The bill mandates a comprehensive study on property tax abatements and exemptions for veterans and surviving spouses, as specified in Section 151 of Chapter 178 of the Acts of 2024. The Executive Office of Veterans Services, in collaboration with the Department of Revenue, will examine various aspects of these exemptions, including comparisons with other states, the potential for a sliding scale based on disability ratings, and the financial implications for veterans with disabilities. The findings and recommendations from this study will be reported to the Joint Committee on Veterans and Federal Affairs, as well as the clerks of both the Senate and House of Representatives.

The proposed sliding scale model for property tax exemptions aims to create a more equitable system based on the severity of disabilities, with exemptions ranging from $400 for lower disability ratings to $1,000 for those rated 100% disabled. The bill outlines the anticipated financial impact, estimating total costs to the state after municipal reimbursements to be approximately $26.6 million. It also includes specific insertions detailing the number of exemptions granted under various clauses and their financial implications, while noting that some veterans may experience a decrease in benefits under the new system. The bill does not account for changes resulting from the HERO Act, which allows municipalities to double property tax exemptions for veterans and their families.