The proposed legislation, General Assembly Raised Bill No. 7122, aims to exclude veterans' disability payments from the calculation of qualifying income for property tax relief. Specifically, it amends existing statutes to ensure that when determining eligibility for property tax exemptions, veterans' disability payments will not be included in the federal adjusted gross income. This change is intended to benefit veterans whose income falls below a specified threshold, allowing them to receive a 10% exemption on the assessed value of their primary residence if their income, excluding these disability payments, is $50,100 or less.

Additionally, the bill modifies the definition of "qualifying income" in relation to property tax exemptions, clarifying that veterans' disability payments will not be counted as income. It also sets the qualifying income limits for tax relief at $16,200 for unmarried individuals and $20,000 for married couples, with adjustments based on federal regulations. The effective date for these changes is set for October 1, 2025. Overall, the bill seeks to provide financial relief to veterans by ensuring that their disability payments do not hinder their eligibility for property tax benefits.

Statutes affected:
Raised Bill: 12-81l
VA Joint Favorable: 12-81l
File No. 276: 12-81l
PD Joint Favorable: 12-81l