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 and permanent disability passes away, their spouse can continue to receive the exclusion benefit as long as they hold legal title to the homestead and reside there.

Additionally, the bill removes the requirement for veterans to have been honorably discharged to qualify for the exclusion and allows surviving spouses of service members who died due to service-connected causes to apply for the exclusion even if they lived outside Minnesota at the time of the service member's death. It also provides provisions for primary family caregivers of veterans to receive the exclusion and allows spouses who previously received the exclusion to reapply if it expired before taxes payable in 2020. The effective date for these changes is set for assessment year 2026 and thereafter.

Statutes affected:
Introduction: 273.13