Tax Benefits Increased for Disabled Veterans

Massachusetts Governor Mitt Romney has signed legislation that increases property tax exemptions for disabled veterans and provides financial relief for the families of servicemen and women killed or missing in action. Current property tax exemptions for veterans that range, depending on the extent of the disability, from $250 to $950 per year are increased to between $400 and $1,500. In addition, the legislation increases the reimbursement for those exemptions that the Commonwealth provides to the home communities of the veterans and their families. The lowest reimbursement of $75 is increased to $400, and the highest is increased from $775 to $1,325.

Effective retroactively to September 11, 2001, surviving spouses of veterans killed or missing in action since September 11, 2001, will receive full property tax exemptions for five years. A $2,500 annual exemption will be granted after five years.

The bill also allows local communities to suspend, without interest, local real estate taxes of active duty National Guardsmen and reservists until 180 days after they return home. Sales tax and vehicle excise tax exemptions for all veterans who qualify for a Disabled Veteran license plate are also extended.

H.B. 4660, Laws 2006, effective November 13, 2006, except where noted; Release, Massachusetts Governor Mitt Romney, August 14, 2006

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