IL HB1963

Amends the Property Tax Code to expand the homestead exemption for veterans with service-connected disabilities, effective for taxable years 2021 and thereafter.

Veterans with a service-connected permanent disability of at least 60% (as certified by the U.S. Department of Veterans Affairs) receive a full property tax exemption, in addition to those with 70% or higher disability ratings.

For veterans with disabilities of 30-50%, the annual exemption is $2,500; for 50-70% disabilities, the annual exemption is $5,000.

Exemptions apply only to qualified residences (primary residences with equalized assessed value under $250,000) and must be reapplied for annually by the veteran.

The exemption carries over to surviving spouses who meet eligibility requirements and can be transferred to a new primary residence if the spouse sells the property.