IL SB1975

Department of Revenue shall conduct a study by June 30, 2023 on the impact of homestead exemptions for veterans with disabilities on property tax bases in six specified Illinois counties (St. Clair, Lake, Will, Madison, Rock Island, and DuPage).

Establishes procedures for erroneous homestead exemptions in counties with 3,000,000+ inhabitants, including notice requirements, grace periods for taxpayers to self-report, and lien authority with penalties of 10% interest and up to 50% penalty for repeat violations.

Expands homestead exemptions for surviving spouses of veterans, including those killed in line of duty and surviving spouses receiving dependency and indemnity compensation from the VA.

Increases senior citizens homestead exemption amounts for 2023 and later to $8,000 in large counties and counties adjacent to large counties (previously $8,000 limited to large counties only).

Extends interfund transfer authority in school districts through June 30, 2026 and allows certain taxing districts (school districts, park districts, libraries, community colleges) to recapture previously unrealized levy amounts beginning in levy year 2022.