Property taxation: exemption: disabled veteran homeowners.

Senators Archuleta and Valladares propose a decade-long property tax exemption for disabled veterans and their surviving spouses through legislation that would take effect in January 2026. The measure creates a new exemption category for veterans who are blind in both eyes, have lost the use of two or more limbs, or are rated 100 percent disabled due to service-connected conditions.

The exemption would apply to properties that serve as the principal residence of qualifying veterans, their spouses, or their unmarried surviving spouses. The provision extends to veterans confined to care facilities, provided their homes remain unrented or occupied only by family members. Unmarried surviving spouses retain eligibility if the veteran qualified during their lifetime or died from service-connected causes as determined by the U.S. Department of Veterans Affairs.

To obtain the exemption, applicants must provide documentation from the Department of Veterans Affairs or their military branch confirming their disability rating. The measure prohibits combining this benefit with other property tax exemptions for the same residence, though multiple qualifying veterans who co-own a home may each claim the exemption for their respective ownership shares. The State Board of Equalization must annually report to the Legislature on the number of exemptions granted and their total assessed value through 2035.

The bill's authors frame the exemption as a tool to reduce homelessness among severely disabled veterans. While local agencies would bear the cost of lost property tax revenue without state reimbursement, the measure includes a January 2036 sunset date allowing for evaluation of its effectiveness.