IL SB1199

Veterans with service-connected disabilities receive annual homestead property tax exemptions based on disability rating, ranging from $2,500 to full property tax exemption for 70% or higher disabilities.

Exemption amounts for taxable year 2015 and thereafter: $2,500 for 30-50% disabilities, $5,000 for 50-70% disabilities, and complete exemption from taxation for 70% or higher disabilities.

Veterans found permanently and totally disabled by the Department of Veterans' Affairs are exempt from annual reapplication requirements for the homestead exemption.

Exemption continues for surviving spouses who remain unmarried and occupy or own the property, and surviving spouses can transfer the exemption to a new primary residence upon sale.

Transferees of property with an active homestead exemption must notify the chief county assessment officer within 90 days of any change in use or ownership to ensure the exemption is removed if the property no longer qualifies.