Disabled Veterans Market Value Exclusion - Frequently Asked Questions
What documentation is needed with the application?
Letters are sent out in early May by the Veterans Administration that certify both disability status and honorable discharge. You must submit a copy of this letter with your application to the assessor’s office. Do not submit outdated information, or information which predates the law. Assessors have been instructed to only accept copies of the most recent V.A. letter to determine eligibility requirements.
Applicants must provide additional information if it is requested to verify eligibility for the exclusion. Any information pertaining to disability status must come from the Veteran’s Administration and not elsewhere. .
Will a qualifying veteran be responsible to pay special assessments?
Yes. This value exclusion reduces or eliminates all or a portion of the value on a veteran’s homestead property. The exclusion has no effect on special assessments. Special assessments have no relationship to value, they are a lien against property imposed by a public authority to pay costs of public improvements such as sidewalks, streets, sewers, etc.
What if a veteran has transferred ownership of his/her property to a son or daughter but retained a life estate?
If a qualifying veteran retains life estate interest in the property and continues to occupy the property as his/her homestead and primary place of residence, that veteran is eligible for this exclusion.
Will I qualify for the market value exclusion if my property is in a trust?
It depends on how the trust is written. The trust will need to be reviewed by the assessor’s office. When applying, submit a certificate of trust or a copy of the trust with the rest of the documentation.
If a property is owned by the spouse of a qualifying disabled veteran, but does not list that veteran as an owner on the deed, does the property qualify?
No. In order for a property to qualify, it must be owned and occupied by a qualifying disabled veteran. The veteran’s name must be listed as an owner on the deed of the property before the property is eligible for market value exclusion.
Does a surviving spouse of a disabled veteran (that passed away before enrolling his/her property) qualify for the market value exclusion?
No. Surviving spouses are not eligible to apply for market value exclusion on their own. Only veterans with total (100 percent) and permanent service-connected disability can apply and qualify on his or her own before a surviving spouse is eligible to continue that benefit.
How long will the benefit continue into the future for a surviving spouse of a qualified disabled veteran?
Surviving spouses will receive the benefit of the value exclusion for eight additional years after the disabled veteran has passed away or until the spouse sells, transfers, or otherwise disposes of the property, whichever comes first. The eight-year duration begins during the taxes payable year in which the veteran passes away.
Do relative homesteads qualify?
No. Relative homesteads do not qualify for this program. A property must be both owned and occupied by a qualifying disabled veteran before being eligible for the market value exclusion.
Does the new disabled veterans’ exclusion apply to linked parcels on a residential homestead?
The law does not limit the exclusion to the base parcel only, therefore, linked residential parcels that are part of the homestead may receive the market value exclusion. The law does limit the benefit on agricultural homesteads to the house, garage and the one acre of land immediately surrounding them.
Would the exclusion apply to multiple qualifying veterans who own the same property, assuming they are not married?
In a scenario where more than one qualifying disabled veteran owns and occupies a property as a homestead, ownership of the home would be divided among all owner-occupants. For each qualifying disabled veteran, the exclusion amount would also reflect the percentage in ownership.
If two qualifying spouses own and occupy a home, how is the exclusion applied?
Spouses are treated as one entity for property tax purposes. If two 70 percent disabled qualifying spouses owned and occupied a property as homestead, the benefit would be $150,000. If two 100 percent permanently disabled qualifying spouses owned the property, the exclusion would be $300,000. If one spouse is 100 percent permanently disabled, and the other 70 percent disabled, the exclusion amount would be $300,000 (which is the same as if the permanently and totally disabled veteran were married to someone with no qualifying disability).
Do properties qualifying for the market value exclusion also qualify for a blind/disabled homestead?
No. Properties that qualify for the market value exclusion for homesteads of disabled veterans do not additionally qualify for a blind/disabled homestead.