IL SB3316

Increases the disabled veterans homestead exemption amounts from $5,000 to $6,000 for veterans with at least 70% service-connected disability (effective taxable year 2014 and thereafter) and from $2,500 to $3,000 for veterans with 50-69% service-connected disability (effective taxable year 2014 and thereafter).

Changes property qualification language from "used as" to "occupied as" a qualified residence and clarifies that disabled veterans must have legal or equitable ownership interest in the property.

Allows disabled veterans without ownership interest to claim the exemption on property where they reside with family members, subject to limitations including single residence per tax year and exclusion of nursing homes and life care facilities.

Permits exemptions to continue when a disabled veteran becomes a resident of a nursing home or VA facility if the property is occupied by the spouse or remains unoccupied but owned by the qualifying veteran.

Requires disabled veterans claiming exemption without ownership interest to provide documentation of disability from the U.S. Department of Veterans Affairs and a valid Illinois driver's license or state ID card.