IL SB0872

Establishes annual homestead property tax exemptions for Illinois veterans with service-connected disabilities, with exemption amounts varying by disability rating.

For taxable years 2015 and thereafter, provides tiered exemptions: $2,500 for 30-50% disability, $5,000 for 50-70% disability, and full property tax exemption for 70% or more disability.

Exemption continues if the veteran moves to a nursing home or VA facility, as long as their spouse occupies the property or the residence remains unoccupied and owner-occupied.

Surviving spouses may transfer the exemption to a new primary residence upon property sale, provided they do not remarry.

Exemptions for veterans killed in the line of duty are available to surviving spouses beginning in taxable year 2015, even if the veteran never obtained the exemption before death.