Tennessee § 67-5-704 - Disabled veteran's residence.

§ 67-5-704. Disabled veteran's residence.

There shall be paid from the general funds of the state to certain disabled veterans the amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given tax year on that property that the disabled veteran owned and used as the disabled veteran's residence as provided in this section. Such reimbursement shall be paid on the first one hundred seventy-five thousand dollars ($175,000) of the full market value of such property. In determining the amount of relief to a taxpayer, the effective assessed value on the first one hundred seventy-five thousand dollars ($175,000) of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization. The effective assessed value shall be determined by multiplying the full market value of the property up to one hundred seventy-five thousand dollars ($175,000) by twenty-five percent (25%). The full market value of the property shall be determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization. For the purposes of this section, a “disabled veteran” means a person who has served in the armed forces of the United States, and who has: Acquired in connection with such service a disability from paraplegia or permanent paralysis of both legs and lower part of the body resulting from traumatic injury or disease to the spinal cord or brain, or from legal blindness, or from loss or loss of use of two (2) or more limbs from any service-connected cause; Acquired one hundred percent (100%) permanent total disability, as determined by the United States veterans' administration, and such disability resulting from having served as a prisoner of war; or Acquired service-connected permanent and total disability or disabilities, as determined by the United States department of veterans' affairs. Under no conditions shall property tax relief extend to any person who was dishonorably discharged from any of the armed services. The determination of the United States veterans' administration concerning the disability status of a veteran shall be conclusive for purposes of this section. Property tax relief shall also be extended to the surviving spouse of a disabled veteran who, at the time of the disabled veteran's death, was eligible for disabled veterans' property tax relief. If a subsequent amendment to the law concerning eligibility as a disabled veteran would have made the deceased veteran eligible for disabled veterans' property tax relief, then property tax relief shall also be extended to the surviving spouse. A surviving spouse shall continue to qualify for disabled veterans' property tax relief as long as the surviving spouse: Does not remarry; Solely or jointly owns the property for which tax relief is claimed; and Uses the property for which tax relief is claimed exclusively as a home. Property tax relief shall also be extended to the surviving spouse of a veteran whose death results from a service-connected, combat-related cause, as determined by the United States veterans' administration; provided, that: The surviving spouse does not remarry; and The property for which tax relief is claimed is owned by and used exclusively by the surviving spouse as a home. Property tax relief shall also be extended to the surviving spouse of a soldier whose death results from being deployed, away from any home base of training and in support of combat or peace operations; provided, that the surviving spouse: Does not remarry; Solely or jointly owns the property for which tax relief is claimed; and Uses the property for which tax relief is claimed exclusively as a home. The refund provided by this section shall be in lieu of any payment under § 67-5-702 or § 67-5-703. Any information concerning the disability status of a disabled veteran or the death of a soldier shall be confidential and shall not be subject to inspection under Tennessee public records law, compiled in title 10, chapter 7, but shall be available to local or state officials who administer, enforce, or audit the tax relief program or requirements under this section. A disabled veteran shall continue to qualify for property tax relief while the disabled veteran is temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility if the disabled veteran indicates an intent to return to the residence when recovered sufficiently. For purposes of this section, a disabled veteran's residence shall be determined in accordance with the principles set forth by § 2-2-122. Disabled veterans who were temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility during the period beginning on or after October 3, 2017, and prior to April 12, 2018, and whose reimbursement under this section ceased during such period as a result of such temporary relocation, shall receive reimbursement retroactively for such period, and shall continue to receive such reimbursement in accordance with this section on or after April 12, 2018. As used in this section, “disabled veteran” includes the veteran's otherwise qualified surviving spouse. Acts 1973, ch. 226, § 6; 1976, ch. 829, § 1; 1979, ch. 281, § 1; T.C.A., § 67-647; Acts 1980, ch. 690, § 1; 1981, ch. 328, § 1; 1983, ch. 127, § 5; T.C.A., § 67-672; Acts 1984, ch. 802, § 1; 1984, ch. 983, § 1; 1985, ch. 113, § 1; 1988, ch. 522, §§ 10-13; 1996, ch. 967, § 1; 2002, ch. 699, §§ 1, 2; 2002, ch. 751, § 1; 2004, ch. 852, § 1; 2005, ch. 458, §§ 1-3; 2006, ch. 884, §§ 1-4; 2006, ch. 978, § 1; 2006, ch. 1019, §§ 67-69; 2007, ch. 553, § 1; 2011, ch. 262, § 1; 2011, ch. 418, § 1; 2012, ch. 1087, § 1; 2013, ch. 63, § 3; 2015, ch. 481, §§ 4-6; 2016, ch. 1065, § 1; 2017, ch. 181, § 37; 2018, ch. 710, § 3. Compiler's Notes. Acts 2004, ch. 852, § 2 provided that the amendment by that act shall apply to tax years beginning on and after January 1, 2005. Acts 2005, ch. 458, § 4 provided that the act shall apply to tax years beginning on and after January 1, 2006. Acts 2006, ch. 884, § 5 provided that § 4 of the act shall apply to appeals pending on June 20, 2006, and that §§ 1-4 of the act shall apply to tax years beginning on and after January 1, 2007. Acts 2006, ch. 978, § 2 provided that no additional appropriation shall be made for the purpose of funding the act. Funds to be used to fund the act shall be earmarked out of the funds made available to the state board of equalization or the division of property assessment for certain disabled veterans by the general appropriations act. Acts 2006, ch. 978, § 3 provided that the act shall apply to tax years beginning on or after July 1, 2006. Acts 2006, ch. 884, §§ 1-3 purported to amend subdivisions (a)(2)-(4) with the same amendments enacted by Acts 2006, ch. 1019, §§ 67-69; therefore, the amendments by ch. 884 were not given effect. Acts 2011, ch. 418, § 2 provided that the act, which amended subsection (e), shall apply to tax years beginning on or after January 1, 2011. Acts 2013, ch. 63, § 5 provided that the act, which added subsection (i), shall apply to all information submitted and received for any tax years beginning prior to April 1, 2013, as well as tax years beginning after April 1, 2013. Acts 2015, ch. 481, § 1 provided that the act, which amended this section, shall be known and may be cited as the “Save the Tax Relief Act.” Acts 2017, ch. 181, § 1 provided that the act, which amended this section, shall be known and may be cited as the “Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy (IMPROVE) Act” or the “2017 Tax Cut Act.” Amendments. The 2018 amendment added (j)-(m). Effective Dates. Acts 2018, ch. 710, § 5. April 12, 2018. Cross-References. Confidentiality of public records, § 10-7-504 . Real property tax deferral applicable to disabled veterans, § 7-64-211 . Tax relief for disabled home owners authorized, Tenn. Const., art. II, § 28. Law Reviews. Selected Tennessee Legislation of 1983 (N. L. Resener, J. A. Whitson, K. J. Miller), 50 Tenn. L. Rev. 785 (1983). Attorney General Opinions. The maximum annual income threshold of T.C.A. § 67-5-704(a)(2)(A) (deleted in 2016) does not conflict with 38 U.S.C. § 5301(a) (1), which mandates that veterans' benefits be exempt from taxation. OAG 16-12, 2016 Tenn. AG LEXIS 12 (3/29/ 2016).