Bill Text: IL SB2905 | 2013-2014 | 98th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Property Tax Code and the Mobile Home Local Services Tax Act. Provides that the disabled veterans' exemption also applies to housing that is donated or improved by a charitable organization if the veteran was eligible to receive federal funds for the purchase or construction of Specially Adapted Housing. Effective immediately.

Spectrum: Partisan Bill (Democrat 20-1)

Status: (Passed) 2014-12-30 - Public Act . . . . . . . . . 98-1145 [SB2905 Detail]

Download: Illinois-2013-SB2905-Enrolled.html

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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. Disabled veterans. Property up to an assessed
value of $100,000 $70,000, owned and used exclusively by a
disabled veteran, or the spouse or unmarried surviving spouse
of the veteran, as a home, is exempt. As used in this Section,
a disabled veteran 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.
A taxpayer who claims an exemption under Section 15-168 or
15-169 may not claim an exemption under this Section.
(Source: P.A. 94-310, eff. 7-25-05; 95-644, eff. 10-12-07.)
(35 ILCS 200/15-169)
Sec. 15-169. Disabled veterans standard homestead
exemption.
(a) Beginning with taxable year 2007, an annual homestead
exemption, limited to the amounts set forth in subsection (b),
is granted for property that is used as a qualified residence
by a disabled veteran.
(b) The amount of the 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

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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-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.
(c-1) Beginning with taxable year 2015, nothing in this
Section shall require the veteran to have qualified for or

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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) 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 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.
(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 disabled veteran's primary residence. Property rented for
more than 6 months is presumed to be used for commercial
purposes.
"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

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a member of the United States Reserve Forces and who has
received an honorable discharge.
(Source: P.A. 96-1298, eff. 1-1-11; 96-1418, eff. 8-2-10;
97-333, eff. 8-12-11.)
Section 10. The Mobile Home Local Services Tax Act is
amended by changing Section 7.5 as follows:
(35 ILCS 515/7.5)
Sec. 7.5. Exemption for disabled veterans.
(a) Beginning on January 1, 2004, a mobile home owned and
used exclusively by a disabled veteran or the spouse or
unmarried surviving spouse of the veteran as a home, is exempt
from the tax imposed under this Act.
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.

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(b) As used in this Section:
"Disabled veteran" 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.
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.
"Unmarried surviving spouse" means the surviving spouse of
the veteran at any time after the death of the veteran during
which the surviving spouse is not married.
(c) Eligibility for this exemption must be reestablished on
an annual basis by certification from the Illinois Department
of Veterans' Affairs to the county clerk of the county in which
the exempt mobile home is located. The county clerk shall
forward a copy of the certification to local assessing
officials.
(Source: P.A. 93-146, eff. 7-10-03.)
Section 99. Effective date. This Act takes effect upon
becoming law.