Taxes, Ad Valorem

Plain English Breakdown

The bill summary and official digest do not provide specific details about the exact financial impact on state government expenditures beyond FY26-27.

Property Tax Relief for Disabled Veterans

This bill increases property tax relief for disabled veterans by raising the reimbursement limit from $175,000 to $200,000 of their home's full market value.

What This Bill Does

• Changes the amount of property tax relief for disabled veterans who own and use a home as their residence.
• Increases the maximum amount of the home’s value that can be reimbursed from $175,000 to $200,000.

Who It Names or Affects

• Disabled veterans who own and use a home as their residence in Tennessee.
• The state government which will fund the increased property tax relief for disabled veterans.

Terms To Know

disabled veteran

A person who has served in the U.S. armed forces and meets specific disability criteria, such as paraplegia or permanent paralysis from service-related injuries or diseases.

Limits and Unknowns

• The exact financial impact on local governments cannot be determined.
• This bill only affects property taxes for disabled veterans starting July 1, 2025.

Official Summary Text

Present law requires this state to provide from the general funds to disabled veterans the amount necessary to pay or reimburse them for all or part of the local property taxes paid for a given tax year on
a property owned and used as the disabled veteran's residence. The reimbursement is paid on the first $175,000 of the full market value of the property. This bill changes the amount from the first $175,000 to the first $200,000.

As used in present law,
a "disabled veteran" means a person who has served in the armed forces of the United States, and who meets any of the following criteria:



Acquired in connection with such service a disability from paraplegia or permanent paralysis of both legs and lower part of the body resulting from traumatic injury or disease to the spinal cord or brain, or from legal blindness, or from loss or loss of use of two or more limbs from any service-connected cause.



Acquired 100% permanent total disability, as determined by the United States veterans' administration, and such disability resulting from having served as a prisoner of war.



Acquired service-connected permanent and total disability or disabilities, as determined by the United States department of veterans' affairs.

Present law provides that, in determining the amount of relief to a taxpayer, the effective assessed value on the first $175,000 of full market value must be multiplied by a tax rate that has been adjusted to reflect the relationship between appraise
d value and market value in that jurisdiction, as determined by the state board of equalization. The effective assessed value is determined by multiplying the full market value of the property up to $175,000 by 25%. The full market value of the property

is determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board o
f
equalization.

For tax years beginning on or after July 1, 2025, this bill revises the above provisions by changing the reimbursement to be paid on from the first $175,000 to the first $200,000 of the full market value of the property.

Current Bill Text

SENATE BILL 12
By Walley

HOUSE BILL 151
By Gant

HB0151
000154
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 5, Part 7, relative to property tax relief for
veterans.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-704(a), is amended by deleting
"one hundred seventy-five thousand dollars ($175,000)" wherever it appears in subdivisions (2),
(3), and (4), and substituting instead "two hundred thousand dollars ($200,000)".
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to tax years beginning on or after that date.