Substitute House Bill No. 5491, Public Act No. 24-46, introduces a property tax exemption for veterans with a service-connected permanent and total disability as determined by the United States Department of Veterans Affairs. The exemption applies to a dwelling or one motor vehicle owned by the qualifying veteran, or if the veteran does not own such property, to the property of the veteran’s spouse or property held in trust for the veteran’s minor children. The exemption also extends to the surviving spouse or minor children of a deceased veteran who was entitled to the exemption. The bill includes updates to legal language, such as changing “person” to “resident” and adopting gender-neutral terms. It also repeals and replaces subdivision (20) of section 12-81, adjusting the property tax exemption amounts for veterans with disability ratings less than permanent and total, and ensures that no individual is entitled to more than one exemption under the specified subdivisions.

The bill outlines the process for veterans to submit proof of their disability rating to qualify for exemptions and clarifies that once an exemption is granted, further proof is not required unless the disability rating changes. For those unable to submit evidence within the required timeframe, the bill allows for retroactive tax abatement or refund applications, limited to a period of three years. It repeals and replaces Section 12-95, effective October 1, 2024, to ensure exemptions are not granted without proper evidence. Additionally, the bill permits municipalities to offer a property tax exemption as a uniform percentage of the assessed value of a motor vehicle owned by a veteran with a qualifying disability, provided the vehicle is specially equipped for the veteran’s use and that no more than one exemption is granted per motor vehicle.

Statutes affected

• Raised Bill: 12-95
• FIN Joint Favorable Substitute: 12-95, 12-81h
• File No. 561: 12-95, 12-81h
• Public Act No. 24-46: 12-95, 12-81h