SB 84

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"). To be eligible to claim the credit, the veteran must meet

several criteria, including having been a resident of this state at the time of entry into

the service or having been a resident of this state for any consecutive five-year period

after entry into that service, and having either a service-connected disability rating

of at least 100 percent or a 100 percent disability rating based on individual

unemployability.

Similarly, to be eligible to claim the credit as a spouse of a veteran, the veteran

to whom the unremarried surviving spouse was married must have been, generally,

a resident of this state at the time of entry into the service or a resident of this state

for any consecutive five-year period after entry into that service, and must have had

either a service-connected disability rating of at least 100 percent or a 100 percent

disability rating based on individual unemployability.

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 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.

This bill expands the definition of eligible unremarried surviving spouse to

include an individual who is eligible for, and receives, dependency and indemnity

compensation from the federal government due to his or her spouse's status as a

veteran whose death was service-connected.