This legislative bill is designed to help disabled veterans by reducing the vehicle registration tax they need to pay. The amount of tax a disabled veteran will pay is directly linked to their disability rating percentage, as determined by the United States Department of Veterans Affairs. Specifically, the tax rate for a vehicle owned by a disabled veteran will be reduced in proportion to their disability percentage. However, this reduction applies to only one vehicle owned by the veteran at any one time.

Additionally, the bill clarifies how the proceeds from this tax are handled financially: the net proceeds from these registration taxes are directed towards the highway user tax distribution fund, while any associated fees are deposited into a specific driver and vehicle services operating account. To balance the reduction in tax from disabled veterans, an equivalent amount will be transferred annually from the general fund to the highway user tax distribution fund, ensuring that the fund's financial stability is maintained.