IL HB5135

Creates a $5,000 homestead property tax reduction for surviving spouses of veterans killed in the line of duty, effective beginning with taxable year 2012.

Provides $5,000 reduction for the taxable year in which the veteran dies and an additional $5,000 reduction for the following taxable year.

Applies to property owned and occupied as the principal residence by the surviving spouse, including cooperative apartments where the surviving spouse has a legal or equitable interest.

Defines "veteran" as an Illinois resident killed in the line of duty while serving in the United States Armed Forces, Illinois National Guard, or United States Reserve Forces.

Requires cooperative associations to credit tax savings from the reduction only to the qualified surviving spouse's apportioned tax liability, with willful refusal to do so constituting a Class B misdemeanor.