Relating to the disabled veteran homestead tax credit and the military service property tax exemption and credit and including effective date, applicability, and retroactive applicability provisions

This bill relates to the disabled veteran homestead credit and the military service property tax exemption and credit.15 provides a homestead credit to the owner of a homestead for the full amount of property tax levied if the owner is any of the following: (1) a veteran of any of the military forces of the United States who acquired the homestead under specified federal programs; (2) a veteran with a permanent service-connected disability rating of 100 percent or a permanent and total disability rating based on individual unemployability that is compensated at the 100 percent disability rate; (3) a former member of the national guard of any state who meets specified service requirements with a permanent service-connected disability rating of 100 percent or a permanent and total disability rating based on individual unemployability that is compensated at the 100 percent disability rate; or (4) an individual who is a surviving spouse or a child and who is receiving federal dependency and indemnity compensation. 15. Under the bill, if the owner of a homestead does not meet the criteria under current law for a disabled veteran homestead tax credit and is either of the following, the amount of the credit allowed on the homestead is the greater of the amount of the regular homestead credit (an amount equal to the actual levy on the first $4,850 dollars of actual value) or a percentage of the entire amount of the tax levied on the homestead that is equivalent to the owner’s service-connected disability rating percentage: (1) a veteran with a permanent service-connected disability rating that is less than 100 percent or (2) a former member of the national guard of any state who meets specified service requirements with a permanent service-connected disability rating of less than 100 percent. Division I of the bill takes effect upon enactment and applies retroactively to homestead credit claims filed on or after January 1, 2022, for credits allowed against property taxes due and payable in fiscal years beginning on or after July 1, 2023. Under current law, veterans of World War I are entitled to a property tax exemption of $2,778 in taxable value and honorably discharged veterans who served during other specific time periods are entitled to a property tax exemption of $1,852 in taxable value. Division II of the bill increases the exemption amount for all eligible veterans to $15,000.92 per $1,000 of assessed value of the exempt property.7 provides that if a state appropriation made to fund a credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.92 per $1,000 of assessed value of the exempt property. Division II of the bill applies to property taxes due and payable in fiscal years beginning on or after July 1, 2022.