What are the benefits of property tax for veterans of the United States Armed Forces?

Every week, Mansion Global poses a tax question to real estate tax lawyers. Here is this week’s question.

Q. What types of property tax relief are available to US veterans?

A. U.S. Army veterans, especially disabled veterans, are eligible for property tax relief in most municipalities.

Take New York State, where there are three different types of tax exemptions available to veterans who served in the US Army, Navy, Air Force, Marines, and Coast Guard.

The Veterans Alternative Exemption is available to those who served in wartime, according to the state’s website. These homeowners are entitled to a 15% reduction in the assessed value of their home. Veterans who served in combat zones are entitled to an additional 10% reduction in assessment, and there are other benefits for those with service-related disabilities.

New York also has a tax benefit for those serving in the Cold War (a 10% to 15% reduction in assessed value), depending on the state. Additionally, there is an “eligible funds exemption,” which can reduce a home’s valuation, typically by up to $7,500, if a home is purchased with eligible funds received upon discharge from active duty, including including pensions, bonuses or other compensation.

In Illinois, there are veterans exemptions at the state level, including the Returning Veterans Exemption, which gives veterans a one-time $5,000 discount on their home assessment. , according to the state’s website. Eligible veterans who have returned from active service in an armed conflict can apply for this benefit.

Homestead exemptions, further reducing the assessed value of a home, are available for disabled veterans. Those injured in the line of duty are entitled to a reduction of at least $2,500. The amount increases according to the extent of the disability. Veterans with a service-connected disability of at least 70%, as determined by the state, are exempt from paying property taxes on their primary residence, depending on the state.

There is no income threshold for the exemption, which caused controversy last month when the Chicago Sun-Times reported that Senator Tammy Duckworth, who lost her legs in combat, is claiming the exemption. advantage. The story was picked up by several national media.

Other states, such as California, have a low-income standard and exemption for disabled veterans who meet the criteria. There, a former member of the military deemed totally disabled is eligible for a $100,000 reduction in the assessed value of his home, according to the state’s website. A veteran with an income of $52,470 or less can claim a benefit of $150,000.

Several states waive property taxes for 100% disabled veterans, including Florida, Texas, Virginia, New Mexico and Hawaii. These exemptions are only available for primary residences, not secondary or vacation homes. Often, a surviving spouse who remains single is also entitled to benefits.

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Penny D. Jackson