WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · SB 228

SB 228 — Disabled Veterans Tax Relief Bill (summary)

Status: Passed 1st reading (introduced Jan 28, 2025)
Effective for taxes imposed for taxable years beginning on or after July 1, 2025.

Purpose

To expand and clarify the property‑tax homestead exclusion available to disabled veterans (and surviving spouses) by tying the exclusion amount to the veteran’s disability rating rather than a fixed dollar exclusion alone.

Key provisions

  • Designates a qualifying veteran’s permanent residence as a special class of property for property‑tax exclusion purposes.
  • Disabled veteran exclusion (primary change):
    • For a qualifying disabled veteran, the exclusion amount equals: (appraised value of the residence) × (veteran’s disability rating percentage as determined by the U.S. Department of Veterans Affairs).
    • Example: for a home appraised at $300,000 and a 60% VA disability rating, the exclusion would be $180,000.
  • Surviving spouse exclusion:
    • For a surviving spouse of a disabled veteran, the exclusion equals the greater of (a) the exclusion amount that applied at the veteran’s date of death, or (b) the statutory $45,000 base exclusion — provided the spouse establishes that the veteran’s death was service‑connected.
  • Eligibility / definitions:
    • “Disabled veteran” means a veteran with honorable (or under honorable conditions) separation who meets one of the statutory tests (e.g., assigned a VA disability rating; certified permanent and total service‑connected disability; or deceased with service‑connected death). The statute references evidence such as VA disability certification or proof of certain VA benefits (38 U.S.C. § 2101).
  • Co‑ownership rules:
    • Co‑owners who are not spouses must apply separately. An individual co‑owner’s exclusion cannot exceed that co‑owner’s proportionate ownership share; aggregate exclusions cannot exceed statutory limits described in the section.
  • Exclusivity:
    • A qualifying owner who receives this exclusion may not receive other property‑tax relief under the same statute.
  • Filing / administrative:
    • Application should be filed during the regular listing period but may be filed any time up to and including June 1 preceding the tax year. Applicants must provide VA certification or equivalent evidence.

Who is affected

  • Primary beneficiaries: disabled veterans who own & occupy their primary residence and meet VA certification criteria; eligible surviving spouses.
  • Local government: county tax assessors and tax offices must accept and process applications, verify VA documentation, and apply the new exclusion method on property tax bills.
  • Municipalities and school districts: potential reduction in taxable property base where veterans qualify.

Implementation and impact considerations

  • Timing: applies to taxable years beginning on/after July 1, 2025. Local tax offices must update forms, procedures, and assessment calculations before the regular listing period for those tax years.
  • Fiscal impact: the bill reduces taxable assessed value for qualifying properties in proportion to veterans’ disability ratings. The aggregate revenue effect will depend on the number of eligible veterans, their disability ratings, and local property values; the text does not include a statewide fiscal estimate.
  • Verification: counties will rely on VA documentation (disability ratings or benefit certifications) to establish eligibility; processes for verifying and auditing claims may need standardization.

If you want, I can:
- Draft a short one‑page explainer for county tax offices (forms required, checklist), or
- Produce a brief fiscal‑impact template estimating revenue loss under several adoption scenarios (low/medium/high participation).

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.