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 any veteran whose federal adjusted gross income, excluding veterans' disability payments, is $50,100 or less can receive a property tax exemption of 10% on their primary residence. This change is intended to provide financial relief to veterans by allowing them to qualify for tax benefits without their disability payments affecting their income eligibility.

Additionally, the bill modifies the definition of "qualifying income" in relation to property tax exemptions, clarifying that veterans' disability payments will not be included in the income calculations for various tax relief programs. The legislation also sets specific income thresholds for eligibility, which are $16,200 for unmarried individuals and $20,000 for married couples, while ensuring that these amounts align with other related statutes. The effective date for these changes is set for October 1, 2025.

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