The proposed bill, titled the "Disabled Veteran's Homestead Specific Tax Act," aims to establish a specific tax on real property owned and used as a homestead by disabled veterans and their surviving spouses, which is currently exempt from general ad valorem property taxes. The bill outlines the definitions of key terms such as "disabled veteran," "principal residence," and "taxable value," and mandates local tax assessors to determine the value and taxable value of such properties annually. Beginning January 1, 2026, a specific tax will be levied on these properties, calculated based on the local tax millage that would apply if the property were not exempt, with provisions for exemptions based on the severity of the veteran's disability.

Additionally, the bill stipulates that the disabled veteran's homestead specific tax will be collected in the same manner as general property taxes, with the proceeds distributed to various governmental entities. It also includes provisions for the forfeiture and foreclosure of unpaid taxes, aligning them with the processes for delinquent general property taxes. The enactment of this bill is contingent upon the passage of House Bill No. 4444.