Finance and Taxation committee recommends ‘do not pass’ on bill to raise disabled veterans’ home exemption to $200,000

The Finance and Taxation committee voted 6‑0 to recommend a “do not pass” on House Bill 12‑66, which would raise the property‑tax home exemption for disabled veterans from a true and full value of $180,000 to $200,000 and clarify eligibility when a disabled veteran co‑owns a residence.

The committee chair, Chairman Weber, told members the proposal’s intent is to put disabled veterans “on par” with other home exemptions and that committee staff and the bill sponsor planned to insert the provision into the pending property tax bill during conference committee rather than advance this standalone bill.

Committee members debated eligibility details during the hearing. Senators asked whether surviving spouses or children would continue to qualify and how the exemption interacts with other property‑tax credits. Committee members and staff clarified that the bill language focuses on ownership: a surviving spouse on the deed would continue eligibility, while a parent or child who is a joint owner is treated differently than a surviving spouse. Members also noted there is a statutory “pecking order” of credits that can affect total liability (Homestead Credit, Primary Residence credit, the disabled veteran credit) and that an individual could qualify for multiple credits until liability reached zero.

Committee discussion referenced an existing property tax bill (referred to in the hearing as House Bill 11‑76) as the intended vehicle for inserting the disabled‑veteran language in conference committee. Chairman Weber said that folding the change into the conference bill would reduce the number of separate bills the committee must process.

After discussion, Senator Grama moved a recommendation of “do not pass” on House Bill 12‑66; Senator Patton seconded. The clerk reported a roll call with all six committee members voting “yes.” Senator Patton agreed to carry the bill forward for the sponsor’s purposes.

The committee did not adopt the standalone bill; committee members said the sponsor and staff intend to pursue the change through the conference committee on the property tax package. No changes to law were enacted by the committee beyond the committee’s recommendation.

Implementation and next steps: committee members said final language would be placed into the larger property tax bill during conference committee and that further technical clarifications could be resolved with the state tax department if needed.