Disabled Veterans Real Estate Tax Exemption Program


Purpose: To provide real estate tax exemption for any honorably discharged veteran who is 100% disabled, a resident of the Commonwealth and has a financial need.

Veteran’s eligibility criteria:

Served in the military honorably

Served during established war service dates as determined by the U.S. Department of Veterans Affairs **The following decorations can also be used to establish wartime service: Armed Forces Expeditionary Medal or Navy Expeditionary Medal.

Must have a total or 100% permanent service-connected disability rating by the U.S. Department of Veterans Affairs or as the result of military service the veteran is blind or paraplegic or has sustained the loss of two or more limbs

Blind: Visual acuity of three-sixtieths or ten two-hundredths, or less normal Vision

Paraplegic: The bilateral paralysis of the upper or lower extremities of the body

Must be a resident of the Commonwealth

Must occupy the real estate as his/her principal dwelling

Dwelling is owned solely by the veteran or as an estate in the entirety

Must prove financial need:

Veteran must prove financial need according to the criteria established by the State Veterans Commission if their annual income exceeds $85,168

Applicants with an annual income of $85,168 or less are given a rebuttable presumption to have a need for the exemption

**Upon the death of a qualified veteran, tax exemption may pass on to the unmarried surviving spouse if financial need can be shown.
Legislation:
Constitution: Article VIII, Section 2(c) (Establishes requirement to prove “Financial Need”)

Statute: Chapter 89, Title 51
Chapter 89, Title 51 (Amended)

Procedures: Chapter 5, Title 43

Current Policy Letter: June 2009

Where to apply?
Contact the
County Veterans Affairs Director in the county you reside to apply for this program.

How is financial need established?
An applicant whose gross annual income exceeds $85,168 will be considered to have a financial need for the exemption when the applicant’s allowable expenses exceed the applicant’s household income. The applicant’s monthly household expenses will be calculated to include a cost of living allowance and dependent’s allowance.

What happens after the Department of Military and Veterans Affairs certifies a “financial need” for the Disabled Veterans Tax Exemption and eligibility criteria has been verified?
The Board for the Assessment and Revision of Taxes will grant the tax exemption. Cases that have been granted tax exemption will be reviewed periodically (every 5 years) to determine continued need for exemption from certain real estate property taxes.