INDIANAPOLIS (WRTV) -- Veteran advocates on Wednesday said a new property tax credit will make a big difference for Indiana's disabled veterans.
Gov. Mike Braun on Wednesday ceremonially signed a law that exempts from taxation the full assessed valuation of a home that is owned by a veteran who is classified as 100% disabled. This means they will not owe any property taxes at all.
Partially disabled wartime veterans will be eligible for a $350 credit on local property taxes, while partially disabled veterans ages 62 and older qualify for a $250 credit. Those two credits can be combined for a maximum benefit of $600, if a veteran is eligible for both. In addition, the new law repeals a provision that limited eligibility for the veteran property tax credits to those whose homes have an assessed value of less than $240,000.
Jason Black, the state adjutant for Disabled American Veterans' Indiana Department, said this last provision is the most impactful. He said disabled veterans often live on a fixed income and eliminating the eligibility cap opens up the tax credits for many more veterans.
"Whether or not they were 100% disabled or 10-90%, there was a huge gap in veterans that owned those homes that were valued at over $240,000 that just were not eligible due to the Indiana code," he said. "I absolutely believe that that's where we're going to see the majority of the veterans now being eligible for this benefit."
Ron Patterson, the commander of the American Legion's Indiana Department, said the new law might not make much of a difference for veterans who are financially stable, but it will make a big difference for veterans who lack financial stability. He said eliminating property taxes altogether for 100% disabled veterans could make a difference of several hundred dollars that could go toward groceries instead.
"A lot of them struggle with holding firm employment. A lot of them struggle with just the day-to-day paying of grocery bills," he said. "So the relief that the tax bill does is going to help them in everyday relief."
The new law takes effect for tax bills paid in 2027. Patterson and Black said veterans will need to refile their homestead claims with their county. They said veterans should contact veterans service organizations such as the American Legion or DAV for assistance.
