On March 11, Legislative Director Kevin Kinnally testified before the Budget and Taxation Committee in support of SB 980 – Property Tax – Credit for Dwelling House of Disabled Veterans and Surviving Spouses – Alterations with amendments.
This bill amends the income and disability rating thresholds for a local-option property tax credit for disabled veterans and surviving spouses.
Counties strongly support efforts to provide meaningful tax relief to those who have served, and appreciate that the credit is currently structured as a local option, allowing each jurisdiction to determine eligibility criteria and program design based on local priorities and fiscal capacity.
However, altering statewide income and disability thresholds could automatically expand eligibility in jurisdictions that already offer the credit, creating unintended fiscal impacts. To preserve the intent of the local-option framework, counties are requesting amendments to ensure local governments retain full authority to determine how the credit operates within their existing programs.
By altering the income limitation and disability rating thresholds used to
determine eligibility, the bill broadens eligibility in jurisdictions that adopted the credit. That expansion increases the number of qualifying properties and creates a greater fiscal impact on counties that have structured this credit under current law.
More on MACo’s Advocacy:
determine eligibility, the bill broadens eligibility in jurisdictions that adopted the credit. That expansion increases the number of qualifying properties and creates a greater fiscal impact on counties that have structured this credit under current law.