Disabled veterans who qualified for property tax relief through the Disabled Veterans Standard Homestead Exemption for their previous home would qualify for a prorated exemption for their new home, under legislation co-sponsored by State Sen. Neil Anderson.
Anderson’s Senate Bill 2306 passed the Senate April 11 and now heads to the Senate for consideration.
Specifically, the legislation provides that the homestead exemption for veterans with a service-related disability must be prorated even if the veteran qualifying for the exemption does not occupy the qualified residence as of January 1 of the taxable year.
“The problem now is that if a disabled veteran receiving tax relief through the homestead exemption moves in the middle of the year, then that veteran would be on the hook for paying the outstanding property taxes on their new residence until they can reapply for the exemption the next year,” Anderson said. “My legislation would simply allow that property tax exemption to move with the veteran.
“Our wounded veterans deserve the best, as they gave their best and paid the price through their sacrifice in service to our country,” Anderson said. “This property tax exemption already exists. It makes sense our disabled veterans shouldn’t have to worry about a higher property tax bill simply because they want to move. This is common-sense legislation that gives our disabled heroes a much-deserved break in their property taxes no matter when they move during the year.”
Anderson’s legislation is modeled after the current property tax exemption process for senior citizens.
According to the Illinois Department of Veterans Affairs:
The Disabled Veterans' Standard Homestead Exemption provides a reduction in a property's EAV to a qualifying property owned by a veteran with a service-connected disability. Beginning in tax year 2015, a $2,500 homestead exemption is available to a veteran with a service-connected disability of at least 30% but less than 50%; a $5,000 homestead exemption is available to a veteran with a service connected disability of at least 50% but less than 70%; veterans with a service-connected disability of at least 70% are exempt from paying property taxes on their primary residence. This exemption is available to the unmarried surviving spouse of a service connected veteran provided that the veteran was in receipt of the exemption prior to his/her death. Additionally, beginning in tax year 2015 and thereafter, the unmarried surviving spouse of a service member killed in the line of duty is exempt from paying property taxes on the primary residence. Once approved, qualifying veterans and surviving spouses must file an annual application by their counties' deadlines to continue to receive this exemption. To apply for this exemption, please contact or visit your local County Assessor's Office.