One State Could Save Thousands on Property Taxes

Veterans in Nebraska could save thousands in property taxes if a new homestead exemption gets passed this year.

A new bill proposed by state Senator Jen Day calls for veterans who are at least 10 percent but less than 100 percent disabled to get cheaper property taxes based on the extent of their disability.

Currently, only veterans with a "100 percent" service-connected disability can earn the homestead exemption, even though those with partial disabilities, including partial arm amputations, suffer from physical and psychological effects, Day said.

"It's my hope that we can provide targeted property tax relief to those who have made these life-changing sacrifices," Day said, as reported in the Unicameral Update.

The full amount of property taxes for these veterans would be calculated by their household income, as well, ensuring that veterans get the appropriate rate of taxes, according to Day.

The minimum for property taxes would then become $1,200 yearly. However, those with incomes between $38,910 and $100,000 if married, or $27,237 and $70,000 if single, would see an extra $120 to $4,800 annually.

Under the new bill, you'd only qualify for the reduced rate if your total household assets in the last three years were less than or equal to $1 million. Disabled veterans would also need to be already receiving Social Security or retirement benefits.

Altogether, a disabled veteran's property would be valued at 50 percent of its previous valuation for five years.

"This bill seems like a no-brainer. It helps our most vulnerable veterans and I'd love to see other states adopt it as well," Cody Horvat, a real estate broker for The Scott Group, told Newsweek.

The new homestead exemption would cost $142 million and need to be pass through further debate in the state Legislature.

Alan Chang, founder and president of Vested Title & Escrow, said he doesn't expect the bill to receive significant pushback because similar measures have been implemented in other states.

Some states like Alaska offer significant other benefits to veterans, including a tax break on the first $150,000 of their home value.

In Florida, veterans who are 100 percent disabled don't have to pay some driver's license fees. They also can get a $5,000 deduction on their home assessments.

"Most states have some sort of mechanism to reduce property taxes to those that proudly served our country, but the amount and qualifiers differ greatly," Chang told Newsweek.