100 Percent Disabled Veterans FAQ
Section 11.131 of the Tax Code requires an exemption of the total appraised value of homesteads of Texas veterans who received 100% compensation from the U.S. Department of Veterans Affairs due to a 100 percent disability rating or determination of individual unemployability by the U.S. Department of Veterans Affairs. Here are some common questions resulting from this legislation.
Can this exemption be applied to all properties owned by a veteran who qualifies?
ANSWER: No, this exemption can only be applied to a residence homestead of a disabled veteran.
A disabled veteran who owns property other than his residence homestead may apply for a different disabled veteran’s exemption. This exemption is in Tax Code Section 11.22 and is applied according to the veteran’s disability rating of 10% or higher. An eligible disabled veteran may receive both exemptions.
In order to qualify for this exemption, do you have to be receiving a 100 percent disability rating and receiving 100 percent service connected disability compensation?
ANSWER: Yes, a disabled veteran with a service connected disability receiving 100 percent disability compensation and with a disability rating of 100 percent (or determination of individual unemployability) would be eligible for this exemption.
To qualify for this exemption does a veteran have to be both unemployable and have a service connected disability rating of 100 percent?
ANSWER: No, a disabled veteran who has a service connected disability and is receiving 100 percent disability compensation would be eligible for this exemption if he or she is either 100 percent disabled or is unemployable.
When do you have to apply for this exemption?
ANSWER: You must make application to your local appraisal district between January 1 and April 30. You may download and print the Application for Residence Homestead Exemption from the Comptroller’s Web site.
If you become eligible for the 100% disabled veteran residence homestead exemption in the middle of a tax year, does the exemption apply to that tax year?
ANSWER: Beginning with the 2012 tax year, a person who qualifies for the exemption after January 1 of a tax year may receive the exemption immediately on qualification for the applicable portion of that tax year.
If a 100% disabled veteran moves to a different residence homestead in the middle of a tax year, what happens to the exemption on the previous residence?
ANSWER: If an exemption that applied to a residence homestead on January 1 ends during the year, tax is due on the homestead for the portion of the year after the date the exemption ends. This applies to tax years that begin on or after January 1, 2012.
If a 100% disabled veteran moves to a different residence homestead in the middle of a tax year, when does the exemption apply to the new residence?
ANSWER: The exemption starts immediately when the 100% disabled veteran’s residence homestead purchases the new residence. The tax due for that tax year is the amount due for the portion of the year before the exemption started. This applies to tax years that begin on or after January 1, 2012. A residence homestead application must be filed with the appraisal district in which the new residence homestead is located.
Surviving Spouse of 100 Percent Disabled Veterans
In 2011, Texas voters approved a residence homestead exemption for the surviving spouse of a 100% or totally disabled veteran. The residence homestead application form has been modified to incorporate these changes.
Who is entitled to the exemption?
ANSWER: An individual must have been married to a disabled veteran at the time of the veteran’s death and the disabled veteran must have qualified for the 100% or totally disabled veteran exemption when he or she died. The property must have been the residence homestead of the surviving spouse when the disabled veteran died and remain the residence homestead of the surviving spouse.
Could a surviving spouse be eligible for the exemption if the 100% disabled veteran died before the surviving spouse exemption became effective on Jan. 1, 2012?
ANSWER: According to a 2012 Attorney General Opinion (No. GA-0918), if a disabled veteran qualified for the 100% residence homestead exemption under Tax Code Section 11.131 and died in 2011, the spouse would qualify as of Jan. 2012 as long as all other requirements are met.
Does a surviving spouse qualify for an exemption if he or she remarries?
ANSWER: No. A surviving spouse does NOT qualify if the surviving spouse has remarried since the death of the disabled veteran.
How much is the exemption?
ANSWER: The total appraised value of the same property to which the disabled veteran's exemption applied.
What tax years can a surviving spouse obtain the exemption?
ANSWER: The exemption applies to a tax year beginning on or after Jan. 1, 2012.
If a surviving spouse qualifies for the exemption and then moves to a new residence homestead, can the surviving spouse get an exemption on that homestead?
ANSWER: A surviving spouse can receive an exemption on a subsequent homestead if he or she has not remarried since the death of the disabled veteran; however, the amount of the exemption is the dollar amount of the exemption from taxation of the former homestead in the last year the surviving spouse received the exemption.