PROP TX-VETERANS-SPOUSE

Illinois General Assembly - Full Text of HB1027

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1027

Introduced 1/9/2025, by Rep. John M. Cabello

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-169

Amends the Property Tax Code. Provides that, for taxable year 2025 and
thereafter, the homestead exemption for veterans with disabilities carries
over to the benefit of a deceased veteran's remarried surviving spouse as
long as the surviving spouse holds the legal or beneficial title to the
property and permanently resides on the property (currently, the surviving
spouse is not eligible for the exemption if the spouse remarries).
Effective immediately.
LRB104 03169 HLH 13190 b

A BILL FOR

HB1027
LRB104 03169 HLH 13190 b
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

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LRB104 03169 HLH 13190 b
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 disability
11

of 30% or more but less than 50%, as certified by the
12

United States Department of Veterans Affairs, then the
13

annual exemption is $2,500;
14

(2) if the veteran has a service connected disability
15

of 50% or more but less than 70%, as certified by the
16

United States Department of Veterans Affairs, then the
17

annual exemption is $5,000;
18

(3) if the veteran has a service connected disability
19

of 70% or more, as certified by the United States
20

Department of Veterans Affairs, then the property is
21

exempt from taxation under this Code; and
22

(4) (Blank).
23

(b-3.1) For taxable year 2023 and thereafter:
24

(1) if the veteran has a service connected disability
25

of 30% or more but less than 50%, as certified by the
26

United States Department of Veterans Affairs as of the

HB1027
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LRB104 03169 HLH 13190 b
1

date the application is submitted for the exemption under
2

this Section for the applicable taxable year, then the
3

annual exemption is $2,500;
4

(2) if the veteran has a service connected disability
5

of 50% or more but less than 70%, as certified by the
6

United States Department of Veterans Affairs as of the
7

date the application is submitted for the exemption under
8

this Section for the applicable taxable year, then the
9

annual exemption is $5,000;
10

(3) if the veteran has a service connected disability
11

of 70% or more, as certified by the United States
12

Department of Veterans Affairs as of the date the
13

application is submitted for the exemption under this
14

Section for the applicable taxable year, then the first
15

$250,000 in equalized assessed value of the property is
16

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

and who is certified by the United States Department of
20

Veterans Affairs as a recipient of dependency and
21

indemnity compensation under federal law as of the date
22

the application is submitted for the exemption under this
23

Section for the applicable taxable year, then the first
24

$250,000 in equalized assessed value of the property is
25

also exempt from taxation under this Code.
26

This amendatory Act of the 103rd General Assembly shall

HB1027
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LRB104 03169 HLH 13190 b
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-4) For taxable years on or after 2024, if the veteran
7
was a member of the United States Armed Forces during World War
8
II, then the property is exempt from taxation under this Code
9
regardless of the veteran's level of disability.
10

(b-5) If a homestead exemption is granted under this
11
Section and the person awarded the exemption subsequently
12
becomes a resident of a facility licensed under the Nursing
13
Home Care Act or a facility operated by the United States
14
Department of Veterans Affairs, then the exemption shall
15
continue (i) so long as the residence continues to be occupied
16
by the qualifying person's spouse or (ii) if the residence
17
remains unoccupied but is still owned by the person who
18
qualified for the homestead exemption.
19

(c) The tax exemption under this Section carries over to
20
the benefit of the veteran's surviving spouse as long as the
21
spouse holds the legal or beneficial title to the homestead
22
and

,
permanently resides thereon
, and does not remarry
.
For
23
taxable years before taxable year 2025, the exemption does not
24
carry over to the benefit of the veteran's surviving spouse if
25
the surviving spouse is remarried. For taxable year 2025 and
26
thereafter, the exemption carries over to the benefit of the

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LRB104 03169 HLH 13190 b
1
veteran's surviving spouse regardless of whether or not the
2
surviving spouse is remarried as long as the surviving spouse
3
holds the legal or beneficial title to the homestead and
4
permanently resides thereon.
If the surviving spouse sells the
5
property, an exemption not to exceed the amount granted from
6
the most recent ad valorem tax roll may be transferred to his
7
or her new residence as long as it is used as his or her
8
primary residence and he or she does not remarry.
9

As used in this subsection (c):
10

(1) for taxable years prior to 2015, "surviving
11

spouse" means the surviving spouse of a veteran who
12

obtained an exemption under this Section prior to his or
13

her death;
14

(2) for taxable years 2015 through 2022, "surviving
15

spouse" means (i) the surviving spouse of a veteran who
16

obtained an exemption under this Section prior to his or
17

her death and (ii) the surviving spouse of a veteran who
18

was killed in the line of duty at any time prior to the
19

expiration of the application period in effect for the
20

exemption for the taxable year for which the exemption is
21

sought; and
22

(3) for taxable year 2023 and thereafter, "surviving
23

spouse" means: (i) the surviving spouse of a veteran who
24

obtained the exemption under this Section prior to his or
25

her death; (ii) the surviving spouse of a veteran who was
26

killed in the line of duty at any time prior to the

HB1027
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LRB104 03169 HLH 13190 b
1

expiration of the application period in effect for the
2

exemption for the taxable year for which the exemption is
3

sought; (iii) the surviving spouse of a veteran who did
4

not obtain an exemption under this Section before death,
5

but who would have qualified for the exemption under this
6

Section in the taxable year for which the exemption is
7

sought if he or she had survived, and whose surviving
8

spouse has been a resident of Illinois from the time of the
9

veteran's death through the taxable year for which the
10

exemption is sought; and (iv) the surviving spouse of a
11

veteran whose death was determined to be
12

service-connected, but who would not otherwise qualify
13

under item (i), (ii), or (iii), if the spouse (A) is
14

certified by the United States Department of Veterans
15

Affairs as a recipient of dependency and indemnity
16

compensation under federal law at any time prior to the
17

expiration of the application period in effect for the
18

exemption for the taxable year for which the exemption is
19

sought and (B) remains eligible for that dependency and
20

indemnity compensation as of January 1 of the taxable year
21

for which the exemption is sought.
22

(c-1) Beginning with taxable year 2015, nothing in this
23
Section shall require the veteran to have qualified for or
24
obtained the exemption before death if the veteran was killed
25
in the line of duty.
26

(d) The exemption under this Section applies for taxable

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LRB104 03169 HLH 13190 b
1
year 2007 and thereafter. A taxpayer who claims an exemption
2
under Section 15-165 or 15-168 may not claim an exemption
3
under this Section.
4

(e) Except as otherwise provided in this subsection (e),
5
each taxpayer who has been granted an exemption under this
6
Section must reapply on an annual basis, except that a veteran
7
who qualifies as a result of his or her service in World War II
8
need not reapply. Application must be made during the
9
application period in effect for the county of his or her
10
residence. The assessor or chief county assessment officer may
11
determine the eligibility of residential property to receive
12
the homestead exemption provided by this Section by
13
application, visual inspection, questionnaire, or other
14
reasonable methods. The determination must be made in
15
accordance with guidelines established by the Department.
16

On and after May 23, 2022 (the effective date of Public Act
17
102-895), if a veteran has a combined service connected
18
disability rating of 100% and is deemed to be permanently and
19
totally disabled, as certified by the United States Department
20
of Veterans Affairs, the taxpayer who has been granted an
21
exemption under this Section shall no longer be required to
22
reapply for the exemption on an annual basis, and the
23
exemption shall be in effect for as long as the exemption would
24
otherwise be permitted under this Section.
25

(e-1) If the person qualifying for the exemption does not
26
occupy the qualified residence as of January 1 of the taxable

HB1027
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LRB104 03169 HLH 13190 b
1
year, the exemption granted under this Section shall be
2
prorated on a monthly basis. The prorated exemption shall
3
apply beginning with the first complete month in which the
4
person occupies the qualified residence.
5

(e-5) Notwithstanding any other provision of law, each
6
chief county assessment officer may approve this exemption for
7
the 2020 taxable year, without application, for any property
8
that was approved for this exemption for the 2019 taxable
9
year, provided that:
10

(1) the county board has declared a local disaster as
11

provided in the Illinois Emergency Management Agency Act
12

related to the COVID-19 public health emergency;
13

(2) the owner of record of the property as of January
14

1, 2020 is the same as the owner of record of the property
15

as of January 1, 2019;
16

(3) the exemption for the 2019 taxable year has not
17

been determined to be an erroneous exemption as defined by
18

this Code; and
19

(4) the applicant for the 2019 taxable year has not
20

asked for the exemption to be removed for the 2019 or 2020
21

taxable years.
22

Nothing in this subsection shall preclude a veteran whose
23
service connected disability rating has changed since the 2019
24
exemption was granted from applying for the exemption based on
25
the subsequent service connected disability rating.
26

(e-10) Notwithstanding any other provision of law, each

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LRB104 03169 HLH 13190 b
1
chief county assessment officer may approve this exemption for
2
the 2021 taxable year, without application, for any property
3
that was approved for this exemption for the 2020 taxable
4
year, if:
5

(1) the county board has declared a local disaster as
6

provided in the Illinois Emergency Management Agency Act
7

related to the COVID-19 public health emergency;
8

(2) the owner of record of the property as of January
9

1, 2021 is the same as the owner of record of the property
10

as of January 1, 2020;
11

(3) the exemption for the 2020 taxable year has not
12

been determined to be an erroneous exemption as defined by
13

this Code; and
14

(4) the taxpayer for the 2020 taxable year has not
15

asked for the exemption to be removed for the 2020 or 2021
16

taxable years.
17

Nothing in this subsection shall preclude a veteran whose
18
service connected disability rating has changed since the 2020
19
exemption was granted from applying for the exemption based on
20
the subsequent service connected disability rating.
21

(f) For the purposes of this Section:
22

"Qualified residence" means, before tax year 2023, real
23
property, but less any portion of that property that is used
24
for commercial purposes, with an equalized assessed value of
25
less than $250,000 that is the primary residence of a veteran
26
with a disability. "Qualified residence" means, for tax year

HB1027
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LRB104 03169 HLH 13190 b
1
2023 and thereafter, real property, but less any portion of
2
that property that is used for commercial purposes, that is
3
the primary residence of a veteran with a disability. Property
4
rented for more than 6 months is presumed to be used for
5
commercial purposes.
6

"Service-connected disability" means an illness or injury
7
(i) that was caused by or worsened by active military service,
8
(ii) that is a current disability as of the date of the
9
application for the exemption under this Section for the
10
applicable tax year, as demonstrated by the veteran's United
11
States Department of Veterans Affairs certification, and (iii)
12
for which the veteran receives disability compensation.
13

For tax years 2022 and prior, "veteran" means an Illinois
14
resident who has served as a member of the United States Armed
15
Forces on active duty or State active duty, a member of the
16
Illinois National Guard, or a member of the United States
17
Reserve Forces and who has received an honorable discharge.
18
For taxable years 2023 and thereafter, "veteran" means an
19
Illinois resident who has served as a member of the United
20
States Armed Forces on active duty or State active duty, a
21
member of the Illinois National Guard, or a member of the
22
United States Reserve Forces and who has a service-connected
23
disability, as certified by the United States Department of
24
Veterans Affairs, and receives disability compensation.
25
(Source: P.A. 102-136, eff. 7-23-21; 102-895, eff. 5-23-22;
26
103-154, eff. 6-30-23; 103-596, eff. 7-1-24.)

HB1027
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LRB104 03169 HLH 13190 b
1

Section 99.
Effective date.
This Act takes effect upon
2
becoming law.

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