Veteran Exemptions Rules Passed But Sent Back to NY Assembly For Changes

Blooming Grove - In the beginning of January, New York's Governor Kathy Hochul signed a bill that was intended to provide full property exemptions for Disabled Veterans. As you can imagine the details of eligibility were complex, to say the least. By the end of January municipal Treasurers were beside themselves trying to help veterans wanting to qualify. Blooming Grove's Town Assessor, Vanessa Kelder had (along with other area assessors) participated in numerous online and in-person guidance sessions, and still had questions about applicability. To make the situation even more concerning, municipalities were

rushing to make their best efforts helping veterans with full disability get the help they required, yet after a full analysis no local veterans qualified for the exemption. Meanwhile, authorities in Albany were quickly notified of the

issues preventing the bill from working as it should. The New York State Assembly sat down and began re-writing the sections that were problemmatic (what happens if they volunteer in the community and get some kind of compensations, what happens if their condition improves...the possibilities are endless.) But meanwhile, what were local municipalities to do? Well, the saving factor in the situation was that the required assessment passage date of exemptions was delayed and would not affect property taxes yet, and so the Assembly would have ample time to fix the qualification issues.

On January 20th Vanessa Kelder, made a presentation to the Blooming Grove Town Board, and another to the Washingtonville Village Board. (Before the extension was implemented), with little time to spare the Boards made resolutions to pass the problemmatic bill WITH the understanding that if it was passed and as expected would be updated, it would be implemented more quickly when the Assembly finishes its changes. First the Board would have its Attorney review the Bill in detail.

In Blooming Grove and Washingtonville the Bill was passed by Resolution, Reviewed by Attorneys, and then Voted into Law. Since participation will no longer be optional by Fall, changes will be automatically applied.

Between the Disabled Veterans' Bill being passed as a resolution and then voted this month to be Law, one major change has already been made, and disabled veterans will be glad to hear that when the revised version is completed it will no longer be the case that every municipality can either participate or not. It will automatically apply to every City, Town and Village.

Of the first version of the Disabled Veterans' Bill, the following are the required elements (all of which are still applicable except for the date of implementation):

A county city, town, village or school district may adopt a local law or resolution to include the primary residence of any seriously disabled veteran who:

a)was discharged or released therefrom under honorable condition ;

b)has a qualifying condition, as defined in section one of the veterans' services law, and has received a discharge other than bad conduct or dishonorable from such services; or

c) is a discharged LGBT veteran, as defined in section one of the veterans' services law, and has received a discharge other than bad conduct or dishonorable from such services; and

d)is considered to be permanently and totally disabled as a result of military service;

e)is rated one hundred percent disabled by the United States department of veterans affairs;

f)has been rated by the United States department of veteran affairs as individually unemployable; and

g)who is eligible for pecuniary assistance from the United States government, or has received pecuniary assistance from the United States government and has applied such assistance toward the acquisition or modification of a suitable housing unit with special features or moveable facilities made necessary by the nature of the veteran's disability and the necessary law therefor shall be fully exempt from taxation and special district charges, assessments and social ad valorem levies, provided that such veteran meets all other requirements of this section.

This act shall take effect immediately and shall apply to assessment rolls prepared on and after January 2, 2026.

THE CURRENT LEGISLATIVE UPDATES: Chapter amendment for veterans with a 100 percent disability rating

To qualify, a veteran MUST MEET ALL OF THE FOLLOWING CRITERIA!

1. Have a qualifying condition under NYS Veterans' Services Law, defined as: Post-Traumatic Stress Disorder (PTSD) or

2. Traumatic Brain Injury (TBI), or

3. Military Sexual Trauma (MST), or

4. be a discharged LGBT Veteran with an other-than-dishonorable or bad conduct discharge; and

5. Have a 100% disability rating with a Permanent and Total designation from the VA; and

6. Have a Total Disability based on Individual Unemployability (TDIU) designation from the VA, and

7. Qualify for the VA's specially adapted housing grant

   
   

   This is NOT a BLANKET EXEMPTION FOR ALL VETERANS WITH A 100% DISABILITY RATING. Despite public perception the law does not provide a total exemption for all veterans receiving a 100% disability rating from the VA.

   
   

A proposed chapter amendment has been introduced in the legislation, here's what we know about the chapter amendment:

THE LOCAL OPTION TO OPT OUT HAS BEEN REMOVED. THE LAW WOULD BECOME MANDATORY

AN ADDITION OF FRAUD PROTECTION WAS ADDED.

THE CHAPTER AMENDMENT CLARIFIES THAT THIS NEW EXEMPTION IS AN ADDITIONAL EXEMPTION. iT DOES NOT REMOVE ANY PREVIOUS EXEMPTIONS FOR WHICH A VETERAN MAY QUALIFY.

THE ACT WOULD TAKE EFFECT ON TAXABLE STATUS DATES OCCURING ON AND AFTER OCTOBER 1, 2026 RATHER THAN JANUARY 2, 2026.

NOWHERE IN THE AMENDMENT DOES IT CHANGE THE REQUIRED QUALIFICATIONS.

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