IL HB3850

Expands the homestead exemption for veterans with disabilities to carry over to surviving spouses under new eligibility rules based on taxable year.

For taxable years 2015-2016, surviving spouses of veterans killed in the line of duty become eligible for the exemption, even if the veteran never obtained it before death.

For taxable year 2017 and thereafter, expands eligibility to include surviving spouses of veterans who would have qualified for the exemption in the current year if they had survived, regardless of line of duty death status.

Surviving spouses must hold legal or beneficial title to the homestead, permanently reside there, and not remarry to maintain the exemption; exemption amount transfers to a new residence if the surviving spouse sells.

Amends 35 ILCS 200/15-169 and takes effect immediately upon becoming law.