Bill > SB387

This bill expands property tax exemptions for disabled veterans and their surviving spouses in Oregon by increasing the maximum tax exemption amounts and creating new eligibility tiers based on disability ratings. The bill raises the exemption limit from $15,000 to $60,000 for veterans with 40% or more disability, from $18,000 to $65,000 for veterans with 40-99% disability, and introduces a new $150,000 exemption for veterans with 100% disability or combined disability ratings equaling 100%. The bill also adds a special provision for veterans who meet unemployability criteria, offering a 90% property tax exemption if their property taxes exceed 14% of their taxable income. To qualify for these exemptions, veterans and surviving spouses must have an annual taxable income not exceeding $120,000 for individual filers or $240,000 for joint filers, with these income limits to be adjusted annually for inflation. The exemptions will apply to property tax years beginning on or after July 1, 2026, and the bill takes effect 91 days after the 2025 legislative session adjourns, providing enhanced financial support for disabled veterans and their families by reducing their property tax burdens.

Budget and Finance, Military Affairs and Security

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB387