010 and each taxable year
thereafter, as certified by the United States Department
of Veterans Affairs, the annual exemption is $5,000; and
(2) for veterans with a service-connected disability
of at least 50%, but less than (i) 75% for exemptions
granted in taxable years 2007 through 2009 and (ii) 70%
for exemptions granted in taxable year 2010 and each
taxable year thereafter, as certified by the United States
Department of Veterans Affairs, the annual exemption is
$2,500.
(b-3) For taxable years 2015 and thereafter:
(1) if the veteran has a service connected disability
of 30% or more but less than 50%, as certified by the
United States Department of Veterans Affairs, then the
annual exemption is $2,500;
(2) if the veteran has a service connected disability
of 50% or more but less than 70%, as certified by the
United States Department of Veterans Affairs, then the
annual exemption is $5,000;
(3) if the veteran has a service connected disability
of 70% or more, as certified by the United States
Department of Veterans Affairs, then the property is

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exempt from taxation under this Code; and
(4) for taxable year 2023 and thereafter, if the
taxpayer is the surviving spouse of a veteran whose death
was determined to be service-connected and who is
certified by the United States Department of Veterans
Affairs as a recipient of dependency and indemnity
compensation under federal law, then the property is also
exempt from taxation under this Code.
(b-5) If a homestead exemption is granted under this
Section and the person awarded the exemption subsequently
becomes a resident of a facility licensed under the Nursing
Home Care Act or a facility operated by the United States
Department of Veterans Affairs, then the exemption shall
continue (i) so long as the residence continues to be occupied
by the qualifying person's spouse or (ii) if the residence
remains unoccupied but is still owned by the person who
qualified for the homestead exemption.
(c) The tax exemption under this Section carries over to
the benefit of the veteran's surviving spouse as long as the
spouse holds the legal or beneficial title to the homestead,
permanently resides thereon, and does not remarry. If the
surviving spouse sells the property, an exemption not to
exceed the amount granted from the most recent ad valorem tax
roll may be transferred to his or her new residence as long as
it is used as his or her primary residence and he or she does
not remarry.

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As used in this subsection (c):
(1) for taxable years prior to 2015, "surviving
spouse" means the surviving spouse of a veteran who
obtained an exemption under this Section prior to his or
her death;
(2) for taxable years 2015 through 2022, "surviving
spouse" means (i) the surviving spouse of a veteran who
obtained an exemption under this Section prior to his or
her death and (ii) the surviving spouse of a veteran who
was killed in the line of duty at any time prior to the
expiration of the application period in effect for the
exemption for the taxable year for which the exemption is
sought; and
(3) for taxable year 2023 and thereafter, "surviving
spouse" means: (i) the surviving spouse of a veteran who
obtained the exemption under this Section prior to his or
her death; (ii) the surviving spouse of a veteran who was
killed in the line of duty at any time prior to the
expiration of the application period in effect for the
exemption for the taxable year for which the exemption is
sought; (iii) the surviving spouse of a veteran who did
not obtain an exemption under this Section before death,
but who would have qualified for the exemption under this
Section in the taxable year for which the exemption is
sought if he or she had survived, and whose surviving
spouse has been a resident of Illinois from the time of the

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veteran's death through the taxable year for which the
exemption is sought; and (iv) the surviving spouse of a
veteran whose death was determined to be
service-connected, but who would not otherwise qualify
under item items (i), (ii), or (iii), if the spouse (A) is
certified by the United States Department of Veterans
Affairs as a recipient of dependency and indemnity
compensation under federal law at any time prior to the
expiration of the application period in effect for the
exemption for the taxable year for which the exemption is
sought and (B) remains eligible for that dependency and
indemnity compensation as of January 1 of the taxable year
for which the exemption is sought.
(c-1) Beginning with taxable year 2015, nothing in this
Section shall require the veteran to have qualified for or
obtained the exemption before death if the veteran was killed
in the line of duty.
(d) The exemption under this Section applies for taxable
year 2007 and thereafter. A taxpayer who claims an exemption
under Section 15-165 or 15-168 may not claim an exemption
under this Section.
(e) Except as otherwise provided in this subsection (e),
each taxpayer who has been granted an exemption under this
Section must reapply on an annual basis. Application must be
made during the application period in effect for the county of
his or her residence. The assessor or chief county assessment

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officer may determine the eligibility of residential property
to receive the homestead exemption provided by this Section by
application, visual inspection, questionnaire, or other
reasonable methods. The determination must be made in
accordance with guidelines established by the Department.
On and after May 23, 2022 (the effective date of Public Act
102-895) this amendatory Act of the 102nd General Assembly, if
a veteran has a combined service connected disability rating
of 100% and is deemed to be permanently and totally disabled,
as certified by the United States Department of Veterans
Affairs, the taxpayer who has been granted an exemption under
this Section shall no longer be required to reapply for the
exemption on an annual basis, and the exemption shall be in
effect for as long as the exemption would otherwise be
permitted under this Section.
(e-1) If the person qualifying for the exemption does not
occupy the qualified residence as of January 1 of the taxable
year, the exemption granted under this Section shall be
prorated on a monthly basis. The prorated exemption shall
apply beginning with the first complete month in which the
person occupies the qualified residence.
(e-5) Notwithstanding any other provision of law, each
chief county assessment officer may approve this exemption for
the 2020 taxable year, without application, for any property
that was approved for this exemption for the 2019 taxable
year, provided that:

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

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as of January 1, 2020;
(3) the exemption for the 2020 taxable year has not
been determined to be an erroneous exemption as defined by
this Code; and
(4) the taxpayer for the 2020 taxable year has not
asked for the exemption to be removed for the 2020 or 2021
taxable years.
Nothing in this subsection shall preclude a veteran whose
service connected disability rating has changed since the 2020
exemption was granted from applying for the exemption based on
the subsequent service connected disability rating.
(e-15) Notwithstanding any other provision of law, a
veteran may submit an application for the exemption under this
Section to the chief county assessment officer with respect to
a specific property before the veteran purchases the property.
The chief county assessment officer shall process the
application under this subsection within 15 days after receipt
of the application and shall notify the applicant of the
approval or denial of the application.
(f) For the purposes of this Section:
"Qualified residence" means real property, but less any
portion of that property that is used for commercial purposes,
with an equalized assessed value of less than $250,000 that is
the primary residence of a veteran with a disability. Property
rented for more than 6 months is presumed to be used for
commercial purposes.

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"Veteran" means an Illinois resident who has served as a
member of the United States Armed Forces on active duty or
State active duty, a member of the Illinois National Guard, or
a member of the United States Reserve Forces and who has
received an honorable discharge.
(Source: P.A. 101-635, eff. 6-5-20; 102-136, eff. 7-23-21;
102-895, eff. 5-23-22; revised 9-6-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.