SB 512

Under current law, the veterans and surviving spouses property tax credit may

be claimed by certain U.S. armed forces veterans and by the unremarried surviving

spouses of certain veterans or members of the national guard or reserves

(collectively, "veterans"). The credit is refundable. If the amount of the credit for

which a claimant is eligible exceeds the claimant's income tax liability, the excess

amount of the credit is paid to the claimant by check.

In general, the credit may be currently claimed in an amount equal to the

property taxes paid by the claimant on the veteran's principal dwelling in the year

to which the claim relates. The term "principal dwelling" is defined as any dwelling

and the land surrounding it that is reasonably necessary for use of the dwelling as

a primary dwelling of the claimant. Consistent with a similar definition that is used

in calculating the homestead tax credit, the Department of Revenue interprets the

part of the definition of principal dwelling relating to "the land surrounding it that

is reasonably necessary for use of the dwelling as a primary dwelling" to be not more

than one acre of land.

This bill changes the part of the definition of principal dwelling relating to the

land surrounding the dwelling to be not more than three acres of land.