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. The bill also introduces annual adjustments for this exclusion amount based on inflation, specifically tied to the implicit price deflator for government consumption expenditures. Additionally, it clarifies that surviving spouses of veterans who die from service-connected causes are eligible for the same exclusion benefits, even if they lived outside Minnesota at the time of the veteran's death.

The bill further modifies the eligibility criteria for surviving spouses and primary family caregivers of veterans, allowing them to apply for the exclusion under certain conditions. It removes the requirement for veterans to have been honorably discharged to qualify for the exclusion and allows for a more flexible application process for surviving spouses. The legislation aims to provide tax relief for veterans with disabilities and their families, easing the financial burdens they face. The changes are set to take effect for assessment year 2026 and thereafter.

Statutes affected:
Introduction: 273.13