HF1756

This bill modifies Minnesota's existing property tax exclusion for disabled veterans and their spouses. Key changes include:

1. Increased Exclusion Amounts: The market value exclusion for qualified veterans will increase, with a base amount of $200,000 starting in the 2026 assessment year. Veterans with a 70% or higher service-connected disability will have this amount excluded from their home's taxable value, while those who are 100% and permanently disabled will have twice the base amount ($400,000) excluded. These values will adjust annually based on inflation.

2. Expanded Benefits for Surviving Spouses:

   • If a veteran with 100% permanent disability dies, the spouse can continue to receive the property tax exclusion as long as they remain unmarried and reside in the home.
   • Surviving spouses of service members who die from service-connected causes while on active duty are also eligible for this benefit.
   • If such a spouse moves to a new home, they may transfer the exclusion to the new property, provided its value does not exceed the original home’s value and they have not previously received this benefit for another property.

3. Family Caregiver Eligibility: If a disabled veteran does not own a home, their primary family caregiver (recognized by the VA) may receive the property tax exclusion on their residence.

4. Application Process and Compliance:

   • Veterans, spouses, and caregivers must apply for the exclusion and notify the local tax assessor of changes in marital status, property ownership, or residence.
   • The county veterans service officer must certify veterans' disability ratings annually.

5. Legislative Intent: The bill emphasizes that the purpose of this expanded exclusion is to ease financial burdens on veterans, their families, and caregivers due to war-related disabilities.

In summary, this bill increases the property tax relief for disabled veterans, ensures annual inflation adjustments, extends and secures benefits for surviving spouses, and includes family caregivers in the program.