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 establishes that veterans with a service-connected disability rating of 70% or more can exclude a portion of their property's market value from taxation, with the exclusion base amount set at $200,000 for assessment year 2026 and adjusted annually for inflation thereafter. The bill also clarifies that if a veteran with a total (100%) and permanent disability passes away, their spouse can continue to receive the exclusion as long as they hold legal title to the homestead and reside there.

Additionally, the bill removes certain requirements for veterans to qualify for the exclusion, such as the need for an honorable discharge documentation. It expands eligibility for surviving spouses of service members who died due to service-connected causes, allowing them to apply for the exclusion even if the death occurred outside of Minnesota. The bill also provides provisions for primary family caregivers of veterans and allows for reapplication of the exclusion under specific circumstances. The changes aim to provide greater tax relief for veterans, their caregivers, and surviving spouses, easing the financial burdens they face. The effective date for these changes is set for assessment year 2026 and thereafter.

Statutes affected:
Introduction: 273.13