IL SB0110

Amends the Property Tax Code Section 15-169 to expand homestead exemption eligibility for surviving spouses of disabled veterans, effective for taxable year 2019 and thereafter.

Surviving spouses now qualify for exemptions if the veteran: (i) obtained an exemption before death, (ii) was killed in the line of duty, (iii) would have qualified but died before applying, or (iv) died from a service-connected cause and receives Dependency and Indemnity Compensation.

Exemption amounts for veterans with service-connected disabilities range from $2,500 (30-50% disability) to $5,000 (50-70% disability), with full property tax exemption for those with 70% or greater disability (taxable year 2015 onward).

Surviving spouses retain exemptions if they occupy the property, hold legal title, and do not remarry; exemption transfers to a new primary residence with the same exemption amount if the spouse sells.

Exemption continues if the veteran moves to a nursing home or VA facility and the spouse occupies the home, or if the home remains unoccupied but is still owned by the qualifying veteran.