This bill amends Minnesota Statutes 2024, section 273.13, subdivision 34, to modify the market value exclusion for veterans with disabilities and their surviving spouses. It removes the requirement that veterans must have been honorably discharged to qualify for the exclusion and establishes a new exclusion base amount of $200,000 for assessment year 2026, which will be adjusted annually for inflation thereafter. The bill also clarifies the benefits for surviving spouses of veterans who die due to service-connected causes, allowing them to retain the exclusion until they sell or transfer the property, regardless of whether they lived in Minnesota at the time of the veteran's death.

Additionally, the bill expands eligibility for the exclusion to the primary family caregivers of veterans who meet the disability criteria, and it allows spouses who previously received the exclusion to reapply if their benefits expired prior to taxes payable in 2020. The changes aim to provide greater tax relief for veterans with disabilities and their families, easing the financial burdens they face. The effective date for these provisions is set for assessment year 2026 and thereafter.

Statutes affected:
Introduction: 273.13