This bill establishes a property tax exemption for homestead properties owned by certain veterans and former law enforcement officers who have service-connected disabilities, as well as their surviving spouses. The exemption varies based on the percentage of disability, with specific amounts outlined: $2,500 for disabilities between 30% and 50%, $5,000 for disabilities between 50% and 60%, and full exemption for disabilities of 60% or more. Additionally, surviving spouses of veterans or law enforcement officers who died due to service-connected incidents are also eligible for full tax exemption. The bill includes provisions for maintaining the exemption if the qualifying individual moves to an adult care home or a facility operated by the U.S. Department of Veterans Affairs.

The bill also clarifies the definitions of key terms such as "homestead," "law enforcement officer," "qualified residence," and "surviving spouse." It stipulates that the exemption request must be made annually, but those with a 100% disability rating will not need to reapply each year. Furthermore, if the qualifying individual does not occupy the residence as of January 1, the exemption will be prorated. The provisions of this bill will take effect for all taxable years starting after December 31, 2025.